May 22, 2024
Composite Adhesive Market

Global Composite Adhesive Market is Estimated to Witness High Growth Owing to Advancements in Engineering Thermoplastics

The Global Composite Adhesive Market is a rapidly growing market owing to the increasing applications of composite adhesives in aerospace and defense, wind energy, marine, transportation, construction industries etc. Composite adhesives comprise thermosetting and thermoplastic resins which are used to join fiber reinforced plastic, metal and other composite materials due to their superior properties such as; higher bond strength, corrosion resistance, fatigue endurance etc.

The Global Composite Adhesive Market Size is estimated to be valued at US$ 3.58 BN in 2024 and is expected to exhibit a CAGR of 5.2% over the forecast period 2024 to 2031.

Key Takeaways
Key players operating in the Global Composite Adhesive Market are Henkel AG & Co. KGaA, Master Bond Inc, The Dow Chemical Company, Huntsman Corporation, LORD Corporation, Illinois Tool Works Incorporation-Plexus., Hernon Manufacturing, Inc ., Scott Bader Company Ltd. The key players are focusing on developing solvent-free, 100% solids adhesives with advanced processing capabilities to cater to end-use industries.

The major opportunities in the market include increasing demand for lightweight and high strength composites from automotive industry and focus towards reducing carbon emissions. With the advancements in engineering thermoplastics, manufacturers are coming up with new advanced adhesive formulations that offer design flexibility, faster production rates and enable recycling of composites at end-of-life.

Technological development of bio-based structural adhesives using natural fibers/polymers is opening new avenues for sustainable composite bonding applications. Continuous innovations towards adhesive formulations with advanced curing characteristics, higher operating temperatures and environmental resilience are expected to drive the demand over the forecast period.

Market Drivers
The increasing regulations towards fuel efficiency and emission reduction targets set by governments across the globe are majorly driving the demand of lightweight composites in automotive industry. This in turn is prominently boosting the growth of composite adhesives market. Composite adhesives provide excellent joining of dissimilar substrates with lower weight and higher strength than conventional fasteners. Their superior structural performance characteristics make them irreplaceable for manufacturing critical load-bearing composite components in aerospace, defense and wind energy industries as well.

Current Challenges in the Global Composite Adhesive Market
The global composite adhesive market is facing many challenges such as volatility in raw material prices, high R&D costs associated with product development, and stringent environmental regulations regarding VOCs emissions. Composite materials are highly engineered products that require specific adhesive formulas to bond different substrates effectively. Developing innovative adhesive solutions for new composite applications involves substantial investments and a long product development cycle. Further, prices of crucial raw materials like epoxy and polyurethane resins fluctuate often depending on petroleum price trends in the global market. Additionally, many countries and regions have imposed stringent environmental standards on VOCs content in adhesives. Adhesive formulators need to devote considerable efforts meeting these regulatory norms, which adds to production expenses.

SWOT Analysis
Strength: Composite adhesives bond dissimilar substrates efficiently and increase part performance. They provide design flexibility to composite components.
Weakness: High costs involved in new product development. Dependence on price swings of petroleum-derived raw materials.
Opportunity: Growing end-use industries like aerospace, automotive and wind energy offer new application areas. Developing bio-based or recycled content adhesives presents business opportunities.
Threats: Environmental regulations around VOCs emissions increase compliance pressure. Substitution threat from mechanical fasteners in price-sensitive applications.

Geographical Regions of Concentration
In terms of value, the composite adhesive market is highly concentrated in North America and Europe currently. Majority of demand comes from the aerospace, automotive, wind energy and marine industries located in these regions. Countries like the US, Germany, France, and UK house headquarters of leading OEMs that are key consumers of composite adhesives. Presence of strict environmental norms also drives adhesive formulators to innovate low-VOC products tailored for the North American and European markets.

Fastest Growing Regional Market
The Asia Pacific composite adhesive market is poised to witness the highest growth during the forecast period. Expanding manufacturing capacities of automotive and aircraft manufacturers in China, India, Indonesia, Malaysia and Thailand are leading to increased demand for composite components. Since adhesives offer manufacturing advantages over mechanical fasteners, their use is projected to rise steadily across emerging Asian economies. Besides, governments in the region are also supportive of renewable energy and investing heavily in wind turbine installations, thereby propelling composite adhesive consumption.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it