Market Trends of Composite Adhesives Industry
The Demand for Epoxy Resin is Increasing
- Epoxy resin-based composite adhesives are primarily used in load-bearing scenarios, leveraging their high specific strength and robust mechanical properties.
- Given these attributes, epoxy composite adhesives are extensively used in industrial, commercial, and residential settings, from shopping malls and hospitals to institutions and industrial structures.
- They excel in bonding concrete to various materials, from wood and metal to rubber, and are a staple in public infrastructure projects. Moreover, they are crucial in bonding steel reinforcement and carbon laminates, particularly for columns and slabs.
- The epoxy bonding landscape is divided into two main categories: single-part and two-part epoxies. Single-part epoxies come pre-mixed and necessitate high-temperature curing, while their two-part counterparts involve a resin-hardener mix and can cure at ambient temperatures.
- Recent developments in epoxy resin are expected to boost market demand further. For instance, in May 2023, Mitsui Chemicals Inc. secured certification for its epoxy resins, a crucial segment of the biomass phenol chain. This certification comes from the esteemed International Sustainability and Carbon Certification (ISCC) PLUS system, renowned for validating sustainable products.
- In March 2024, Grasim Industries Limited, the flagship company of the Aditya Birla Group, recently unveiled a significant expansion in its Chemical business. The project, located in Vilayat, Gujarat, has added 123,000 tonnes to its Epoxy resins and formulation capacity. This move effectively doubles the company's Advanced Materials capacity to 246,000 tonnes annually.
- Hence, owing to its significant use in the construction industry, the demand for composite adhesives is expected to increase during the forecast period.
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Asia-Pacific is Expected to Dominate the Market
- Asia-Pacific emerges as the frontrunner in this market, propelled by escalating demands in its electronics, construction, and automotive industries, particularly in nations like China, India, and Japan. This surge in demand is notably boosting the consumption of composite adhesives in the region.
- The Asia-Oceania region emerged as the frontrunner in vehicle production, churning out 55.11 million units in 2023, a 10.18% increase from the 50.02 million units in 2022. Automotive powerhouses like China, Japan, South Korea, and India primarily spearhead this region's production.
- According to the latest data released by the China Association of Automobile Manufacturers (CAAM), car production in the country exceeded 30.16 million units in 2023, an 11.6% increase compared to the previous year. A total of 30.09 million passenger cars were sold in the country in 2023, a 12% increase compared to the previous year.
- India is recorded as the world's third-largest construction market. Driven by initiatives like the Smart Cities project and Housing for All, the Indian government is propelling the construction industry forward. To provide housing for its population of 1.3 billion, the government has been actively boosting housing construction.
- In the FY 2024 budget, the finance minister announced a commitment to support the construction of more than 20 million houses over the next five years under the Pradhan Mantri Awas Yojana (PMAY).
- As of January 2024, the Australian government crafted a 10-year National Housing and Homelessness Plan to enhance housing accessibility for Australians. Under this plan, the Housing Australia Future Fund (HAFF) plans to construct 30,000 new social and affordable housing units in its initial five years, funded by returns on investments.
- In March 2024, the Authority for the Nusantara Capital City (OIKN) announced plans to begin constructing 70 residential towers in Indonesia's upcoming capital. The completion target is set for 2025 or 2026.
- Consequently, as demand surges across these industries, the Asia-Pacific region is poised for substantial growth in the coming years.
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