Global Adhesive and Sealants Market Outlook 2024 - by Goldstein Research

5.1. Growth Drivers Connect With Us: Published By: Goldstein Research Copyright

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5.1. Growth Drivers Growing Manufacturing and Construction Sector Across the Globe  The largest markets are industrial assembly, packaging, and wood related products. The packaging and construction industries together account for XX% of adhesives demand.

Construction markets are dominated by the use of phenolic and amino adhesives as binders in wood panels. Nonstructural adhesives account for the largest volume in these markets.

Corrugated boxes are the single largest product for adhesives within the packaging sectors.  The general focus of adhesive product development will be on lowering solvent content and volatile organic compound emissions. These trends will result in many new environmentally compatible adhesive systems with higher solids contents, such as water based or hot melt products. Natural adhesives will lag total aggregated demand with almost all growth in this sector arising in starch and dextrin adhesives used in paperboard packaging

China

Henkel Adhesive, a fully owned subsidiary of German consumer giant Henkel, has announced an investment of about 30 million Euro to set up India's largest adhesive plant in Kurkumbh near Pune.

PPG recently announced its partnership with automotive giant Renault-Nissan Alliance to deliver tailor-made structural adhesives to more than one million Renault, Nissan and Samsung cars across Europe, Asia, North America and South America.

Henkel introduced an water-debondable epoxy adhesive, which provides excellent bond strength to both silicon and metal-mounting substrates used during the ingot sawing process, yet breaks down easily on exposure to hot air eliminating corrosive debonding solutions High

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Japan

XX

Germany

XX

South Korea

XX

Brazil

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 The automotive industry is gradually replacing welding activities of engine parts assembly with adhesives and sealants products to reduce the vehicle weight, which in turn increases fuel efficiency. Strong growth in infrastructure activity is also expected to drive the growth of adhesives and sealants market. Rapid urbanization and population growth in developing countries combined with rebounding construction activities in developed markets of Europe and the U.S. is fueling the demand for adhesives & sealants products.

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Fig: 5-1, Top 10 Automobile Manufacturing Countries (Million Units)-2016

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India

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USA

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France

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Spain

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Mexico

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Impact Analysis: The trend toward sustainability and lowering VOCs continues to pick up steam in the adhesive and sealants market. "VOC and related regulations continue to be implemented and expanded dictating manufacturers to formulate new and more environmentally friendly products.  Growing automotive industry has significantly augmented the demand for adhesive and sealants in order to reduce the weight of their vehicles to achieve fuel efficiency targets. Reducing the overall weight of a car by 10 percent improves fuel efficiency by 6 to 8 percent, according to the U.S. Department of Energy.

Medium

Low

Impact on Adhesive and Sealants Market

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5.2. Market restraints Connect With Us: Published By: Goldstein Research Copyright

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5.2. Market Restraints Government Regulations  The regulatory landscape is a significant challenge faced by the adhesive and sealants industry.

This market has seen that agencies such as the U.S. Environmental Protection Agency have taken a different stance with industry, placing more hurdles and restrictions on manufacturers.

This could dampen creativity and the development of new materials and put regions with high regulatory hurdles at a disadvantage in this global market.

Fig: 5-2 Bio Adhesives Market Share (%)-2016

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 There is an increasing demand for regulation towards recyclability or bio-degradability of the packaging material, including the packaging adhesive besides the traditional regulations for selecting direct and indirect food contact packaging materials. The main technical challenge for adhesives formulators is – and always has been – to find the right formulation balance solving the customers or end users need for the right performance under the imperative of cost efficiency and the constrains increasing regulation puts on the raw material variety. Therefore the adhesives formulators need to find new ways to cooperate not only with regulators but also with raw material suppliers and academia institutions to identify the right molecules to build on for the new demands at the flexible packaging markets.

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XX% XX% XX% XX% XX%

XX% XX% XX%

Impact Analysis:-

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 Rising regulatory pressure on the adhesive and sealants market to reduce VOC emission from the adhesives has led the market players to focus on more innovative products that cause less harm to the environment. The introduction of new environment friendly products will likely to accelerate the market growth.  These government regulations are majorly going to affect the local and small manufacturers as the cost of developing new products is relatively high.

XX% XX% 2013

2014

Source: Primary Source

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2015

Synthetic Adhesives Copolymers Mixed Polymers Fibrin Based Other Bioadhesives Hyaluronic Based

Source: Primary Source

Fig: 5-3 Construction Industry Market share, developed and developing regions XX%

XX%

XX%

2016

Impact on Machine to Machine Connection Market

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Medium

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Low

5.3. Market opportunity Connect With Us: Published By: Goldstein Research Copyright

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5.3. Global Machine to Machine Connection Market Opportunity, 2016-2024 Fig: Fig: 5-4 5-4 Global Global Packaging Packaging Industry, Industry, by

by Type Type 2016 2016

XX%

XX% XX% Beverage Cans Flexible Plastic XX% Glass

Paper and Board

XX%

Source: Goldstein Research

Other

Fig: Fig: 5-5 5-5 Global Global Automobile Automobile Manufacturing Manufacturing in in Million, Million, 2016-2024 2016-2024

XX Million 2016

XX Million 2024

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 Global automobile production was estimated at approximately XX million units in 2016 and is likely to cross XX million units by 2018. Increasing plastic and polymer use in vehicles, in order to reduce weight for enhancing efficiency, will most likely drive adhesives and sealants market size, with growth expectations of XX% and XX% from 2016 to 2024, respectively.

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XX%

Rapid urbanization and rising construction activities in Asia Pacific region is likely to impel the growth of adhesive and sealants market growth. Chinese construction spending was approximately USD XX trillion in 2016, while India spent approximately USD XX billion in same year. A significant chunk of this spending was for the infrastructure, construction and automotive industries, which is likely to impact adhesives and sealants market size..

A strong R&D focus to develop and commercialize the bioadhesive market, using novel feedstock such as soybean polyols, vegetable oil polyamides, polyisoprenes and epoxies, could result in a paradigm shift and change the product matrix significantly.

The bio-based adhesives market size accounts for roughly XX% of the overall demand and may see sizable gains by 2024. The packaging applications accounted for over XX% of glue demand, with consumption over XX million tons in 2016.

Packaging applications include carton boxes, envelopes, carton closures, cups, flexible packaging, specialty packaging, bags and disposables, PU, water-based and hot melts.

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