Composite Adhesive Market Size, Share & Trends Report

Composite Adhesive Market Size, Share & Trends Analysis Report By Product (Acrylic, Epoxy), By End-use (Automotive & Transportation, Aerospace & Defense), By Region, And Segment Forecasts, 2020 - 2027

  • Published Date: Sep, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-4-68039-051-1
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 100

Report Overview

The global composite adhesive market size was valued at USD 3.2 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 3.9% from 2020 to 2027. The market growth is majorly attributable to the increasing demand for lightweight materials in industries, including automotive and aerospace that are boosting the manufacturing of composites. Composites are rapidly being adopted in aerospace and automotive industries, as the usage of traditional bonding methods like mechanical fasteners makes them weak. The product is available in different forms including liquids, pastes, and films that are utilized for bonding fiber composites to themselves and several substrates. Their application provides high mechanical strength and efficiency at a low cost.

U.S. composite adhesive market size

The automotive & aerospace industries are major market drivers in the U.S. The development of composites is increasing for the automotive industry owing to the rising emphasis on fuel economy and emission regulations. For example, in the U.S., the CAFE standards mandate a fleet average of 23.2 km/L by 2025. Such standards have been implemented not only in the U.S. but in other parts of the world as well. For instance, China’s CAFC has been set to 20 km/L by 2020. These standards are anticipated to propel product demand over the forecast period.

Advancements in additive manufacturing have proved to be fruitful for the composites industry. Additive manufacturing helps to make the process of manufacturing composite parts less expensive. As a result, prominent players in the market are investing in this technology. For instance, in July 2020, Arkema invested in Continuous Composites to strengthen their partnership and achieve rapid advancement in the development of 3D composite manufacturing. Such investments are anticipated to propel the demand for composites and thus, adhesives in near future.

The COVID-19 pandemic had a negative impact on the industry, as all manufacturing operations were shut down or were running at very low capacity in the first half of 2020. Various market players had to bear losses during this period. For example, TPI Composites reported a net loss of USD 9 million for the first quarter of 2020. The loss was owing to reduced production levels at manufacturing facilities in China due to lockdown. As a result, the consumption of adhesives was extremely low in 2020.

End-use Insights

Automotive accounted for the largest share of over 21.0% of the global volume in 2019. Increasing emphasis on weight reduction of vehicles is propelling automotive manufacturers to gear up and introduce new models that are both efficient and lightweight. To achieve this, manufacturers are turning towards composites. For example, on August 5, 2020, BASF and Toyota Motor North America Research & Development announced the launch of the new 2021 Toyota Sienna that won awards for achievements in vehicle weight savings. The vehicle’s third-row seat is 30% lighter than its previous model owing to the replacement of steel components with composites.

Electrical & electronics is a vital end-use segment of the market. Rising production in this industry is propelling composite material producers to expand their manufacturing capacity. For example, in June 2020, Teijin Carbon Europe GmbH announced to increase its carbon fiber production in Germany by 40%, owing to the growing demand by European electronics manufacturers, and increasing need for compounds in medical devices.

Aerospace & defense is anticipated to register the fastest growth rate over the forecast period. Increasing demand for aircrafts in commercial and defense sectors is propelling the demand for composites and thus, adhesives. The growth in the industry is propelling manufacturers to expand their production capacities. For example, in September 2018, Solvay started a new facility for manufacturing aerospace structural adhesives and surfacing films in the U.K.

Product Insights

Epoxy was the largest product segment in 2019 and accounted for a volume share of more than 36% in 2019. It is a widely used product owing to its low cost and characteristics including mechanical shock resistance, cryogenic shock resistance, high-temperature resistance, and low shrinkage. The segment’s high share is owing to the versatility of epoxy for bonding nearly all substrates, such as glass, ceramics, plastics, and wood.

Cyanoacrylate is estimated to have significant growth over the forecast period. Cyanoacrylates are often called as super glues due to their properties such as solvent-free, rapid room temperature curing, excellent adhesion to various substrates, and high bond strength. The segment’s low share is owing to limited gap curing and high cost. However, companies are focusing on developments to overcome these disadvantages and increase their utilization in the composites industry.

