TAGS: Reactive Adhesives Sealants
Research and Markets (RM) anticipates that the global reactive & other adhesives market is expected to grow from 6.47 billion USD in 2020 to 6.72 billion USD in 2021 at a compound annual growth rate (CAGR) of 3.9 percent. The market is expected to reach 7.2 billion USD in 2025 at a CAGR of 2 percent.
The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges.
Drive for Production of Lightweight Vehicles
The reactive & other adhesives market consists of sales of reactive & other adhesives which are generally made out of monomer (resin) and an initiator.
The adhesive market is expected to benefit from growth in the automobiles industry during the forecast period. There is a drive for the production of lightweight automobiles which is leading to an increase in demand for adhesives and sealants. These are used in place of welded joints, mechanical fasteners and gaskets and help reduce the weight of the automobile.
For instance, companies such as Jowat are using reactive adhesives for a perfect bonding of vehicle parts in the automotive industry. Thus, the increased use of plastics in automobiles is expected to increase the demand for reactive adhesives during the forecast period.
Stringent safety regulations associated with the manufacturing and transportation of adhesives chemicals were a major restraint on the market. These substances are highly inflammable, toxic and hazardous when exposed to extreme temperatures and pressures. Companies in this industry should invest in equipment, technologies and processes to limit toxic levels and chemical concentrations. These regulations increased the operating costs of companies in this industry, thus limiting the scope for investments relating to the launch of new products and expansion into new markets, thereby affecting the market growth.
Many Companies Adopting Internet of Things
Many adhesive companies are adopting IoT (Internet of Things) technologies to connect equipment and smart devices to garner real-time insights and locate gaps 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.
In November 2020, Pidilite Industries, an Indian adhesives manufacturing company acquired Huntsman Corporation for 28558.8 million. USD Through this acquisition Araldite will add to the already very strong portfolio of Pidilite Industries adhesives and sealants and will complement Pidilite Industries retail portfolio. Huntsman Corporation, an American manufacturer and marketer of chemical products for consumers and industrial customers.
Source: Research and Markets