Industrial Adhesives Market Size, Share Global Analysis Report, 2024 – 2032

Industry Insights

[211+ Pages Report] According to Facts & Factors, the global industrial adhesives market size in terms of market revenue was valued at around USD 52.34 billion in 2023 and is expected to reach a value of USD 83.64 billion by 2032, growing at a CAGR of roughly 5.35% from 2024 to 2032. The global industrial adhesives market is projected to grow at a significant growth rate due to several driving factors.

Market Overview

Industrial adhesives are important in the manufacturing processes across different end-user sectors like construction, electronics, aerospace, automotive, packaging, and many others. There are different types of industrial adhesives available on the market, such as polyurethane adhesives, epoxy adhesives, acrylic adhesives, hot-melt adhesives, silicon adhesives, and many others. Industrial adhesives offer efficient solutions for assembly, sealing, and bonding across diverse industries.

Key Highlights

• The global industrial adhesives market size is estimated to grow annually at a CAGR of around 5.35% over the forecast period (2024-2032).
• In terms of revenue, the global industrial adhesives market was estimated at roughly USD 52.34 billion in 2023 and is predicted to attain a value of USD 83.64 billion by 2032.
• Rising need to focus on core competencies is driving the growth of the global industrial adhesives market.
• Based on the end-users, the automotive & aerospace segment is growing at a high rate and is projected to dominate the global market.
• Based on the technology, the water-based adhesives segment is projected to swipe the largest market share.
• Based on product type, the acrylic adhesives segment is expected to dominate the global market.
• Based on region, North America is expected to dominate the global market during the forecast period.

Growth Drivers:

• Rising demand from end-user sectors is driving the growth of the global market

The global industrial adhesives market is characterized by intense competition between players because of the rising demand from end-user sectors. The automotive sector is significantly shifting its working from traditional vehicles to modern lightweight vehicles, which involves the usage of industrial adhesives because they help lower emissions and improve fuel efficiency, thereby enhancing the overall vehicle performance. The fast-growing electronic sector is also driving the demand for adhesives that help in thermal management, encapsulation, and bonding.

However, the rising demand for wearable devices, tablets, and smartphones is further likely to stimulate the growth of the industry. The packaging sector is also likely to positively impact the growth of the industry because of the rise in e-commerce activities. It helps in laminating, labeling, and sealing applications in the packaging sector. The ongoing technological advancements like nanotechnology are likely to positively impact the growth of the industry. Nanomaterials are widely used in adhesive formulations to improve the overall performance.

The emergence of smart adhesives with advanced capabilities like self-sensing features is likely to propel the growth of the industry. Manufacturers are coming up with innovative formulations with improved flexibility, temperature resistance, and bonding strength, which is likely to diversify their scope of applications. For instance, Meridian Adhesives Group successfully acquired American Sealants Inc. in 2021. This acquisition is aimed at developing a diverse product line and technology base for the firm.

Restraints:

• Raw material and price volatility issues are expected to hamper the growth of the global market

Disruption in the supply chain because of many factors like natural disasters, geopolitical tensions, and many others causes the shortage of raw materials, which is expected to negatively impact the trajectory of the industrial adhesives industry. Industrial adhesives are extracted from petrochemicals, and fluctuations in crude oil prices further affect the growth of the industry.

Opportunities:

• Rising requirements for customization and specialty adhesion applications are expected to foster growth

Growing demand for customized adhesive solutions for particular applications like quick setting adhesives for rapid assembly lines. High-performing adhesives for the aerospace sector are expected to foster growth opportunities in the global industrial adhesives market. Specialty adhesives, such as medical adhesives for healthcare applications, are also likely to expand the scope of the industry. The emergence of Industry 4.0 and automation is also likely to positively impact the growth trajectory of the market. The rising adoption of automated adhesive dispensing systems for achieving precision and high efficiency is further widening the scope of the industrial adhesives industry.

Moreover, the rising integration of digital devices in manufacturing processes is also driving the growth of the industry. For instance, Arkema strategically acquired Permoseal in 2021. The acquired company is based in South Africa and is a prominent player in the field of adhesive solutions for packaging, construction, and woodworking.

Challenges:

• Regulatory framework is a big challenge in the global market.

Complying with strict environmental regulations like TSCA and REACH is a big challenge in the global market. Also, frequent industry updates and changes in regulatory policies are likely to negatively impact the growth trajectory of the industry. Technological barriers like high R&D costs and complex manufacturing processes further slow down the growth of the market.

Industrial Adhesives Market: Segmentation Analysis

The global industrial adhesives market can be segmented into end-users, technology, product type, and region.

By End-Users Insights

Based on end-users, the market can be segmented into paper, footwear, glass making, electronics, construction, packaging, consumer goods, healthcare & hygiene, automotive & aerospace, and others. The automotive & aerospace segment is likely to dominate the global market in the coming years. The automotive sector emphasizes reducing the weight of vehicles to lower emissions and improve efficiency. Adhesives are important in swapping the traditional mechanical fasteners, which are quite heavier.

