Middle East and Africa PUR-based Reactive Hot Melt Adhesive Market Size, Share & Trends Analysis Report By Substrate  (Fiberglass, Nylon, Plastics), By Application (Automotive , Electronics) and By Country(UAE, Turkey, Saudi Arabia, South Africa, Egypt, Nigeria, Rest of MEA) 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.

The Middle East and Africa PUR-based Reactive Hot Melt Adhesive Market is estimated to witness a significant growth, at an estimated CAGR of over 9.6 %, over the forecast period to a total value of 61.04 million USD in 2030.  Increasing demand from the packaging industry in the region and the booming woodworking industry in the United Arab Emirates are expected to drive the market during the forecast period. In the upcoming years, market growth is expected to be aided by the adoption of bio-based hot-melt adhesives.

South Africa is predicted to dominate the market and to grow at the highest rate over the forecast period.

Market Dynamics

Market driving factors

• Hot Melt Adhesives have a wide range of applications due to their robust properties: Hot melt adhesives are most commonly employed in applications that need simplified and streamlined manufacturing as well as rigorous end-product protection. The adhesives in question are used in a wide range of industries, including automotive, electronics, medical, furniture, and packaging. The versatility of hot-melt adhesives is owing to their compatibility with a wide range of substrates, such as composites, papers, rubbers, plastics, ceramics, metals, glass, and wood. The high melt viscosity of these hot melt adhesives makes them a perfect choice for the applications they're utilised for, therefore they're usually applied by extruding, rolling, or spraying techniques. Hot-melt adhesives can be used for both industrial and household repair applications, catering to practically all B2B and B2C end customers. Another reason for hot-melt adhesives' dominance in the market is its qualities such as quick setting, temperature resistance, and, most crucially, price.

• Booming woodworking industry in the United Arab Emirates: According to our experienced industry experts, the UAE's wood sector will flourish over the next two years as the country steps up construction activity ahead of Expo 2020 Dubai which will in turn increase the demand of PUR based adhesives and this trend is expected to happen in some other countries also apart from UAE.

Market restraining factors

• 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

• 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 Middle East and African 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.

Regional Analysis

South Africa is expected to dominate the market and to grow at the highest rate over the forecast period. There are so many reasons why South Africa can dominate the market and can have a commendable growth is coming years- South Africa is Africa's largest automobile manufacturer. On the back of incentives granted as part of the government's Automotive Production and Development Plan, numerous vehicle manufacturers have grown their production and export from South African facilities in recent years (APDP).

Despite the market slump, the building and construction industry in South Africa has a bright future. The rise in housing demand and the influx of new people in metropolitan areas has resulted in an increase in new development. The government's National Infrastructural Plan anticipates new projects to support this expansion.

Due to a lack of government backing and unjust import levies on various electro-mechanical components and switches, the electronics sector in South Africa has stalled. Until big supportive measures by the government or FDI are executed and demand for production develops, the market potential for this electronics industry is higher, with excellent products.

Apart from South Africa, UAE is also expected to have a significant growth and good CAGR in future due to rapid industrialization and increasing wood market. According to top industry experts, the UAE's wood sector will flourish over the next two years as the country steps up construction activity. According to our analysts, new hotel projects are projected to stimulate demand for wood items, as hotel developers race against the clock to supply branded hotel keys as the event's deadline approaches and this will ultimately increase the demand for PUR based adhesives in the region.

Segmental Analysis

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

The North American 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 percent to USD 617.5 million in 2030. Because consumers seek lightweight and attractive packaging, the plastic substrates 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 percent, 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 percent.

The PUR-based reactive hot melt adhesive market is divided into two categories: automotive and electronics. With a CAGR of 11.95 percent 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 percent, 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

• 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