|
Forecast
Period
|
2026-2030
|
|
Market
Size (2024)
|
USD 390.13 Million
|
|
CAGR
(2025-2030)
|
4.26%
|
|
Fastest
Growing Segment
|
Automotive
|
|
Largest
Market
|
South
India
|
|
Market
Size (2030)
|
USD
495.37 Million
|
Market Overview
India
Contact Adhesive Market was valued at USD
390.13 Million in 2024 and is expected to reach USD 495.37 Million by 2030
with a CAGR of 4.26% during the forecast period. The
contact adhesive market in India is witnessing substantial growth, driven by
demand across various industrial sectors, such as automotive, construction,
woodworking, and consumer goods. These adhesives are preferred for their strong
bonding capabilities, versatility, and ease of application. The accelerating
pace of industrial activities, particularly in automotive and construction, is
significantly boosting the demand for contact adhesives. Urban infrastructure
projects and residential construction are creating a need for robust bonding
solutions.
There
is an increasing focus on innovative adhesive formulations, including
water-based and eco-friendly options. Manufacturers are prioritizing the
development of adhesives that provide enhanced performance, lower VOC
emissions, and greater durability. Compliance with environmental regulations
and safety standards is playing a crucial role in shaping product development
and market strategies, leading to a heightened demand for low-VOC and
eco-friendly adhesives.
Fluctuations
in raw material prices can impact the overall cost of contact adhesives and
affect market growth. Additionally, there is a growing need for customized
adhesive solutions tailored to specific applications, particularly in the
automotive and construction sectors. The rise of e-commerce platforms is also
making adhesive products more accessible, expanding market reach for
manufacturers.
The
Indian contact adhesive market features a diverse array of participants,
including multinational corporations and local companies. With its wide range
of applications and a strong focus on innovation and sustainability, the market
presents promising opportunities for stakeholders.
Key Market Drivers
Growing Construction Sector
The
growing construction sector is a significant catalyst for the contact adhesive
market in India, shaping various elements of demand and development. The Indian
government has launched several infrastructure initiatives, including the
development of roads, bridges, airports, and railways, as part of programs like
the National Infrastructure Pipeline. According to CRISIL’s Infrastructure
Yearbook 2023, India is projected to invest approximately USD 1,727.05 billion
in infrastructure over the next seven fiscal years, more than double the USD 912.81
billion spent in the previous seven years. These initiatives necessitate
substantial quantities of materials and adhesives for effective construction
and finishing. Contact adhesives are essential for various applications,
including bonding flooring materials, wall panels, and roofing systems,
ensuring robust and durable connections that can endure environmental
challenges.
The
United Nations estimates that India's population will reach 1.64 billion by
2047, with around 51% expected to live in urban areas. This urban migration drives a
significant increase in housing demand, evidenced by the rapid development of
residential complexes, apartment buildings, and gated communities. In
residential construction, contact adhesives are vital for applications such as
laminate and vinyl flooring, wall coverings, and kitchen cabinetry, providing a
visually appealing and durable finish.
As
businesses expand, there is a growing need for office buildings, retail spaces,
hotels, and other commercial properties, which in turn raises adhesive
consumption. For example, in March 2024, the Minister of Civil Aviation and
Steel announced the launch of 15 airport projects valued at USD12.1 billion,
set to be completed by 2028. Contact adhesives are crucial in these
contexts for flooring installations, ceiling tiles, and signage, where strong
adhesion is essential for safety and durability.
Many
older structures require renovations to modernize facilities, enhance safety,
and improve energy efficiency. This retrofitting often involves significant use
of adhesives across various applications. Homeowners are increasingly focused
on achieving contemporary aesthetics in older properties, driving up demand for
adhesives used in remodeling projects.
The
rise of prefabricated and modular construction methods allows for components to
be manufactured off-site and assembled on-site, leading to reduced labor costs
and shorter construction timelines. Contact adhesives play a critical role in
the assembly of these prefabricated components, ensuring secure joints and
adherence to quality standards.
