High Performance Adhesives Market

The global high performance adhesives market size was valued at USD 30.8 billion in 2019 and is expected to grow at a significant compound annual growth rate (CAGR) of 3.5 % from 2020 to 2027. 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 construction sector are likely to observe negative trend in the FY 2020. The lock down 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.

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.

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 showed 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 case of the next pandemic. These preparations are likely to cause a surge in the product demand.

Furthermore, technological advancements in high performance adhesives are expected to play a major role in driving the industry over the coming years. Rapid progress is being achieved through new macromolecular chemistries, additives, and raw materials. This coupled with availability of highly sophisticated manufacturing equipment has allowed for custom bonding solutions that are strongly outperforming conventional soldering and fastening solutions.