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, Water-Based) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Contact Adhesives Market Size

The global contact adhesives market size was valued at USD 2.7 billion in 2023 and is projected to reach from USD 2.95 billion in 2025 to USD 4.4 billion by 2032, growing at a CAGR of 6.29% during the forecast period (2024-2032).

The increase in contact adhesives market share during the forecast period is related to increasing consumption and production of automobiles and applications of it. An adhesive is a substance employed to form a bond between two distinct surfaces. Semi-structural or contact adhesives are frequently used for high-strength bonding of various materials. The sole distinction between contact adhesives and other adhesives is that establish a permanent bond even when minimal pressure is applied. These adhesives are accessible in liquid form, and they may be either solvent-based or water-based.

The global contact adhesives market is expected to grow steadily in 2024, driven by advancements across multiple industries such as automotive, construction, leather, and footwear. The increasing trend toward replacing traditional fastening techniques with high-performance adhesives is one of the key factors propelling the market. The rising demand for eco-friendly and sustainable adhesives also pushes manufacturers to invest in bio-based solutions. This shift aligns with growing environmental regulations, especially in North America and Europe, where strict volatile organic compound (VOC) emissions standards are mandatory. Market growth is also supported by rapid urbanization and infrastructure development in emerging economies such as China and India, where construction and automotive sectors are expanding significantly.

Highlights

• The polyurethane segment is the most significant based on type.
• The construction sector occupies a substantial portion by application.
• The solvent-based segment has significantly contributed to the market's expansion by technology.

Contact Adhesives Market Drivers

Increasing consumption and production of automobiles

In 2024, the global contact adhesives market continues to be significantly driven by the automotive sector, which accounts for a considerable share of the demand. Global automobile production saw a 3.2% increase in 2023, and with projections of over 85 million vehicles to be produced in 2024, this sector remains pivotal to growth. The shift towards replacing metal components with composites to enhance fuel efficiency is increasingly driving the adoption of contact adhesives for automobile bonding applications.

Moreover, electric vehicles (EVs) have further accelerated the use of high-performance adhesives due to their lightweight construction needs. Adhesives are now preferred over traditional mechanical fasteners, contributing to the 6% CAGR growth in this market.

Applications of contact adhesives

The construction and building industry extensively employs contact adhesives due to their superior physical properties and enhanced characteristics, including excellent adhesion and cohesion, the high elastic modulus of a substrate, and resistance to thermal expansion, UV light, corrosion, and other weathering conditions. Their strain crystallization property is the primary reason for their use in artificial turfs and wooden flooring. North America's construction market recovery is anticipated to bolster the market development. For example, in the United States, single-family housing has experienced double-digit growth with expenditures on non-residential construction activities.

Furthermore, leather production processes utilize contact adhesives on a large scale in their daily activities to manufacture products, in addition to the construction, packaging, and footwear industries. In addition, the increasing demand for it to achieve differentiation in designs and other features results from the growing trend of replacing numerous conventional materials with high-performance this and the escalating number of engineering projects in industries. The factors above anticipate the rapid expansion of the market.

Restraining Factors

Stringent environmental regulations

Environmental concerns are placing substantial pressure on this market, particularly in Europe and North America. The increasing regulations on volatile organic compound (VOC) emissions, enforced by bodies like the EPA in the U.S. and the European Commission, are restricting the production and use of solvent-based adhesives. For example, in 2024, VOC limits in adhesives have been tightened under new regulations in California, requiring manufacturers to develop more sustainable alternatives. This has led to a shift toward water- and bio-based adhesives, but the higher production costs restrain manufacturers. The market's growth is tempered by these evolving regulations, slowing production in regions with stringent environmental laws, particularly for petroleum-based adhesives.

Market Opportunities

Emerging sustainable and non-hazardous adhesives

The demand for sustainable, eco-friendly adhesives presents a significant opportunity in 2024. The global market is experiencing a shift toward green chemistry innovations driven by regulatory and consumer demands. Adhesive manufacturers are responding with the development of bio-based and water-based adhesives, which are less harmful to the environment. For instance, in early 2024, several leading companies launched bio-inspired fibrillar adhesives that mimic natural adhesive systems like those found in geckos, which are gaining traction for their non-toxic and recyclable properties. 

