The global curing adhesives market size was over 1,980 kilo tons in 2016. The increasing utilization of high performance bonding solutions across major end-use industries including electronics, construction, and automotive is expected to boost the industry expansion over the forecast period.
Growing demand of curing adhesives in automotive and construction sectors is expected to be a significant factor to drive the market growth. The ability of curative agents for bonding various substances such as glass, fiber, wood, and metals used in automobile spare parts, furniture, and textile applications is likely to steer the product demand over the next eight years.
U.S. curing adhesives market volume by product, 2014 – 2025 (Kilo Tons)
Various features are associated with the reactive bonding agents to protect them from the external environment such as moisture, dust, and temperature, make it viable for use across a wide range of applications. However, the regular fluctuations in the raw material prices along with environmental concerns about the use of petrochemical based bonding agents are predicted to have serious repercussions to the industry expansion over the next few years.
The U.S. market is driven by a large number of industry players and various technological advancement in the country. The U.S., Germany, China, India, and Japan were among the largest consumers of curing adhesives globally owing to the growing construction and infrastructural development activities in the countries. The increasing infrastructural development and rising technological innovations in various mature economies of North America and Asia Pacific are anticipated to drive the product demand globally over the forecast period.
Environmental and safety issues along with increasing governmental regulations on the use and disposal of synthetic products are anticipated to aid the manufacturing of products with less volatile organic compounds (VOC). The U.S. Environmental Protection Agency (EPA) has laid down guidelines for the use of clean formulations in furniture surface coating industries. Government regulations such as Significant New Alternatives Policy (SNAP) applied by EPA and REACH regarding the use of eco-friendly products in the manufacturing process, are expected to pose challenges to the market participants.
Major industry participants have been focusing towards developing dedicated portfolios comprising of bio-based products to reduce dependence on petroleum derived products. These products reduce volatility associated with synthetic products and are also environment-friendly as they are derived from renewable chemicals. Major manufacturers such as The Dow Chemical Company, Henkel, and H.B. Fuller among others are focused toward producing bio-based product formulations.
Moisture curing adhesive was the largest product segment and was valued over USD 3.96 billion in 2016. Automotive manufacturing was the major end-use category for the product segment over the past few years. Large-scale product usage in wood working applications to ensure the long life of wood, and equipment in construction and manufacturing activities is expected to enhance the segment growth over the next few years.
UV curing adhesives are estimated to observe the highest growth as compared to the other product categories over the next eight years on account of the high rate of utilization in medical devices. Also, its immense application in the electronics and automotive sector for metal fabrication and metal bonding is expected to boost the market growth over the prediction period. In the automotive manufacturing sector, it is used for permanent effects on automobile parts or equipment. The segment is expected to grow at a CAGR of over 6.4% from 2017 to 2025.
Cross-linked materials that are cured with heat or combined heat & pressure are known as thermal curative agents. Heat curing adhesives do not melt or flow when heated which increases the adhesion of the product to the substrate.
The basic raw materials for these products are classified into two groups, including single component (1-C) and two-components (2-C). The single component group includes chemically remedial products derived from cyanoacrylates and silicones. Similarly, the two-component group includes materials such as epoxy, acrylates (methyl methacrylate-MMA), polyurethane, and silicone based bonding agents.
Acrylate resins dominated the raw material segment in 2016. This can be attributed to the various unique features such as higher bonding power, adhesion and temperature resistance associated with the product lines. Low price and higher suitability of acrylic resin for UV remedial have also driven the acrylate demand in the process.
Polyurethane-based remedial bonding formulations are majorly used for moisture prevention purposes owing to the enhanced moisture and temperature resistant property of the material. It emerged as the second most consumed segment on account of its improved bonding properties with various materials including steel, glass-fiber reinforced plastics (FRP), floor plates, aluminum wall, and steel supports.
As per the recent trends, epoxy based product formulations are high in demand owing to fast setting characteristics with a work-life in the range of 2 to 5 minute that gives rigid bond lines. The epoxy curing adhesives are used to bond plastic, metal, fiber reinforced plastic (FRP), rubbers, and glass.
Automotive emerged as the largest end-use segment, with a net market size of around 520 kilo tons in 2016. The global adhesives industry has witnessed a huge increment owing to fast development from its end-use sectors such as construction and automotive. Curing bonding formulations are expected to observe significant expansion because of rising technology advancements, which prompts growth in automotive, packaging, and construction as it is essentially used for lamination and protection.
Global curing adhesives market revenue share, by end-use, 2016 (%)
The key drivers of the curing adhesives market are escalated renovation and construction activities. Construction application is expected to develop at a higher rate on account of commercialization of a wide range of remedial bonding solutions in various sub-sectors, for instance, flooring, wall covering, tiling, insulation, and roofing.
Increased government spending and consumer expenditure on construction in various countries such as Brazil, China, Mexico, India, and Argentina have enhanced the curing adhesives demand over the last few years. Wood coating industry is projected to grow at a CAGR of 5.3% owing to the increasing usage of environment-friendly products. The wood coating was identified as a major sector, which utilizes curative solutions.
The growing demand for wood coatings to protect the surface from external environments such as moisture and temperature acts as a major driving factor for the global market. Also, the increasing utilization of wood for various purposes such as furniture, flooring, decking has enhanced the demand for curing adhesives. Ongoing improvement of construction and housing industries in Asia Pacific is supposed to have a positive impact in Asia Pacific.
Asia Pacific dominated the global curing adhesives market in 2016 and is expected to remain the largest consumer on account of rising product utilization in construction and electronic industries in the region. The demand in this region is expected to reach a net volume exceeding 1,480 kilo tons by 2025.
North America is expected to grow at an annual average growth rate of over 6% from 2017 to 2025 on account of growing innovation and technological investment in the region. The stringent regulatory framework regarding the use of toxic chemical formulations in curative bonding agents in the region is expected to drive demand for naturally derived products over the forecast period.
Europe is expected to witness moderate growth rate on account of stringent regulation by the government of Germany and UK for the use of VOC-free raw materials for producing curing adhesive. The CSA and the MEA regions are expected to grow rapidly over the next eight years on account of increasing electronic and technological advancement, especially in the countries such as South Africa and Brazil.
Major industry participants include Henkel AG & Co. KGaA, Bostik SA, H.B. Fuller, Dow Corning, 3M Company, Jowat SE, Dymax Corporation, and Tosoh. The global market is highly competitive on account of a large number of multinational players present in the industry, which have well-established procurement and distribution channels globally.
Market players have collaborated with raw material distributors as well as manufacturers to enhance their market presence. Some of the players opt to trade within their region to cut down on raw material procurement and operation costs. This also helps domestic companies cater high-quality and economical products to the consumers, thereby sustaining the competition.