PUR-based Reactive Hot Melt Adhesive Market Size, Share & Trends Analysis Report By Substrate  (Fiberglass, Nylon, Plastics), By Application (Automotive , Electronics) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2022-2030

Market Overview

Global PUR-based reactive hot melt adhesive market size to grow from USD 722.5 million in 2021 to USD 1401.5 million by 2030. The market is expected to grow at a CAGR of 7.64% during the forecast period (2022-2030).

The PUR-based reactive hot melt adhesive market is one of the top revenue-generating markets in the world. The said market has shown significant growth of around 2% in the last decade. It is growing rapidly towards the all-time high figures of revenue generation during the forecast period.

The PUR-based reactive hot melt adhesives find their application in various industries, creating considerable demand for hot melt adhesives depending on the needs and the industry, viz., automotive and electronics industry, textile industry, paper processing, packaging industry, etc. Such adhesives being affordable and with the availability it has, has led to the rise in demand for hot melt adhesives.

Market Dynamics

Market Drivers

Wide Range of Applications based on Robust Features of the Hot Melt Adhesives

The hot melt adhesives are primarily used in applications where there is a need for simplified and streamlined manufacturing along with robust end-product protection. The said adhesives serve diverse applications in every industrial segment, starting from automotive, electronics, medical, furniture, packaging, etc. The ability of the hot-melt adhesives to serve such diverse applications is due to their suitability with an array of substrates, including composites, papers, rubbers, plastics, ceramics, metals, glass, and wood.

These hot melt adhesives are generally applied by extruding, rolling, or spraying techniques, as the high melt viscosity of the adhesives, makes them an ideal solution for the applications it is being used for. The hot-melt adhesives not only cater to the industrial purpose they can also be used for home repair applications and thus cater to almost all the B2B and B2C end users. Another reason for the hot-melt adhesives to be the most dominant driving factor for the said market is the features like quick setting, temperature resistance, and, most importantly, affordability.

Rising Demand for Light Weight Automotive

The current time is the era of evolution where new technologies and innovations make human life more accessible and more comfortable. The automotive industry is one of those sectors that is continuously evolving. Currently, the demand for making the automotive lightweight with less carbon emission is one of the key drivers for the PUR-based reactive hot melt adhesive market growth.

The global automotive industry is constantly innovating and focused on making a lightweight automobile design using materials and components that will also cater to the purpose of environmentally friendly vehicles. Adhesives play an important role in reducing CO2 emissions and having the capacity to bond various surfaces together with the requisite structural strength. Such adhesives make the vehicle lighter, safer, and quieter and are best known for efficient load distribution resulting in better efficiency. That is why such adhesives are one of the key drivers for the global PUR-based reactive hot melt adhesive market.Market Restraints

Volatile Raw Material Costs and Dynamic Exchange Rates to Impact Market Negatively

The main raw materials for the hot-melt adhesives are petrochemicals and their derivatives and tackifiers, whose prices depend on the global market price of crude oil. The crude oil rates are dynamic in nature which impacts the overall price structure of the raw materials, which in turn affects the price of the hot-melt adhesives. This high volatility in the price structure of the raw materials, along with the supply and demand factors, affects the overall cost of manufacturing the hot melt adhesives a little more costly, which can restrict the growth of the global PUR-based reactive hot melt adhesive market.

Market Opportunities

Robust Growth of the Packaging and Labelling Industry

The increase in the demand for consumer goods with the rising urbanization and the modern lifestyle changes has given a significant rise in the growth of the global adhesive market. The functionalities and features like temperature resistance, moisture resistance, and shear resistance provide an upper hand to such adhesives in the labeling industry. Along with this, the ready-to-eat food culture is growing at an immense rate, giving rise to the packaging industry, and for the said purpose, the hot-melt adhesives can be a perfect fit. 

Rising Demands for Eco-friendly Adhesives

Adopting eco-friendly and low-volatile organic compounds with green and sustainable adhesives is identified as an opportunity for the PUR-based reactive hot melt adhesive market growth. The adhesives consist of toxic elements that produce harmful gases as they dry out and release toxic, irritating, and carcinogenic fumes, adversely affecting human health and hampering the air quality. That is why the main focus of the adhesive industry is to produce eco-friendly adhesives that can eliminate the above-discussed factors.

With the high demand for such eco-friendly adhesives, the market is heading towards an eco-friendly model where people seek adhesives that will not affect their health and the environment. With all this, eco-friendly adhesives are considered an opportunity for the adhesive market in the coming future.

