Structural Adhesive Market Size, Share & Trends Analysis Report By Product (Urethanes, Epoxy), By Technology (Water-based, Solvent-based), By Application, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global structural adhesive market size was valued at USD 19.2 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 5.8% from 2022 to 2030. The demand for structural adhesives is attributed due to the rise in the consumption of the product in construction applications. The product is widely used in diverse end-use industries such as transportation, construction, consumer goods, furniture, and others including medical devices, industrial machinery, and packaging. Adhesives are used as a substitute for glass, metal, and wood fasteners in these diverse applications. Rising demand from the building and construction industries for daylight reduction and energy-efficient “smart” apartments is expected to boost product demand.

However, increasing health concerns and stringent government regulations regarding VOC emissions are likely to negatively impact industry growth. For instance, OTC RACT Rule in North America regulates common pollutants that negatively impact the ozone layer, environment, and human health. It is also increasingly targeting VOC emissions limited to a range of structural adhesives.

The market is driven by the development of light commercial vehicles, cutting-edge passenger automobiles, and new airplanes with high consumption of composite material. The market is anticipated to be driven by further applications in vehicles for lightweight materials with high-performance advantages. Despite fierce competition from substitute materials, demand for adhesives and composites is expanding, particularly in applications demanding fuel efficiency, high performance, weight reductions, and other advantages.

Adhesives are prepared with various polymers depending on the type or grade of adhesives. Polymers and additives being the major raw materials for structural adhesives manufacturing are dependent on the price of petrochemicals. Changes in the prices of petrochemicals are anticipated to be the key challenge in the growth of the global market.

The industry growth was negatively impacted for a short period due to COVID-19 owing to the shutting down of various manufacturing units of the end-use industries such as automotive. According to the National Centre of Information report published in April 2020, the automotive industry declined by almost 30% in March 2020 as compared to March 2019. The decline was witnessed due to the shutting down of automotive companies and factories. The lockdown in various countries across the globe has impacted the industrial construction sector owing to the slowdown in construction activities. This impacted the demand and supply chain of the product.

Technology Insights

The water-based segment dominated the market with over 45.0% share in terms of revenue in 2021. The growth is attributed owing to the use of water-based adhesives in developing partition and insulation panels in building and construction applications. Water-based adhesives result in increased performance, enhanced efficiency, and improved working conditions in automobiles.

The solvent-based segment emerged as the second-largest segment in 2021. The growth is attributed to its consumption in packaging, medical, and taping applications. High resistance to the environment and its compatibility enable solvent-based adhesives to be used with different types of substrates.

Product Insights

The others segment held the largest revenue share of over 25.0% in 2021. Epoxy is expected to witness lucrative growth during the forecast period. This is attributed to its high bonding strength in various end-use applications such as aerospace, industrial, and automotive. Epoxy-based adhesives are vibration resistant, which is why they are used in aluminum structures.

The acrylic segment held a considerable revenue share in 2021. It is used to create long-term bonding on all surfaces and as an alternative to rivets or welds, thus resulting in the reduction of overall manufacturing cost. Acrylic adhesives enable structural flexibility without impacting the bond strength as they allow thermal expansion.

Cyanoacrylic is anticipated to register a rise in demand due to its characteristics such as fast setting rate and low toxicity. This enables the utilization of cyanoacrylic in various end-use industries, which include consumer goods, industrial machinery, medical devices, and household appliances.

Application Insights

The construction segment held the largest revenue share of over 25.0% in 2021. The growth is due to the rise in the consumption of the product in construction activities such as bonding dissimilar materials such as metal, concrete, and timber. Economic development along with a rising population is anticipated to increase construction spending. This is projected to boost the consumption of structural adhesives in the construction sector.

The transportation segment accounted for the second-largest revenue share in 2021. This can be attributed to the use of bonding adhesives in a wide range of vehicles such as ambulances, fire trucks, tractors, motorcycles, and backhoes. Structural adhesives help in making the vehicle light in weight, increase vehicle durability, and make the vehicle production process faster. Additionally, it can be utilized to assemble or seal the body of transport vehicles.

The product is also used for assembling consumer appliances such as refrigerators, ovens, clothes dryers, and dishwashers. Structural adhesives help in bonding plastics, glass, and metal used in the assembly of household appliances. The rise in the consumption of adhesives in consumer appliances is anticipated to positively impact the demand for the product over the forecast period.

Regional Insights

The Asia Pacific captured the largest share of over 30.0% in 2021 in terms of revenue. The growth is attributed to the rise in construction activities in countries such as China, India, Japan, South Korea, and Indonesia. Japan witnessed an increase in construction projects due to the Tokyo Olympics in 2020. The government of Indonesia had budgeted USD 29 billion for infrastructure spending in 2020, which is 2% higher compared to 2019.

Europe accounted for the second-largest revenue share in 2021. The high product demand in this region is attributed due to the construction sector being a crucial sector contributing about 9% of the GDP in the region. The construction activity in Eastern Europe has weakened slightly following the onset of the Russia-Ukraine war. However, the impact felt by the individual countries in Europe has been mixed. Despite a marginal drop in construction activities, the industry outlook is relatively positive with the increasing number of residential building permits being issued in various European countries, including Hungary, Poland, and the Czech Republic.

The transportation sector of Brazil is segmented into passenger rail, cargo rail, ports, roads, public transportation, urban mobility, and logistics infrastructure. Brazil is privatizing several projects previously held by the government for stimulating competition and reducing bureaucracy in the transportation sector.

Key Companies & Market Share Insights

Companies dominate the market with their continuous involvement in acquisitions, expansion of manufacturing facilities, and partnerships. For instance, companies such as Henkel AG & Co. KGaA, H. B. Fuller Company, and Scott Bader Company Ltd. expanded their production facilities to increase their production capabilities and availability of the products in the region. Players such as H. B. Fuller Company and Arkema acquired other players to expand their global footprints. Leading players are boosting their production capacities to keep up with the rising demand from the end-use industries. Some prominent players in the global structural adhesive market include:

• Henkel AG & Co. KGaA

• Dow

• 3M

• H. B. Fuller Company

• Franklin International

• AVERY DENNISON CORPORATION

• Ashland

• Lord Corporation (Parker Hannifin Corp.)

• Arkema

• Hubei Huitian Adhesive Enterprise Co., Ltd.

Structural Adhesive Market Report Scope 

Global Structural Adhesive Market Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global structural adhesive market report on the basis of product, technology, application, and region:

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Urethanes

  • Epoxy

  • Acrylic

  • Cynoacrylic

  • Others

• Technology Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Water-based

  • Solvent-based

  • Others

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Transportation

  • Construction

  • Consumer Appliances

  • Furniture

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • North America

  • U.S.

  • Canada

  • Mexico

  • Europe

  • Germany

  • U.K.

  • France

  • Asia Pacific

  • China

  • India

  • Japan

  • Korea

  • Central & South America

  • Brazil

  • Middle East & Africa