High Temperature Adhesives Market Trends

Growth Drivers

• Increasing Green Building Construction Projects - It was estimated that over 60% of the projects undertaken by 46% of firms in 2021 were green building projects. In addition, 35% of companies intend to build green in existing buildings and renovations. Green building construction helps to reduce energy consumption, increase energy efficiency, and reduce the environmental impact of building construction. High temperature adhesives are often used in green building construction as they help to reduce the amount of energy needed to bind materials together and can help to reduce the environmental impact of the building.
• Growing Acceptance of Electric Vehicles Worldwide- In the period 2012-2021, approximately 17 million electric vehicles were sold worldwide. In 2021, the number of electric vehicles (EVs) sold doubled from previous years to reach 6.6 million. As of 2021, nearly ten percent of global car sales were electric. The total number of electric vehicles sold across India in February 2023 was 5%, up from 3% in February 2022. High temperature adhesives provide superior resistance to high temperatures and aggressive fuels that are typically found in electric vehicles. They also provide superior bonding strength and vibration resistance, making them ideal for use in electric vehicles.
• Rising Demand for Electronics Such as Laptops, Smartphones - There were 220 million laptops shipped worldwide in 2020. 60% of laptops worldwide are shipped by Lenovo, Dell, and HP combined. As of 2019, there are 6 billion unique mobile users in the world, of whom 2.60 billion use smartphones. Electronic components such as CPUs, GPUs, and memory chips require high temperature adhesives to bond them to the motherboard and other components. As the demand for electronics increases, so too does the demand for high temperature adhesives.
• Rapidly Expanding Aerospace and Defense Industry - It was observed that exports from the aerospace and defense industry increased by 11% in 2021 to total USD 100 billion. Compared to 2020, the aerospace and defense industry generated USD 700 billion in revenue in 2021. High temperature adhesives are essential for aerospace and defense applications, such as jet engines, which require superior adhesion and strength in order to withstand the extreme temperatures and pressure.
• Increasing Use of Advanced Medical Devices - According to WHO estimates, there are more than 7000 generic device groups on the world high temperature adhesives market, containing more than 2 million types of medical devices. As medical device manufacturers continue to strive for smaller and more efficient products, they are increasingly turning to high temperature adhesives. These adhesives are highly durable, temperature resistant and have excellent bonding properties, making them ideal for use in medical devices.

Challenges

• Stringent environmental regulations - Environmental regulations limit the amount of hazardous substances that can be used in the production of high-temperature adhesives. This reduces the number of potential products that can be produced and limits the growth of the high temperature adhesives market.
• Rising raw material costs
• Lack of awareness of the product