TAGS: Solvent borne Adhesives Sealants
Research and Markets (RM) anticipates that the market for global solvent-based adhesives is expected to grow from 4.62 billion USD in 2020 to 4.82 billion USD in 2021 at a compound annual growth rate (CAGR) of 4.3 percent. The market is expected to reach 5.27 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.
The solvent-based adhesives market consists of sales of solvent-based adhesives that are formulated on an elastomer dissolved in a solvent or phenolic/formaldehyde resins dissolved in a solvent.
Increased Demand from Lightweight Automobile Industry
The solvent-based adhesives market is expected to benefit from growth in the automobile manufacturing 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 adhesives and sealants are used in place of welded joints, mechanical fasteners and gaskets and help reduce the weight of the automobile. Thus, the rising demand for lightweight automobiles is expected to increase the demand for solvent-based adhesives during the forecast period.
Stringent safety regulations associated with the manufacturing and transportation of adhesive chemicals are acting as a restraint on the market. Adhesives are highly inflammable, toxic and hazardous when exposed to extreme temperatures and pressures. Companies in this industry are required to invest in equipment, technologies and processes to limit toxic levels and chemical contamination. These regulations increase operating costs for companies, thus limiting investments for business growth.
Adoption of IoT to Optimize Manufacturing Process
Companies in the solvent-based adhesives market are adopting IoT (Internet of Things) technologies to connect equipment, smart devices to gather real-time insights and optimize 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.
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.
Source: Research and Markets