North America Industrial Adhesive Market - Forecast (2024-2030)

The North American Industrial Adhesives market size is estimated to reach US$11.8 billion by 2030 after growing at a CAGR of about 7.5% from 2024 to 2030. 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.

With growing environmental concerns, there's a noticeable shift towards eco-friendly adhesive solutions. Manufacturers are developing adhesives with reduced volatile organic compound (VOC) emissions, renewable resources, and biodegradable properties. Customers increasingly prioritize sustainable options, prompting companies to innovate and offer products that align with environmental goals.

The industrial adhesives sector is witnessing rapid technological advancements, particularly in areas like nanotechnology and smart adhesives. Nanotechnology enables the development of adhesives with enhanced strength, durability, and versatility. Smart adhesives, equipped with functionalities like self-healing or conductive properties, cater to diverse industrial needs, including automotive, electronics, and healthcare. These advancements drive efficiency, performance, and reliability, contributing to the market's growth and competitiveness in North America.

                                 

The COVID-19 pandemic significantly impacted the North American industrial adhesives market. With widespread lockdowns and economic slowdowns, several industries such as automotive, construction, and aerospace, which are major consumers of industrial adhesives, experienced disruptions in production and demand. Supply chain interruptions, workforce shortages, and reduced consumer spending further exacerbated the challenges. 

However, the market also witnessed some resilience, particularly in segments related to healthcare and packaging, where adhesives are essential components for medical devices and packaging materials. Additionally, the increased focus on hygiene and safety measures prompted demand for adhesives used in the production of protective equipment and sanitization products. Overall, while facing challenges, the North American industrial adhesives market demonstrated adaptability amid the pandemic's uncertain landscape.

The report: “North America Industrial Adhesives Market Report – Forecast (2024 – 2030)”, 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

• 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.

 

               

Polyurethane segment accounted for approximately 26% of North America industrial adhesives market share in 2023. 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, in 2023, furniture sales of home furnishing stores were US$14,855 million. 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. 

Construction sector accounted for approximately 21% of North America industrial adhesives market share in 2023. 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 Q1 of 2023, the construction industry expanded by 2.1% compared to the previous year. Further, according to Canada Mortgage and Housing Corporation, In December 2023, the CMHC reported 249,898 housing starts. 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.

The U.S region accounted for approximately 75% of North American industrial adhesives market share in 2023. 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 CEIC, in December 2022, motor vehicle production in USA was 10,060,339.000units compared to 9,157,205.000units made in December 2021. 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.

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 December 2023, construction spending on healthcare was US$65,640 million, compared to US$57,602 million in 2022 same month. 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.

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 2023, the revenue of the company on account of increased production and sale, grew up to US$77,794 million in comparison with US$66,608 million made in 2022. 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.

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.

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& Sealants, LLC

10. Arkema Group 

• In May 2023, H.B. Fuller announced that it had acquired Beardow Adams – an industrial adhesive manufacturer based in the UK.Beardow Adams is a UK-based, family-owned business that has grown since its establishment in the mid-seventies into a proven multinational industrial adhesive manufacturer, with 10,000 customers in more than 70 countries across a variety of applications.