Contact Adhesives Market Size, Share & Trends Analysis Report By Type (Polyurethane, Neoprene, Acrylic, SBC, Others), By Application (Construction, Automotive, Woodworking, Footwear and Leather, Others), By Technology (Solvent-Based, Waster-Based) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

Contact Adhesives Market Size Will significantly Grow At CAGR of 3.8% By Forecast Period

An adhesive is a substance that is used to bond two different surfaces together. Contact adhesives also are known as semi-structural adhesives and are typically utilized for high-strength bonding of a variety of materials. The only difference between other adhesives and contact adhesives is that contact adhesives form a permanent fix even when little pressure is applied. These adhesives are available in liquid form, which may either be solvent-based or water-based.

Market Dynamics

Increasing Consumption and Production of Automobiles

The sales of automobiles and production capacity have constantly been increasing since the last decade on account of growing industrialization and globalization, particularly in developing economies. Increasing disposable per capita income, an increase in expenditure by consumers, and shifting trends toward a high standard and comfortable lifestyle have increased the demand for vehicles. The automobile industry is shifting from welding activities of engine parts assembly to contact adhesive. Ongoing efforts in the automobile industry to replace the metal component with composites to improve fuel efficiency are projected to propel contact adhesives market growth during the forecast period.

Applications of Contact Adhesives

Contact adhesives, owing to their enhanced characteristics and superior physical properties such as excellent adhesion and cohesion, the high elastic modulus of a substrate, and resistance against thermal expansion, UV light, corrosion, and other weathering conditions, are extensively used in the building and construction industry. Their primary applications are in wooden flooring and artificial turfs due to their property of strain crystallization. The recovery of North America’s construction market is projected to increase the market growth. For instance, in the U.S., single-family housing has been witnessing double-digit growth coupled with spending on non-residential construction activities.

Overall, population growth, rapid urbanization, increasing disposable incomes, especially in emerging economies of India and China, and low unemployment rate are driving the growth of the building and construction sector globally, which is positively impacting the growth of the contact adhesives market.

Apart from the construction, packaging, and footwear industries, leather production processes also consume contact adhesives on a large scale in their daily activities to manufacture products. Additionally, the growing trend of replacing several conventional materials with high-performance contact adhesives and increasing engineering works in industries are demanding contact adhesives to attain a differentiation in designs and other features. These aforementioned aspects project the rapid growth of the contact adhesives market.

Regional Analysis

Favorable Conditions Drive North America’s Contact Adhesives Market

North America contributed a significant share to the contact adhesives market and will grow at a CAGR of 5.8% over the forecast period. Increased production of manufactured goods and an improved standard of living are key factors driving the growth of North America’s contact adhesives market. Moreover, the increase in the demand for cars, better housing, furniture, consumer electronics, and telecommunication is propelling market growth in this region. For instance, low fuel prices, and low unemployment and interest rates played a key role in the purchase of new cars in the U.S. Consumers in the U.S. bought a record number of new cars and trucks in 2016. According to Autodata Corp., the U.S. sold 17.55 million vehicles in 2016 as compared to 17.47 million in 2015. Additionally, in July 2018, North America increased the prices of all polymers and water-based adhesives products by 7%–12%.

Mergers and Acquisitions Propel Europe’s Contact Adhesives Market

Europe has a stronghold in the global contact adhesives market and the same trend is expected to continue during the forecast period, owing to the rapid growth in the automotive, healthcare, and building and construction sectors. The manufacturers of automobiles and aerospace equipment are largely adopting adhesives technologies to reduce vehicle weight and enhance fuel efficiency. For instance, in January 2017, Ellsworth Adhesives Europe, one of the leading suppliers of adhesives and adhesive dispensing equipment, purchased TRB Lightweight Structure’s Lord adhesive business to increase its share in the European market. Several prominent companies in Europe have adopted organic strategies of acquisition and collaboration, which are expected to drive the European adhesives market in the coming years.

