North America Industrial Adhesives Market - Forecast(2023 - 2028)

North America Industrial Adhesives Market Overview

The North American Industrial Adhesives market size is estimated to reach US$9.5 billion by 2027 after growing at a CAGR of about 7.5% from 2022 to 2027. Industrial adhesives are organic and inorganic chemical compounds which are used to join components. These adhesives include acrylic, polyurethane, polyolefin polymers, silicone and epoxy resin based adhesive. Hence, due to their rich adhesion properties, industrial adhesives in North America have high applicability in sectors like automotive, construction, aerospace and furniture. Factors like an increase in spending on commercial construction, growing automotive production and aircraft production are driving the growth of the North America industrial adhesives market. However, the VOC emission regulation imposed by government organization to limit volatile organic compound emission in atmosphere can create challenges for the growth of North America industrial adhesives industry.

The COVID-19 pandemic had a negative impact on the activities of the automotive, construction, and aerospace sectors where spending on construction activities, automotive and aircraft production was reduced. For instance, according to US Census Bureau, from January to May 2020, overall construction spending in the US was reduced from US$68.4 billion to US$44.7 billion. Also, according to International Organization of Motor Vehicle Manufacturer, in 2020, overall vehicle production in North America was 13.3 million units compared to 16.8 million units made in 2019, showing 20.8% decrease. Further, according to General Aviation of Manufacturers Association, in 2020, US manufactured aircraft shipment was 1,555 units in comparison with 1,771, showing 12% decrease. Industrial adhesives such as acrylic and epoxy resin adhesives are used in construction sector during cement production and for binding metal substrates in automotive and aerospace sector. Decrease in productivity of these sectors reduced industrial adhesives usage which negatively impacted North America industrial adhesives market growth.

Report Coverage

The report: “North America Industrial Adhesives Market Report – Forecast (2022 – 2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the North America Industrial Adhesives Industry

By Type – Acrylic, Polyurethane, Epoxy, Rubber, Silicone, Thermosetting (Phenolic, Melamine, and Formaldehyde Resin)
By Form – Water based, Solvent based, Hot Melt, Reactive, and Others
By Substrate – Metal, Plastics, Composites, Foams, Elastomers, Glass, Ceramics, Wood & Wood Products, and Others
By Application – Assembling Agent, Laminating Agent, Structural Bonding, Concrete Production, and Others
By End Use Industry – Automotive (Passengers Cars, Heavy Commercial Vehicles, Light Commercial Vehicles, and Others), Construction (Residential, Commercial, and Industrial), Aerospace (Commercial Aircraft, Passenger Aircraft, and Others), Furniture Industry, Paper, Textiles (Woven, Non-woven), Electronic, Medical and Others
By Geography - USA, Canada, Mexico

Key Takeaways

• USA dominates the North America industrial adhesives market as the country being the largest economy in the world is hub to leading aircraft manufacturers and is growing market for automotive.
• In North America, industrial adhesives have high applicability in electronic sector where they are used for bonding surface-mount components (SMCs), wire tacking and potting.
• The growing population in country like Canada will increase demand for residential units, resulting in more usage of industrial adhesives like polyurethane for cement production during residential construction.

Figure: USA Industrial Adhesives Market Revenue, 2021-2027 (US$ Billion)

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North America Industrial Adhesives Market Segment Analysis – By Type

Polyurethane segment accounted for approximately 26% of North America industrial adhesives market share in 2021. Polyurethane based adhesives provide good chemical resistance, long term elasticity and durable adhesion, due to which it is highly used in sectors like furniture and construction. Rapid development in these sectors has increased their output level, which has positively impacted the usage of industrial adhesives in them. For instance, according to US Census Bureau, in January 2021, furniture sales of home furnishing stores were US$11,855 million compared to 10,406 million in 2020 same month. Further, according to Statistics Canada, in Q4 of 2021, the total value of building permits in the fourth quarter jumped 10.3%. Polyurethane adhesives are majorly used for binding wood substrate in furniture and various components in architectural structures. The increase furniture sales and growing construction value will increase the production level of such sectors in countries like US and Canada which will positively impact the growth of North America industrial adhesives industry. 

