TAGS: Solvent borne Adhesives Hot-melt Adhesives Reactive Adhesives UV/EB Cure Adhesives
Research and Markets (RM) anticipates that the global adhesives market is expected to reach $116.33 billion in 2027 at a CAGR of 8.5% from $77.15 billion in 2022, during the forecast period.
The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term. The war between these two countries has led to economic sanctions on multiple countries, a surge in commodity prices, and supply chain disruptions, causing inflation across goods and services and affecting many markets across the globe.
Impact of Geopolitical Tensions
The adhesives refer to products such as glues, and caulking compounds that are used to bind surfaces of two separate items. The adhesives include properties such as abrasion resistant, creep and fatigue resistant, dimensionally stable, flexible and toughened, low shrinkage, and hardness.
The main types of adhesives are water-based adhesives, solvent-based adhesives, hot-melt-based adhesives, reactive adhesives and other types of adhesives. Water-based adhesives are formulated with natural and synthetic polymers that will readily dissolve in water. They harden by evaporating water or by absorption of water into the porous substrate. The product types are acrylic, PVA, polyurethane, styrenic block, epoxy, Eva, and other product types. The various applications involved are packaging, construction, laminates, woodstock and furnishing, automobiles, footwear, and other applications.
Rising geopolitical tensions had a negative impact on the adhesives market during the historic period. Repercussions of geopolitical tensions include sanctions on Russia, trade protectionism, and heightened military tensions in the Middle East. Many countries place trade restrictions, especially on imports, to boost local production. For instance, Brexit is likely to lead to more trade restrictions between the UK and other countries in Europe. The US is also implementing several trade restrictions, especially with China, to boost its local production. For instance, the US imposed tariffs on $550 billion worth of Chinese goods, including chemicals and plastics, as of January 2020. Continued violence and terrorism in the Middle East and other parts of the world are also expected to have a negative impact on the market.
Many adhesive companies are adopting IoT (Internet of Things) technologies to connect equipment and smart devices to obtain real-time insights and identify inefficiencies in the manufacturing process. The data obtained is processed, analyzed, and interpreted by plant managers and senior-level management to improve quality and achieve optimum production levels. For example, smart systems give information on the working condition and performance of chemical reactors with embedded software and analytics tools to notify plant operators and managers of possible machine breakdowns. For instance, some of the major companies adopting IoT include BASF SE, The Dow Chemical Company, and H.B. Fuller.
Highest Growth in Asia Pacific Region
Asia-Pacific was the largest region in the adhesives market in 2022. North America was the second-largest region in the adhesives market. The regions covered in the adhesives market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.
During this historic period, technological development was a key driver of the global economy. Industries such as the adhesives industry, which involve technology, benefited from this trend. Technologies such as hot melts, reactive acrylics, and UV systems have become popular because of their safety and energy efficiency. Adhesives also replaced mechanical fastening systems due to better performance and overall lower costs. These factors drove the adhesives market during the historic period.
Source: Research and Markets