A high performance adhesive holds two surfaces together. It helps in strengthening the joint between two or multiple elements based on their applications. They are generally colorless, transparent, or slightly colored compared to their emulsions that are usually light-yellow or opaque white. They possess excellent properties, such as high tensile strength, high-temperature resistance, low curing time, high elasticity, high durability, and excellent moisture resistance. High performance adhesives are used in complex applications that require high-speed manufacturing, bonding versatility, large gap filling, fast green strength, and minimal shrinkage.
High performance adhesive is largely preferred over conventional and traditional adhesives owing to the ability of binding materials, sealing, and coating products. It is widely employed in a variety of markets including aerospace and defense, automotive, recreational vehicle, bus, truck and trailer, rail, marine, insulated glass, solar, wind, assembly, electrical, electronics, filter, printing, packaging, laminating, roofing and flooring.
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The increasing demand for high performance adhesives in diverse end-use industries such as automotive & transportation, construction, and electronics owing to its superior properties and strong adhesion to a wide range of materials such as metals, wood, plastic, and others are expected to propel the global high performance adhesives market growth during the forecast period. However, the highly volatile nature of the prices of raw materials can hamper the market growth.
The growing use of high performance adhesives in the products, such as touch screens and hardware, due to rapid automation and miniaturization in the consumer electronics industry to improve the degree of accuracy and increase efficiency is expected to propel the market growth. The most preferred high performance adhesive is the UV cured adhesive that is significantly consumed in the electronics industry to enhance production rates. The robust growth of emerging economies like India and China will also augment the demand for these high performance adhesives.
According to the report shared by the Indian Brand Equity Foundation (IBEF), the appliance & consumer electronics (ACE) market in the country was valued at 10.93 USD billion in the year 2019 which is projected to double and reach 21.18 USD billion by 2025. Furthermore, electrical manufacturing is likely to increase at an annual rate of 30% between 2020-25 and record 163.14 USD billion additional production. Therefore, a rise in this industry will boost the market growth during the forecast period.
The healthcare industry is one of the major end-user of high performance adhesives. The medical sector consumes these adhesives in both skin as well as non-skin applications. With a rise in the geriatric population and growing focus on sophisticated health care procedures, the medical segment of the high-performance adhesives market is anticipated to increase at a rapidly during the forecast period.
The increasing rate of chronic diseases and technological innovations has been driving the healthcare industry that will further contribute to the market growth. Furthermore, rising awareness and inclination towards living a healthy life along with an increase in the healthcare expenditure will boost themarket.
The Asia-Pacific is anticipated to hold the largest market share during the forecast period. The growth can be attributed to the growth in consumer’s purchasing power, leading to the demand for various products and thus, the growth of various end-use industries. Strong GDP growth, industrialization, and rise in the manufacturing output in the countries of this region are also accelerating the high performance adhesives market growth. The region is expected to observe a robust growth in construction activities due to increased urbanization and new infrastructure development projects. Various government infrastructural development initiatives such as the “One Belt One Road Initiative” by the Chinese government as well as other planned projects are anticipated to boost the overall construction sector which will drive the demand for high performance adhesives in the region.
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In addition to this, the shift in the focus of the manufacturers in the region due to the availability of skilled laborers, and low manufacturing costs are expected to expand industries such as electronics, e-commerce, healthcare, packaging, and automotive, which are offer opportunities for regional market growth.
As per the data shared by the India Brand Equity Foundation (IBEF), the production of India's domestic automobiles increased at 2.36% CAGR between 2016 and 2020 with 26.36 million vehicles being manufactured in the country in 2020. Furthermore, the automobile export reached 4.77 million vehicles in 2020, growing at a CAGR of 6.94% from 2016 to 2020. The below figure shows the number of automobiles exported by the country from 2016 to 2020:
Figure 1: No. of Automobiles Exported, 2016-2020
Source: India Brand Equity Foundation (IBEF)
According to the above figure, the exports of automobiles in India saw an increase from 2017 to 2020 by 1.29 million which is further projected to grow during the forecast period. The growth of the food & beverages industry along with e-commerce platforms is leading to a rise in consumers as online food deliveries have led to an increased demand for high performance adhesives in the packaging industry which is expected to further boost the regional market growth.
Europe is likely to be the second-largest region in the global high performance adhesives market during the forecast period owing to the growth of the automotive industry as high performance adhesives are used for automotive applications which include metal or composites bonding, friction, headlight assembly, etc. Europe is considered to be one of the world’s biggest automotive producers and home to several top automotive brands.
The implementation of favorable European Union commission policies for the regional automotive sector such as “GEAR 2030”, or “European Battery Alliance“ that aims to set an internal market, environmental protection & safety, stable level playing field, and strengthen competition is anticipated to propel the growth of the automotive industry in the region.
Furthermore, the region is home to several industrialized countries such as Germany, France, and the U.K where there is a strong demand for high performance adhesives from various major end-use industries such as construction, packaging, and others due to an increase in the consumer disposable income, flourishing e-commerce, along with increasing uptake of corrugated packaging which is positively impacting the growth of the high performance adhesives market in the region.
The market for high performance adhesives is highly competitive and fragmented due to the presence of various major players as well as regional players operating in various parts of the world. These players have been adopting strategies, such as mergers and acquisitions, partnerships, expansion, collaboration and new product developmentby manufacturers to expand their share in the market for high performance adhesives. For instance, Sika AG acquired Crevo-Hengzin to expand its high-performance adhesives business in the Asia-Pacific in September 2019.