Government
initiatives like the Smart Cities Mission and the Atal Mission for Rejuvenation
and Urban Transformation (AMRUT) aim to enhance urban infrastructure and
housing, further stimulating construction activities. With increasing disposable incomes,
consumers are more inclined to invest in quality housing and renovations,
resulting in heightened spending on construction materials, including
adhesives.
As
urbanization progresses and infrastructure projects expand, the demand for
effective bonding solutions is expected to rise, encouraging innovation and
growth within the adhesive industry. This dynamic market environment presents
significant opportunities for manufacturers to meet a diverse range of
applications and consumer needs.
Rising Consumer Electronics
Production
The
growing production of consumer electronics in India is significantly boosting
the demand for contact adhesives. The Indian consumer electronics market is
experiencing strong growth, fueled by increasing disposable incomes and higher
consumer spending. India aims for electronics manufacturing worth USD 300
billion and exports of USD 120 billion by FY26. This expansion leads to
higher production volumes, thereby increasing the need for adhesives in
manufacturing.
Contact
adhesives play a crucial role in assembling various electronic devices, such as
smartphones, laptops, televisions, and home appliances. They are essential for
bonding components like casings, screens, and internal parts, ensuring
durability and functionality. As technology advances, electronic products
become more sophisticated, necessitating high-performance adhesives that can
meet specific material and bonding needs. This trend encourages innovation in
adhesive formulations, creating opportunities for manufacturers. For example, in
October 2023, Bostik, a leading global adhesive specialist, introduced its new
Thermal Conductive Adhesives (TCA) range at the India Battery Show 2023.
This range was developed in collaboration with Polytec PT to tackle thermal
management challenges in the latest Cell-to-Pack (CTP) battery designs for
e-mobility solutions.
There
is also a growing trend towards lighter and more compact electronic devices.
Contact adhesives enable manufacturers to reduce weight without sacrificing
strength, making them essential for modern electronics production.
Additionally, consumer preferences are shifting towards sleek and visually
appealing designs, and high-quality contact adhesives facilitate clean finishes
and seamless appearances in electronic products, enhancing their market appeal.
As
environmental awareness rises, manufacturers are increasingly seeking
eco-friendly adhesive solutions, leading to higher demand for water-based and
low-VOC contact adhesives and driving innovation in sustainable products. The
expansion of e-commerce and retail channels in India further increases the
demand for consumer electronics. As more products are produced to meet consumer
needs, the requirement for effective bonding solutions in manufacturing grows.
Government
initiatives like Make in India support local manufacturing in the electronics
sector, promoting investment and production. This governmental backing
contributes to the overall growth of the industry and, consequently, the
adhesive market. As this sector continues to develop, the demand for
high-quality adhesives is expected to rise, presenting substantial
opportunities for manufacturers.
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Key Market Challenges
Regulatory Compliance
Regulatory
compliance poses significant challenges for the contact adhesive market in
India, affecting manufacturers' operations and strategic decisions. The
adhesive industry must navigate a complex array of regulations from various
governmental agencies, including environmental, health, and safety standards.
Understanding and adhering to these diverse requirements can be both
complicated and time-consuming. Additionally, regulatory frameworks are subject
to frequent changes, requiring manufacturers to stay informed and adapt their
practices accordingly. This dynamic landscape can create uncertainty,
necessitating ongoing training and investment.
Meeting
stringent regulations often demands substantial investment in research and
development to create formulations that comply with safety and environmental
standards, which can strain resources, especially for small and medium-sized
enterprises (SMEs). Compliance challenges can also lead to production delays if
manufacturers need to reformulate products or implement new processes,
potentially disrupting supply chains and impacting market responsiveness.
