Asia Pacific PUR-based Reactive Hot Melt Adhesive Market Size, Share & Trends Analysis Report By Substrate  (Fiberglass, Nylon, Plastics), By Application (Automotive , Electronics) and By Country(China, Korea, Japan, India, Australia, Taiwan, South East Asia, Rest of Asia-Pacific) Forecasts, 2022-2030

Market Overview

Total PUR-based reactive hot melt adhesive market size to grow from USD 722.5 million in 2021 to USD 1401.5 million by 2030.

Polyurethane hot melts are becoming increasingly popular in a variety of industries, including high-volume production and DIY and home repair. This is due to the fact that PUR hot melts have some fantastic features that appeal to a wide range of people. PUR hot melts are non-toxic, quick to set, have excellent temperature and weather resistance, and are cost-effective in any volume.

The Asia Pacific PUR-based Reactive Hot Melt Adhesive Market is estimated to witness significant growth, at an estimated CAGR of over 11.3 %, over the forecast period to a total forecasted value of 630 million USD in 2030. Increasing demand from the packaging industry in the region and increasing usage of PUR holt-melt adhesives as a substitute for solvent-borne adhesives are expected to drive the market during the forecast period. In the next years, market growth is expected to be aided by the adoption of bio-based hot-melt adhesives.

Market Dynamics

Key market drivers

• Increasing Demand in various Industries: In the manufacture of vehicle interior panels, polyurethane hot melts are becoming more popular. PU hot-melt adhesives can also be used in the production of automobile seats, to secure wires in the roof liner, and to bond door sill protectors and other plastic parts. They can also be used to adhere insignia to gear knobs and anchor plates to them. These adhesive techniques are also being utilized increasingly commonly for laminating. With improved application technology, the glue may be applied at a lower cost. When holt-melt adhesives are used instead of dispersion adhesives, 100% solids are applied (which ensures maximum efficiency of adhesive consumption). Adhesive film drying techniques that are complex and costly can be avoided.

• Increasing R&D Investments: R&D investment and technological advancement in the polyurethane [PU] hot-melt adhesives market is projected to offer lucrative opportunities for the market players.

• Rising Demands for eco-Friendly Adhesives: The use of environmentally friendly and low volatile organic compounds in conjunction with green and sustainable adhesives has been recognized as a growth opportunity for the PUR-based reactive hot melt adhesive market. Poisonous elements in the adhesives emit dangerous gases as they dry up, releasing toxic, irritating, and carcinogenic vapors that impair human health and deteriorate air quality. That is why the glue industry is concentrating its efforts on developing environmentally friendly adhesives that eliminate the aforementioned problems.
• Because of the increased demand for environmentally friendly adhesives, the market is moving toward an eco-friendly model in which people want adhesives that are safe for their health and the environment. With all of this, eco-friendly adhesives are seen as a future opportunity for the adhesive sector.

Key market restraints

• International trade turbulence: The growth rate is predicted to drop over the first years of the forecast period due to worldwide trade volatility and unfavorable geopolitical events. For Example- the US-China trade war is affecting the accelerating growth of the adhesives market in China.
• The market can be negatively impacted by Volatile Raw Material Costs and Dynamic Exchange Rates: Petrochemicals and their derivatives, as well as tackifiers, are the primary raw ingredients for hot-melt adhesives, and their prices are determined by the global market price of crude oil. Crude oil prices are volatile, which has an impact on the total price structure of raw materials, which in turn has an impact on the price of hot-melt adhesives. Because of the significant volatility in raw material prices, as well as supply and demand variables, the overall cost of producing hot melt adhesives is slightly higher, which may limit the growth of the Asia Pacific PUR-based reactive hot melt adhesive market.

Key market opportunities

• Advancement in Technology: Due to their low VOC content and wide range of applications, the market for reactive hot melt adhesives is gaining traction. The demand for new products that meet environmental norms and consumer criteria is pushing the development of VOC-free, high-strength, and fast-curing adhesives. Manufacturers are currently concentrating their efforts on developing environmentally friendly, safer, more cost-effective, and skin-friendly adhesives. In addition, in response to increased rivalry, producers are attempting to differentiate their products by combining dual-cure kinds to create unique qualities.

