The industrial adhesives market comprises adhesives that are used for bonding various materials in the industries such as automotive, packaging, construction, furniture, footwear and others. Adhesives provide strong bond between different materials such as plastics, wood, metal, composites and others. They offer advantages such as durability, lightweight joining and cost-effectiveness over other joining techniques. Rising demand for adhesives from various industries due to their superior bonding strength is fueling the growth of the industrial adhesives market. The Global industrial adhesives market is estimated to be valued at US$ 48.44 Bn in 2024 and is expected to exhibit a CAGR of 19% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the industrial adhesives market are Johnson & Johnson (DePuy Synthes), Medtronic plc, Stryker Corporation, Zimmer Biomet Holdings, Inc., Smith & Nephew plc, NuVasive, Inc., Globus Medical, Inc., Wright Medical Group N.V., Arthrex, Inc., DJO Global, Inc., Össur hf., CONMED Corporation, Breg, Inc., Orthofix Medical Inc., Bioventus LLC. Key players are focusing on developing advanced adhesives and expanding their global presence through mergers & acquisitions.

The growing demand from the automotive industry is driving the industrial adhesives market. Adhesives help in reducing vehicular weight and provide stability. They are used for bonding vehicle components and parts. Rising automotive production across the globe is fueling the demand.

Global expansion of key players into emerging markets of Asia Pacific and Latin America through partnerships and new plant set ups is helping to tap the growth opportunities in these regions. China is one of the largest producers and consumers of adhesives globally.

Market drivers

The growing automotive production is one of the key drivers of the industrial adhesives market. Adhesives provide lightweight and durable joining of vehicle parts compared to other conventional fastening techniques like welding. They help automakers in achieving fuel efficiency and emission reduction targets. Rising vehicle production worldwide especially in Asia Pacific is accelerating the consumption of adhesives in the automotive industry.

Impact of Geopolitical Situation on the Growth of Industrial Adhesives Market

The current geopolitical issues such as the Russia-Ukraine conflict and rising tensions between the US and China are impacting the growth of the global industrial adhesives market. Shortages in raw materials supply due to trade restrictions are causing price fluctuations and unreliable availability. Countries that rely on imports for key raw materials like acrylics, epoxies, and PU resins are facing difficulties. This is hampering production volumes across industries like automotive, construction, packaging etc. which utilize significant amounts of adhesives. Manufacturers are exploring new sourcing avenues but it will take time to establish reliable alternative supply chains. The uncertainties surrounding duration and outcome of the geopolitical tensions makes demand forecasting very challenging for businesses. To deal with this volatile environment, companies will need to focus on developing adaptable business continuity plans, diversifying suppliers across different geographic regions, optimize inventory levels, and explore local sourcing opportunities wherever possible. Adopting a flexible production strategy will be crucial for players in this market to mitigate risks arising from unpredictable global events and ensure steady business operations.

Fastest Growing Region for Industrial Adhesives Market

The Asia Pacific region has emerged as the fastest growing market for industrial adhesives globally. It accounts for over 40% of the global demand and the market is expected to grow at a CAGR of around 22% during the forecast period. This impressive growth can be attributed to rapid industrialization and infrastructure development activities underway in major economies like China and India. The construction industry in Asia Pacific region is booming which is a key driver of adhesive usage. Also, the automotive manufacturing hub is continuously shifting base to the region attributed by factors like availability of low cost skilled labor and commitment of global automakers to expand existing plants and set up new facilities. All these trends are directly fueling the demand for industrial adhesives from various end-use industries in Asia Pacific region making it the fastest growing market globally.

Regions with High Concentration of Industrial Adhesives Market in Terms of Value

Currently, North America and Europe collectively account for over 50% of the global industrial adhesives market in terms of value. The developed markets in these regions have significant presence of key end-use industries like automotive, construction, woodworking, packaging, footwear etc. which are large scale consumers of industrial adhesives. Further, stringent environment regulations in Europe regarding elimation of hazardous substances is driving replacement of conventional fasteners and joints with adhesives. Presence of leading global players and established R&D infrastructure also supports the high market concentration in these regions. However, with rapid infrastructure growth and rising manufacturing activities in developing Asian markets, the market share of North America and Europe is expected to reduce marginally over the forecast period.

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