Global composite adhesive market share

The acrylic segment is anticipated to witness the fastest CAGR over the forecast period. These adhesives are preferred in applications that require high-temperature resistance, peel & impact resistance, and offer rapid build strength. These are efficient in bonding various materials including plastics and oily metal surfaces. They are gaining prominence over epoxy owing to faster curing speed and the ability to bond more types of materials.

Regional Insights

Asia Pacific accounted for the largest market share of over 46% in 2019 and will retain the leading position throughout the forecast years. The phenomenal properties of different types of adhesives are boosting their applications and compelling manufacturers to expand their presence and manufacturing capacities to cater to growing demand from the end-use industries in the developing nations of Asia Pacific. For example, in February 2020, Henkel inaugurated its new adhesive manufacturing facility in India with an investment of about USD 54.7 million to meet the growing demand from end-use industries in the country.

Led by the U.S., North America held a significant revenue share in 2019. The market growth in the U.S. is attributable to rising demand from the wind energy, aerospace, and consumer electronic sectors, which are propelling market players to expand their business. For instance, in April 2020, Arris Composites, a California-based manufacturer of carbon fiber composite parts for aerospace, consumer electronics, and automotive industries, secured USD 48.5 million Series B funding. The company plans to utilize the funding for expanding its proprietary composite production capabilities and open facilities in the U.S. and Taiwan.

Aerospace is a significant end-user of composite adhesives. High demand from the industry has resulted in rising investments by prominent market players. In October 2019, Solvay opened thermoplastic composite centers in the U.S. and Belgium, especially to cater to the aerospace industry. The company also signed an agreement with Lockheed Martin for the growth of aerospace composite activity through the new Belgium center.

Key Companies & Market Share Insights

The market is highly competitive in nature owing to the presence of numerous players across the globe. The growing importance of composites in various end-use industries is propelling manufacturers to introduce new adhesives to their portfolio. For example, in September 2019, new adhesive technologies for advanced composites were introduced at the CAMX by DH Sutherland (distribution partner for L&L Products). Some of the prominent players in the composite adhesive market include:

  • 3M

  • Ashland Inc.

  • Bostik

  • Dow Inc.

  • Henkel AG & Co. KGaA

  • Huntsman Corp.

  • Illinois Tool Works Inc.

  • Lord Corp.

  • Strategic Initiatives

  • Permanbond LLC

  • Sika AG

Composite Adhesive Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 3.2 billion

Market volume in 2020

1,072.06 kilotons

Revenue forecast in 2027

USD 4.41 billion

Volume forecast in 2027

1,424.14 kilotons

Growth rate

CAGR of 3.9% from 2020 to 2027 (Revenue-based)

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Volume in kilotons, revenue in USD million, and CAGR from 2020 to 2027

Report coverage

Volume and revenue forecast, competitive landscape, growth factors, and trends

Segments covered

Product, end-use, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; Middle East & Africa

Country scope

U.S.; Germany; France; U.K.; China; India; Brazil

Key companies profiled

3M; Ashland Inc.; Bostik; Dow Inc.; Henkel AG & Cp. KGaA; Huntsman Corp.; Illinois Tool Works Inc.; Lord Corp.; Strategic Initiatives; Permabond LLC; Sika AG

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Segments Covered in the Report

This report forecasts revenue and volume growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global composite adhesive market report on the basis of product, end-use, and region:

  • Product Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

    • Acrylic

    • Epoxy

    • Polyurethane

    • Cyanoacrylate

    • Others

  • End-Use Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

    • Automotive & Transportation

    • Aerospace & Defense

    • Electrical & Electronics

    • Construction

    • Others

  • Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

    • North America

      • U.S.

    • Europe

      • Germany

      • France

      • U.K.

    • Asia Pacific

      • China

      • India

    • Central & South America

      • Brazil

    • Middle East & Africa

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