North America Industrial Adhesives Market Segment Analysis – By End Use Industry

Construction sector accounted for approximately 21% of North America industrial adhesives market share in 2021. Industrial adhesives such as epoxy resin, acrylic and polyurethane adhesives are majorly used in construction sector as they have resistance to excessive sun, rainfall, provide good steel bonding, and act as cement dispersant. The rapid development in the construction sector in major North American countries like Canada and Mexico has increased the scale of construction activities in such countries. For instance, according to Mexico’s National Institute of Statistics and Geography, in Q2 of 2021, the construction industry in Mexico posted a high year-on-year growth rate of 33.8%. Further, according to Canada Mortgage and Housing Corporation, in Q4 of 2021, housing construction increased to 68,958 units compared to 63,741 units in Q4 of 2020 showing 8.1% increase. Hence, such increase in the construction activities will lead to more usage of industrial adhesives in cement application. This will have a positive impact on the growth of North America industrial adhesives industry.

North America Industrial Adhesives Market Segment Analysis – By Geography

The U.S region accounted for approximately 75% of North American industrial adhesives market share in 2021. The major share is attributed from major sectors like automotive and construction which for larger share of GDP growth of the country. Hence, the rapid development in these sectors on account of initiatives taken by USA for its economic development has positively impacted the usage of industrial adhesives in them. For instance, according to the US Census of Bureau, in March 2022, building permits for privately owned housing units was issued for 1,873,000 units, showing 6.7% increase than 1,755,000 permits issued in March 2021. Further, according to International Organization of Motor Vehicle Manufacturer, in 2021, motor vehicle production in USA was 9.1 million units compared to 8.8 million units made in 2020, showing a 4% increase. Such an increase in productivity of automotive and construction sectors will create more usage of industrial adhesives like polyurethane and acrylic, resulting a positive growth for North America industrial adhesives industry.

North America Industrial Adhesives Market Drivers

Growing Spending on Commercial Construction

The rapid urbanization and technological advancements in major North American countries like USA and Canada has increase spending of such countries on commercial construction for infrastructural developments. For instance, according to US Census Bureau, in November 2021, construction spending on healthcare was US$51.3 million showing a 9% increase, compared to US$46.7 million in 2020 same month. Further, according to Statistics Canada, in Q4 2021, commercial permits saw an increase of 9.9% while institutional permits increased by 3.1% and industrial permits by 4%. Hence, on account of such increase in spending, industrial adhesives such as epoxy resin, polyurethane and acrylic will be used more in cement applications. This will provide a boost to the growth of North America industrial adhesives industry.

Increase in Aircraft Production

Industrial adhesives such as epoxy resin and acrylic are used in aircraft production for structural bonding. Hence, they are applied throughout the interior, exterior, engine compartment of aircraft and on everything from the overhead lockers, to the handy seat trays and the in-floor lighting. North American country like USA is a hub to one of the major aircraft producers like Boeing. The increase in the production level of such aircraft company on account of rising demand for new aircraft has positively impacted the usage of industrial adhesives. For instance, according to the annual report of Boeing, in 2021, the revenue of the company on account of increased production and sale, grew up to US$62,286 million in comparison with US$58,158 million made in 2020. Hence, such an increase in revenue of Boeing will increase its production capacity, resulting in more usage of industrial adhesives. This will boost North America industrial adhesives industry growth.

North America Industrial Adhesives Market

VOC Emission Regulation

One of the major issues related with industrial adhesives is that the manufacturing of such adhesives releases volatile organic compound in environment. Exposure to VOC emission can cause serious health problems like skin and throat irritation and long-term damage to lungs and kidneys. Hence, in order to prevent such problems, government organization have imposed certain regulation relating to VOC emission. For instance, Title 40, Code of Federal Regulations of US, Environment Protection Agency deals with protecting human health and the environment from VOC emission. Such regulation can limit the production and usage of industrial adhesives in North America, which can hamper the growth of North America industrial adhesives industry.

North America Industrial Adhesives Industry Outlook

The companies to develop a strong regional presence and strengthen their market position, continuously engage in mergers and acquisitions. In North America industrial adhesives market report, the North America industrial adhesives top 10 companies are:

1. H.B Fuller
2. 3M Company
3.  PPG Industries
4.  Click Bond Inc.
5.  Hutchinson Sealing System
6. L&L Products Inc.
7.  Henkel AG & Co.
8. Sika AG
9.  Royal Adhesives
10. Arkema Group 

Recent Developments

• In 2021, Huntsman Corporation acquired Gabriel Performance Products, a North American specialty chemical manufacturer of epoxy curing agents for adhesives & sealants, and composite

• In 2021, H.B Fuller launched a new generation of high-performance adhesives with Swift tak 5730 grade to create consumer-sage, liquid-resistant paper straws designed for fast moving machines and improved sustainability.

• In 2021, Bostik acquired Texas based Edge Adhesives which is a manufacturer of hot-melt and pressure sensitive adhesives for residential construction, and the acquisition will expand Bostik’s high performance adhesives business in United States.

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