Accelerating Growth in Automotive Industry
The automotive industry is one of the fastest growing industries in South America. With growing population and increasing purchasing power, the demand for automotive is increasing in the region. Over the past few years, adhesives have become a prime technology component of the automotive applications. Unlike traditional manufacturing methods, adhesives offer the advantage of flexibility during the production process of automotive components, which is fuelling the demand for adhesives in the automotive industry. The focus on minimizing carbon emission and enhancing fuel economy by way of reducing the weight of a vehicle has given adhesives the impetus as a bonding material for the manufacturing of automobiles. Adhesives, especially PSAs, are continuously replacing mechanical fasteners, resulting in the rapid growth in the automotive industry. This is set to boost the demand for PSAs, in turn, propelling the South American adhesives and sealants market.
Technological Advancement Fuelling Demand for Waterborne Adhesive
The waterborne adhesives technology has been developed as a result of growing regulations, by environmental agencies, on adhesive manufacturers to produce eco-friendly substitutes of solvent-borne adhesives, in order to reduce VOC emission. Currently, there is a high level of development activity for water-borne adhesives in South America. This has expanded the application base and end-user markets for water-based adhesives, like automotive, construction, shoe, woodwork & furniture, mattress, and paper & packaging industries, among others. With growing population and economic developments in the region, the purchasing power of the consumer is increasing. Also, government regulations for eco-friendly products is making this region an area of immense potential and opportunities for the adhesives and sealants market.
Brazil Dominates the Market
By consumption, Brazil led the market with a share of 56% of South American adhesive and sealants market in 2017. With increased demand for adhesives and sealants in Brazil, global players are keen to acquire local players to gain market share, showing a higher market potential for adhesives and sealants in the future. The Brazilian government is investing heavily in the R&D sector, making Brazil the technological center of South America, and its R&D is gaining global recognition. Automotive industry market has shown improvement in sales and production. The packaging and furniture industries have seen significant growth and are expected to increase. The adhesives and sealants market is expected to grow moderately in Brazil, owing to expected growth in consumer income and increase in demand of adhesive products in the above industries.
Notable Developments in the Market
March 2018: The Board of Directors of Sika decided to set up a new, strong region in Latin America. The aim is to create a more efficient supply chain and benefit from larger purchasing volumes in the closely intertwined regions of North and Latin America.
The major players include - SIKA AG, HENKEL, 3M, DOWDUPONT, H.B. FULLER CO., HUNTSMAN CORP., ARKEMA GROUP (BOSTIK), and ASHLAND, amongst others.
Reasons to Purchase the Report
To understand the impact of end-user applications on the market.
Analyzing various perspectives of the market with the help of Porter’s Five Forces Analysis.
To understand the dominating technology in the market.
Countries expected to witness the fastest growth during the forecast period.
Identify the latest developments, market shares, and strategies employed by the major market players.
3-month analyst support along with the Market Estimate sheet (in Excel).
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1.1 Research Phases
1.2 Study Deliverables
1.3 Scope of the Report
2. Executive Summary
3. Market Insights
3.1 Industry Value Chain Analysis
3.2 Industry Attractiveness - Porter's Five Forces Analysis
3.2.1 Bargaining Power of Suppliers
3.2.2 Bargaining Power of Consumers
3.2.3 Threat of New Entrants
3.2.4 Threat of Substitute Products and Services
3.2.5 Competitive Analysis
4. Market Dynamics
4.1.1 Rapidly Growing Construction Industry
4.1.2 Accelerating Demand from Automotive Industry
4.2.1 Stringent Environmental Regulations Regarding VOC Emissions
4.3.1 Growing Aerospace Industry
4.3.2 Government Increasing Investments in R&D
5. Market Segmentation and Analysis (Market Size, Growth, and Forecast)
5.1 By Technology
18.104.22.168 Polyvinyl Acetate (PVA) Emulsion
22.214.171.124 Ethylene Vinyl Acetate (EVA) Emulsion
126.96.36.199 Polyurethane Dispersions (PU)
188.8.131.52 CR (Chloroprene Rubber) Latex
184.108.40.206 Styrene-butadiene Rubber
220.127.116.11 Chloroprene Rubber
18.104.22.168 Poly Acrylate (PA)
22.214.171.124 Modified Acrylics & Cyanoacrylates
126.96.36.199 Ethylene Vinyl Acetate
188.8.131.52 Synthetic Rubbers
5.2 Sealants by Product Type
5.2.4 Polyvinyl Acetate
5.3 By End-user Industry
5.3.1 Building & Construction
5.3.2 Paper, Board & Packaging
5.3.3 Woodworking & Joinery
5.3.5 Footwear & Leather
5.3.8 Others (Textile, Consumer Goods, etc.)
6. Regional Market Analysis (Market Size, Growth, and Forecast)
6.5 Rest of South America
7. Competitive Landscape
7.1 Mergers & Acquisitions, Joint Ventures, Collaborations and Agreements
7.2 Market Share Analysis**
7.3 Strategies Adopted by Leading Players
8. Company Profiles (Overview, Financials**, Products & Services, and Recent Developments)
8.2 Adhesives Research Inc.
8.3 Alfa International Corporation
8.4 ArkemaGroup (BostikSA)
8.6 Avery Dennison Corp.
8.9 Dynea AS
8.10 H.B. Fuller Co.
8.14 ITW Performance Polymers (Illinois Tool Works Inc.)
8.16 LORD Corp.
8.19 RPM International Inc.
8.20 Sika AG
8.21 Wacker Chemie AG
*List not exhaustive
**Subject to availability on public domain
- Adhesives Research Inc.
- Alfa International Corporation
- ArkemaGroup (BostikSA)
- Avery Dennison Corp.
- Dynea AS
- H.B. Fuller Co.
- ITW Performance Polymers (Illinois Tool Works Inc.)
- LORD Corp.
- RPM International Inc.
- Sika AG
- Wacker Chemie AG