Europe Hot-Melt Adhesives Market - Segmented by Resin Type, End-user Industry, and Geography - Growth, Trends and Forecast (2018 - 2023)
The Europe hot-melt adhesives market is expected to register a moderate CAGR during the forecast period of 2018–2023. Germany is estimated to lead the market owing to its rapid increase of production in automotive and packaging applications. Thermoplastic polyurethane segment is expected to be the fastest growing by resin type.
Growth in Automotive Production
The automotive industry employs hot-melts for a host of applications including bonding, insulating and cushioning materials, bonding headlight, fixing cables in the roof liner, to bond door sill protectors and other plastic parts, and for wheel covers. They can also be used to bond emblems as well as anchor plates onto gear knobs. The application of adhesive bonding enables a significant weight reduction of the vehicle, an increase of the body stiffness, improved crash performance/safety and enhanced NVH characteristics, as compared to conventional joining technologies. With increased emphasis on fuel efficiency and vehicular emission control, the reduction of vehicle body weight is gaining widespread importance throughout Europe. The automobiles industry in Europe, forming 6.5% of its GDP, is going through a period of strong profits and growth. Vehicle manufacturing is a strategic industry in the European Union, where over 22 million cars, vans, trucks, and buses were manufactured in its 296 vehicle assembly and production plants, in 2017. This trend is expected to continue through the forecast period as automobiles become necessary for transportation rather than a luxury. The total automotive production in Europe registered a growth of 3.1% in 2017 reaching a total of 22,161,107 units.
Thermoplastic Polyurethane - The Fastest Growing Resin Type
Thermoplastic polyurethane hot-melts are the new entrants into the market. They are characterized by superior flexibility, high strength, and the ability to withstand temperature and moisture. These properties make them an excellent choice for application in extreme weather conditions and on several difficult-to-bond substrates. Thermoplastic polyurethane hot-melt adhesives form a strong bond, as the chemicals in the glue absorb moisture, and typically need an entire day to cure. These hot-melts solidify through moisture in the air to form a super strong bond that does not remelt. Growth in the market over the next few years is expected to be driven by the growing product penetration in new application markets, product differentiation, and innovations. Furthermore, the shifting focus toward thermoplastic polyurethane hot-melt adhesives, which are bio-based will offer numerous opportunities for the growth of the market. The growing automotive industry is a major consumer of thermoplastic polyurethane hot-melt adhesives. Along with the automotive and electronics industries, the footwear industry is also witnessing high demand for thermoplastic polyurethane hot-melt adhesives. Developments in different types of footwear, materials, processes, and variations according to seasonal changes, drive the demand for thermoplastic polyurethane hot-melt adhesives with superior qualities.
Germany to Lead the Market
The automotive industry is the largest sector in Germany, which accounts for 20% of the total German industry revenues. 21 of the world’s top 100 automotive suppliers are German. The public consumption of hot-melt adhesives has increased by over 5%, supported by the growth of automotive, electronics, energy & power, pharmaceutical, and chemical industries. The German economy has, in recent years, recovered from crises that plagued its industrial sectors. The market is expected to witness significant growth during the forecast period, owing to an increase in the use of hot-melt adhesives, with demand coming from both domestic and international clients. According to industry experts, the demand for new houses is estimated to be around 350,000 per year until 2020, which is expected to boost the construction industry. Germany witnessed a 25% increase in new residential building permits in 2017 alone. The healthcare industry in Germany, where hot-melt adhesives are used in devices, like pressure sensors, is growing at a significant rate, owing to the growing aging population in the country. With the demographic change and digitalization, the country has been investing in mobile healthcare facilities and is expected to grow to over EUR 3 billion in 2018, thus, providing a platform to expand the German healthcare sector further.
Notable Developments in the Market
October 2017: H.B. Fuller’s finalized its acquisition of Royal Adhesives & Sealants for USD 1.575 billion. This acquisition is likely to deepen H.B. Fuller’s expertise in a range of sectors, such as medical, electronics, hygiene, transportation, construction, clean energy, and others.
January 2017: H.B. Fuller Company acquired the industrial adhesives business of Wisdom Worldwide Adhesives.
Major players are Henkel AG, HB Fuller, Arkema, Sika AG, and 3M, amongst others.
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