High Temperature Adhesives Market size is poised to grow with a lucrative CAGR from 2023 to 2032 led by the increasing application scope in aerospace, electronics & electrical, marine, and automotive sectors.
With the surging production of electronic products, the demand for high-temperature adhesives is increasing for semiconductor binding, shielding, solder replacement, and heat transfer. For instance, in India, the Government of India aims to boost the production of electronics to USD 300 billion by 2025-2026. Furthermore, several economies seeking economic development are focusing on the introduction of favorable schemes to support the growth of the electronics sector, thus amplifying the demand for high temperature adhesives market.
The surge in semiconductor demand owing to the rapid penetration of electric vehicles (EVs) worldwide is further proliferating the need for advanced adhesives. A large number of manufacturers are designing innovative products to cater to the growing market demand.
With regards to application, the demand for high-temperature adhesives across the automotive sector is expected to rise notably over 2032. Rapid electrification of automobiles has spurred the need for lightweight vehicle components to ensure improved performance. These adhesives are widely used by automakers to effectively combine parts without deploying welding or soldering equipment. This factor will positively impact the market growth.
The growing consumer inclination toward advanced electric mobility will also fuel the demand for high-temp adhesives in the automotive sector.
Regionally, Asia Pacific high temperature adhesives market size is expected to register stellar growth through 2032 owing to the expanding consumer electronics sector in the region. APAC is home to countries such as India and China with constantly increasing population and rapid urbanization. According to the Indian Brand Equity Foundation (IBEF), the consumer electronics sector in India is projected to reach USD 21.18 billion by 2025. The increasing standard of living and rising disposable incomes are major factors offering lucrative prospects for industry expansion in the region.
Some of the major players operating in the global high temperature adhesives market are Dow Silicones Corporation (Dow), 3M Company, Master Bond Inc, Permabond, Henkel Adhesives Technologies, ThreeBond International, and Cotronics Corp, amongst others. These companies are focusing on new product developments and innovations to boost customer reach and expand their business footprint.
However, several market participants are experiencing unprecedented changes in business operations owing to the impact of the Russia-Ukraine war. The conflict caused supply chain disruptions and inflation, affecting manufacturing output worldwide. Furthermore, several players withdrew business from Russia in their attempt to oppose the invasion. For instance, amidst the war, Henkel announced plans to shut down its business in Russia.