Metal Bonding Adhesives Market - Forecast(2023 - 2028)

Metal Bonding Adhesives Market Overview

The Metal Bonding Adhesives market size is estimated to reach US$10.5 billion by 2027, after growing at a CAGR of 5.8% during the forecast period 2022-2027. Metal bonding adhesives are high-strength joining compounds that are used to bind metal substrates together and it includes polyurethanes, epoxy, acrylic, cyanoacrylate and anaerobic. Metal bonding adhesives evenly disperse stress across the entire surface area, reducing stress in a particular region. The rise in demand for metal bonding adhesives in automotive, transportation and industrial applications is likely to drive market expansion over the forecast period. Metal Bonding Adhesives are also frequently employed in industrial applications including ultra-centrifuge rotors, machinery-based plates, cooling water pumps, reaction injecting molding machines, cooling water pumps and industrial pumps. The covid-19 pandemic majorly impacted the metal bonding adhesives market due to restricted production, supply chain disruption, logistics restrictions and a fall in demand. However, with robust growth and flourishing applications across major industries such as automotive, industrial and others, the metal bonding adhesives market size is anticipated to grow rapidly during the forecast period.

Metal Bonding Adhesives Report Coverage

The “Metal Bonding Adhesives Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Metal Bonding Adhesives industry.

By Type: Solid, Acrylic, Epoxy, Polyurethane, Silicone, Modified Phenolic and Others.
By End-use Industry: Transportation (Automotive, Aerospace, Marine and Locomotive), Building & Construction (Residential, Commercial and Industrial), Electrical & Electronics, Medical & Healthcare and Others.
By Geography: North America (the USA, Canada and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Belgium and the Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile and Rest of South America), Rest of the World [Middle East (Saudi Arabia, UAE, Israel and Rest of the Middle East) and Africa (South Africa, Nigeria and Rest of Africa)].

Key Takeaways

• Asia-Pacific dominates the Metal Bonding Adhesives market size, the increase in demand from end-user sectors, such as electronics, aerospace and medical & healthcare, is the main factor driving the region's growth.
• Increased demand for lightweight and low-carbon-emitting vehicles, as well as increased demand for low VOC, green and sustainable metal bonding adhesives, will provide additional opportunities for metal bonding adhesives market growth in the coming years.
• Recent advancements in the automotive industry, new potential applications of adhesives to economically replace mechanical fastening such as welding, brazing, or riveting and a variety of other trends will all contribute to the growth of the metal bonding adhesives market.
• However, fluctuation in raw material prices such as crude oil is anticipated to hamper the Metal Bonding Adhesives market size growth during the forecast period.

Metal Bonding Adhesives Market Segment Analysis – by Type

Epoxy held the largest share in the Metal Bonding Adhesives Market share in 2021 and is estimated to grow at a CAGR of 5.9% during the forecast period 2022-2027, owing to extensive characteristics provided by epoxy over other material types such as silicone, acrylic, anaerobic, polyurethane and others. The epoxy segment is widely used in industries such as automotive, optical, medical, chemical processing, electronics and others. In the aerospace industry, the product is also used to repair and assemble satellites, solar systems and panels, honeycomb and connecting pieces, rotor blades and brake systems. As a result, epoxy-based products are widely used in the creation of durable, lightweight components, fueling global market expansion. Thus, owing to tremendous advantages and availability over material types such as acrylic, anaerobic and silicone, the demand for epoxy is growing for application in major industries, thereby boosting the growth opportunities for the metal bonding adhesives industry in the projected years.

Metal Bonding Adhesives Market Segment Analysis – by End-use Industry

Automotive held the largest share in the Metal Bonding Adhesives Market share in 2021 and is projected to grow at a CAGR of 6.2% during the forecast period 2022-2027, owing to the increasing usage of metal bonding adhesive in automotive components. Metal bonding adhesives are widely utilized in the automotive and transportation industries. Metal bonding adhesives are widely used by Original Equipment Manufacturers (OEMs) for automotive exteriors and panel bonding. Metal bonding adhesives are also utilized to join the body panels of buses and vehicles. According to the Energy Information Administration (EIA), by 2035, there will be 1.7 million automobiles worldwide. According to the International Organization of Motor Vehicle Manufacturers (OICA), automobile output increased by 10% in the first nine months of 2021, to 57.26 million vehicles, up from 52.15 million units in the same period last year. With the increasing automotive production, the demand for metal bonding adhesives will also likely increase, as a result of which the metal bonding adhesives market share will be flourished over the forecast period.

