Composite Adhesive Market Size, Share & Trends Analysis Report 2020 - 2027

The global composite adhesive market size was valued at USD 3.2 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 3.9% from 2020 to 2027. The market growth is majorly attributable to the increasing demand for lightweight materials in industries, including automotive and aerospace that are boosting the manufacturing of composites. Composites are rapidly being adopted in aerospace and automotive industries, as the usage of traditional bonding methods like mechanical fasteners makes them weak. The product is available in different forms including liquids, pastes, and films that are utilized for bonding fiber composites to themselves and several substrates. Their application provides high mechanical strength and efficiency at a low cost.

 

 

The automotive & aerospace industries are major market drivers in the U.S. The development of composites is increasing for the automotive industry owing to the rising emphasis on fuel economy and emission regulations. For example, in the U.S., the CAFE standards mandate a fleet average of 23.2 km/L by 2025. Such standards have been implemented not only in the U.S. but in other parts of the world as well. For instance, China’s CAFC has been set to 20 km/L by 2020. These standards are anticipated to propel product demand over the forecast period.

Advancements in additive manufacturing have proved to be fruitful for the composites industry. Additive manufacturing helps to make the process of manufacturing composite parts less expensive. As a result, prominent players in the market are investing in this technology. For instance, in July 2020, Arkema invested in Continuous Composites to strengthen their partnership and achieve rapid advancement in the development of 3D composite manufacturing. Such investments are anticipated to propel the demand for composites and thus, adhesives in near future.

The COVID-19 pandemic had a negative impact on the industry, as all manufacturing operations were shut down or were running at very low capacity in the first half of 2020. Various market players had to bear losses during this period. For example, TPI Composites reported a net loss of USD 9 million for the first quarter of 2020. The loss was owing to reduced production levels at manufacturing facilities in China due to lockdown. As a result, the consumption of adhesives was extremely low in 2020.


Regional Insights

Asia Pacific accounted for the largest market share of over 46% in 2019 and will retain the leading position throughout the forecast years. The phenomenal properties of different types of adhesives are boosting their applications and compelling manufacturers to expand their presence and manufacturing capacities to cater to growing demand from the end-use industries in the developing nations of Asia Pacific. For example, in February 2020, Henkel inaugurated its new adhesive manufacturing facility in India with an investment of about USD 54.7 million to meet the growing demand from end-use industries in the country.

Led by the U.S., North America held a significant revenue share in 2019. The market growth in the U.S. is attributable to rising demand from the wind energy, aerospace, and consumer electronic sectors, which are propelling market players to expand their business. For instance, in April 2020, Arris Composites, a California-based manufacturer of carbon fiber composite parts for aerospace, consumer electronics, and automotive industries, secured USD 48.5 million Series B funding. The company plans to utilize the funding for expanding its proprietary composite production capabilities and open facilities in the U.S. and Taiwan.

Aerospace is a significant end-user of composite adhesives. High demand from the industry has resulted in rising investments by prominent market players. In October 2019, Solvay opened thermoplastic composite centers in the U.S. and Belgium, especially to cater to the aerospace industry. The company also signed an agreement with Lockheed Martin for the growth of aerospace composite activity through the new Belgium center.

 

Source:https://www.grandviewresearch.com/industry-analysis/composite-adhesive-market