Anaerobic Adhesives market Size in Automotive and Electrical Industry Worth USD 516.06 Mn in 2022

Anaerobic Adhesives Market was valued at USD 516.06 Million in 2022, and it is expected to reach USD 801.96 Million by 2029, exhibiting a CAGR of 6.5 % during the forecast period (2023-2029)

Anaerobic adhesives are metal and, on occasion, plastic and wood adhesives that cure fast at room temperature. These adhesives can only cure in the absence of air/oxygen. They are less hazardous than other acrylics and have a moderate, unobtrusive odour. Anaerobic adhesives' ideal uses are very limited, however, if there is a necessity for metal bonding, it is regarded as one of the main adhesives. The global anaerobic adhesives market is semi-consolidated, with several global and domestic manufacturers present in various regions.

However, the top five market companies control the majority of the global market. However, the industry has seen increased interest from new entrants in recent years. Henkel AG & Co. KGaA emerged as the industry leader in anaerobic adhesives, with a large range and a global presence in important countries. Henkel has nearly maintained a monopolistic position in a few countries. Overall, the firm continues to have a sizable market position in the global anaerobic adhesives industry.3M and H. B. Fuller emerged as the market's second and third-largest companies, respectively. Under the Scotch-Weld and Ultrapro trademarks, 3M offers a diverse spectrum of anaerobic adhesives such as gasket makers, pipe sealants, retention compounds, and thread-locking adhesives.

The product requires high technical performance and exhibits an extremely complex production process, which requires a highly skilled labor force, which may discourage the entry of new players. The market is capital intensive, with the requirement of significant initial investment for plant setup, thereby reducing the threat of new market entrants. In addition, high R&D investment and the development of a distribution network with existing players controlling a well-connected distribution can pose a challenge to the new entrants.To know about the Research Methodology:-Request Free Sample Report
Anaerobic Adhesives Market Dynamics
Increasing Relevance of Anaerobic Adhesives to Automotive Industry to drive the Growth of the Anaerobic Adhesives Industry

Globally, rising demand for automobiles and their components has fuelled the anaerobic adhesives market's growth. Because of their high-stress tolerance, they are also commonly utilized in vehicle engine assembly. The increasing demand for more powerful and fast cars is expected to drive the demand for anaerobic adhesives. Superior anaerobic adhesive qualities, such as stress equalization, gap filling, high strength, and temperature resistance, will boost market growth during the forecast period. The numerous advantages given by these adhesives over mechanical anchoring or bandaging, such as high production tolerance, better corrosion and vibration protection, and decreased space requirements, will boost the anaerobic adhesives market even further.

According to the New Policies Scenario, global electric vehicle sales would exceed 125 million by 2030 (excluding two/three-wheelers). The rising popularity of electric vehicles (EVs) is expected to fuel demand for anaerobic adhesives. These adhesives eliminate the need for pre-cut gaskets in EVs, decreasing vehicle weight and the need to stock vast stocks. According to the EV30@30 Scenario, over 70% of vehicle sales in China in 2030 are predicted to be EVs. Furthermore, EV sales in Europe are estimated to be 50%, 37% in Japan, 30% in Canada and the United States, and 29% in India. The industry's positive outlook for electric cars is expected to result in more demand for anaerobic adhesives.

Increasing Demand from the Electrical and Electronics Industries to drive the Anaerobic Adhesives Industry Growth

The global consumer electronics market has grown significantly in recent years as new technology gadgets have gained appeal. Home automation and the integration of technologies with human help have contributed significantly to market growth. Electrical and electronics sector innovations are developing swiftly, and they increasingly influence all aspects of life. The development of portable electrical and electronic gadgets has recently prompted a research boom for the creation of improved adhesives to improve bonding durability and strength. During the forecast period, this is expected to increase demand for anaerobic adhesives. These adhesives are useful when there isn't much room for other components like gaskets. As a result of the growing need for portable electronic devices such as cell phones, laptops, and other handheld gadgets, anaerobic adhesives are in high demand.

Increasing power consumption from residential, commercial, and industrial segments is expected to drive the electrical equipment market over the forecast period, driving the anaerobic adhesives market growth. Revenue from the production of electrical equipment in China reached USD 1.26 trillion in 2021, up from USD 1.00 trillion in 2020, representing a 6% annual growth rate. In India, the domestic electrical equipment market value will reach USD 25 billion in 2021, with generating equipment such as boilers, turbines, and generators (BTG) accounting for around one-fourth of the total value and transmission and distribution (T&D) accounting for three-fourths. As a result, the growing electrical sector in various countries is expected to drive up demand for anaerobic adhesives.