Metal Bonding Adhesives Market Segment Analysis – by Geography

The Asia-Pacific held the largest share in the Metal Bonding Adhesives Market share in 2021 up to 42%. The flourishing growth of metal bonding adhesives is influenced by its significant applications across major industries, along with growing development in automotive production and the development of the base for metal bonding adhesives in APAC. The automotive sector in Asia-Pacific is rapidly growing due to a flourishing base for automotive manufacturers, demand for automotive compounds and production rise. According to the Organisation Internationale des Constructeurs d'Automobiles (OICA), automotive production and Vietnam grew by 1.2 percent and 5.5 percent from the previous year to 5,71,632 and 2,50,000 units, respectively, in 2019. In November 2020, Boeing forecasted that China's airlines would spend US$1.4 trillion on 8,600 new planes and US$1.7 trillion on commercial aircraft services over the next 20 years. According to India Brand Equity Foundation (IBEF), India’s domestic automobile production increased at a 2.36 per cent CAGR from FY16 to FY20, with 26.36 million vehicles produced in FY20. Between FY16 and FY20, domestic automobile sales increased at a 1.29 percent compound annual growth rate (CAGR), with 21.55 million vehicles sold in FY20. According to the Japan Automobile Manufacturers Association (JAMA), automobile production in Japan increased in November from 6,67,462 units in October to 6,90,311 units. Thus, the growth of metal bonding adhesives in the region is being aided by the increasing automotive sector in APAC, thereby dominating the market in the Asia-Pacific region.

Metal Bonding Adhesives Drivers

Bolstering Growth of the Building & Construction Industry:

Metal bonding adhesives are increasingly being employed in the industrial sector. These are primarily used to bond steel, aluminum and other metals together in order to reduce the number of welds required in the manufacturing of metal structures. This is mostly due to the fact that adhesive solutions provide greater structural support than welding methods, which is driving market expansion and expanding the market globally. According to the International Trade Administration, the construction sector in China is projected to grow at an average of 8.6% from the year 2022 to 2030. According to Oxford Economics, the global construction output in 2020 was US$10.7 trillion 2020 and is expected to grow by 42% between 2020-2030 and reach US$15.2 trillion by 2030. With the rise in building and construction projects across the globe, the demand for melt bonding adhesives is anticipated to rise for various applications, which is projected to boost the market growth in the building and construction industry during the forecast period.

Bolstering Growth of the Aerospace Industry:

Melt Bonding Adhesives offer numerous benefits that will serve as growth pillars for the aerospace industry. In the aerospace sector, metal bonding adhesives make thin metal and honeycomb structures more practical since adhesives transmit stress more effectively than welds or rivets. Metal bonding adhesives have properties such as abrasion resistance, vibration resistance, dimensional stability, thermal conductivity, low shrinkage, low outgassing and a low coefficient of expansion, which drives the market growth of metal bonding adhesives in the aerospace industry. For instance, in November 2020, Boeing projected that China's airlines will buy US$1.4 trillion worth of 8,600 new aircraft and US$1.7 trillion worth of commercial aviation services over the next 20 years. According to Boeing's current business forecast, the Middle East would need 2,520 new aircraft by 2030. Also, according to Boeing India is expected to drive the demand for 2,300 aircrafts worth US$320 billion over the next 20 years. Considering the benefits associated with metal bonding adhesives are expected to have great potential applications in aerospace. Hence, the increasing aerospace industry will act as a driver for the metal bonding adhesives market.

Metal Bonding Adhesives Challenge

Fluctuating Raw Material Prices:

Price fluctuations in raw materials used to make polycarbonate are a significant concern for the global polycarbonate market. Rapid fluctuations in raw material prices like polyurethanes, epoxy, acrylic and a lack of product availability are expected to hinder the worldwide metal bonding adhesives market in the near future. Moreover, metal bonding adhesives are a bonding material that is extensively utilized in sectors like electronics, aerospace and automobiles and is regarded as one of the important elements across the globe. The prior disruptions and price changes in the metal bonding adhesives market suggest issues with the stability and resilience of the supply chain. However, the emergence of sustainable products with low volatile organic compound concentrations is expected to generate attractive prospects for market small and medium-sized companies. As a result, all these key factors limit the market growth of the metal bonding adhesives industry.

Metal Bonding Adhesives Industry Outlook

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Metal Bonding Adhesives market. The top 10 companies in the Metal Bonding Adhesives market are:

1. 3M
2. Arkema Group (Bostik SA)
3. DELO Industrie Klebstoffe GmbH & Co. KGaA5
4. Dow
5. H.B. Fuller Company
6. Henkel AG & Co. KgaA
7. Parker Hannifin Corp (Lord Corporation)
8. Parson Adhesives Inc.
9. Sika AG
10. Solvay

Recent Developments

• In July 2021, DELO Industrial Adhesives introduced the DELO MONOPDX HT2999 adhesive, which has been developed particularly for the automobile sector and mechanical engineering.
• In June 2021, DuPont introduced a new sealing and bonding adhesive for EV battery packs. The new adhesive bonds coated metals, pre-treated thermoplastics and composites - or any multi-material combination - make it ideal for EVs.
• In April 2020, Dow introduced fast-curing silicone adhesive for decreased energy use and increased assembly efficiency at any manufacturing volume.

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