The global engineering adhesive market size 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% from 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 fields of optics, fibre optics, optoelectronics, and dentistry.
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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.
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.
Numerous chemical gases are released during the application of engineering adhesives, and they are thought to be dangerous and unhealthy to breathe in. Because of this, the rules governing their use are stricter. Additionally, producers now have a major problem due to the growing consumer knowledge of health and the environment. Emerald Performance Materials' vice president claims that "For the industry, the regulatory environment is leading to serious difficulties. Environmental agencies, like the U.S. Environmental Protection Agency, are adopting new actions and putting more barriers and restrictions in the way of manufacturers."
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.
This engineering adhesive market share can be segmented on the basis of products, applications, geographical regions and competitors. Epoxies had the largest market share in terms of volume in 2021, with a share of 36.5 %, and they are expected to rise rapidly over the following seven years. These goods offer a great level of freedom and are the best option when structural connectivity is needed. These kinds of components are frequently used in applications like hinges and brackets, and potting terminals.
From 2022 to 2030, the revenue for the cyanoacrylates segment is anticipated to increase at a CAGR of 7.8%. These materials can be used in temporary bonding applications due to their low shearing strength. The use of cyanoacrylate products is widespread in a variety of industries, including electronics, carpentry, medicine, cosmetics, and maritime.
Due to their versatility in joining various substrates, polyurethanes are becoming more and more in demand. Numerous sealing and bonding applications can benefit from the great strength that these products also offer. The construction and machinery industries, as well as growing consumer demand, is this segment's main growth drivers.
Transportation, construction, electrical & electronics, energy, and others are the application-based divisions of the engineering adhesives industry. With a volume share of 28.7%, transportation was the largest segment in 2021. The rising need for assembling car parts together and switching to adhesive materials in place of fasteners is what is driving the application.
Promotion of the renewable energy industry through government financing and investment. For adhesive manufacturers in this industry, the wind energy market is expected to offer a wide range of opportunities over the forecast period. Due to the enormous potential for energy, developing nations like China and India are paying particular attention to the industry. According to the Ministry of New and Renewable Energy in India, the nation is ranked fifth and fourth globally for its capacity to produce wind and solar energy, respectively. By 2030, it also plans to generate about 40% of its energy from renewable sources.
In order to achieve the nation's wide development objectives and promote economic growth, infrastructure is crucial. The UNCTAD's 2018 report estimates that between 2015 and 2030, there would be an annual investment demand of between USD 1.6 and 2.5 trillion. However, the annual investment is currently approximately USD 870 billion. Many governments are expected to continue focusing on the growing demand for infrastructure investment in the years to come. Construction is one of the major consumers of bonding products. Thus, this is likely to be advantageous for the engineering adhesive business.
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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.
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.