Adhesive refers to any binding substance applied to the surface of other materials to avoid separation. Adhesives were commercially developed in 1960 and are available in both natural and synthetic form. On the other hand sealants are available in the form of a viscous material with little or no flow so as to allow easy penetration of substrate. Sealants lack strength and elongation properties when compared with adhesives. Sealants are generally preferred on account of their insolubility, resistant to corrosion and their ability to provide appropriate adhesion. Growth of major end use industries such as construction and automotive, mainly in countries such as China, India and Brazil is expected to drive the global adhesives and sealants market over the next six years. Adhesives and sealants are used in insulation, facades, panel lamenting, flooring, coating, and lamination among some other applications. In addition, with increasing technology coupled with widespread application of these solutions, the market is expected to have a positive growth over the forecast period. However, volatility in raw material prices coupled with a stringent regulatory scenario owing to growing environmental concerns is expected to hinder the market growth over the next six years. Volatile prices of petroleum raw materials result production cost fluctuations, due to which maintaining profitability has been a challenge for market participants.
These issues have prompted the industry to develop bio-based adhesives and sealants. Bio-based adhesives and sealants, along with providing environmental benefits by reducing carbon footprint also reduce the overall cost of manufacturing adhesives and sealants as against their synthetic counterparts. Soybean derived polyols, vegetable oil based polyamides, epoxies and polyisoprenes are the major biobased adhesives and sealants. Polyol, bio-derived from soybeans can be effectively used in polyurethane adhesives and sealants formulation. Green additives are being increasingly developed owing to their similar properties and cost advantage. Some green additives that are being developed for use in adhesives and sealants include bio-solvents, non hazardous plasticizers and waxes from vegetable oils. Bio-based adhesives are rapidly catching up in the overall market and are growing at a greater rate than the overall adhesives market. Bio-based adhesives account for roughly 1% to 2% of the total adhesives market and is expected to increase its market share to a considerable level over the forecasted period. Some of the major companies involved in developing and manufacturing bio-based adhesives and sealants include ADCO Global, BASF, Cargill, Croda, Dow Chemical Company, Du Pont, Evonik Industries and Henkel amongst others.
Key adhesives technology analyzed and reported in this study include water based, solvent based, hot melt and reactive & others. Water based adhesives was most dominant technology in the overall market and accounted for 46.6% of total market volume in 2012. Water-based adhesives are more environmental friendly with no VOCs emission. Due to stringent environmental norms in developed countries they are expected to completely replace solvent-based adhesives over the next few years. Reactive adhesives are consumed on a small scale however it has long lasting bonding strength and has high temperature resistance. They are widely used in electronics industry. Water based adhesives are also expected to be fastest growing technology at an estimated CAGR of 5.4% from 2104 to 2020. Hot melt adhesives on the other hand has broad formulation latitude and hence can be used on specific end-uses and substrates. The major applications include packaging, book binding, labeling and textile among others. The consumption of hot melt adhesives is increasing in developed as well as in developing countries. The global market revenue for hot melt adhesives is expected to reach USD 7.63 billion by 2020.
Global adhesives market volume, by technology, 2012
Key adhesive products analyzed and reported in this study include acrylic, polyvinyl acetate (PVA), polyurethane, styrenic block, epoxy and ethylene vinyl acetate (EVA) among some others. Key sealant products analyzed and reported in this study include silicones, polyurethane, acrylic and polyvinyl acetate (PVA) among some other sealants. Acrylic based adhesives emerged as the leading product segment and accounted for 36.7% of total market volume in 2012. Along with being the largest product segment, acrylic adhesives are also expected to be the fastest growing adhesives at an estimated CAGR of 5.3% from 2014 to 2020. Global market for polyurethane based adhesives is expected to reach USD 4.35 billion by 2020, growing at an estimated CAGR of 6.1% from 2014 to 2020. Silicones emerged as the leading product in the overall sealants market and accounted for 30.1% of total market volume in 2012. Along with being the largest product segment, silicones are also expected to be the fastest growing type of sealants at an estimated CAGR of 4.9% from 2014 to 2020.
Key application of adhesives analyzed and reported in this study include pressure sensitive application, packaging, construction, furniture, footwear and automotive among some other application. Key application of sealants analyzed and reported in this study include construction, automotive, packaging, assembly, pressure sensitive tapes and consumers among some other. Pressure sensitive applications emerged as the largest segment and accounted for 29.1% of total market volume in 2012. Furniture is expected to be the fastest growing application segment for adhesives at an estimated CAGR of 5.9% from 2014 to 2020. On the other hand, construction emerged as the largest application segment and accounted for 27.4% of total market volume in 2012. Automotive is expected to be fastest growing market for sealants at an estimated CAGR of 5.2% from 2014 to 2020.
Asia Pacific dominated the global market for both adhesives and sealants and accounted for 42.1% and 38.9% of total market volume in 2012, respectively. Growth of major end use industries including automotive, construction and packaging mainly in countries such as China and India is expected to drive the regional market for adhesives and sealants. Asia Pacific along with being the largest market is also expected to be the fastest growing market for adhesives and sealants. Europe and North America are mature markets for adhesives and sealants and are expected to grow at a relatively sluggish rate over the forecast period. European market for adhesives is expected to reach 3,142.7 kilo tons by 2020, growing at a CAGR of 3.4% from 2014 to 2020.
The adhesives and sealants market is dominated by the top three or four manufacturing companies including Henkel, 3M, HB Fuller and Dow Chemical Company which have a sizeable market share. Major players, in order to achieve sustainable growth, have been focusing on product differentiation and innovation in order to achieve sustainability. In addition, some companies have the added advantage of forward integration, giving them an upper hand in the market.