High Cost of Anaerobic Adhesives to Limit the Anaerobic Adhesives Industry Growth

The rising cost of raw materials required in the production of anaerobic adhesives, such as monomers and additives, has led to an increase in the price of these adhesives. Due to an exceptional jump in the demand-supply gap, the price of monomers has climbed from 300% to 350% in recent years, while that of additives has increased from 70% to 100%, increasing the final product cost. Recent global circumstances, such as rising crude oil prices, high energy costs in Europe, Chinese production cutbacks, and high freight prices, have resulted in high monomer manufacturing costs. Furthermore, the Russia-Ukraine war has exacerbated inflation in several locations, raising the prices of monomers and additives even higher.

Apart from the benefits of curing at room temperature, high strength, durability, and so on, anaerobic adhesives have several drawbacks that may hinder market growth over the forecast period. The operational temperature range of anaerobic adhesives is limited to -40°C to 150°C (up to 200°C for the heat-resistant kind). Because these items readily gel, more caution is required while keeping them in containers. Other adhesives can perform at temperatures above 250°C. Furthermore, anaerobic adhesives are unsuited for porous surfaces, plastics, and wood, and function poorly with a limited number of thermoplastics.
Anaerobic Adhesives Market Segment Analysis
Based on Product Type, the threadlockers segment accounts for the largest product type in the global anaerobic adhesives market with a market share of 48.29% thanks to its enhanced applications in industrial and automotive, and transportation sectors. A threadlocker is an adhesive used to secure nuts, bolts, and screws in place to prevent loosening caused by stress or vibration. They can be used instead of standard mechanical washers and fasteners. Threadlocker are anaerobically curing chemicals that build a strong coating between the threads of the connection, securing it in place. They are employed in a variety of household and industrial settings. Among the largest threadlocker producers are Henkel AG & Co. KGaA, 3M, Anabond Limited, H.B.Fuller Company, Hi-Bond Chemicals, and Novachem Corporation Ltd.

Based on End-Use Industry, automotive and transportation account for the largest share in the end-user industries segment with a market share of 35.58% thanks to the huge demand for these adhesives in various applications such as automotive locking applications, engines, firewall sealing, etc. The current move from internal combustion engines to electric automobiles is pushing automation technology innovation.

Anaerobic adhesives are replacing mechanical fasteners because they can accommodate thermal expansion movements and are corrosion-resistant. Adhesives are also chosen over traditional joining methods because they can avoid contact corrosion and offer impact resistance, which is required for electric motors to endure high dynamic forces. The world's top automakers have declared intentions to speed the development of electric vehicles by establishing new product lines and converting current manufacturing sites. Such developments are expected to increase the growth for anaerobic adhesives market.

The Asia Pacific region increased by 6% in 2021 compared to 2020 to 46.73 million units, while Africa increased by 16% in 2021 compared to 2020 to 0.93 million units. Volkswagen revealed plans for a new electric car facility in Germany in 2022. The facility is scheduled to begin building in early 2023. The firm is investing EUR 35 billion to achieve its goal of being the world leader in electric car manufacture by 2025. Furthermore, factors such as improving internal efficiency, increased investments in maintenance operations, and increased digitalization are driving the MRO industry. The development of smart factories is likely to bring advancements to the MRO sector, and the rise of predictive maintenance technologies such as sensors and IoT that allow manufacturing components to be replaced even before defects are visible to the naked eye is expected to transform the MRO industry.
Anaerobic Adhesives Market Regional Insights
Asia Pacific region dominated the global anaerobic adhesives industry with a market share of 39.99%. Asia Pacific region is estimated to dominate the anaerobic adhesives market during the forecast period. The market has been supported by high demand from the region's automotive and transportation industries, as well as growing demand from the electrical and electronics sectors. China is the world's largest vehicle manufacturer. In 2021, the country's automobile output reached 26.08 million, a 3% increase over the 25.23 million vehicles produced in 2020.The country's car sector is seeing shifting patterns as the public preference for battery-powered automobiles grows.

Furthermore, the Chinese government expects a 20% penetration rate of electric car production by 2025. Electric vehicle demand in the country is expected to be influenced by factors such as big market size, increased government backing, and the ability to book electric vehicles online. As a result, the growing electric car sector is expected to increase demand for anaerobic adhesives.The automobile industry in the United States makes important contributions to regional and global vehicle markets. The country is home to major automakers that manufacture and export automobiles to other economies in the Americas, Europe, and Asia-Pacific. In 2021, the entire value of the US automotive and automobile manufacturing market was USD 82.6 billion.

