Contact Adhesive Market was valued at USD 6.87 Billion in 2022 and is expected to reach USD 9.97 Billion by 2028. and is projected to grow at a CAGR of over 6.12%, in value terms, from 2023-2028
The increasing demand for contact adhesives across various industries is driving the global contact adhesives market. Growing renovation and remodeling activities, rising R&D activities by major players within the market, increased investment in chemical industries in emerging economies, and an increase in government expenditure on infrastructure development are some factors, which will propel the demand for the contact adhesive market.
Contact adhesives have the ability to bond themselves to dry adhesives as they are polymer-based and have high initial strength. The high initial strength of contact adhesives will make them suitable for different laminating applications. Contact adhesives are often used to bond large areas of non-porous substrates because the adhesive is dried before bonding. The market is impacted by various factors. One of the main factors which improve the market is a rise in applications of adhesives and sealants.
Contact Adhesive Market Drivers
The rise of the development industry and its activities is the primary factor driving contact adhesive market growth. The standard joining adhesives like soldering, riveting, welding, and screwing are being replaced by modern and next-generation adhesive systems. The hybrid adhesives were developed depending on alternative raw materials. As compared to the standard PUR construction and assembly adhesives, which contain classified ingredients, the COSMO HD-Adhesives offer alternative systems for users with a reliable consciousness of environmental issues. The increase of renovation activities is predicted to accelerate the economy of the contact adhesive market. The expansion of rehabilitation centers, residential construction activities, and remodeling markets has boosted the expansion of contact sealants. The low VOC adhesives offer very less to no off-gassing. This feature is predicted to pave the way for various opportunities within the market. The formulations are designed to limit the number of chemicals released into the air when used. The Pidilite Industries formulated the Fevicol Eco fresh, the primary water-based adhesive for HVAC applications. The expansion in emerging countries like the Asia Pacific is anticipated to furnish market growth.
The use of steel and metal in place of contact adhesives are the restraint factors that will alter contact adhesive market growth. Epoxy adhesives, a segment of metal glues, are high-performance sealants that are implemented in carpentry. The mixture of resin and hardener creates a durable, high-strength bond that dries in minutes and might be used for rebuilding all metal and concrete surfaces. The challenges faced are the volatility in staple prices and also the stringent regulations issued by the environmental organization.
The stringent regulations by the USEPA (the United States Environmental Protection Association), Europe’s Registration, Evaluation, Authorization and Restrictions of Chemicals (REACH), Leadership in Energy and Environmental Design (LEED), and other regional regulatory authorities have compelled adhesive & sealant manufacturers to create eco-friendly products with no- or low-VOC levels. The shift towards sustainable products has provided manufacturers with better growth opportunities. There's a growing demand for environmentally friendly or green buildings, which provides a chance for the development of green and sustainable adhesive solutions. Green adhesive solutions are made up of renewable, recycled, remanufactured, or biodegradable materials; they're environmentally friendly and supply health benefits to the occupants.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2022-2028 |
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Base Year |
2022 |
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Forecast Period |
2023-2028 |
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CAGR |
6.12% |
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Segments Covered |
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Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
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Regions Covered |
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Market Leaders Profiled |
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Contact Adhesive Market - By Resin Type:
The Neoprene segment is predicted to account for the biggest market share within the forecast period. These factors may be credited for the smooth and broad acceptance within the end-use industries.
Solvent-based
Water-based
The Solvent-based adhesives segment is anticipated to grow at the best CAGR during the anticipated duration. In terms of volume and mass, the solvent-based section is most commonly utilized in contact adhesives since the adhesives possess novel characteristics like temperature and humidity.
Woodworking
Leather & Footwear
Automotive
Construction
The Woodworking Industry is predicted to account for the most considerable market revenue within the forecast period because of the extensive usage of contact adhesives in the woodwork industry for tight binding between the wooden and porous substrates and to boost the performance of lightweight designs using multi-materials. There's an increased emphasis on developing lightweight components to boost aesthetic appeal.
Europe
Asia Pacific
Latin America
Middle East & Africa
The Asia Pacific is predicted to grow at the fastest-growing market within the forecast period. The expansion of the automotive, woodworking, leather, footwear and construction industries is predicted to supply new avenues within the market. High economic growth, upcoming manufacturing industries, affordability of low-cost labor, and also the global change of production facilities from developed markets are the important factors boosting market growth. North America is next to the Asia Pacific in holding the dominant shares of the market. The increasing economy and rising demand to develop quality products are leveling up the demand of the contact adhesive market in North America. Europe is projected to hit the highest CAGR in the coming years.
Recent Developments:
In February 2020, Henkel started functioning its new production facility in Kurkumbh, India, near Pune, Maharashtra. With a complete investment of about USD 59 million, the business unit aims to serve the increasing demand of Indian industries for high-performance solutions in sealants, adhesives, and surface treatment products. The business aim is to serve the increasing demand of Indian industries with a total investment of USD 59 million that enhance the performance level. Designed as a smart factory, the new plant offers a good range of Industry 4.0 operations and meets the best standards for sustainability.
In November 2020, H.B. Fuller launched Full-Care 5885 to fulfill the industry’s increasing demand for natural-based hygiene products. This adhesive will provide 100% cotton binding at very low cost.
The COVID-19 pandemic has posed many challenges for the automotive sector. Germany, the USA, the UK, Italy, South Korea, Spain, and Japan are among the adversely affected major industrialized economies. As per a study by Boston Consulting Group, despite encouraging reports on progress toward a vaccine, numerous risks remain. It's projected that the sales in Europe and also the US won't rebound to pre-COVID levels until 2023 at the earliest.
COVID-19 has posed many challenges within the construction sector. Social distancing measures, supply chain disruptions, and workforce dislocation have led to the suspension of construction activities in most countries because of the disruptions in supply chains and lack of raw materials and labor. Construction companies with high debts and lower cash reserves faced a credit crunch. However, the development of temporary hospitals and quarantine centers increased with this outbreak of coronavirus.
Illinois Tool Works
Jubilant Industries
Lord Corporation, LLC
Hernon Manufacturing, Inc.
Hexcel Corporation
Loxeal Engineering Adhesives
Dymax Corporation
H.B. Fuller
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