|
Forecast
Period
|
2025-2029
|
|
Market
Size (2023)
|
USD 3.40 billion
|
|
CAGR
(2024-2029)
|
4.76%
|
|
Fastest
Growing Segment
|
Solvent Borne
|
|
Largest
Market
|
West
India
|
Market Overview
India Adhesives Market has reached USD 3.40 billion by 2023 and is anticipated to project robust growth in the forecast
period with a CAGR of 4.76% through 2029. Adhesives play a crucial role in the
building and construction industry, offering a wide range of benefits due to
their remarkable characteristics and physical properties. These include high
cohesive strength, excellent adhesion and elasticity, flexibility, cohesion,
and environmental resistance against UV light, corrosion, saltwater, rain, and
other weathering conditions. Additionally, they exhibit a high elastic modulus
of the substrate and provide resistance against thermal expansion.
The Indian construction industry is poised for
substantial growth, with a projected rate of nearly 15% over the forecast
period, reaching an estimated value of around USD 800 billion. Currently, there
are approximately 20,000 ongoing construction projects in India. Furthermore,
according to the United Nations, India's urban population is expected to surge
from 377 million in 2011 to 594 million in 2036, reflecting a remarkable growth
of around 57%. This rapid urbanization serves as a key driver for the expansion
of the construction industry in the region.
The market for adhesives and sealants is witnessing
increasing demand across various end-user industries, such as automotive and
construction. This growth is fueled by technological advancements in
formulation techniques, resulting in enhanced product performance. However, it
is important to note that the market's growth may face challenges due to
stringent government regulations aimed at reducing the production and
consumption of volatile organic compounds (VOCs).
Despite these regulations, the adhesives industry
continues to evolve, driven by the need for innovative solutions and
sustainable practices. As the construction industry continues to flourish and
new technologies emerge, the demand for adhesives and sealants is expected to
remain robust, fostering further advancements in the market.
Key Market Drivers
Growing Demand of Adhesives in Construction
Industry
The Indian adhesives market is experiencing
significant growth, fueled by various factors. One of the primary drivers of
this expansion is the increasing demand for adhesives in the thriving
construction industry. With India's construction sector witnessing a boom,
driven by the government's initiative to build 20 million affordable homes by
2022 and the ongoing urbanization trend, the need for high-quality adhesives
has soared, propelling the market forward.
As new construction projects continue to rise
across the country, the demand for adhesives has become indispensable in
various aspects of the construction process. From flooring and tiling to
insulation, roofing, and paneling, adhesives play a vital role in ensuring
durable and secure structures. Their usage offers numerous benefits, including
superior bonding strength, resistance to moisture and heat, and the ability to
create smoother finishes, reducing the need for mechanical fasteners.
Furthermore, the construction industry's evolving
practices, emphasizing efficiency and sustainability, have also contributed to
the surge in adhesive usage. The growing adoption of more efficient and
environmentally friendly construction methods has resulted in a demand for
innovative adhesive products tailored specifically for the industry. For
instance, the introduction of green adhesives, which are both environmentally
friendly and low in volatile organic compounds (VOCs), aligns perfectly with
the increasing focus on sustainability in the construction sector.
Although the construction industry's contribution
to the adhesives market growth is undeniable, it also presents its own set of
challenges. Fluctuating raw material prices and the recent decline in
construction activities due to the COVID-19 pandemic have impacted the market's
dynamics. However, despite these obstacles, the outlook for the Indian
adhesives market remains positive.
With the expected recovery of the construction
sector post-pandemic and the ongoing urbanization and infrastructure
development in India, the demand for adhesives in the construction industry is
projected to continue its upward trajectory. The potential for market players
remains immense, promising lucrative opportunities for those involved in the
adhesives market.
In conclusion, the rising demand for adhesives in
the construction industry serves as a significant driver of growth in the
Indian adhesives market. With the expansion of the construction sector and the
development of innovative adhesive products tailored for specific construction
needs, the market's potential remains vast. Market players can look forward to
exploring and capitalizing on the opportunities presented by this thriving
industry.
