The market for plastic adhesives is expected to grow at a CAGR of more than 5% during the forecast period. Increasing demand from the construction sector is a major factor driving the demand of the market studied. However, the decline in the automotive industry is likely to hinder the market.
- Asia-pacific dominated the market with a significant share and is estimated to continue its dominance during the forecast period.
- The building and construction segment dominated the market owing to the robust construction activities in developing nations.
Key Market Trends
Building and Construction to Dominate the Market
- In the building and construction sector, plastics find application in flooring, roofing, insulation, wall, pipes, windows, doors, etc.
- While these plastics are used, specific plastic adhesives are required to bond plastic material with plastic or other substrates, such as wood, metal, ceramic, and others.
- The current boom in the construction activity, majorly in the Asia-Pacific region, is driving the demand for plastics and thereby, plastic adhesives.
- Besides Asia-Pacific, the countries in the Middle East & African region have been promoting the development of the non-oil sector, which is projected to increase the construction activities in the region.
- Hence, the increasing construction activities in these regions are driving the demand for plastic adhesives.
Soaring Demand from Asia-Pacific
- Asia-Pacific is projected to witness strong growth during the forecast period, owing to the booming construction sector, and increasing electrical & electronics production in the region.
- In Asia-Pacific, China is expected to witness strong growth in the demand for plastic adhesives, owing to the increasing automotive production, along with the favorable government support to the electrical & electronics industry to increase production.
- China has the world’s largest electronics production base and offers a tough competition to existing upstream producers, such as South Korea, and Taiwan.
- Electronic products, such as household appliances including washing machines, refrigerators, etc., among others, have the highest growth in the consumer electronics segment of the market, in terms of demand. With an increase in the disposable income of the middle-class population, the demand for electronic appliances is projected to increase steadily in the future, thereby, driving the market studied.
- Furthermore, the construction industry is the second-largest industry in India, with an average GDP contribution of about 9% every year. The construction showed promising growth in 2019, with a re-energized output of around 8%. It is predicted that India’s construction industry is set to emerge as the third-largest market in the world, with a size of almost USD 1 trillion by the end of the forecast period.
- Such factors combined are boosting the demand of plastic adhesives market in Asia-Pacific.
The market studied is partially consolidated among the limited players. Some of the key players in the market include Permabond LLC, 3M, H.B. Fuller Company, and Henkel Corporation, among others.
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