Rapid adoption of Eco-friendly adhesives to fuel growth of the Specialty Adhesives Market
The global Specialty Adhesives Market is estimated to be valued at US$ 3.95 Bn or 3.95 billion in 2023 and is expected to exhibit a CAGR of 5.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Specialty adhesives are unique formulations used in various end-use industries such as building and construction, automotive, packaging, electronics, and others. They offer high bonding strength, heat resistance, UV resistance, and durability. Growing demand from the automotive industry for lightweight and durable bonding materials is driving the growth of the specialty adhesives market. Adhesive bonding helps in weight reduction and improves crashworthiness of vehicles.
Market key trends:
One of the key trends in the specialty adhesives market is the growing adoption of eco-friendly adhesives. Adhesive manufacturers are focusing on developing bio-based and water-based adhesive variants with low VOC content in order to comply with stringent environmental regulations. Rapid urbanization in developing economies and increasing infrastructure development projects are also fueling the demand for specialty adhesives in construction activities. Moreover, the miniaturization of electronic devices is augmenting the use of specialty adhesives in electronics manufacturing applications.
Threat of new entrants: The specialty adhesives market is a niche market that requires high R&D expenditure on developing specialized formulations, limiting threat from new entrants.
Bargaining power of buyers: Large buyers have significant bargaining power due to the consolidated nature of the market, forcing adhesive producers to offer competitive pricing and product differentiation.
Bargaining power of suppliers: Suppliers of raw materials like resins and polymers have moderate bargaining power due to the availability of substitute materials.
Threat of new substitutes: Substitutes like mechanical fasteners, welding offer competition but adhesives offer design flexibility and distribute stress better, limiting threat from substitutes.
Competitive rivalry: The market is dominated by established global players leading to high competition on pricing and product innovation.
The global specialty adhesives market is expected to witness high growth, exhibiting CAGR of 5.9% over the forecast period, due to increasing demand from construction and automotive industries.
Regional analysis: North America dominates the market with a share of over 30% in 2023 led by the US, due to high automobile production. Asia Pacific is expected to witness the fastest growth during the forecast period with countries like China, India, and Japan emerging as high growth market for specialty adhesives.
Key players: Key players operating in the specialty adhesives market are 3M, Arkema Group (Bostik SA), H.B. Fuller Company, Henkel AG & Co. KGaA, Master Bond Inc., Nexus Adhesives, Permabond LLC, Pidilite Industries Ltd, Sika AG, and Threebond International Inc. These players are focusing on new product launches catering to niche applications to strengthen their market presence.
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it