Engineering adhesives market size is forecast to reach US$16.5 billion by 2027, after growing at a CAGR of 5.3% during 2022-2027. Engineering adhesives mostly comprises of acrylics, urethanes, and epoxy resin. Engineering adhesives as a substitution for traditional joining methods such as fasteners and welding are used to join materials, with the help of adhesion promoters, such as steel, engineering plastics, elastomeric material, composites, and aluminum. Factors such as exceptional bonding strength, durability, and high-temperature resistance, make engineering adhesives suitable for construction and automotive applications. Non-metal substrates are widely used in the construction industry due to their lightweight and low cost and are expected to drive the engineering adhesives market in the forecast period. Also, increasing demand from manufacturing industries and rising applications for industrial activities are driving the engineering adhesives market growth.
The COVID-19 outbreak widely affected the engineering adhesives market over the year 2020. Owing to the nationwide lockdown, the production process of various goods in the end-use industry declined due to the non-functioning of the manufacturing plants. The domestic sales and export of different raw materials have also witnessed a halt during the COVID-19 outbreak. Economies of each sector got affected and resulted in stagnation of activities across the industries that uses engineering adhesives. For instance, according to Eurostat, In April 2021, construction production decreased by 1.6% in the E.U. compared with March 2021; in the euro area, the decrease amounted to 2.2%. Additionally, after an unprecedented decline in March and April (-25.4%), construction in the E.U. region increased dynamically in May 2020 (21.6%) but has since stagnated. Thus, once the building and construction, and transportation activities get back on track and start functioning with total capacity, the market for engineering adhesives is estimated to incline in the upcoming years.
Engineering Adhesives Market Segment Analysis – By Type
Epoxy held the largest share in the engineering adhesives market in 2021. Epoxy is the major type of engineering adhesive used in various applications such as metal, glass, and plastics. Epoxy resin can be forged as a flexible, high optical transparent, and fast or slow setting. Also, it has a high-performance bonding strength. As compared to other adhesives, epoxy resin provides better heat and chemical resistance properties. Generally, epoxy resin cured with heat will be more heat- and chemical-resistant in comparison to other common adhesives, cured at room temperature. Some epoxies are also known to be cured by exposure to UV light. Since these coatings provide extra-ordinary resistance to heat, corrosive chemicals, and UV light, as compared to polyurethane, it is widely being preferred by industrial finishers as epoxy surface coatings. Thus, increasing demand for epoxy over other engineering adhesives types due to its alluring properties would drive the market growth in the forecast period.
Engineering Adhesives Market Segment Analysis – By Substrate
Concrete substrate held the largest share in the engineering adhesives market in 2021. Engineering adhesives such as epoxy resin, silicone, polyurethane, and others are used over concrete substrates as floor coatings, due to their impact resistance, hardness, and durable properties. An epoxy floor coatings adhere to the concrete floors by adhesion promoter, better than any conventional enamel, oil-based, or water paint. Industrial facilities, logistic centers, warehouses, and other areas coming under applications of heavy-duty make use of commercial epoxy coatings due to their ideal properties. Since the building and construction activities are booming rapidly with industrial flooring as the major application in it, the demand for engineering adhesives on the concrete substrate is also set to rise. For instance, according to Invest India, by 2025, the building and construction industry is expected to reach US$ 1.4 trillion. Also, the Indian construction industry increased its growth by 5.6% during 2016-20, compared to 2.9% during 2011-15. Thus, increased usage of engineering adhesives on the concrete substrate will drive the growth of the market in the forecast period.
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Engineering Adhesives Market Segment Analysis – By Application
The building materials held the largest share with 28% in the engineering adhesives market in 2021. Engineering adhesives are majorly used to provide extreme toughness, quick-drying, and abrasion resistance to the building materials. In industrial or commercial sectors, for building materials applications, engineering adhesives can be used for hybrid constructions, polyurethane construction, insulation panels, and others; in an expansion joint, perimeter sealing, and others. The increasing building and construction projects will raise the demand for engineering adhesives for building materials application. For instance, Larsen & Toubro, in India, in 2019, won contracts for building hospitals, commercial complexes, and manufacturing capacity. This contract ranged from 2,500 crores (US$ 336.6 million) to 5000 crores (US$ 673.2 million), falling under the large category. Thus, such investments will drive the demand for building materials applications and would raise the growth of the market over the forecast period.
Engineering Adhesives Market Segment Analysis – By End-Use Industry
Building and construction industry held the largest share in the engineering adhesives market in 2021 and is estimated to grow at a CAGR of 5.9% during 2022-2027. In the building and construction industry engineering adhesives find usage in numerous applications such as in glass, ceramics, building materials, medical equipment, furniture, rolling stocks, containers, packaging, passive electronics, agricultural machinery and equipment, optical equipment, and others. In recent years, with the growing building and construction activities, the demand for engineering adhesives is anticipated to rise. The building and construction activities are increasing rapidly in emerging economies such as India, the United States, China, and other countries. For instance, according to the World Bank, in 2020, the building and construction industry reached about US$ 11.9 trillion, with an increase of about 4.2% from 2019. Thus, with the growth of the building and construction sector, the market for engineering adhesives will further rise over the forecast period.