Regional Analysis

Asia-Pacific Dominates the Global Market

The global PUR-based reactive hot melt adhesive market is segmented primarily across three regions, namely – North America, Europe, and Asia-Pacific. Asia-Pacific is the dominant region with a sales figure of USD 239.9 million in 2021 and is expected to be valued at USD 630.30 million at a CAGR of 11.35% by 2030. The Asia-Pacific region has gained the maximum revenue with growing economies like India and China. India being the evolving automotive hub of the South Asian region, has the most number of automotive manufacturing plants in operation, which gives a helping hand to the overall revenue generation of the Asia-Pacific region.

The North American region is one of the leading regions in technological development and is also one of the key manufacturers of PUR-based reactive hot melt adhesives. The region has a revenue figure of USD 142.7 million in 2021 and is expected to be valued at USD 204.34 million at a CAGR of 4.07% by 2030. Hot melt adhesives are mostly used in the automotive industries, and the North America region is one of the key manufacturers for the said segment, which leads the region to achieve the forecasted sales figure.

Europe is the global hub of the automotive industry. It has wide opportunities for hot melt adhesives, as the most common use of the adhesives is found in the automobile manufacturing sector. This accounts for an estimated growth of the sector at USD 189.61 million at a CAGR of 7.44% by 2030 from early figures of USD 99.40 million in 2021.

Segmental Analysis

The global PUR-based reactive hot melt adhesive market is segmented into substrate and application.

Based on substrate, the global PUR-based reactive hot melt adhesive market is further classified into fiberglass, nylon, and plastics. Plastic is the dominant segment with a market share of USD 304.9 million in 2021 and is growing to USD 617.5 million in 2030 at an expected CAGR of 8.15%. The rise in the demand for packaged food products has led to the increased adhesive demand in the packaging industry with the consumer preference for lightweight and aesthetic packaging, which is why the plastic substrates segment dominates the market.

Fiberglass substrates are the second dominant category in the PUR-based reactive hot melt adhesive market after plastics, as these provide excellent flexibility to the joints at the maximum processing speed and high working temperature. These are mostly used in binding the fiberglass components used in various industries, which earned the substrate an astonishing revenue of USD 186.80 million in 2021 and is expected to reach USD 334.85 million in 2030 at a CAGR of 6.7%.

Nylon polymers are difficult to bond due to poor surface energy and excess moisture absorption. But still, it is used across a wide range of applications in the industries, which contributed to a sales figure of USD 50.9 Million in 2021 and is expected to reach USD 81.15% million at a CAGR of 5.32% by 2030.

Based on application, the global PUR-based reactive hot melt adhesive market is classified into automotive and electronics. The automotive segment earns the major share of the market with a whopping expected figure of USD 256.86 million in 2030 at a CAGR of 11.95% from USD 93 million in 2021. The reason behind the automotive sector booming the adhesive industry is the rising demand for hot melt adhesives used in automobiles to make it light weighted and aesthetically good.

Apart from the automotive sector, the electronics manufacturing industry also has a considerable demand for hot melt adhesives used to manufacture electronic components that have maximum use of adhesives to have proper joints of the entire electronic device or equipment structure. It accounts for the second largest market share after the automotive market, with expected revenue to be generated at USD 37.06 million at a CAGR of 8.49 by 2030, which is a great growth from the revenue generated in 2021 accounting for USD 17.8 million.

Impact of covid-19

With the sudden outbreak of the Covid-19 pandemic, several businesses and industries were adversely impacted, leading to huge losses. The adhesive industry is not different from these, as the hot-melt adhesives mostly find their applications in the automotive and the electronics industry, either operating with 50% occupancy or were shut down due to the lockdown measures.

With the pandemic in action, the global supply chain of the PUR-based reactive hot melt adhesive was disrupted, resulting in a huge demand and supply ratio gap. Still, major key players in the industry were focusing on manufacturing and supplying PUR-based reactive hot melt adhesives to the medical and packaging product manufacturers. To meet the demand for hot-melt adhesives, companies are searching for outsourcing partners to operate the major manufacturing sites globally and cater to the demands of their consumers.

With so many adverse effects on the industry, the PUR-based reactive hot melt adhesive market share is expected to recover faster after the Covid situation as most of the manufacturing units are working on an automated system. Apart from this, the major automotive and electronics manufacturing units are working with the full flow to fill up the demand and supply gap, which means that the adhesive market is about to achieve superior figures in the coming two years of operation. 

Recent Developments

• In December 2021, BASF SE, invested in the Uvinul A-plus production plant in Asia, which is expected to come into operation in early 2023.
• In September 2021, 3M introduced a new product called Next Generation Clear Aligner System to make the designs fully customized and innovative.
• In November 2021, Henkel Adhesives gained RecyClass approval for recyclability for its adhesive products called Loctite.
• In March 2022, Sika AG created a new distribution channel in Canada by acquiring Sable Marco Inc, a manufacturer of cementitious products in Canada.