TAGS: Waterborne Adhesives
Research and Markets (RM) anticipates that the global water-based adhesives market is expected to grow from USD 40.64 billion in 2020 to USD 43.88 billion in 2021 at a compound annual growth rate (CAGR) of 8 percent. The market is expected to reach USD 54.71 billion in 2025 at a CAGR of 6 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.
Adhesives Market Growth Aided by Stable Economy
The water-based adhesives market consists of sales of water-based adhesives. Water-based adhesives are formulated either from natural polymers or soluble synthetic polymers which may be supplied as solutions or formulated as dry powders.
The adhesives market growth is aided by stable economic growth forecasted in many developed and developing countries. The International Monetary Fund (IMF) predicts that the global real GDP growth will be 3.7% over 2019 and 2020 and 3.6% from 2021 to 2023. Recovering commodity prices, after a significant decline in the historic period is further expected to aid the market growth. Developed economies are also expected to register stable growth during the forecast period.
Additionally, emerging markets are expected to continue to grow slightly faster than the developed markets in the forecast period. For instance, India’s GDP is expected to grow at 7.3%, whereas China is forecasted to register a GDP growth of 6.2% in 2019. Stable economic growth is expected to increase investments at the end-user markets, thereby driving the market during the forecast period.
Adoption of Internet of Things to Garner Real-time Insights
Slower drying and freezing at low temperatures are the major issues with water-based adhesives. Due to the volatile characteristics of water, the drying process is taking long hours and the work process might be delayed. For example, companies such as Henkel are producing Technomelt adhesives which are hot melt adhesives in the automotive and furniture industry as they are quick to dry adhesives. Thus, the slower drying nature is limiting the growth of water-based adhesives.
The water-based adhesives market is segmented by type of resin into acrylic polymer emulsion (PAE), polyvinyl acetate (PVA) emulsion, vinyl acetate-ethylene (VAE) emulsion, styrene-butadiene (SB) latex, and polyurethane dispersion (PUD). The water-based adhesives market in this report is segmented by application into tapes & labels, paper & packaging, building & construction: automotive & transportation, others (consumer & DIY, leather & footwear, sports & leisure, and assembly).
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. 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