Manufacturers
face increased scrutiny from regulatory bodies, which may conduct regular
audits and inspections. Non-compliance can result in penalties, fines, or even
business shutdowns, posing significant risks. Regulations often require
manufacturers to adopt sustainable practices, which can entail substantial
changes to production methods and materials, making it challenging to balance
compliance with profitability.
Additionally,
ensuring compliance typically requires a skilled workforce that understands
regulatory requirements and can implement necessary changes. Finding and
retaining such talent can be both difficult and costly. As a result,
manufacturers must invest in compliance measures while navigating the
complexities of evolving regulations to maintain competitiveness and achieve
long-term success in the market.
Price Volatility in Raw
Materials
Price
volatility in raw materials presents a significant challenge for the contact
adhesive market in India, influencing production costs and overall market
stability. The prices of key raw materials, such as polymers, solvents, and
additives, can fluctuate due to various factors, including geopolitical
tensions, natural disasters, and supply chain disruptions. This
unpredictability can result in inconsistent production costs. Additionally,
shifts in demand across different industries can affect raw material prices.
For instance, heightened demand in the automotive or construction sectors can
create supply pressures, increasing costs for adhesive manufacturers. Many
companies operate with fixed budgets for raw material procurement, and sudden
price spikes may compel them to make difficult choices, such as compromising on
quality or reducing production output.
The
volatility in prices complicates financial planning and forecasting, making it
difficult for manufacturers to implement stable pricing strategies. This can
lead to potential losses if costs fluctuate unexpectedly. Furthermore, as many
raw materials are imported, manufacturers face additional challenges from
exchange rate fluctuations and international market dynamics, complicating cost
management even further.
Volatile
raw material prices can also hinder compliance with environmental and safety
regulations, as manufacturers may find it difficult to secure the high-quality
materials needed to meet these standards. To navigate these challenges,
manufacturers should develop effective strategies to mitigate the impact of
price fluctuations, such as diversifying their supplier base, investing in
forecasting tools, and exploring alternative materials.
Key Market Trends
Focus on Performance and
Reliability
The
focus on performance and reliability is a key trend in the India contact
adhesive market, driven by the requirements of various industries and changing
consumer expectations. Sectors like construction, automotive, and electronics
demand adhesives capable of withstanding challenging conditions such as
temperature variations, moisture, and chemical exposure. As a result,
manufacturers are prioritizing the development of high-performance adhesive
formulations.
Investments
in research and development are aimed at creating adhesives with superior
bonding strength, quicker curing times, and enhanced durability. There is an
increasing demand for specialty adhesives tailored for specific applications,
including thermal conductive adhesives for electronics and weather-resistant
options for outdoor construction. For example, in June 2024, Pidilite
Industries Ltd announced that its joint venture, ICA Pidilite Private Ltd,
signed a licensing agreement with Industria Chimica Adriatica SPA (ICA) for
specific UV technology. Pidilite markets its products under several brands,
including Fevicryl, Dr. Fixit, Fevicol, Fevikwik, and M-seal, serving sectors
like leather, footwear, textiles, and paper chemicals.
To
ensure reliability, manufacturers are implementing rigorous testing protocols
to evaluate adhesive performance under various conditions. This commitment to
quality assurance builds trust with consumers and businesses alike. As
sustainability gains importance, there is a concurrent effort to develop
high-performance, environmentally friendly adhesives, enabling compliance with
regulatory standards while ensuring reliable performance.
Additionally,
researchers at the Indian Institute of Science Education and Research Bhopal
(IISER Bhopal) in October 2023, have developed a biodegradable and
biocompatible synthetic biomedical adhesive that effectively seals and repairs
injured tissues. This adhesive can bond diverse surfaces including tissues,
bones, eggshells, and wood both in air and underwater, without the need for
crosslinking agents or metal ions.
Consumer
and business expectations for consistent adhesive performance over time are
prompting manufacturers to uphold high-quality standards throughout their
production processes. The rise of modular and prefabricated construction
techniques further amplifies the need for strong, reliable adhesives to ensure
the structural integrity of assembled components. Overall, this trend not only
enhances manufacturer capabilities but also leads to improved outcomes across
various applications and sectors.