Growing Demand of Adhesives in Automotive Industry
India's adhesives market has been experiencing a
substantial expansion, driven primarily by the escalating demand for adhesives
in the thriving automotive industry. As India solidifies its position as a
global automotive manufacturing hub, the need for high-quality adhesives has
surged, providing a strong impetus to the market.
The automotive industry in India stands as one of
the largest in the world, propelled by the government's 'Make in India'
initiative, which promotes domestic manufacturing and foreign direct investment
(FDI). This sector has witnessed robust growth, leading to an increased demand
for adhesives that play a crucial role in various stages of vehicle production
- from assembly to interior fitting and exterior finishes.
Adhesives offer numerous advantages in automotive
manufacturing. They provide superior bonding strength across different
materials, contributing to weight reduction - a critical factor in improving
fuel efficiency. Additionally, they enable the creation of smoother surfaces,
enhancing the aesthetic appeal of vehicles. These benefits have driven a
notable shift away from traditional mechanical fasteners towards the use of
adhesives.
Furthermore, advancements in adhesive technology
have further stimulated market growth. The development of high-performance
adhesives capable of withstanding harsh environments, along with the
introduction of sustainable, low volatile organic compound (VOC) adhesives,
align with the increasing focus on sustainability and environmental impact in
the automotive industry.
However, while the automotive industry propels the
growth of the adhesives market, it also presents challenges. Fluctuating raw
material prices and the recent slowdown in automotive production due to the
COVID-19 pandemic have posed hurdles to market growth.
Despite these challenges, the forecast for the
Indian adhesives market remains optimistic. With the expected rebound of the
automotive sector post-pandemic and the ongoing drive towards more efficient
and sustainable manufacturing practices, the demand for adhesives in the
automotive industry is set to maintain its upward trajectory.
In conclusion, the escalating demand for adhesives
in the automotive industry serves as a significant driver of growth in the
Indian adhesives market. With the continued expansion of the automotive
industry and advancements in adhesive technology, the market's potential
remains vast, promising attractive opportunities for market players.
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Key Market Challenges
Volatility in Prices of Raw Materials
India's adhesives market is currently experiencing
a remarkable growth trajectory, driven by the increasing demand from various
sectors such as construction, automotive, and packaging. This surge in demand,
however, is accompanied by a significant challenge - the volatility in the
prices of raw materials. The fluctuating costs of essential components like
resins, solvents, additives, and fillers directly impact the production and
pricing strategies of adhesive manufacturers, posing a formidable hurdle to the
market's growth.
The prices of raw materials used in adhesives are
influenced by a multitude of factors. Supply chain disruptions, geopolitical
tensions, changes in global commodity markets, and environmental regulations
all contribute to the price fluctuations of these commodities. In recent years,
the adhesive industry has witnessed sharp and unpredictable changes in raw
material prices, leading to increased production costs and squeezed profit
margins for manufacturers.
The volatility in raw material prices has been
further exacerbated by supply chain disruptions caused by the COVID-19
pandemic. The pandemic-induced lockdowns resulted in a halt in production
activities worldwide, leading to a shortage of raw materials and subsequent
price hikes. Even as the world recovers from the pandemic, the lingering
effects of these disruptions continue to impact the availability and cost of
raw materials in the adhesive industry.
Additionally, the growing emphasis on environmental
sustainability has emerged as another factor contributing to price volatility.
Stricter environmental regulations have led to a surge in demand for
eco-friendly raw materials, which often come at a higher cost. While these
green alternatives align with the industry's push towards sustainability, their
higher price tags add to the financial burden of adhesive manufacturers.
The fluctuation in raw material prices poses a
significant challenge for adhesive manufacturers in India. It not only affects
their production costs but also their ability to competitively price their
products. As a result, manufacturers must continuously adapt their strategies
to manage these cost variations, often resorting to passing on increased costs
to consumers or investing in research and development to find cost-effective
alternatives. This dynamic landscape requires careful navigation and proactive
measures to ensure sustainable growth in the Indian adhesive market.
