High Performance Adhesives Market Expected To Witness A Substantial Growth Of $40.7 Billion By 2025: Grand View Research Inc.

 

The global high performance adhesives market size is anticipated to reach USD 40.7 billion by 2027, expanding at a revenue-based CAGR of 3.5%, according to a new report by Grand View Research, Inc. The market is predicted to grow owing to rising demand from the healthcare sector. High performance adhesives offer exceptional mechanical and physical properties that make them suitable for high-end applications such as medical, construction, engineering, and transportation. The medical application is poised to witness significant growth as the product is being increasingly used for medical devices as well as for internal medical applications.

The emergence of COVID-19 pandemic in first quarter of 2020 has showed the countries across the globe, the prominence of robust healthcare infrastructure. Therefore national governments as well as international institutions have outlined strategic plans to bolster healthcare infrastructure over the coming years. This is anticipated to create opportunities for vendors in the market.

The consumption of the product is largely dominated by the building and construction industry. Emerging economies such as India, China, and Indonesia are currently spending substantial resources in the development of new infrastructure and construction projects. Therefore the consumption of high performance adhesives in these countries have witnessed significant growth since the past few years.

Major players in the market are planning to expand their business in relatively untapped markets such as Middle East and Africa and Asia Pacific. For instance, in May 2019, Sika acquired Parex, a construction adhesives manufacturer to expand Sika’s business by leveraging the strong distribution channel of Parex in China.  Rising private and government spending in healthcare and building and construction sector across the globe is the crucial factor supporting the growth of the market for high performance adhesives. However, the outbreak of COVID-19 across the globe has directly impacted the construction sector, manufacturing sector, and other industries in the first quarter of 2020. The key end-use sectors of the high performance adhesives industry including the construction sector are likely to observe a negative trend in FY 2020. The lockdown imposed across many countries across the globe has negatively affected the economy and therefore the market for high performance adhesives is expected to witness a contraction in 2020.

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Until the coronavirus pandemic in 2020, the recovery of the U.S. construction sector garnered rapid momentum since the global financial crisis in 2008. For instance, according to the U.S. census bureau, the residential construction sector in the country grew at a compounded annual rate of 5.6% from 2014 to 2018. This played a major role in driving the consumption of high performance adhesives over the respective years.

High Performance Adhesives Market Report Highlights

• Asia Pacific dominated the market with a volume share of roughly 45.0% in 2019. This high market share can be attributed to expanding construction sector in the region
• Medical application is predicted to witness the fastest CAGR of 4.9% from 2020 to 2027, in terms of revenue, due to increasing healthcare spending across the globe
• Acrylic dominated the market with volume share of 36.4% in 2019 owing to superior mechanical properties provided by the product at a reasonable cost
• Water based technology is projected to witness the fastest CAGR of 4.1%, in terms of revenue, from 2020 to 2027 owing to its environmentally friendly nature
• The market is highly fragmented in nature with few large players such as Henkel, H.B. fuller, and Bostik AG.

The future demand across the globe is most likely to be triggered by increasing investments in the healthcare sector. For instance, healthcare and biotechnology sectors have shown strong resilience compared to other industries owing to their participation in the hunt for COVID-19 treatments. The global governments are anticipated to prepare extensively to prevent adverse shortages of medical resources in the case of the next pandemic. These preparations are likely to cause a surge in product demand. The market for high performance adhesives is highly competitive and fragmented in nature owing to the presence of several major players as well as regional players operating in various parts of the world. Henkel held the top market share as of 2019.The recent trend indicates strategic initiatives such as mergers and acquisitions being adopted by major manufacturers to expand their share in the market for high performance adhesives. For instance, in September 2019, Sika AG agreed to acquire Crevo-Hengzin to expand its high-performance adhesives business in Asia Pacific. Some of the prominent players in the high performance adhesives market include:

• Henkel AG & Co. KGaA
• H.B. Fuller
• Bostik
• 3M
• Avery Dennison Corporation
• Dow
• Sika AG
• Ashland
• Wacker Chemie AG
• Jowat SE

About Grand View Research

Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.