Structural Adhesives Market Size, Share & Trends Analysis Report By Technology, By Product (Urethanes, Cyanoacrylic), By Application (Furniture, Transportation), By Region, And Segment Forecasts, 2014 - 2022

Industry Insights

The global structural adhesives market demand was 5,052.9 kilotons in 2013 and is anticipated to witness significant growth over the forecast period. High demand from the furniture, transportation, and construction industries is expected to drive the global industry over the forecast period. Increasing usage of plastics in automotive has generated the necessity for better adhesion between dissimilar substrates such as steel-plastic and steel-magnesium.

Automotive applications include component fabrication such as doors and enclosures, window glass attachments, brake and friction pads, and body panels. Global automotive production has witnessed significant growth on account of increasing passenger car demand in China, India, Brazil, and Mexico.

Emerging economies have been witnessing high growth in automotive production, which could considerably impact the industry demand. Moreover, increasing consumption of composites in aircraft manufacturing and subsequent need for adhesives with better structural integrity and strong bonding are expected to complement growth.

Recovering economic scenario in U.S., rising disposable income in emerging economies, and evolving trends in furniture designs are major factors driving the furniture industry globally. Growing housing demand has resulted in an increased demand for furniture. Due to this, structural adhesives are expected to find their applications in rigid bonding of glass panels, decorative trims, wood panels, and drawing liners.

Companies namely Cabot Corporation and H.B. Fuller have adopted integration across the value chain. These players are involved in manufacturing of raw materials such as additives, polymers, and structural adhesives. Integration helps the companies to reduce their raw material costs.

Technology Insights

Based on technology, the global industry has been segmented into water-based, solvent-based, and others including hot melt and reactive. Water-based technology accounted for over half of the global volume in 2013. Its semi-flexibility when dry, rapid drying rate, and water resistance properties have largely favored its usage in various rigid bonding applications such as joint cement, wall coverings, household appliances, automotive assembly, counter tops, and furniture panels. Water-based technology is expected to further gain prominence on account of technological innovations in its formulation.

Solvent-based structural adhesives are widely used in architectural, furniture, and industrial machinery applications. Stringent regulatory norms by agencies such as U.S. EPA, along with EU legislations regarding VOC presence in solvent based formulations, are considered a major hindrance to global industry growth.

Other niche technologies such as reactive structural adhesives are increasingly penetrating the market and are majorly used in acrylic adhesive formulations. This technology enables adhesive curing at ambient temperature and material moisture, since it does not require external heat input.

Product Insights

Urethanes, epoxy, acrylic, cyanoacrylic, and others including methacrylates and silicone are the key products in the market. Urethanes were the largest product segment and accounted for over 60% share of the global volume in 2013.

Urethane adhesives are prominently used for plastics adhesion in various rigid and semi-riding bonding applications such as construction, automotive, and plastic panels. Their high elasticity and durability helps in energy absorption and flexibility among dissimilar materials. These factors are further expected to contribute to its demand growth over the forecast period.

Cyanoacrylic adhesives are expected to witness high growth owing to their fast setting properties and low toxicity. Furthermore, these properties make them suitable for applications such as industrial machinery, medical devices, consumer goods, and household appliances. High industrial output in industries pertaining to the aforementioned applications is anticipated to be a major factor driving the product segment.

Application Insights

Based on application, the structural adhesives market is segmented into transportation, construction, consumer appliances, furniture, and others such as industrial machinery, medical devices, and packaging. Furniture is expected to witness high growth on account of increasing furniture demand in households, commercial spaces, and workplaces.

Increasing plastic consumption in automotive component fabrication, coupled with growing need for superior metal-plastic bonding, is expected to drive the transportation application segment. U.S. and Europe funding for public infrastructure betterment, along with increasing construction spending in emerging economies, is expected to drive the industry in construction applications such as roofing, window panels, doors and enclosures, and wall coverings.

Adhesives with organic solvent content are gradually gaining prominence in medical device manufacturing. This trend is expected to further complement demand for structural adhesives in the aforementioned application. Major appliances utilizing structural adhesives include refrigerators, ovens, clothes dryers, and dishwashers. The product is used for bonding plastics, glass, and metal substrates and is suitable for use during the assembly process of household appliances. These factors are expected to drive the consumption in consumer appliances application.

Regional Insights

Asia Pacific accounted for over almost 45% share of the global volume in 2013. Rapid industrialization in India and China and subsequently growing transportation, construction, and furniture industries in these respective countries are expected to favorably impact the regional market growth over the forecast period. Robust economic and industrial growth in Southeast Asian countries, particularly in construction, consumer appliances, and furniture industries, is expected to further complement the demand in Asia Pacific.

The market in North America is driven by stringent food, environment, and medical regulations by regulatory bodies including the Environmental Protection Agency (EPA) and the Food and Drug Administration (FDA). U.S. is the major consumer of the product in the region. High demand from the automotive and aerospace industries is expected to drive the demand in the economy.

Central and South America is comparatively a small regional market. It is expected to witness significant growth over the forecast period, primarily driven by Brazil. Brazil nearly accounted for half of the market share owing to robust growth of the construction and automotive industries.

Structural Adhesives Market Share Insights

The global market is concentrated in nature with multi-national corporations catering to end-use industries while small scale companies are catering to niche applications. Presence of a matured distribution network enables smaller companies to market their products easily.

Technological advancements, product pricing, and partnership agreements, especially to cater to the domestic demand, are expected to drive the competition in the structural adhesives market. Key companies include Henkel AG & Co.; Ashland Inc.; SIKA AG; Arkema S.A.; 3M Company; The Dow Chemical Company; Scott Bader Company; Lord Corporation; and Ried BV.

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