Key Market Trends
Rising Awareness of Sustainable Solutions
India's adhesives market is currently undergoing a
significant transformation, driven by the growing awareness and adoption of
sustainable solutions. As environmental concerns continue to gain prominence on
a global scale, the adhesive industry in India is witnessing a notable shift
towards eco-friendly products and practices. This emerging trend is not only
shaping the market's growth trajectory but also positively impacting various
industries that heavily rely on adhesives, including construction, automotive,
and packaging.
Traditionally, the production of adhesives has
heavily relied on synthetic materials, which unfortunately often come with a
high environmental impact. However, with the increasing awareness about
sustainability and the implementation of stricter environmental regulations,
there is now a rising demand for green adhesives - products that are not only
environmentally friendly but also low in volatile organic compounds (VOCs).
Green adhesives offer several advantages over their
traditional counterparts. They not only reduce the emission of harmful VOCs but
also contribute to energy efficiency. Additionally, many green adhesive
products can be recycled or disposed of in a safer manner. These benefits align
perfectly with the growing focus on sustainability within industries that
extensively use adhesives, such as the automotive and construction sectors.
Furthermore, the development and adoption of
sustainable solutions extend beyond the products themselves. Manufacturers are
now actively focusing on improving their processes to further reduce their
carbon footprint. This includes optimizing production processes to minimize
waste, investing in energy-efficient machinery, and embracing a circular
economy approach where resources are reused and recycled as much as possible.
However, transitioning to sustainable solutions is
not without its challenges. Green adhesives and eco-friendly manufacturing
processes often involve higher costs compared to traditional alternatives.
Additionally, green adhesives may not always offer the same level of
performance characteristics as their conventional counterparts, which can pose
potential issues in applications that require high strength or durability.
Despite these challenges, the adhesive industry in
India is committed to driving forward sustainable practices and finding
innovative solutions. With a growing emphasis on environmental responsibility
and the increasing demand for eco-friendly products, the Indian adhesives
market is poised for continued growth and positive change.
Segmental Insights
Technology Insights
Based on the category of technology, the water-borne
segment emerged as the dominant player in the Indian market for Adhesives in
2023. Water-based adhesives are poised to experience significant growth
throughout the predicted period owing to their non-toxic and environment-safe
characteristics. These attributes make them particularly suitable for packaging
purposes in the fast-moving consumer goods (FMCG) industry, as they do not
contaminate the products inside. The FMCG industry in India is witnessing
substantial growth, which is expected to drive the water-based adhesives market
segment during the forecast period.
Furthermore, the continuous innovation and
development of new products in the country are anticipated to further fuel the
market. As an example, in September 2021, H.B. Fuller India introduced the
Swift®tak PS5600-I, a water-based and food-safe adhesive under its Swift®tak
brand, to meet the increasing demand for paper straws in the country. This
launch not only addresses the rising environmental concerns but also caters to
the specific requirements of the Indian market, reinforcing the company's
commitment to sustainable solutions.
End User Insights
The packaging segment is projected to experience
rapid growth during the forecast period. Packaging is undeniably one of the
most rapidly evolving industries in terms of design and technology,
continuously striving to protect and enhance the safety and longevity of
products. With the increasing global demand for clean water, fresh and nutritious
food, and life-saving pharmaceuticals, the packaging industry is being
propelled forward by the swift adoption of advanced technologies.
Over the past few years, packaging has emerged as
the fifth-largest sector in the country's economy, showcasing its significant
contribution to various industries. The consumption of packaging products has
witnessed a staggering growth of over 200% in the past decade alone, with the
average consumption per person per annum soaring from 4.3 Kg to 8.6 Kg by the
end of 2020. This remarkable surge in consumption can be attributed to the
rising applications of packaging in agriculture production and the fast-moving
consumer goods (FMCG) sector.
With India poised to experience substantial growth
in the near future, driven by its expanding agriculture and FMCG sectors, the
packaging industry is set to play a pivotal role in supporting the nation's
economic development.
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Regional Insights
West India emerged as the dominant player in the India
Adhesives Market in 2023, holding the largest market share in terms of value. One
of the primary reasons for West India's dominance in the adhesives market is
its large concentration of automobile manufacturers. The presence of numerous
automobile companies in this region has led to a substantial demand for
adhesives, given their integral role in vehicle assembly and finishing.
