Acrylic adhesive refers to a resin-based adhesive that primarily comprises acrylic or methyl acrylic polymers. These adhesives are colorless, transparent, slightly colored, or syrupy liquids, than emulsions, which are usually light-yellow or opaque white in color. Acrylic adhesives are mainly used to bond several materials ranging from plastics, rubber, metals, wood to glass and ceramics, and are obtained from solutions of polyacrylates or monomeric esters. These are also known as light curing materials as they find wide applications in the manufacturing sector due to their strong bond strength and rapid curing time.
They have several excellent properties, such as efficient bonding, improvisation in the elasticity and viscosity of hardened compositions with the addition of modifiers, resistance to sunlight and humidity, and stability under fluctuating temperatures, among others. The aforementioned qualities make them ideal for a broad range of applications in industries, such as construction, electronics, packaging, automotive, medical devices, and others.
Additionally, acrylic adhesives are largely preferred over conventional and traditional adhesives as they can be used for both binding materials and sealing and coating products. Therefore, the increasing demand for acrylic adhesives in diverse end-use industries is anticipated to propel the growth of the adhesives market during the forecast period. However, the highly volatile nature of the prices of raw materials is anticipated to hamper the overall development of the acrylic adhesives market.
The extensive use of acrylic adhesives in the products such as touch screens and hardware due to rapid automation and miniaturization in the consumer electronics industry to improve the degree of accuracy and increase efficiency is anticipated to boost the growth of the global acrylic adhesives market. The UV cured adhesives are significantly consumed in the electronics industry due to the growing need for rapid assembly lines, which has enabled the manufacturers to optimize production lines by adopting UV cured adhesives to enhance production rates.
Furthermore, the rapid growth of this sector in emerging economies like India and China will also augment the demand for these acrylic adhesives. As per the data shared by the Indian Brand Equity Foundation (IBEF), the appliance and consumer electronics (ACE) market in the country was valued at 10.93 USD billion in 2019, which is further projected to double to reach 21.18 USD billion by 2025. In addition to this, its electrical manufacturing is anticipated to increase at an annual rate of 30% between 2020-25 and clock 163.14 USD billion in additional production during this period. Therefore, a rise in this industry will boost the demand for global acrylic adhesives.
The water-based technology of the acrylic adhesives market is anticipated to expand rapidly during the forecast period. It is increasingly becoming an integral part of several end-user industries, such as automotive, due to its eco-friendly and low-toxic nature, high solid content, and high initial adhesion properties. It provides strong bond strength, high-temperature resistance, and low-temperature flexibility, therefore making it suitable for sticking low energy substrates.
Additionally, the lack of volatile organic compounds (VOCs) in water-borne adhesives is another factor driving the adoption of water-borne technology over other technologies in the market. The above factors are helping this technology to dominate the global acrylic adhesives market.
Acrylic adhesives are widely used in the food and pharmaceutical industries. The U.S Food and Drug Administration (FDA) has formulated policies in the food sector incorporating functional barriers between food articles and their packaging materials that ensure safety, longer shelf life, and quality of food items. This has led to a shift in the focus of the companies to develop food-grade packaging materials that comply with government regulations at each regional level and are, therefore, expected to propel the growth of acrylic adhesives.
Based on geography, the acrylic adhesives market is categorized into North America, Europe, Asia-Pacific, Central and South America and the Caribbean, the Middle East, and Africa. Asia-Pacific is expected to hold the largest share in the global acrylic adhesives market during the forecast period owing to industrialization, strong GDP growth, and increased manufacturing output in the countries of this region. The region is anticipated to see robust growth in construction activities because of the rise in urbanization and new infrastructure development projects. Various government infrastructural development initiatives such as the "One Belt One Road Initiative" by the Chinese government and other planned projects will boost the overall construction sector, which will drive the demand for acrylic adhesives in the region.
In addition to this, the shift of manufacturers in the region due to the availability of cheap and skilled laborers, and low manufacturing costs are anticipated to expand industries offering the phenomenal potential to the acrylic adhesive market to thrive. According to the India Brand Equity Foundation (IBEF), the production of India's domestic automobiles increased at 2.36% CAGR between 2016 and 2020, with 26.36 million vehicles being manufactured in the country in 2020.
Besides, the automobile export reached 4.77 million vehicles in 2020, growing at a CAGR of 6.94% from 2016 to 2020. The below figure shows the number of automobiles exported by the country from 2016 to 2020:
Figure 1: No. of Automobiles Exported, 2016-2020
Source: India Brand Equity Foundation (IBEF)
According to the above figure, the exports of automobiles in India saw an increase from 2017 to 2020 by 1.29 million and is further expected to grow in the coming years.
Apart from this, the growth of the food and beverages industry along with e-commerce platforms is leading to a rise in consumers due to online food deliveries thus driving the acrylics market in the region.
Europe is expected to be the second-largest region in the global acrylic adhesives market. The growth can be attributed to the growing automotive industry as acrylic adhesives are used for automotive applications, include metal/composites bonding, friction, headlight assembly, etc. The region has been considered one of the world’s biggest automotive producers and is home to several top automotive brands.
In addition to this, implementation of favorable European Union commission policies for regional automotive sector such as “GEAR 2030”, or “European Battery Alliance“ aiming to set an internal market, environmental protection, and safety, stable level playing field and strengthen competition is expected to augment the growth of the automotive industry in the region.
Furthermore, the region is home to several industrialized countries such as Germany, France, and the U.K. where there is a strong demand for acrylic adhesives from various major end-use industries such as furniture, construction, and others due to rising consumer disposable income, flourishing e-commerce, and increasing uptake of corrugated packaging. This is expected to positively impact the growth of the acrylic adhesives market in the region.
The global acrylic adhesives market has a significant number of small as well as big players. The big players have been adopting strategies such as new product launches, capacity expansions, mergers and acquisitions, partnerships, and collaborations to retain their position and increase their market share. For instance, Crevo-Hengxin was acquired by Sika AG in 2019 to expand target markets in the APAC region.