Infrastructure Propels LAMEA’s Contact Adhesives Market Growth

LAMEA (Latin America, the Middle East, and Africa) is estimated to grow at a rapid pace from 2018–2025 and comprises many emerging economies that have the potential to witness strong growth in the construction, automobile, and manufacturing industries. According to the World Economic Forum, with 80% of its population living in cities, Latin America is the most urbanized region on the planet, where the countries in the region face massive infrastructure gaps, leading to an increase in the demand for contact adhesives. For instance, in 2022, the FIFA football World Cup is scheduled to take place in Qatar, which is projected to attract rapid investment in infrastructures such as building new roads, football stadiums, and other facilities to support the tournament.

Segmental Analysis

Polyurethane Finds a Wide Range of Applications

The polyurethane segment is the largest of all and is expected to grow significantly over the forecast period, with a CAGR of 5.7%. The growth of the segment is attributed to increased resistance to plasticizer migration and surging usage of this solvent-based adhesive in a number of industrial sectors such as building and construction, industrial assembly, and woodworking. Furthermore, polyurethane contact adhesives also find applications in bonding metals, glass, and almost any other material. Additionally, market players are significantly investing in building brand image and creating a strong global presence. For instance, in August 2018, Huntsman Corporation, a chemical manufacturer, recently opened a new, multi-use facility near Ho Chi Minh City, Vietnam, for its polyurethanes and advanced materials businesses, which contains the manufacturing of assets, research and development capabilities, and a technical service center.

Construction Sector Drives the Contact Adhesives Market

On the basis of application, at 42.67%, the construction sector undoubtedly holds a significant share of the global contact adhesives market. The demand for individual apartments, residential and commercial construction, and expansions and refurbishing of existing infrastructure has propelled the construction industry, therefore driving the global contact adhesives market. For instance, according to the World Bank, by 2020, the global construction industry expenditure is projected to reach around USD 11.9 trillion.

Solvent-Based Contact Adhesives Technology

Based on technology, the solvent-based segment has led to the growth of the market and is expected to grow at a CAGR of 5.7% during the forecast period 2018–2025. These solvents dissolve various rubbers and resins to develop the perfect emulsion and spread efficiently. Immediate evaporation of the solvent allows the polymer solution to dry quickly and attain higher adhesive effectiveness. Additionally, it is more efficient than other available types.

Impact of covid-19

Since the outbreak of the Covid-19 pandemic, the logistics companies have been on the front line with fully-stocked warehouses and ongoing trade. However, the global supply chain disruption due to the lockdown imposed in the majority of the world further narrowed down the merchandise trade growth in the said logistics segment. But one thing which was notably remarkable in this Covid outbreak was the immense growth of the e-Commerce sector which introduced the consumers to digital business models and smart and safe logistics parameters. There has been a significant rise in the instant or same-day delivery patterns in online purchases with the increase in Covid-19 cases worldwide. Consumers feel safe ordering things online and getting them delivered to their doorstep without visiting a crowded place. In the meantime, follow the Covid guidelines given by the governing authorities.

Some reports say that the e-Commerce sales have grown by 30% in the first and second quadrant of 2020, during which the Covid outbreak was humongous. The said period saw a significant rise in daily parcels globally which reached 9 million parcels a day from 5.3 million parcels a day in the pre-pandemic times. The only positive thing the covid-19 pandemic did was to the e-Commerce industry. They generated a lot of revenue through the online selling portals and gained the consumers' trust by delivering their goods safely to their doorstep.

The global market of last mile delivery has seen a noteworthy increase in revenue with a sudden rise in delivery services during the pandemic. Many key players in the industry are planning to improvise and connect to more customers through safe and efficient delivery services. Even after the Covid-19 outbreak, the online sales and e-Commerce platforms are expected to keep their rising momentum in the global last mile delivery market growth with the increase in the online shopping trends and safe and sound fast delivery options.

Recent Developments