The global adhesive market features the presence of some topnotch companies along with several regional companies, finds Transparency Market Research (TMR) in a new report. Introduction of newer products such as bio-based variant is the key focus of leading players in this market; this is to serve environmental considerations that are prevalent across industries. In addition, eco-friendly adhesives are also suitable for underwater operations.
Mergers and acquisitions is another key growth strategy of leading players in the adhesive market. These players are seeking penetration into regional markets via business alliances with small players.
Leading companies operating in the global adhesive market include Henkel AG & Company KGaA, 3M Company, and Pidilite Industries Limited.
As per the TMR report, the global adhesive market is likely to be worth US$55.8 bn by 2025 from US$34.3 bn in 2016. This alludes to a CAGR of 5.6% between 2014 and 2025. By product, acrylic segment holds prominence in the global adhesive market. Geography-wise, Asia Pacific stood dominant holding more than 30% of the market in 2016; the region is predicted to remain at the fore through the forecast period.
The global adhesive market is rising steadily due to several factors. Demand for adhesives across industrial sectors is primarily driving the adhesive market. At present, adhesives are extensively used in the manufacture of automobiles and aircraft. This is because adhesives and sealants help to reduce weight of automobiles along with improving fuel efficiency. Due to this, traditional joining techniques such as welding are increasingly being replaced with adhesive for fastening purposes. This is because welding of engine parts and other joint leads adds to weight of the automobile. Hence, adhesive exhibit widespread demand in manufacturing and construction sector. As the demand for fuel efficiency and lighter structure becomes imperative, the demand for adhesives is predicted to be on the rise.
Fuel efficiency is an important criterion among consumers while making a purchase decision of automobiles. Weight reduction helps attain higher fuel efficiency thereby reduce carbon footprint. In the U.S., the government has passed a legislation that mandates automakers to improve fuel efficiency up to 54.5 miles per gallon by 2025, and failure to comply with this requirement is subject to be fined by the National Highway Traffic Safety Administration.
In addition, worldwide, pressing regulations and government regulations to curb rising pollution levels are anticipated to boost the demand for fuel efficient vehicles, which in turn will provide impetus to the adhesive market.
Price Fluctuations of Raw Material Hinders Growth
Despite a number of favorable growth drivers, the adhesive market faces growth challenges as well. Fluctuations in the availability of raw materials that hampers steady production is inhibiting the market growth. Further, price volatility of raw materials is also a restraint to the growth of this market. Nevertheless, booming construction and automotive sectors are likely to present lucrative opportunities to the adhesive market.
The review presented is based on the findings of a TMR report, titled "Adhesive Market (Type - Water-based, Solvent-based, and Hot Melt; Product - Polyurethane, Acrylic, Poly Vinyl Acetate (PVA), Polyester, Rubber, Epoxy, and EVA; Application - Packaging (Flexible and Rigid), Construction, Automobile, Footwear and Leather, and Consumer) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2017-2025."
The global adhesive market is segmented as follows;
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