Regional Analysis

Asia-Pacific is the leading market, with sales of USD 239.9 million in 2021 and a CAGR of 11.35% predicted to reach USD 630.30 million by 2030. With developing economies like India and China, the Asia-Pacific area has generated the most revenue. India, as the developing automotive powerhouse of the South Asian area, has the most operational automobile manufacturing units, contributing to the Asia-Pacific region's overall income generation. Due to increased population, living standards, and per capita income, China is one of the world's fastest-growing economies, with practically all end-user industries expanding. The growth rate is predicted to drop over the first years of the forecast period due to worldwide trade volatility and unfavorable geopolitical events.

China has the world's second-largest packaging industry. Due to the emergence of customized packaging and rising demand for packaged consumer goods in the food segment, such as microwave food, snack foods, and frozen foods, the country is predicted to grow steadily over the projection period. India's market is expanding because to increased demand for packaged goods and significant growth in the construction industry. The market in Japan, on the other hand, is rapidly expanding due to rising customer purchasing power, rising per capita income, and the use of bio-based hot-melt adhesives.

Segmental Analysis

The Asia Pacific PUR-based reactive hot melt adhesive market is divided into two categories: substrate and application.

The Asia Pacific PUR-based reactive hot melt adhesive market is segmented into fiberglass, nylon, and plastics based on substrate. Plastic is the leading segment, with a market share of USD 304.9 million in 2021 and an estimated CAGR of 8.15% to USD 617.5 million in 2030. Because consumers seek lightweight and attractive packaging, the plastic substrate category has dominated the market.

After plastics, fiberglass substrates are the second most popular category in the PUR-based reactive hot melt adhesive industry, as they provide great connection flexibility at high processing speeds and temperatures. These are mostly utilised in the binding of fiberglass components used in various industries, resulting in a staggering revenue of USD 186.80 million in 2021 and USD 334.85 million in 2030, with a CAGR of 6.7%, because of their low surface energy and high moisture absorption, nylon polymers are difficult to bind. However, it is utilized in a wide range of industries, contributing to sales of USD 50.9 million in 2021 and is predicted to reach USD 81.15 million by 2030 at a CAGR of 5.32%.

The PUR-based reactive hot melt adhesive market is divided into two categories: automotive and electronics. With a CAGR of 11.95% from USD 93 million in 2021 to USD 256.86 million in 2030, the automotive segment commands the largest portion of the market. The increased need for hot melt adhesives used in automobiles to make them low weight and aesthetically pleasing is the reason for the adhesive industry's growth in the automotive sector.

Apart from the automotive industry, the electronics manufacturing business has a high demand for hot melt adhesives, which are used to create electronic components that make extensive use of adhesives to ensure that the complete electronic device or equipment structure is properly joined. It has the second highest market share after the automotive market, with estimated sales of USD 37.06 million by 2030, growing at a CAGR of 8.49%, which is a significant increase from USD 17.8 million in 2021.

Impact of covid-19

The automotive industry is critical to the economy's growth. However, during the second and third quarters of 2020, the COVID-19 outbreak impacted the whole automotive supply chain, affecting new car sales in FY 2020.

South America is most affected by COVID-19, with Brazil leading the way, followed by Ecuador, Chile, Peru, and Argentina. South America's government (SAM) has taken a number of steps to protect its citizens and stem the spread of COVID-19. South America is expected to have fewer export revenues as commodity prices fall and export volumes fall, particularly to China, Europe, and the United States, which are all significant trading partners. The manufacturing industry, especially automotive manufacturing, has been damaged by containment measures in various South American countries. Due to the pandemic, major automotive manufacturers have also temporarily halted manufacturing in the region as a cost-cutting move. Furthermore, the automobile disc brake industry has been significantly affected in 2020 due to a lack of raw materials and supply chain disruption.

The Automotive Brake System control module of a vehicle is meant to alert the driver with a warning light if the system fails. The module itself is rarely defective; instead, the sensors or the wiring to the sensors are frequently defective. The most typical cause of dysfunction is when the Automotive Brake System is contaminated with particles or metal shavings. There is no signal continuity when sensor wiring is destroyed. Brake fluid becomes contaminated in corrosive situations, and the hydraulic unit fails to function.

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