In addition to the automotive sector, West India is
also home to other industries such as packaging, textiles, and construction
that extensively use adhesives. For instance, the western region leads the Hot
Melt Adhesive Market in India due to its bustling industries. This can be
attributed to the region's advanced manufacturing facilities and the
availability of skilled labor.
Moreover, the western region contributes
significantly to the Gross Value Added (GVA) in sectors like tile adhesive
manufacturing. This suggests that the region not only has a high demand for
adhesives but also actively participates in their production, further
solidifying its market dominance. The presence of specialized adhesive
manufacturing units and research institutions in West India contributes to the
continuous innovation and development of adhesive technologies, making it a hub
for adhesive-related industries in the country.
Overall, West India's strong industrial base, coupled
with its strategic location and favorable business environment, has propelled
it to become a dominant player in the adhesives market.
Recent Developments
- In December 2021, Sika, a leading company in the
adhesives and sealants industry, announced its plans to establish a
state-of-the-art technology center and manufacturing factory in Pune, India.
This strategic move aims to meet the growing demand for high-quality adhesives
and sealants in the transportation and construction sectors. With the addition
of three new production lines, Sika is set to further enhance its product
offerings and strengthen its position in the Indian market.
- Also in December 2021, Arkema, a global specialty
chemicals company, introduced an innovative range of disposable hygiene
adhesive solutions under its Nuplaviva brand. These solutions are formulated
with bio-based renewable content, aligning with Arkema's commitment to
sustainability and reducing environmental impact. By leveraging advanced
adhesive technologies, Arkema aims to provide reliable and eco-friendly
solutions for the hygiene industry.
- In October 2021, 3M, a renowned multinational
conglomerate, unveiled a new generation of acrylic adhesives. This includes the
3M Scotch-Weld Low Odor Acrylic Adhesive 8700NS Series, offering enhanced
performance with minimal odor. The 3M Scotch-Weld Flexible Acrylic Adhesive
8600NS Series provides excellent flexibility and bond strength, catering to
various application requirements. Additionally, 3M introduced the 3M
Scotch-Weld Nylon Bonder Structural Adhesive DP8910NS, specifically designed
for bonding nylon substrates. These cutting-edge adhesive solutions showcase
3M's dedication to delivering innovative and reliable products for a wide range
of industries.
Key Market Players
- 3M India
Limited
- Avery
Dennison India Pvt. Ltd.
- H.B.
Fuller India Adhesives Pvt. Ltd
- Henkel
Adhesives Technologies India Private Limited
- Huntsman
International I Private Limited
- Jubilant
Industries Ltd.
- Pidilite
Industries Limited
|
By Resin
|
By Technology
|
By End User
|
By Region
|
- Acrylic
- Cyanoacrylate
- Epoxy
- Polyurethane
- Silicone
- VAE/EVA
- Others
|
- Hot Melt
- Reactive
- Solvent-Borne
- UV Cured
Adhesives
- Water-Borne
|
- Aerospace
- Automotive
- Building
& Construction
- Healthcare
- Packaging
- Others
|
- North India
- East India
- West India
- South India
|
Report Scope:
In this report, the India Adhesives Market has been
segmented into the following categories, in addition to the industry trends
which have also been detailed below:
- India Adhesives Market, By Resin:
o Acrylic
o Cyanoacrylate
o Epoxy
o Polyurethane
o Silicone
o VAE/EVA
o Others
- India Adhesives Market, By Technology:
o Hot Melt
o Reactive
o Solvent-Borne
o UV Cured Adhesives
o Water-Borne
- India Adhesives Market, By End User:
o Aerospace
o Automotive
o Building & Construction
o Healthcare
o Packaging
o Others
- India Adhesives Market, By Region:
o North India
o East India
o West India
o South India
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the India
Adhesives Market.
Available Customizations:
India Adhesives Market report with the given market
data, TechSci Research offers customizations according to a company's specific
needs. The following customization options are available for the report:
Company Information
- Detailed analysis and profiling of additional
market players (up to five).
India Adhesives Market is an upcoming report to be
released soon. If you wish an early delivery of this report or want to confirm
the date of release, please contact us at [email protected]