The market is forecast to grow at an annual rate of 4.5% up to 2022. This is driven by increasing demand for hot melts adhesives, for consumer goods and, in the automotive sector, for lightweight vehicles.
Growth Led by Asia-Pacific
The highest market growth is expected in the Asia-Pacific region, facilitated by government and private investment, for a number of reasons:
– Its industrial manufacturing sector has a massive demand for adhesives.
– Its large population and rising standard of living increase demand for consumer goods.
– The on-going shift of manufacturing from North America.
Emerging economies such as Africa, SE Asia and Latin America are also pushing up demand for the same reasons.
Raw Materials
Raw materials have a significant effect on the growth of the market – in particular, rising and volatile prices for raw materials. This affects all industries, of course, but is a particular factor in a growing market such as adhesives.
Future Trends
The market leaders are building their market share with new and enhanced products. This was evident at the recent Building Innovation Conference, as reported by the Adhesive and Sealant Council (ASC), where experts presented some of the future trends in the industry.
Adhesive Application and Technology
Adhesives are widely used in the automotive industry, where they are progressively replacing other fixing methods such as welding or bolting. Adhesives are used on the car body and for the interior, for example, to fix trims.
Eco-friendliness is a major factor in today’s industries – manufacturers are expected to be green. This is encouraging the use of more eco-friendly products, such as hot melt adhesives. These are preferred over solvent-based adhesives for industrial use, as Volatile Organic Compounds (VOCs) are much lower and curing is not required. They also have a longer shelf life and a lower Health and Safety impact – for example, at disposal time.
New alternatives are also being produced for metal-to-metal adhesives. The market is demanding a quicker and stronger metal bonding adhesive.
In summary, expectations of a higher standard of living will continue to drive consumer demand. Industrialization and urbanization, especially in Asia-Pacific and emerging economies, will continue to fuel industrial demand. Finally, the drive towards eco-friendly and effective products will push market growth towards a forecast $50bn by 2022.
