Composite Adhesive Market Growth & Trends
The global composite adhesive market size is anticipated to reach USD 4.41 billion by 2027, according to a new report by Grand View Research, Inc., expanding at a CAGR of 3.9% from 2020 to 2027. Growing demand for composites across several end-use industries to produce lightweight products is expected to augment product consumption.
The demand for adhesives in assembling structures is now quite prominent when compared to mechanical fasteners. Their usage in composites enables the manufacturers to remove hole drilling and leverage the cascading advantages of weight reduction and low cost in overall assembled structures. In addition, they help reduce the production cycle, which is of vital importance in various industries, especially automotive.
The market is expected to witness steady growth over the forecast period owing to the availability of a wide variety of products, such as epoxy, acrylic, and polyurethane, which are used depending upon the application requirements. For example, epoxy is preferred in applications that require high strength and durability. Automotive & aerospace are the key end-use segments as the adoption of composites is increasing in these industries owing to benefits including better aesthetics and structural integrity.
The increasing utilization of composites in several industries is boosting its production and thereby propelling the demand for adhesives. In July 2019, BFG Africa opened a new facility in South Africa for producing fiber-reinforced plastic for catering to various industries including wind, mining, automotive & transportation, and infrastructure. Such investments are anticipated to prove fruitful for market growth over the forecast period.
The U.S. is a prominent market and is anticipated to witness steady growth in the upcoming years on account of growing investments. For instance, the U.S. Federal Government will invest USD 139 million in advanced vehicle technologies, of which, various projects shall be dedicated to composites. For example, as per the announcement in July 2020 by the U.S. Department of Energy, the Scale-Up Research Facility (SURF) will work for Ford and General Motors where the two projects are valued at USD 15 million.
Ford’s project is multi-functional smart composite structures with electronics integration for smart vehicles, while General Motors’ project includes the development of tailored fiber-reinforced composite materials systems for high-volume manufacturing of structural battery enclosure. Such investments in the country are anticipated to boost market growth over the forecast period.
The market is highly competitive owing to the presence of several companies across the globe. The majority of these companies have faced losses in 2020 owing to the shutdown of manufacturing operations as a result of the COVID-19 pandemic, which impacted the production & consumption of adhesives. Several manufacturers withdrew their 2020 predictions on account of uncertainty in the market.
Composite Adhesive Market Report Highlights
- The Middle East & Africa is expected to register the fastest CAGR of 5.4% over the forecast period owing to increase in manufacturing of composites in Africa
- Asia Pacific was the largest regional market in 2019 and accounted for a revenue share of more than 46.0%
- The region will retain its leading position throughout the forecast years due to the rapidly expanding manufacturing sector in developing economies like India
- India is expected to lead the Asia Pacific regional market, registering a CAGR of 4.4% during the forecast period, owing to increasing production of composites in the country
- The acrylic product segment is anticipated to register the fastest growth rate of 4.1% in terms of volume over the forecast period, due to the rising preference for acrylic over epoxy
- The aerospace & defense end-use segment is projected to expand at the fastest CAGR of 4.4%, in terms of revenue, during the forecast period, due to the high demand for lightweight composite materials in this sector