Markets and Markets (M&M) anticipates that the global structural adhesives market size was USD 13.5 billion in 2024 and is projected to reach USD 17.7 billion by 2029, at a CAGR of 5.5% between 2024 and 2029. The growing emphasis on sustainable and green manufacturing processes further drives the adoption of water-based structural adhesives across various industries.
 

Drivers: Growing Trend for Lightweight Vehicles

The automotive industry is a significant end-user of structural adhesives, which are crucial for improving both the aesthetics and performance of vehicles. Reducing vehicle weight is essential for enhancing fuel efficiency and reducing pollutant emissions.

Traditionally, adhesives were used for laminating, bonding, and assembling interior automotive components. Today, modern adhesives are pivotal in helping original equipment manufacturers (OEMs) achieve weight reduction and meet strict environmental regulations by minimizing carbon emissions. This shift has created new growth opportunities for adhesive manufacturers.
 

Restraints: Stringent Environmental Regulations in European Countries

Environmental laws strictly regulate the production of chemical and petro-based products in Europe and North America. Production of chemical and petro-based products in Europe and North America is strictly regulated by agencies like the Epoxy Resin Committee (ERC) and the European Commission (EC).

These regulations impact the production capacities of manufacturers in these regions. As a result, stringent environmental rules are driving manufacturers to shift towards producing eco-friendly structural adhesives.
 

Opportunities: Demand for Non-hazardous Structural Adhesives

The demand for green adhesives, particularly those with low VOC levels, is rising as eco-friendly products gain popularity in various applications. Stringent regulations by the USEPA, Europe's REACH, LEED, and other regional authorities have compelled manufacturers to produce low-VOC, eco-friendly adhesives.

These regulatory policies have spurred a growing trend in the global structural adhesives market towards green buildings, creating opportunities for the development of sustainable adhesive solutions. These solutions are made from renewable, recycled, remanufactured, or biodegradable materials that are safe for health and the environment.
 

Challenges: Regulatory Compliance

The structural adhesives market undergoes frequent changes in standards and rules implemented by various regulatory authorities. The Construction Products Regulation (CPR) implemented new regulations such as regulation (EU) No 305/2011 for marketing construction products in the EU. With the new rules, manufacturers must bear additional burdens regarding labeling paperwork and external test costs to demonstrate compliance.

Additional substance alerts focusing on biocides and waste packaging occur regularly, leading to changes in regulatory standards. Structural adhesive manufacturers must abide by the rules and changing standards to commercialize their products. This poses a challenge for the manufacturers.
 

Water-based Accounted for the Largest Technology Segment

Water-based technology dominates the technology segment of the structural adhesives market, primarily because of its eco-friendly characteristics and adherence to strict regulatory guidelines aimed at decreasing volatile organic compounds (VOCs). These adhesives offer notable safety advantages, including minimal odor and lower toxicity levels, making them the preferred choice for indoor and consumer applications.

Moreover, continuous advancements in water-based formulations have substantially enhanced their performance, approaching the strength and durability levels of solvent-based alternatives. The increasing focus on sustainable and environmentally friendly manufacturing processes further accelerates the adoption of water-based structural adhesives across diverse industries.
 

Highest Growth in Asia Pacific

Leading global companies are shifting their production bases, establishing sales offices, and enhancing distribution channels to regions such as Asia Pacific, offering sustained demand. The gradual shift of manufacturing facilities to countries with high demand and lower production costs positively influences market growth. The key producers control a significant share of the global market.

As a result, there is strong competitive pressure on structural adhesives producers to reduce the prices to gain market share at the expense of competitors.