The global epoxy adhesives market size is expected to reach U.S. $10.5 billion by 2028, according to a new report by Grand View Research, Inc., an India & U.S. based market research and consulting company
The market is expected to expand at a CAGR of 5.6% from 2021 to 2028. An increase in investments in the automotive and electric vehicles (EVs), as well as the renewable energy industries are the prominent factors attributed to the market growth during the projected period.
By technology, the two component segment dominated the market and was estimated at $2.9 billion in 2020. The two component epoxies have excellent shear strength owing to different curing characteristics and provide an additional advantage of getting cured at room temperature, which aids to its consumption.
By application, the automotive and transportation segment dominated the market with a revenue share of more than 42.0% in 2020. Growth in the EV industry and increasing consumption of adhesives over mechanical fasteners in vehicles is anticipated to boost the market growth.
The epoxy adhesive sector is projected to experience significant development in the future, owing to the growing emphasis on the incorporation of lightweight materials in the automotive and transportation industry. The use of adhesives offers a reduction in the weight of the final product, which has become a crucial factor in the aerospace and automotive industries in recent years.
The power and energy segment is anticipated to register the highest CAGR of 7.1%, in terms of revenue, during the forecast period. Adhesives are used to protect and bond sensitive mechanical and electrical components, such as solar panels, charge controllers, and wind-turbine blades .
Moreover, epoxy adhesives are used in various other industries as well, such as medical, sports tools, and defense.
- Epoxy resin market: The global epoxy resin market size was $7.99 billion in 2015. Growing end-use industries including transportation, marine coatings, aerospace, electrical and electronic laminates, composites, and decorative powder coatings are expected to augment the global epoxy resins demand.
- Epoxy composite market: The global epoxy composite market size was valued at $28.40 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 8.3% from 2021 to 2028.
- Epoxy coating market: The global epoxy coating market size was estimated at $21.52 billion in 2015, growing at a CAGR of 7.8% from 2016 to 2024.
The COVID-19 pandemic has impacted various commercial and industrial sectors, which led to a halt in new investments resulting in a downfall in global revenue. Moreover, with the continuing second and third waves of the virus, restrictions were seen in Q1 2021, as well.
During the pandemic, the prices of raw materials have increased owing to a rise in logistic costs, unavailability of raw materials, and unfavorable weather conditions. It also adversely impacted the end-use industries which remained shut down during the pandemic. That is starting to change.
A growing focus on sustainable solutions is also expected to bolster the consumption of adhesives, which is further anticipated to offer lucrative growth opportunities for the market. Furthermore, a surge in construction, as well as home improvement activities has been witnessed during the COVID period, as people were spending more time at home. Therefore, wide-scope applications in various industries make the market more lucrative.