Additionally, the growing use of advanced materials like aluminum, composites, and high-strength steel further poses a huge requirement for specialized adhesives in the market. These adhesives are said to stand the external environmental conditions by offering strong bonds between the surfaces and improving the structure, integrity, and safety of the vehicles. These help with vibration tapping and are resistant to corrosion. Therefore, all these factors are likely to contribute to the growth of the segment.

By Technology Insights

On the basis of technology, the market can be segmented into hot melt adhesives, solvent-based adhesives, water-based adhesives, pressure-sensitive adhesives, UV cure adhesives, and others. Water-based adhesives segment accounts for the largest share of the global market during the forecast period. Water-based adhesives are environmentally friendly as they help lower volatile organic compound emissions and help end-users align with sustainability goals.

Additionally, these adhesives are easy to use as compared to other available options in the market. Water-based adhesives are versatile in nature and, therefore, used in a number of applications like bookbinding, woodwork, and packaging because of their advanced bonding capabilities. Water-based adhesives are cost-effective and help lower health hazards. Water-based adhesives are composed of water as a primary solvent and, therefore, can easily be used in packaging.

By Product Type Insights

In terms of product type, the market can be segmented into EVA, polyurethane, PVA, epoxy-based adhesives, acrylic adhesives, and others. Acrylic adhesive is the fastest-growing segment in the industrial adhesives industry. Acrylic adhesives are popular because of their excellent adhesion properties and their bonding with diverse materials like composites, plastics, and metals.

Also, these adhesives have a fast cure time, which makes them ideal for a number of applications across different end-user sectors. These offer high resistance to environmental factors like moisture, light, and temperature fluctuations, thereby making them ideal for outdoor applications. Furthermore, the rising demand in end-user sectors like automotive and construction is another major reason expected for the growth of the segment manifolds. Also, advancements in adhesive technologies are likely to widen the scope of the segment by creating high-performing acrylic adhesives.

Report Scope

Industrial Adhesives Market: Regional Analysis

• North America to dominate the global market

North America accounts for the largest share of the global industrial adhesives market during the forecast period. The region is experiencing steady growth and is likely to witness strong industrial activities in the coming years, which is a major reason for the high growth rate of the market. Rising demand for key industries like electronics, construction, aerospace, and automotive is also likely to expand the regional market in the coming years. The automotive sector is focusing highly on coming up with efficient and lightweight vehicles, which is likely to accentuate the demand in the regional market.

The fast-growing construction industry in the region is posing a huge demand for sustainable and green building practices, which is likely to strengthen the growth of the industry in the region. The United States is the largest market in the region because of the presence of strong market players along with major R&D centers. Canada and Mexico are also anticipated to grow significantly in the coming years because of the nation’s commitment to sustainability. Rising industrialization in these countries is further expected to positively impact the growth trajectory of the regional market.

Asia Pacific is another major reason likely to see significant growth in the coming years. Growing economies like China, India, Japan, and South Korea are contributing heavily towards the growth of the regional market. Rising initiatives from these countries, like Make in India, that support the manufacturing and infrastructure development in the country are also supporting the growth trajectory. China is posing a high demand for industrial goods because of its robust manufacturing base and infrastructure projects that are currently ongoing. South Korea and Japan are also likely to see significant growth in demand for industrial adhesives because of the fast-growing automotive and electronic sector in the region.

Also, these countries are characterized by high-tech and innovative applications, which in turn is a primary reason for the high growth rate of the regional market. For instance, Avery Dennison took over the Transponder RFID Inlay business line of Smartrac N.V. in 2019. The latter company is a manufacturer of high-security RFID inlays.

Industrial Adhesives Market: Competitive Analysis

Some of the main competitors dominating the global industrial adhesives market include;

• Chemlok
• Vulkaflex Industria
• GRECO
• Hongsu Adhesive Products Industrial Co., Ltd
• Tonsan
• DELO Adhesives
• YAMATO Co., Ltd.
• Super Glue Corporation
• Glue Dots International
• Master Bond Inc.
• Cargill Incorporated
• Panacol-Elosol GmbH
• Organik Kimya
• Covestro AG
• Pidilite Industries Limited
• Teraoka Seisakusho co., Ltd.
• Huntsman Corporation
• H.B. Fuller Company
• Henkel AG & Co. KGaA

For instance, Henkel said to install a new manufacturing facility for Adhesive Technologies in 2023. This new business unit is located in China, named Yantai Chemical Industry Park. The unit received an investment of EUR 120 million.

The global industrial adhesives market is segmented as follows:

By End-Users Segment Analysis

• Paper
• Footwear
• Glass Making
• Electronics
• Construction
• Packaging
• Consumer Goods
• Healthcare & Hygiene
• Automotive & Aerospace
• Others

By Technology Segment Analysis

• Hot Melt Adhesives
• Solvent-Based Adhesives
• Water-Based Adhesives
• Pressure-Sensitive Adhesives
• UV Cure Adhesives
• Others

By Product Type Segment Analysis

• EVA
• Polyurethane
• PVA
• Epoxy-Based Adhesives
• Acrylic Adhesives
• Others

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America