Engineering Adhesives Market Segment Analysis – By Geography
Asia-Pacific region dominated the engineering adhesives market with a share of 37.4% in the year 2021. The Asia Pacific region is predicted to continue its dominance in the market during the forecast period due to the increasing requirement for engineering adhesives in developing countries such as China, Japan, India, and South Korea. China is expected to continue its dominance in the engineering adhesives market during the forecast period. This is due to the growth of the transportation and construction industries in the country. For instance, according to International Trade Administration, in China, construction industry revenue was reported to increase from US$ 968 billion in 2019 to US$ 1.1 trillion in 2021. India and Taiwan are also predicted to grow their engineering adhesives market during the forecast period, with increased investments by the government in construction, transportation, and other end-use industry. Engineering adhesives are used in an automobile to assemble plastics, metal, rubber, glass, elastomeric material, and a variety of other materials during the manufacturing process. Engineering adhesives help to prevent the access of water, dirt, and salt in the car body shell. According to Invest India, in 2020, the transportation industry was worth US$ 806.63 billion and is further expected to grow at a CAGR of 5.9%. Thus, the rising usage of engineering adhesives in various end-use industries will drive market growth in the forecast period.
Engineering Adhesives Market Drivers
Increasing Demand for Engineering Adhesives in Transportation Industry
Engineering adhesives in the transportation industry provide great advantages in preventing rust and corrosion on vehicle body parts. It is also used for assembling vehicle components and adhesive products, replacing fasteners. It involves applying a primer to metal parts that are anti-corrosive and are made up of a thin epoxy-based coating. Additionally, engineering adhesive bonding reduces steps in the manufacturing processes, and hence, resulting in reduced cost. The rising production of automotive in recent years have uplifted the growth of the industry. For instance, according to Organisation Internationale des Constructeurs d’Automobiles (OICA), in Austria, motor vehicle production increased from 1,64,900 units in 2018 to 1,79,400 units in the year 2019. Similarly, in Vietnam, the production of motor vehicles increased from 2,37,000 units in 2018 to 2,50,000 units in the year 2019. Furthermore, with formulations availability, concrete, and steel marine structures are protected by engineering adhesives, to adhere to wet substrates with the use of adhesion promoters, such as coating water tanks, outfall structures, fish ladders, and dams. Engineering adhesives in the marine industry is suitable for application in shipbuilding, maintenance, and repair. The increasing investments in the marine industry projects by the government will also drive the market for engineering adhesives. For instance, according to the Indian Brand Equity Foundation, in Maritime India Summit 2021, the Ministry of Ports, Shipping, and Waterways identified a total of 400 projects worth Rs. 2.25 lakh crore (US$ 31 billion) investment. With the increasing production of automobiles and increasing investments in the marine industry projects by the government, it is estimated that in the upcoming years the requirement for engineering adhesives in the transportation industry will rise and eventually boos the market growth.
Rising Demand for Bio-Based Adhesives Will Drive the Market Growth
Due to environmental awareness, volatile organic compounds (VOCs) emissions in adhesives have become a subject of concern. Regulatory authorities, such as EPA (Environmental Protection Agency) and REACH (Registration, Evaluation, Authorization, and Restriction of Chemicals), are giving a push to limit the use of solvent-borne adhesives to decline the impact on the environment. The industry has thus, shifted its focus towards the expansion of bio-based adhesives to engineer eco-friendly adhesives, based on organic starch, vegetable oils, water, and soya, manufacturers are increasingly investing in manufacturing and product development programs. For instance, in 2020, Toyochem Co., Ltd. developed a new series of biodegradable pressure-sensitive adhesives (PSAs). The newly developed product is suitable for materials used in packaging, building, agriculture, and other industries where biodegradable or recoverable materials are preferred. Therefore, the rising demand for bio-based adhesives is expected to drive the growth of the engineering adhesives market.
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Engineering Adhesives Market Challenges
The Difficult Application Process of Engineering Adhesives Coatings Will Hamper the Market Growth
The difficult application process of engineering adhesives such as epoxy is its major disadvantage. Engineering adhesives cannot be applied to contaminated, unprepared, or damaged surfaces. The surface must be clean without any grease, solvent, or oils over it, to ensure the long life of the coating. Repairing of the damaged surfaces is often required, increasing the overall cost and the concrete is needed to be ground to profile the surface, also seven days are required by the coatings, approximately, to cure, therefore being time-consuming. Thus, due to difficulty in the application process, the growth of the engineering adhesives market will be hindered in the forecast period.
Engineering Adhesives Industry Outlook
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in this market. Engineering Adhesives top 10 companies include:
Henkel AG & Co. KGaA
Huntsman Advanced Materials
Dow Corning Corporation
H. B. Fuller
Royal Adhesives & Sealants
In 2021, Arkema announced that it has signed an agreement for the acquisition of Ashland’s performance adhesives business. The offer was of US$ 1.65 billion enterprise value.
Asia-Pacific region dominates the engineering adhesives market owing to the rising growth and increasing investments in the construction industry. For instance, according to the Department for Promotion of Industry and Internal Trade (DPIIT), till December 2020, Foreign Direct Investment (FDI) in the construction industry stood at US$ 23.99 billion.
The rise in the adoption of engineering adhesives in the transportation industry for the production of various automotive will raise the demand for engineering adhesives which would drive the market growth.
The development in fermentation and microbial processes has led to the advancement of polyurethane adhesive products, which is driving the growth of the engineering adhesives industry.
Increasing difficulties in the application process of the engineering adhesives are anticipated to create challenges for the growth of the engineering adhesives market in the projected period.
Epoxy Adhesives Market
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