Global Engineering Adhesive Market to Grow at a CAGR of 7.34 %

Introduction

The Global Engineering Adhesive Market was valued at USD 23.00 billion in 2021 and is projected to reach USD 43.50 billion by 2030 at a CAGR of 7.34% 2022 to 2030.

Engineering adhesives are joining agents that are used to bind various materials together. These materials offer a reasonably high modulus when hardened, enabling the fabrication of load-bearing joints. Additionally, they can be used to link various materials, including metals, plastic, wood, and rubber, to build structures that are light, sturdy, and rigid. These adhesives allow for design flexibility, making it possible to execute innovative design ideas and giving designers access to a wider range of materials. They also exhibit great optical transparency or opacity, quick setting, corrosion resistance, heat resistance, and chemical resistance. Engineering adhesives are therefore commonly utilised in the fieldsof optics, fibre optics, optoelectronics, and dentistry.

Market Dynamics

Non-metal Substrates are Driving the Market:

Increasingly, the construction industry uses non-metal substrates because they are lightweight and less expensive. The market for engineering adhesives is anticipated to be significantly impacted by this during the coming few years. Engineering adhesives have additional potential as a result of the constant engineering activity upgrades in key end-user industries like aerospace, road transportation, marine, rail, electronics and communication, and sports and leisure that aim to make components lighter and more affordable. 

Light-weight Components are Driving the Market:

At the moment, lightweight materials like aluminium, engineered plastics, and composites are replacing steel and wood substrates more and more frequently. The need for high-performance adhesives, which are displacing conventional metal joining methods, is subsequently increased.

The market for engineering adhesives is now estimated to be worth US$13 billion. The projected growth rate exceeds the market for adhesives and sealants' typical annual growth rate. The demand for highly engineered and complex bonded parts is on the rise, and this is what is essentially driving growth in the industries and technology.

Technological Development will bring in New Opportunities: 

In the global market for adhesives, engineering adhesives account for about 30%. The market for adhesives is anticipated to increase at a rate that is much higher than the average for that sector. Technology formulations that offer high-value answers to certain client needs define the market. These adhesives are employed in a variety of sectors, including furniture, electronics, electric appliances, rail transportation, construction, telecom, marine and offshore operations, automotive, aerospace, and electronics and communication. The traditional joining methods like screws and welding are the main competitors of engineering adhesives. As opposed to fasteners or welded seams, these adhesives distribute weight in a homogeneous manner.

Regional Analysis:

In terms of revenue growth, Asia Pacific is anticipated to experience the highest CAGR of 8.8% during the projection period. This expansion is credited to China's enormous industrial sector, which includes the building, automobile, energy, and electronics industries. One of the industries with the quickest growth in both China and the rest of the globe is wind energy. A lot of adhesive compounds are used in the production of wind turbine blades. China is the top nation in terms of both land-based and maritime wind power capacity, according to the Global Energy Council. Additionally, according to China's 13th Energy Technology Innovation, Five Year Plan, the nation's wind energy capacity is anticipated to increase to 210 gigawatts by 2020. 

In terms of volume, Europe maintained 23.5% in 2018. The country's market is anticipated to be driven by production in the transportation sector, which includes the automobile, aerospace, and marine industries. According to the Aerospace & Defense Industries Association in Europe, the aerospace & defence industry has a yearly revenue of over USD 247 billion. In this industry, there is a sizable demand for adhesive materials for the bonding of composites, metals, and plastics.

In 2018, North America had a 21.2% volume share. A key factor driving the market is rising usage in the packaging and automotive sectors. Given the need for structural bonding applications, the woodworking industry is expected to present a number of opportunities for vendors.

Key Highlights:

• The global Engineering Adhesive Market was valued at USD 23.00 billion in 2021 and is projected to reach USD 43.50 billion by 2030 at a CAGR of 7.34% 2022 to 2030.
• Non-Metal substrates and lightweight components are the driving segments of the market.
• This market can be segmented on the basis of products, applications, geographical regions and competitors.
• By 2030, the Asia Pacific is anticipated to have the largest market share, with Europe emerging as the fastest-growing market.

Competitive Players

Competitors Analysis:

Multinational corporations that are present at various points throughout the value chain dominate the engineering adhesive market globally. These businesses can lower their operational and purchasing expenses by being integrated into the value chain, which also enables them to diversify their clientele across numerous end markets. 

Henkel AG & Co. KGaA, H.B. Fuller Company, Permabond LLC, 3M, and Dymax Corporation are a few of the major market participants. It's expected that market suppliers will continue to focus heavily on cutting-edge formulations and novel items.

Recent Developments

Recent Development:

• Sika acquired the flooring adhesive division of DriTac in March 2021. The American company DriTac specialises in glueing wood floors and making floor covering adhesives. Sika will be able to increase its presence among distributors and installers of floor coverings thanks to the acquisition, which will also help it grow more quickly in the U.S. interior finishing market.
• Henkel created Loctite EA 9365FST, a structural adhesive that complies with REACH standards for use in aircraft interiors, in June 2021. The Loctite EA 9365FST is a brand-new, two-part epoxy adhesive that connects and reinforces thermoplastic and thermoset substrates. The thin walls of thermoplastic components can be strengthened using it as a matrix resin on fibreglass.
• The purchase of Permoseal in South Africa by Arkema was announced in December 2021. For DIY tasks, woodworking, packing, construction, and other purposes, Permoseal manufactures adhesives. Its broad selection of high-performance adhesive products will enhance Bostik's regional offering and strengthen their positions in the burgeoning DIY, construction, and industrial sectors in South Africa and Sub-Saharan Africa.

Segmentation

Market Segmentation:

Product Outlook:

• Epoxies
• Polyurethanes
• Cyanoacrylates
• Methacrylates
• Others

Application Outlook:

• Transportation
• Construction
• Electrical & Electronics
• Energy
• Others

Regional Outlook:

• North America
• Europe
• Asia Pacific
• Central and South America
• Middle East & Africa