Furthermore, new light-vehicle sales in the United States will rise by 3.4% to 15.4 million units in 2022. The United States has the largest aviation market in North America as well as one of the largest fleet sizes in the world. Strong aerospace component exports to countries such as France, China, and Germany, as well as healthy consumer spending in the United States, have been pushing manufacturing operations in the aerospace sector, which might create a favorable momentum for the country's anaerobic adhesives market. All of these variables will have an impact on anaerobic adhesive demand in the United States over the forecast period.

Germany has Europe's largest automobile industry. Germany leads the European automotive market, accounting for one-third of total European vehicle manufacturing with 41 assembly and engine production factories. According to EV Volumes, Germany registered 81,420 units of BEV & PHEV, including light commercial vehicles (LCVs), in December 2021, which is more than EV sales in the US. In the full-year 2021, the country registered 689,500 BEVs and PHEVs, a 72% increase over 2020 BEV and PHEV registration. With increased interest in urban air mobility, Airbus teamed with many German corporations, research institutes, universities, and municipalities in May 2022 to replicate the air mobility project in Germany for the rest of the globe. In the next years, the project is expected to enhance demand for anaerobic adhesives for equipment and design applications in the aerospace sector.
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Anaerobic Adhesives Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2018 to 2022
Market Size in 2022:
US $ 516.06 Mn.


Forecast Period 2023 to 2029 CAGR:
6.5%
Market Size in 2029:
US $ 801.96 Mn.


 Segments Covered:
by Product Type
1. Threadlockers
2. Thread Sealants
3. Retaining Compound
4. Gasket Sealants


by End-Use Industry
1. Automotive and Transportation
2. Electrical and Electronics
3. Industrial
4. Building and Construction
5. Others


by Substrate
1. Metals
2. Plastics
3. Others



Anaerobic Adhesives Market, by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Anaerobic Adhesives Market, Key Players are:
1. H.B.Fuller Company (US)
2. 3M (US)
3. Huntsman International LLC (US)
4. Delo Industrial Adhesives, LLC (US)
5. Parson Adhesives Inc. (US)
6. Permabond LLC (US)
7. Illinois Tool Works Inc. (US)
8. Scigrip (US)
9. Lord Corporation (US)
10. Ashland (US)
11. Hernon Manufacturing, Inc. (US)
12. Master Bond Inc. (US)
13. Hexcel Corporation (US)
14. Heartland Adhesives (US)
15. Palm Labs Adhesives (US)
16. Hi-Bond Chemicals (India)
17. Anabond Limited (India)
18. Pidilite Industries Ltd (India)
19 Jubilant Industries Ltd (India)
20. Asec Co. Ltd (Japan)
21. ThreeBond Holdings Co. Ltd (Japan)
22. Henkel AG and Co. KGaA (Germany)
23. Kisling AG (Switzerland)
24 Scott Bader Company Ltd. (UK)
25. Bostik (France)
26. Novachem Corporation ltd (Canada)
27. Mapei S.p.A (Italy)
28. Loxeal S.r.l. (Italy)
29. Sika AG (Switzerland)
30. Pratley Adhesives (South Afica)

Frequently Asked Questions:

1] What is the market share of the threadlockers segment in the anaerobic adhesives industry in 2022?
Ans. The market share of the threadlockers segment in the anaerobic adhesives industry in 2022 was 48.27%.

2] Which industries are the major users of anaerobic adhesives across the world?
Ans. Automotive and transportation, electrical and electronics, industrial, building and construction, among others, are the industries where anaerobic adhesives are majorly used.

3] Which are the top five market players dominating the anaerobic adhesives industry?
Ans. Henkel AG & Co. KGaA, 3M, H. B. Fuller, Kisling AG, and ThreeBond are the top five market players dominating the anaerobic adhesives industry.

4] Which countries dominate the Asia Pacific anaerobic adhesives industry?
Ans. China, India, Japan, and South Korea are the countries currently dominating the Asia Pacific Anaerobic Adhesives Industry.

5] Which factors drive the growth of the anaerobic adhesives market in the Asia Pacific region?
Ans. High demand from the automotive and transportation industry in the region, coupled with rising demand from the electrical and electronics sector, drives the market growth in the Asia Pacific region.