High-Performance Adhesives Market - Forecast(2024 - 2030)

High-Performance Adhesives Market Overview

The High-Performance Adhesives Market size is forecast to reach US$17.2 billion by 2027, after growing at a CAGR of 6.5% during 2022-2027. A high-performance adhesive is any substance that can hold the materials together and resists separation functionally by a surface attachment. The usage of high-performance adhesives made up of resins such as polypropylene, polyethylene, polyester, epoxy, polyurethane, acrylic and silicone, in the various end-use industries is projected to drive the high-performance adhesives industry’s growth. The medical and healthcare industry is growing, which is driving the demand for high-performance adhesives market, to be utilized in medical devices, tapes, drug delivery and other applications in the medical and healthcare industry. Additionally, in the growing transportation industry, high-performance adhesives are widely used in joining seats, tailgates, spoilers and other applications, which is further anticipated to boost the growth of the high-performance adhesives market size over the projected timeframe. The global economic downturn caused by the COVID-19 pandemic resulted in a huge drop in demand for automobiles, construction, electrical and electronic consumer goods and others, all across the world, which had a significant impact on the growth of the high-performance adhesives market.

High-Performance Adhesives Market Report Coverage

The “High-Performance Adhesives Market Report – Forecast (2022 - 2027)” by Industry ARC, covers an in-depth analysis of the following segments in the high-performance adhesives industry.

By Resin Type: Epoxy, Polyurethane, Acrylic, Silicone and Others

Key Takeaways

• The Asia Pacific region dominates the High-Performance Adhesives Market owing to the rising growth in the building and construction industry. For instance, according to Invest India, by 2025, the building and construction industry is estimated to reach US$1.4 Trillion.
• Rapidly rising demand for water-based high-performance adhesives due to their high mechanical strength and toughness, has driven the growth of the high-performance adhesives market.
• The increasing demand for high-performance adhesives in the transportation sector, due to their usage in joining seats, tailgates, spoilers and other applications have been a critical factor driving the growth of the high-performance adhesives market in the upcoming years.
• However, the rising health and environmental issues of using high-performance adhesives and sealants can hinder the growth of the high-performance adhesives market.

Figure: Asia-Pacific High-Performance Adhesives Market Revenue, 2021-2027 (US$ Billion)

High-Performance Adhesives Market Segment Analysis – By Resin Type

The silicone segment held the largest High-Performance Adhesives Market share in 2021 and is expected to grow at a CAGR of 6.8% during 2022-2027. Silicone-based adhesives provide good adhesion and bond strength to wood, natural and synthetic fiber, glass, painted surfaces and other plastics and metals. Silicone-based adhesives possess excellent electrical and thermal conductivity, adhesion to plastic and metal substrates and heat resistance as compared to other resins such as epoxy and acrylic. They are utilized in industrial sealing and assembly applications that witness extreme temperature, ultraviolet light and chemical exposure. Moreover, they are utilized in the manufacture of tapes and labels and provide adhesion to various surfaces exposed to harsh thermal and chemical conditions. Thus, the exhibited characteristics of silicone resin make it a preferred choice over the other resin types, which is driving its segmental growth.

High-Performance Adhesives Market Segment Analysis – By End-Use Industry

The Medical and Healthcare industry held the largest High-Performance Adhesives Market share in 2021 and is expected to grow at a CAGR of 7.3% during 2022-2027. The rise in the aging population and advancements in medical devices will increase the usage of high-performance adhesives, such as in medical devices, tapes, drug delivery and other applications. The demand for high-performance adhesives made up of resins such as polypropylene, polyethylene, polyester, epoxy, polyurethane, acrylic and silicone, is increasing, due to such developments and advancements in medical devices. The medical and healthcare sector is growing, for instance, according to International Trade Administration, in Mexico, the total local production of medical devices and equipment increased from US$16.80 billion in 2020 to US$15.12 billion in 2021. Additionally, according to the U.S. Food & Drug Administration, in 2022, the government announced a US$5 million increase towards the improvement in the safety and security of medical devices. Thus, with the growing demand for medical applications such as devices, tapes and others, in the medical and healthcare industry, the high-performance adhesives and sealants market would further rise over the forecast period.

High-Performance Adhesives Market Segment Analysis – By Geography

Asia-Pacific region dominated the High-Performance Adhesives Market share of 43% in the year 2021, due to the increasing requirement for high-performance adhesives in developing countries such as China, Japan, India and South Korea. China, India and Taiwan are expected to continue their dominance in the high-performance adhesives market during the forecast period. This is due to the growth of the medical & healthcare industries in the countries. For instance, according to International Trade Administration, in China, the medical device market is expected to expand by a 2020-2025 CAGR of 6.2%, which should see it rise to US$38.4 billion by 2025. Moreover, according to Invest India, the medical device sector is growing steadily at a CAGR of 15% over the last 3 years and the medical devices industry in India is poised for significant growth with the market size expected to reach US$50 billion by 2025. Thus, the rising growth in the demand for medical devices in the medical & healthcare sector is proving to be a market booster for the high-performance adhesives market size in this region.

