The market for metal bonding adhesives is expected to register a CAGR of over 5% globally during the forecast period. Major factors driving the market studied are growing demand from the automotive and transportation industry. On the flip side, stringent environmental regulations and unfavorable conditions arising due to the COVID-19 outbreak are hindering the growth of the market.
- The automotive and transportation application is expected to dominate the global metal bonding adhesives market over the forecast period.
- The Asia-Pacific region represents the largest market, and it is also expected to be the fastest-growing market over the forecast period, owing to the increasing consumption from countries, such as China, India, and Japan.
Key Market Trends
Growing Demand from the Automotive and Transportation Industry
- The automotive and transportation segment is anticipated to account for the largest share of the global metal bonding adhesives market, and it is also expected to grow at a considerable rate.
- Metal bonding adhesives are widely used in the automotive and transportation industry by OEMs for fabricating its chassis, automotive exteriors, panel bonding, frames, and reinforcement of the passenger, as well as heavy vehicles segment. Exterior panels and panel bonding are among the top applications under the automotive segment.
- After an encouraging term of growth in the automotive sector during the past decade, the momentum has slowed down over recent years. Sales of new vehicles are going down in various parts of the world, including Europe and the United States. This affected the previously growing automotive production in most countries. Business models and markets are undergoing changes, and so is the competitive landscape.
- In 2019, various developed and developing countries across the world, including China, Germany, South Korea, Canada, the United Kingdom, India, and Mexico, experienced a decline in automotive production.
- Over the forecast period, automotive production is expected to be stabilized with the increase in the production.
The Asia-Pacific Region to Dominate the Market
- The Asia-Pacific metal bonding adhesives market is anticipated to witness significant and fastest growth, owing to the growing demand for technologically advanced consumer electronics and automobile production in China that holds major market share.
- In addition, the relocation of manufacturing hubs due to accessibility of cost-effective raw material and labor in India, Thailand, Indonesia, and China, coupled with increasing investments by multinationals in the industrial and electronics sectors and growing competition among market players to hold a manufacturing base in the Asia-Pacific, is the major aspect stimulating the increasing demand for metal bonding adhesives in the region.
- The Chinese automotive manufacturing industry is the largest in the world. The industry witnessed a huge slowdown in 2018, wherein the production and sales declined. A similar trend continued in 2019, with the production witnessing a 7.5% decline in 2019. According to the China Association of Automobile Manufacturers (CAAM), automotive production is expected to decline by about 2% in 2020 as well.
- In India, major automotive manufacturers, like Maruti, Tata, Honda, and Mahindra, have shut down their production, owing to the unsold stock. This is expected to have a huge negative impact on India’s automotive production in the near future.
- China has one of the largest healthcare sectors across the world. Under the 13th Five-Year Plan, the Government of China prioritized health and innovation, which is expected to increase investments in the medical device manufacturing sector during the forecast period. Additionally, due to the COVID-19 outbreak, investment in the healthcare sector has been gradually growing in the country.
- Hence, owing to the above-mentioned factors, the demand for metal bonding adhesives in the country has been on the rapid rise in the region.
The global metal bonding adhesives market is partially consolidated in nature with a few major players dominating a significant portion of the market. Some of the major companies are 3M, Arkema Group, H.B. Fuller Company, Sika AG, and Henkel AG & Co KgaA.
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Table of Contents
1.2 Scope of the Study
4.1.1 Growing Demand from the Automotive and Transportation Industry
4.1.2 Other Drivers
4.2.1 Stringent Regulatory Policies
4.2.2 Unfavorable Conditions Arising Due to the COVID-19 Outbreak
4.3 Industry Value Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Degree of Competition
5.1.4 Other Resin Types
5.2.1 Automotive and Transportation
5.2.2 Electrical and Electronics
5.2.3 Industrial Assembly
5.2.4 Other Applications
18.104.22.168 South Korea
22.214.171.124 Rest of Asia-Pacific
5.3.2 North America
126.96.36.199 United States
188.8.131.52 United Kingdom
184.108.40.206 Rest of Europe
5.3.4 South America
220.127.116.11 Rest of South America
5.3.5 Middle-East and Africa
18.104.22.168 Saudi Arabia
22.214.171.124 South Africa
126.96.36.199 Rest of Middle-East and Africa
6.2 Market Share (%)/Ranking Analysis**
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.2 Arkema Group (Bostik SA)
6.4.3 DELO Industrie Klebstoffe GmbH & Co. KGaA5
6.4.5 H.B. Fuller Company
6.4.6 Henkel AG & Co. KgaA
6.4.7 Parker Hannifin Corp (Lord Corporation)
6.4.8 Parson Adhesives Inc.
6.4.9 Sika AG
A selection of companies mentioned in this report includes:
- Arkema Group (Bostik SA)
- DELO Industrie Klebstoffe GmbH & Co. KGaA5
- H.B. Fuller Company
- Henkel AG & Co. KgaA
- Parker Hannifin Corp (Lord Corporation)
- Parson Adhesives Inc.
- Sika AG