Segmental Insights
Type Insights
Based
on Type, the Neoprene emerged as the dominating segment
in the Indian market for Contact Adhesive during the forecast period. Neoprene adhesives are capable of
bonding a wide range of materials, including wood, metal, plastic, rubber, and
leather. This versatility makes them ideal for various applications across the
construction, automotive, and consumer goods sectors. They perform effectively
in both indoor and outdoor environments, allowing manufacturers to utilize them
in diverse settings. Known for their exceptional resistance to environmental
factors such as heat, moisture, and chemicals, neoprene adhesives provide the
durability necessary for long-lasting bonds. They also retain flexibility after
curing, which is critical for applications subjected to movement or stress,
such as flooring and automotive components.
The
rapid expansion of the construction industry in India, fueled by urbanization
and infrastructure projects, has increased the demand for reliable bonding
solutions. Neoprene adhesives are particularly favored for applications in
flooring, roofing, and wall panels. In the automotive industry, they are
commonly used for assembling various components, further enhancing their
popularity in this growing market. Additionally, neoprene adhesives are readily
available through a wide network of distributors and suppliers, ensuring
accessibility for manufacturers and consumers alike. Many companies have
established brands in the market, fostering familiarity and consumer loyalty.
These factors collectively reinforce neoprene's dominance in the India contact
adhesive market.
End User Insights
Based
on End User, Automotive emerged as the fastest growing segment in the Indian
market for Contact Adhesive in 2024. The expanding middle class and rising
disposable incomes in India are fueling the demand for automobiles, resulting
in increased production rates. Government initiatives such as Make in India are
promoting local manufacturing, further enhancing the automotive sector's
growth. The industry is increasingly utilizing advanced materials that require
high-performance adhesives for assembly, leading to a stronger reliance on
contact adhesives.
As
manufacturers focus on producing lighter vehicles for improved fuel efficiency,
the demand for effective bonding solutions that ensure structural integrity is
growing. Contact adhesives play a crucial role in bonding various vehicle
components, including interior trims, dashboards, panels, and underbody parts,
thus offering diverse applications within the automotive sector.
The
automotive industry is actively pursuing environmentally friendly adhesives as
part of its sustainability efforts, driving innovation and growth in the
adhesive market. The expanding automotive aftermarket, which includes repairs
and modifications, is also boosting the need for adhesives in applications like
upholstery and aftermarket accessories. This trend is expected to persist as
the automotive sector adapts to evolving consumer preferences and regulatory
requirements, presenting significant opportunities for adhesive manufacturers.
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Regional Insights
Based
on Region, South India emerged as the dominant region in the Indian market for Contact
Adhesive in 2024. The southern states of India, especially Tamil Nadu,
Karnataka, and Andhra Pradesh, are home to a diverse range of industries,
including automotive, textiles, electronics, and construction. Each of these
sectors demands high-quality adhesives for various applications, significantly
driving up demand. The region boasts a high concentration of manufacturing
facilities that produce both finished products and the components that require
adhesive bonding, resulting in increased adhesive consumption across industries.
For example, in August 2024, Roff, a tile adhesive brand under Pidilite
Industries, launched a manufacturing facility in Jadcherla, near Hyderabad, to
address the rising demand for quality tile adhesive products in the markets of
Andhra Pradesh, Telangana, and northeastern Karnataka.
Many
adhesive manufacturers have established operations in the south, enabling
faster response times and reduced logistics costs. This local production
strengthens the supply chain and ensures adhesives are more readily available.
Rapid urbanization in cities like Bengaluru, Chennai, and Hyderabad is
contributing to a growing demand for both residential and commercial buildings,
leading to heightened construction activity.
