Europe PUR-based Reactive Hot Melt Adhesive Market Size, Share & Trends Analysis Report By Substrate  (Fiberglass, Nylon, Plastics), By Application (Automotive , Electronics) and By Country(U.K., Germany, France, Spain, Italy, Russia, Nordic, Benelux, Rest of Europ) Forecasts, 2022-2030

Market Overview

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.

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. Over the projected period, the Europe PUR-based Reactive Hot Melt Adhesive Market is expected to increase at a substantial rate, with a CAGR of 7.4% with a total value of 189.61 million USD in 2030. During the projection period, the market is likely to be driven by rising demand from the region's packaging industry, as well as increased use of PUR holt-melt adhesives as an alternative for solvent-borne adhesives.

In the coming years, market growth is expected to be aided by the adoption of bio-based hot-melt adhesives. Germany is predicted to dominate the market and to have a good CAGR in future. Also, in the coming years, market growth is expected to be aided by the adoption of bio-based hot-melt adhesives.

Market Dynamics

Market Driving Factors

• Demand for environmentally friendly adhesives is increasing: The use of environmentally friendly and low volatile organic compounds in conjunction with green and sustainable adhesives has been recognised 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 vapours 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. Due to 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.

• Demand for Lightweight Automobiles is Growing: This is an evolutionary period in which new technology and inventions make human life more accessible and comfortable. The automobile industry is one of those industries that is always changing. One of the major drivers of the PUR-based reactive hot melt glue industry is the desire to make automobiles lighter and emit less carbon dioxide. The European automotive industry is continually developing and focusing on creating a lightweight automobile design with materials and components that are also environmentally friendly. Adhesives serve a critical role in lowering CO2 emissions and providing the structural strength needed to glue diverse surfaces together. These adhesives make the car lighter, safer, and quieter, and they're most known for their excellent weight distribution, which leads to improved efficiency. As a result, PUR-based reactive hot melt adhesives are one of the primary drivers of the global market.

Market Restraining Factors

• 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 European PUR-based reactive hot melt adhesive market.
• In comparison to other methods, the curing period is long: In comparison to other adhesives, reactive hot melt adhesives take longer to cure. Because cure is dependent on moisture from air permeating through the substance, these adhesives require many hours to cure after initial green strength or must be left undisturbed overnight. These adhesives' long curing times are backed up by their bond line limits. Thick bond lines are not recommended for curing with one-part reactive hot melt adhesives.

Key Market Opportunities

• The packaging and Labelling Industry is Experiencing Strong Growth: The European adhesive market has grown significantly as the demand for consumer goods has increased as a result of expanding urbanisation and modern lifestyle trends. Temperature resistance, moisture resistance, and shear resistance are some of the capabilities and attributes that provide such adhesives an edge in the labelling sector. In addition, the ready-to-eat food culture is rapidly expanding, giving rise to the packaging sector, and hot-melt adhesives can be an excellent fit for this purpose.

Regional Analysis

The automotive industry's global hub is Europe. Because the most prevalent application of hot melt adhesives is in the vehicle production industry, it has a lot of potential. From early levels of USD 99.40 million in 2021, the sector is expected to rise to USD 189.61 million by 2030, with a CAGR of 7.44%.

Germany is the country which is expected to dominate the market because of the following reasons- With 41 assembly and engine production factories, Germany leads the European automotive market, accounting for one-third of total vehicle production. Germany boasts Europe's largest construction industry. In Germany, the building industry accounts for over 3% of GDP. According to industry experts, demand for new homes is likely to peak at roughly 350,000 units per year by 2020, boosting the building industry. The construction of non-residential and commercial buildings in the country is predicted to expand significantly over the projection period. Furthermore, the European Commission has issued new laws and regulations targeted at creating a better environment with fewer hazardous emissions. Automobile manufacturers are playing a vital role in reducing carbon emissions and have begun to implement these requirements in order to achieve long-term growth. Reactive hot melt adhesives are expected to contribute to this trend because they are 100% solids.

In terms of volume, the paper board and packaging business is one of the main end-user industries, accounting for over 11% of the United Kingdom hot-melt adhesives market. Bags, cigarettes and filters, carton side seams and closures, composite containers and tubes, disposables, envelopes, flexible packaging, remoisten able items, labels/signs/decals, speciality packaging, corrugated boards, and so on are just a few of the many uses for hot-melt adhesives.

Furthermore, advances in design and innovation, as well as a shift in focus toward the use of recyclable materials for packaging, are likely to provide several potentials for market expansion. As a result, this component makes it possible to introduce new products to the market. The package manufacturing business in the United Kingdom generates GBP 11 billion in yearly revenue. According to government estimates, the country uses around two million tonnes of plastic packaging (the most common product sector) each year.

Segmental Analysis

The Europe PUR-based Reactive Hot Melt Adhesive Market is divided into two categories: substrate and application.

The European PUR-based reactive hot melt adhesive market is segmented into fibreglass, 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, fibreglass 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 fibreglass 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 utilised in a wide range of industries, contributing to sales of USD 50.9 million in 2021 and 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.

Recent Developments

• 3M introduced a new device named Next Generation Clear Aligner System in September 2021 to allow for totally customizable and unique designs.
• Henkel Adhesives received RecyClass clearance for recyclability for their Loctite adhesive products in November 2021.
• Sika AG acquired Sable Marco Inc, a cementitious product manufacturer in Canada, in March 2022, creating a new distribution channel in Canada.