Furthermore, Building Information Modeling (BIM) tools are being used to connect adhesive manufacturers with the construction industry, promoting sustainable adhesives in LEED-certified projects. This segment is expected to grow at a 5.5% CAGR as more industries adopt environmentally safe bonding solutions, including automotive and packaging.

Regional Insights

Asia-Pacific : Dominant region

The Asia-Pacific region remains the world's largest and fastest-growing market for contact adhesives in 2024, with countries such as China, India, Indonesia, Pakistan, and Bangladesh playing critical roles in market expansion. The region’s growth is driven by robust automotive, construction, furniture, footwear, and packaging demand. For instance, China, the world’s largest automotive producer, witnessed a 5% growth in vehicle production, further driving demand for it, particularly for interior applications and lightweight component assembly.

In addition, the rapid rise of e-commerce and food delivery services has fueled significant development in the packaging sector, increasing the use of it in flexible packaging solutions. In India, urbanization and the expanding middle class have accelerated growth in the construction industry, which increased by 6.7% in 2023 and continues stimulating demand for adhesives used in flooring and panel applications.

North America : Fastest growing region with the highest CAGR

North America, particularly the United States, remains the second-largest market for contact adhesives in 2024, driven by high demand from end-use industries such as aerospace, automotive, packaging, and footwear. Notably, the residential construction sector continues to thrive, with the U.S. housing market experiencing 4% growth in new home construction in early 2024. 

Furthermore, North America is a global leader in R&D capabilities, with companies such as 3M and Henkel investing heavily in developing innovative adhesive products. In early 2024, 3M announced new advancements in low-VOC adhesives, specifically targeting sustainable packaging and construction applications. The presence of major manufacturers and the increasing focus on environmental regulations continue to shape the market.

Europe ranks as the third-largest market for contact adhesives in 2024, driven by the growing demand from the packaging and construction sectors. With Germany, France, and the United Kingdom leading the market, the automotive industry has been a critical contributor to the region’s growth. The automotive sector, particularly electric vehicles (EVs), has experienced a 7% increase in production across Europe, significantly boosting the demand for contact adhesives for battery components and lightweight structures.

Additionally, the construction industry has expanded, driven by EU green building initiatives aimed at enhancing energy efficiency and promoting eco-friendly materials in renovation and insulation projects. In 2024, adhesive manufacturers like Sika introduced new bio-based adhesives tailored for sustainable building practices. This aligns with the increasing focus on reducing the environmental footprint of construction activities across the region.

Contact Adhesives Market Segmentation Analysis

By Type

The polyurethane segment is the most significant and is anticipated to experience substantial growth during the forecast period, with a CAGR of 5.7%. The segment's expansion is due to the increasing resistance to plasticizer migration and the growing use of this solvent-based adhesive in various industrial sectors, including woodworking, industrial assembly, and building and construction. Polyurethane contact adhesives are also employed to bond metals, glass, and nearly any other material. 

Furthermore, market participants invest substantially in developing their brand image and establishing a robust global presence. For example, in August 2018, Huntsman Corporation, a chemical manufacturer, inaugurated a new, multi-purpose facility near Ho Chi Minh City, Vietnam, to support its polyurethanes and advanced materials businesses. The facility includes a technical service center, research and development capabilities, and the production of assets.

By Application

The construction sector occupies a substantial portion of the global contact adhesives market, with a share of 42.67% based on application. These global market is driven by the construction industry, propelled by the demand for individual apartments, residential and commercial construction, and the expansion and refurbishment of existing infrastructure. For example, the World Bank anticipates that the global construction industry expenditure will reach approximately USD 11.9 trillion by 2020.

By Technology

The solvent-based segment has contributed to the market's expansion and is anticipated to expand at a compound annual growth rate (CAGR) of 5.7% from 2023 to 2032 under the influence of technology. In order to create the optimal emulsion and distribute it effectively, these solvents dissolve a variety of rubbers and polymers. The polymer solution can be dried rapidly, and the immediate evaporation of the solvent can enhance its adhesive properties. Furthermore, it is more efficient than other types of equipment that are currently available.

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

• May 2024 - Dow signed an agreement to sell its flexible packaging laminating adhesives business, part of Dow's Packaging & Specialty Plastics segment, to Arkema, a global leader in specialty materials.
• February 2024 - A novel bonding technique that facilitates the immediate and efficient adhesion of hydrogels has the potential to significantly advance the development of new biomaterial solutions for various unmet clinical requirements.