Additionally,
the southern region has a vibrant consumer goods market, including furniture
and home decor, which utilizes adhesives for applications such as woodworking,
upholstery, and packaging, further increasing overall adhesive consumption. The
textile and footwear industries, particularly prevalent in Tamil Nadu, also
depend heavily on adhesives in their production processes, contributing to
market growth. As
the demand for adhesives continues to rise across various sectors, the southern
region is strategically positioned to lead the market, creating significant
opportunities for manufacturers and suppliers.
Recent Development
- In
September 2024, Pidilite Industries Ltd signed a distribution agreement with
CollTech Group. As part of this partnership, Pidilite will act as the exclusive
distributor for CollTech’s wide range of products in India. The collaboration
aims to strengthen CollTech's market presence in the region.
- In
July 2024, Henkel Adhesives Technologies India Private Limited (Henkel India)
announced the completion of Phase III of its manufacturing facility in
Kurkumbh, near Pune, Maharashtra. Launched in 2020, this site addresses the
rising demand for high-performance adhesives, sealants, and surface treatment
products in Indian industries. The new Loctite plant, named after Henkel's
well-known brand, was inaugurated by Mark Dorn, Executive Vice President of
Henkel Adhesive Technologies. This facility aims to close the supply-demand gap
for high-performance adhesive solutions in the manufacturing, maintenance, repair,
and overhaul (MRO), and automotive sectors. The facility complies with the
highest sustainability standards and has achieved LEED Gold certification.
- In
June 2024, SIAM Cement BigBloc Construction Technologies Pvt Ltd, a joint
venture between Gujarat-based BigBloc Construction Ltd and Thailand's SCG
International Corporation Co., Ltd., commenced operations in India with the
commercial production of its inaugural plant in Kheda, Gujarat. The joint
venture has invested approximately USD 7.74 Million to establish a project with
a capacity of 250,000 cubic meters per year, which includes India’s first AAC
Wall Plant in the Kheda district near Ahmedabad. The AAC Wall products will be
marketed under the brand name 'ZMARTBUILD WALL by NXTBLOC.' The joint venture
will also produce AAC Blocks.
- In
April 2024, Toyo Ink India announced plans to enhance production
capacity for solvent-based adhesives at its Gujarat manufacturing facility. The
expansion includes the construction of a new production facility on-site to
address increasing local demand. This new plant is expected to commence
operations in April 2026, significantly increasing the adhesive capacity of the
Gujarat site by 3.5 times its current output.
Key Market Players
- Pidilite Industries Limited
- Parson Adhesives India Private Limited
- H.B. Fuller India Adhesives Pvt. Ltd.
- Sika India Pvt Ltd.
- Henkel Adhesives Technologies India Pvt.
Ltd.
- Sonal Adhesives Limited
- Benson Polymers Limited
- Astral Limited
- Ester Chemical Industries Pvt. Ltd.
- Metlok Private Limited
|
By
Type
|
By
Technology
|
By
End User
|
By Region
|
- Neoprene
- Polyurethane
- Acrylic
- Styrene Butadiene
Copolymer
- Others
|
|
- Woodworking
- Automotive
- Leather and Footwear
- Construction
- Others
|
- West India
- North India
- South India
- East India
|
Report Scope:
In this report, the India Contact Adhesive Market
has been segmented into the following categories, in addition to the industry
trends which have also been detailed below:
- India Contact Adhesive Market, By Type:
o Neoprene
o Polyurethane
o Acrylic
o Styrene Butadiene Copolymer
o Others
- India Contact Adhesive Market, By Technology:
o Solvent Based
o Water Based
·
India Contact
Adhesive Market, By
End User:
o Woodworking
o Automotive
o Leather and Footwear
o Construction
o Others
- India Contact Adhesive Market, By Region:
o West India
o North India
o South India
o East India
Competitive Landscape
Company Profiles: Detailed analysis of the major companies presents in the India Contact
Adhesive Market.
Available Customizations:
India Contact Adhesive 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 Contact Adhesive 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]