Polyurethane adhesives market is expected to witness massive growth from 2021 to 2027 due to the rising construction spending in most developed countries across the world. According to the U.S. Commerce Department, construction spending in the country hiked from 0.9% to $1.459 trillion in 2020. The growing advances in the electrical and electronic sector have made way for the higher need for packaging of commodities. Growing obligation for materials with excellent strength and impact as well as chemical resistance will also lead to market growth.
The improving economic conditions along with the higher penetration of internet, personal care devices, and smartphones are other major factors driving the PU adhesives market expansion.
On the basis of resin type, the polyurethane adhesives market share from thermoplastics is set to show notable traction. This is due to their increasing adoption in machine parts, consumer goods, medical equipment as well as packaging and storage of materials. Higher need for offering a strong bond between the surfaces while gaining strength on cooling will add to the demand spurt of thermoplastics.
With regards to technology, the PU adhesives market is segmented into solvent-borne, 100% solids, dispersion, and others. Out of these, the solvent-borne segment is anticipated to collect significant gains for the industry on account of its robust abilities to bond substrates. As solvent-borne contact PU adhesives resist plasticizers and offer high adhesion to the diverse materials, they are utilized in bonding soft PVC to each other. Increasing requirement for reactivation by heating is another ideal prospect contributing to the polyurethane adhesives market growth.
Regionally, the polyurethane adhesives market size in the Asia Pacific is expected to grow exponentially through 2027 due to the rise in the number of R&D activities and booming construction, and packaging sectors. The higher intake of frozen and microwaved foods has led to the increasing adoption of packaged consumerist products. The escalating government spending on road infrastructure and higher consumer household incomes has paved the path for higher developments in automotive and transport. In addition, the prolific expansion of the consumer goods sector in APAC will boost product expansion.
Global participants in the PU adhesives industry include Huntsman Corporation, Scott Bader Company, Henkel AG & Company, The Dow Chemical Company (Dow Inc.), Illinois Tool Works, Arkema, 3M, Ashland, and H.B. Fuller.
These market players are actively undertaking inorganic strategies, including innovations, mergers, partnerships, new product launches, and acquisitions, to expand their product and customer base whilst achieving competitive advantages.
For instance, in December 2020, Sika AG introduced Purform®, its new polyurethane technology to offer its customers process efficiency and a simultaneous enhancement in adhesive properties. The company also heavily invested in its production facilities, based at Düdingen.
In another instance, in July 2021, the adhesive solutions division of Arkema, Bostik, launched an ambitious development program to reinforce its polyurethane (PU) sealants by specifically focusing on the sealing & bonding applications across the construction market.
COVID-19 crisis and its effect on the polyurethane adhesives market forecast
The economic upheaval driven by the COVID-19 pandemic set numerous repercussions on millions of industries worldwide while laying groundbreaking trade and supply chain barriers. The PU adhesives demand also suffered a massive blow amidst the outbreak given the stunted production activities and the dearth of labor and raw materials mainly across the furniture, footwear, and construction sectors.