Our in-depth analysis segmented the global plastic adhesives market in the following segments:
Global plastic adhesives market is further classified on the basis of region as follows:
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The global plastic adhesives market is anticipated to expand at a CAGR around 6.5% during 2018-2027. It is anticipated to attain significant market size by end of 2027. The growth can be attributed to rapid industrialization coupled with growing end-user industries such as automotive, packaging and footwear.
The global plastic adhesives market can be segmented on the basis of type, application and technology. On the basis of type it is sub-segmented into epoxy, polyurethane, ethylene vinyl acetate, acrylic, polyisobuylene, styrenic block and silicone. Epoxy sub-segment is anticipated to be the fastest growing sub-segment on the account of its high impact resistance. On the basis of application, it is sub-segmented into automotive, building & construction, electrical, footwear and packaging. Automotive industry is the largest sub-segment of plastic adhesives market on the account of wide application of plastic in vehicles. Plastic adhesives are used to provide strong adhesion to materials which are bonding with the other materials or the plastic. Additionally, increasing demand for the plastic adhesives from the automation industry is anticipated to drive the market growth of plastic adhesives market.
By region, global plastic adhesives market is segmented into North America, Asia-Pacific, Latin America, Europe, Middle East and Africa. Asia-Pacific is anticipated to observe healthy growth during the predicted period. The rising commercial and infrastructural activities by the developing countries such as China, India, Thailand, Bangladesh and Vietnam are the primary reason for the region to lead the market during the forecast period. Additionally, the growth in the automotive industry especially increasing number of vehicles is anticipated to boost the market growth in Asia-Pacific region.
The rising construction activity coupled with expansion in automotive industry is the main driver for the global plastic adhesives market. The increasing implementation of adhesives bonding technologies is anticipated to further fuel the market growth of plastic adhesives. Increasing disposable income of the population coupled with rising urbanization is the major growth driver for the global plastic adhesives market. Rising distribution of plastic adhesives through various distribution channels such as supermarkets, online and retail markets.
However, stringent regulation is a major factor expected to hamper the market growth during the forecast period. High research and development cost is also a major restraining factor for the market growth of the plastic adhesives.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.