High-Performance Adhesives Market Drivers

Growing Demand for Water-based Adhesives:

The increasing demand for water-borne adhesives is the key driver for the High-Performance Adhesives Market. High mechanical strength and toughness are the major properties exhibited by the water-based high-performance adhesives, additionally with electrical and thermal properties. The high cost of high-performance adhesives can be foreshadowed by the excellent properties and long life of the water-based adhesives. In addition, high-performance adhesives technology is projected to be majorly adopted due to the low pollution caused by them, following the strict regulations by the government, especially to control the air pollution. The water-based adhesives segment is growing, for instance, in 2020, Bostik launched a new, innovative water-based adhesive, Aquagrip 3720, for automotive interior assembly applications. Moreover, in 2021, H.B. Fuller, a provider of adhesives, sealants and other specialty chemical products, introduced a new Swift tak 5730 water-based adhesives for the paper straw industry. With the increasing development in water-based adhesives, it is estimated that the requirement for environment-friendly high-performance adhesives in various end-use industries will rise in the upcoming years. Thus, which will boost the growth of the high-performance adhesives industry.

Increasing Transportation Industry:

High-performance adhesives are made up of resins such as polypropylene, polyethylene, polyester, epoxy, polyurethane, acrylic and silicone, in the transportation industry are utilized for joining seats, tailgates, spoilers, side skirts, headlights, dashboards, bumpers and others. They are also applied to bond newer materials in the transportation industry, such as CFRP, coated metals and aluminum. Furthermore, with formulations available, concrete and steel marine structures are protected by adhesives, to adhere to wet substrates, such as coating water tanks, outfall structures, fish ladders and dams. The transportation industry is growing, for instance, according to the Organisation Internationale des Constructeurs d'Automobiles (OICA), in Austria, motor vehicle production increased from 86,300 units in 2020 to 92,000 units in the year 2021. Similarly, in the USA, the production of motor vehicles increased from 62,39,401 units in 2020 to 68,57,182 units in the year 2021. Moreover, according to the United Nations Conference on Trade and Development (UNCTD), China had 4,504 merchant ships in 2019, which reached about 4,603 merchant ships in 2020, with a growth rate of about 2.2%. With the increasing production of automobiles and the growing marine sector, it is estimated that in the upcoming years the requirement for high-performance adhesives in the transportation industry will rise. Thus, which will boost the growth of the market.

High-Performance Adhesives Market Challenges

Rising Health and Environmental Issues:

The application of high-performance adhesives emits abundant chemical gases, which are considered to be hazardous when inhaled. Therefore, there are strict regulations applied to their usage. Moreover, the rising awareness about health effects and environmental concerns, has become prominent for manufacturers. The main impact includes skin allergies, irritation of the eyes, nose, throat and skin and asthma. The U.S. Environmental Protection Agency, is taking different measures and hence, is implementing stringent rules and regulations on the manufacturers of high-performance adhesives. Thus, the rising health and environmental issues of using high-performance adhesives will hamper the market growth.

High-Performance Adhesives Industry Outlook

Technology launches, acquisitions and R&D activities are key strategies players adopt in the high-performance adhesives market. The top 10 companies in the high-performance adhesives market are:

1. Henkel
2. 3M
3. Chugoku
4. H.B. Fuller
5. Illinois Tool Works
6. Arkema
7. Sika AG
8. Royal Adhesives & Sealants
9. Huntsman International LLC
10. Chemique Adhesives, Inc.

Recent Developments

• In April 2020, Chugoku launched solvent-free epoxy coating for water ballast tanks. It also meets new Korean regulations under the Atmospheric Environment Conservation Act for the management of volatile organic compounds (VOCs).
• In July 2020, Arkema acquired Fixatti, a manufacturer of thermos-bonding adhesive powder. This acquisition was done to strengthen the global offering of hot-melt adhesives solutions for niche industrial applications in industries, such as construction, automotive, textile and others.
• In July 2021, Chemique Adhesives, Inc., a pioneer in the development of solvent-free polyurethane, water-based adhesives and adhesive application equipment, launched New Turftak LV Synthetic Turf Adhesive, to increase the production efficiencies of synthetic turf installers by as much as 50 percent over traditional turf adhesive offerings.

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