TAGS: Epoxy Adhesives Polyurethane Adhesives Acrylic Adhesives Sealants
Research and Markets (RM) anticipates that the global plastic adhesives market is expected to grow from USD 6.15 billion in 2020 to USD 6.69 billion in 2021 at a compound annual growth rate (CAGR) of 8.72 percent.
The growth in the forecast period can be attributed to an increase in demand for plastic adhesives from the building and construction industries and other end-users, such as the automobile industry. The market is expected to reach $9.12 billion in 2025 at a CAGR of 8.06%.
Adhesives Used to Bind Plastic Materials
The plastic adhesives market consists of sales of plastic adhesives by entities (organizations, sole traders, and partnerships) that are engaged in manufacturing plastic adhesives. Plastic adhesives refer to a special type of adhesives used for bonding plastic materials together such as polycarbonate, acrylic, styrene, and other plastics. It is used for fixing home appliances such as a computer, phones, audio appliances and for fixing car parts, electrical tubes, and others. Only goods and services traded between entities or sold to end consumers are included.
The main types of resin used in manufacturing plastic adhesives include epoxy, polyurethane, acrylic, silicone, MMA, cyanoacrylate. Epoxy is a two-part adhesive formed by mixing epoxy resin and hardener. Polyurethane adhesive is a thermoplastic polymer-based glue. It is formed by a chemical reaction between the polymers. This glue is extremely strong and resistant to most forms of degradation. An acrylic adhesive is a resin-based adhesive that is made up of acrylic or methyl acrylic polymers. An extremely strong form of an adhesive, acrylic adhesive often finds its use in the construction industry owing to its strength and environmental resistance.
Methyl methacrylate (MMA) adhesives are acrylic adhesives that are made of a resin and hardener, which cure quickly at room temperature and have full bond strength soon after application. Cyanoacrylates or super glues are strong and fast-acting adhesives with industrial, medical, and household uses. The different types of technologies are and are used in automotive, building and construction, electrical and electronics, medical, packaging industries.
Largest Region in Plastic Adhesives: Asia Pacific
The Asia Pacific was the largest region in the plastic adhesives market in 2020. The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.
Adhesive products are potentially hazardous during the manufacturing stages, which negatively impacted the growth of the plastic adhesive market in the historic period. This is mainly because the manufacturing processes involve high temperatures and high-pressure reactions which can be dangerous unless controlled carefully. Due to this, regulations in the adhesives industry - in assessing and managing the risks involved in the manufacturing, transporting, and disposing of chemicals - increased in the historic period. Adhesives have to be compliant with complex regulations that govern labeling, handling, manufacturing, and shipping, and storage of the product. Additional compliance costs due to changing regulations, as different countries and geographies have different regulations, were a major restraint for plastic adhesives companies.
In October 2020, Pidilite, an Indian company that specializes in the manufacturing of adhesives, they also sell various industrial and construction chemicals, acquired Huntsmans India unit for $284 million US. The acquisition is expected to help Pidilite strengthen its portfolio by adding Araldite to its portfolio of products. Also, in addition to the Indian subcontinent business, the acquisition includes a trademark license for the Middle East, Africa, and ASEAN countries. Huntsman Corporation specializes in the manufacturing and marketing of chemical products. Huntsman Corporation was founded in 1982. Huntsman Corporation is an American company, headquartered in Texas.
Increasing Demand from Construction Sector
Increasing demand for plastic adhesives from the construction sector coupled with the growth of the construction industry is anticipated to boost the demand for the plastic adhesives market over the forecast period. In the construction sector, adhesives are used in the adhesion of ceramic tiles, carpet laying, manufactured housing and prefabricated housing, fixing of vinyl or resilient flooring, pre-finished panels, fixing roof titles or systems, fixing floor or drywall lamination, and other applications.
Economic growth and a rapidly growing urban population are expected to increase the demand for new residential and commercial buildings during the forecast period, thus increase the demand for adhesives. Large opportunities are expected to arise in Asian countries such as Indonesia, Vietnam, and the Philippines which are becoming increasingly popular for export-oriented manufacturing.
According to the World Bank, the urban population in South Asia is expected to grow by 250 million by 2030. According to a report by PwC, around 60% of the world population is expected to live in cities by 2030. This rapid urbanization is expected to boost the demand for infrastructure and drive the adhesives market going forward.
Many Companies Using Automation for Production Process
Plastic adhesive companies are increasingly using automation and instrumentation solutions to control the production process more effectively. Automation instruments include control valves, temperature transmitters, level transmitters, flow transmitters, and pressure transmitters that help improve operational efficiency in manufacturing facilities. For example, in 2020, Henkel invested $55 million for new adhesives facility in India.
This factory is expected to be the largest adhesive manufacturing site in India, the smart manufacturing unit will be launched near Pune and it aims to meet the growing demands of high-performance solutions in adhesives, sealants, and surface treatment products within the Asian country.
Companies such as IBG use automated processes and high quality to achieve high efficiency and standardized work. IBG offers various automated systems used for bonding and sealing with different adhesives and sealants as well as turnkey plants.
The countries covered in the plastic adhesives market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, and the USA.
Source: Research and Markets