Industrial adhesives are primarily used for bonding materials together and are gaining immense popularity across various end-use industries such as automotive, construction, packaging, healthcare, and others. Industrial adhesives provide strong adhesion and have high bonding ability while connecting dissimilar substrates together. Adhesives are more durable and flexible then mechanical fasteners. The advantages of industrial adhesives over traditional fasteners such as welding include design flexibility, weight reduction, stress absorption, and corrosion resistance. The global industrial adhesives market demand is driven by the significant growth of the automotive and construction industries.
The global industrial adhesives Market is estimated to be valued at US$ 42.04 Bn in 2023 and is expected to exhibit a CAGR of 19% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity
Growing Demand from Developing Economies
The market opportunity lies in the growing demand for industrial adhesives from developing economies such as China, India, Brazil, Mexico etc. These developing nations are witnessing significant industrial and infrastructure growth which is fueling the demand for adhesives in various end-use industries. Additionally, the growing population in developing countries requires more residential and commercial construction projects which utilizes adhesives on a large scale. The increased spending on industrialization coupled with government initiatives to boost manufacturing sector will continue to drive the adoption of industrial adhesives in developing regions over the forecast period.
Porter's Analysis
Threat of new entrants: The industrial adhesives market requires high initial investments in R&D and manufacturing facilities which increases the entry barriers for new companies. Moreover, the established market share of top players make it difficult for new entrants to gain customer trust.
Bargaining power of buyers: Buyers have moderate bargaining power in this market due to the availability of alternative adhesive products. However, switching costs from established brands give buyers less influence on pricing.
Bargaining power of suppliers: The presence of many raw material suppliers for industrial adhesives limits the individual influence of each supplier. This allows buyers to switch between suppliers based on price and quality.
Threat of new substitutes: New adhesive technologies can pose a threat, but complete substitutes are difficult to develop as products require adhesive properties for specific industrial applications and conditions.
Competitive rivalry: Intense due to the global presence of major manufacturers competing on product quality, pricing and innovation.
SWOT Analysis
Strengths: Strong R&D focus on new product development. Some key players have a global production and distribution network.
Weaknesses: Capital intensive market requiring large investments. Fluctuating raw material prices impact profits.
Opportunities: Emerging applications in automotive, transportation and construction industries. Growth in Asia Pacific and Middle East regions.
Threats: Stringent environmental regulations for VOC emissions. Supply chain disruptions and economic slowdowns.
Key Takeaways
The Global Industrial Adhesives Market Size is expected to witness high growth during the forecast period of 2023 to 2030 supported by rapid industrialization in developing regions. The market size for 2023 is projected to reach US$ 42.04 Bn registering a CAGR of 19%.
Regional analysis indicates Asia Pacific as the fastest growing region due to strong manufacturing activity in China, India, Indonesia and other countries. North America and Western Europe remain the largest markets driven by automotive, transportation and industrial equipment production. Growth in Middle Eastern countries is supported by infrastructure development programs.
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. These companies focus on developing advanced adhesive formulations and expanding into high growth regions.
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