High Performance Adhesives Market Is Estimated To Witness High Growth Owing To Increasing Demand From Automotive Industry

High Performance Adhesives Market Is Estimated To Witness High Growth Owing To Increasing Demand From Automotive Industry

The High Performance Adhesives Market is estimated to be valued at US$ 15.48 Bn in 2024 and is expected to exhibit a CAGR of 6.8% over the forecast period 2024- 2031, as highlighted in a new report published by Coherent Market Insights’ The high performance adhesives market is primarily driven by the increasing demand from the automotive industry.

Adhesives are widely used in the automotive industry for bonding interior and exterior automotive components such as mirrors, door panels, instrument panels, windscreens, and batteries. Moreover, the use of adhesives helps in weight reduction of vehicles by replacing welding and mechanical fasteners. This provides fuel efficiency. The other driver includes high demand from electronics industry. Adhesives are used in smartphones, laptops, circuit boards and other electronic devices for assembly purposes. They provide electrical insulation and protection from humidity and corrosion.

Key Market Trends: Structural adhesives are widely gaining popularity over mechanical fasteners in the automotive industry. They help in load distribution and dampening of impact and vibration. Some of the major automotive OEMs have started using structural adhesives for vehicle construction. Epoxy structural adhesives account for over 50% of demand in automotive structural applications. Another major trend in the market is development of bio-based and green adhesives. Stringent environmental regulations regarding VOC emissions is propelling research and development of bio-based and green adhesives. Soy and other plant-based chemistries are being increasingly explored for adhesives formulation. Bio-based adhesives such as soy-based and polyurethanes provide comparable performance to petroleum-based adhesives and improve sustainability.

High Performance Adhesives Market Opportunities: The high performance adhesives market by technology insights is anticipated to hold a market size of USD 15.48 Bn in 2024 and is expected to grow at a CAGR of 6.8% during the forecast period.

UV curable adhesives segment accounted for largest revenue share of over 35% in 2019 and is expected to witness significant growth during forecast period. UV curable adhesives offer benefits like faster curing, low energy usage and solvent-free formulations. They are increasingly being used in electronics and medical applications.

Epoxy adhesives dominated the market and accounted for over 30% market share in 2019. Epoxies provide excellent adhesion to various substrates and retain their structural integrity even under harsh conditions. They are commonly used in automotive and aerospace applications due to their high strength and temperature resistance properties.

Key Market Takeaways: The global high performance adhesives market is anticipated to witness a CAGR of 6.8% during the forecast period 2024-2031, owing to increasing usage in automotive, aerospace and electronics industries.

On the basis of technology, UV curable segment is expected to hold a dominant position, driven by benefits like fast curing and solvent-free formulations.

By resin, epoxy segment accounted for largest share in 2019 due to properties like high adhesion and strength.

Regionally, North America dominated the global market due to presence of major automotive and electronics manufacturers. Asia Pacific is expected to witness fastest growth over forecast period.

Competitor Insights: Key players operating in the high performance adhesives market include Dymax Corporation, Henkel AG, H.B. Fuller, 3M, Dow and ITW Insulatec. These players are focusing on new product launches and capacity expansions to gain higher market share.

Recent Developments: In June 2023, Henkel announced the expansion of its production capacities for structural adhesives at its automotive facility in Changshu, China. This will help the company cater to the growing demand from Chinese EV manufacturers. In the same month, Sika launched new instant adhesives under its Dupont brand named Versaflex and Versachem for automotive interior applications such as bonding trims, pads, and handles. These instant adhesives bond within seconds and offer higher temperature and chemical resistance. In August 2023, H.B. Fuller strengthened its presence in the European automotive adhesive market through the acquisition of Prochimir, a France-based manufacturer of customized adhesive solutions. This acquisition will help H.B. Fuller expand its product portfolio and technical expertise for the automotive industry. More information in full report.