The global adhesive dispensing system market is projected to grow at a CAGR of 2.90% to reach US$1,717.582 million by 2026, from US$1,405.633 million in 2019. The boost in the market growth is attributable to the fact that there is increasing adoption of adhesive dispensing solutions among various end-user industries with the major demand coming from industries such as packaging, aerospace and defense, and pharmaceutical among others. In addition, the increasing participation by market players in the form of partnerships and product launches to further expand the adoption of the adhesive dispensing systems to increase their market share is further boosting the market growth. However, the presence of stringent regulations and guidelines, which must be complied with such as the CE mark and the TUV GS and the high cost of adopting automatic adhesive dispensing systems is limiting their adoption in the small-scale industries, hence restraining the market growth to some extent. By type, the automatic adhesive dispensing system holds a large market share owing to the increasing adoption of automatic dispensing systems in various end-user industries such as the packaging industry and the construction industry globally.
The Asia Pacific is the dominant market for these solutions with demand being driven by China which is a major manufacturing hub and a key supply chain stakeholder for a vast range of products. North America is another important market for these solutions with the U.S. being the dominant market in the region.
Impact of Covid-19
The advent of the COVID-19 pandemic created a major impact on several industries around the globe. The crisis was unprecedented and brought havoc for all – the consumers, corporates, and the governments. To curb the uncharacteristic spread of the virus the governments across the world imposed lockdowns. The companies had to shut down most if not all their production facilities. On top of that, the travel restrictions imposed led to supply chain disruptions. Moreover, the demand in most of the sectors like construction, automotive, and aerospace declined steeply due to the consumers focusing more on essentials.
Adhesive dispensing system market, US$ Million, 2019 to 2026
Source: Knowledge Sourcing Intelligence Analysis
The packaging industry is evolving due to the burgeoning demand for a variety of consumer products such as electronics, food and beverages, sanitary products, personal care products among others across the globe. This demand is being accelerated as a result of the rising disposable income among the middle income and low-income population and their increased propensity to spend. In addition, the increasing sale of products through e-commerce channels and the growth of e-retail stores as they provide lucrative discounts and a high level of convenience thereby adds to this increased demand. Moreover, there are increasing concerns among the packaging industries to ensure that the product that reaches the consumer does not deteriorate in quality and its shelf life is maintained. This is encouraging the adoption of adhesive dispensing systems as they are more precise, reduce adhesive wastage and reduce lead-time thereby increasing the demand for adhesive dispensing systems and acting as a driving factor for the market growth. Furthermore, the increasing adoption is also attributable to the fact that the players are looking to maximize their profits as well as gain a competitive edge over the other rivals, bolstering the adhesive dispensing system market growth further over the forecast period.
Increasing PARTNERSHIPs and product launches by market players
The effectiveness of the adhesives and adhesive dispersive systems for catering to different applications in various industries is of utmost importance, as the quality and the finish of the end-product depends on it. To cater to these problems, the market players are involved in the market through investments and new product launches, to make dispensing systems more precise and effective, so the downtime is reduced, profitability increases, and demand for these systems also increases, thereby driving the market growth. For instance, in November 2019, Techon, one of the leading companies dealing in high precision fluid dispensing systems and a part of Dover, announced the launch of their new product “TS9800 Series Jet Valve Dispensing System”, which comes with a piezo actuated jet valve and a smart controller. The basic function of this jet valve is to make use of piezo, a technology that does not require contact and provides increased speed and reduced wastage during dispensing, in contrast to pneumatic jet valves and other dispensing solutions requiring contact. It provides increased speed and minimizes adhesive wastage during the dispensing process. It is also capable of dispensing dots and lines at ultra-fast speeds for higher throughput.
adhesive dispensing system market share, by type, 2019 AND 2026
Source: Knowledge Sourcing Intelligence Analysis
To mitigate the risks involved with working with adhesives can have harmful effects on the environment as well as pose hazards to the health of the workers working with adhesives and adhesive dispensing systems, there are some strict guidelines and rules in place by the institutions and organizations that must be complied with. For example, the TUV-GS standards, which state that the product that is meant for the consumer must bear the GS mark and conform to the guidelines mentioned strictly. The requirements of the GS mark are, that it indicates the conformity of the tested product with the requirements of reference section 21 of the ProdSG, which are Product Safety Guidelines, a law detailing the product must be safe to use and have no effect on the health of individuals, which replaced the earlier Equipment and Product Safety Act" (GPSG). In addition, the presence of the CE mark is also essential on the product. The CE mark on a product means (European Community) and shows that the product is complying with the pertinent European instructions. Some of these guidelines include- the manufacturers have to affix the CE mark themselves and then document it with a number, as without a number it stands invalid and when asked, the manufacturers must provide the supporting documentation. The presence of such directives and guidelines may restrain the adhesive dispensing system market growth to some extent.
High adoption cost associated with adhesive dispensing systems
There are three basic types of adhesive dispensing systems that are available in the market, namely, manual adhesive dispensing systems, automatic adhesive dispensing systems, and semi-automatic adhesive dispensing systems. There is a price difference in all the types of products available in the market. The usage of dispensing systems depends on the purpose or the application they are being used for and hence regulate the adoption. A majority of the large scale and medium scale industries prefer the adoption of automatic adhesive dispensing systems, due to the extensive list of features they provide. A majority of the small-scale industries with small-scale applications and uses of adhesives in their operations are not able to make use of the automatic systems owing to the high cost of adoption associated with them, so they prefer manual adhesive dispensing systems, which solve their purpose. Thus, hampering the market growth.
|Market size value in 2019||US$1,405.633 million|
|Market size value in 2026||US$1,717.582 million|
|Growth Rate||CAGR of 2.90% from 2019 to 2026|
|Forecast Unit (Value)||USD Million|
|Segments covered||Type, End-User Industry, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Adhesive Dispensing Ltd., Valco Melton, Henkel AG & Co. KGaA, Fishman Corporation, Nordson Corporation, Techcon, Glue Machinery Corporation, Hernon Manufacturing Inc., EXACT Dispensing Systems, Kirkco Corp|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What will be the adhesive dispensing system market size by 2026?
A1. The global adhesive dispensing system market is projected to reach a total market size of US$1,717.582 million by 2026.
Q2. What is the size of global adhesive dispensing system market?
A2. Adhesive Dispensing System Market was valued at US$1,405.633 million in 2019.
Q3. What are the growth prospects for the adhesive dispensing system market?
A3. The adhesive dispensing system market is projected to grow at a CAGR of 2.90% during the forecast period.
Q4. Which region holds the maximum market share of the adhesive dispensing system market?
A4. The Asia Pacific is the dominant market for adhesive dispensing system solutions with demand being driven by China which is a major manufacturing hub and a key supply chain stakeholder for a vast range of products.
Q5. What factors are anticipated to drive the adhesive dispensing system market growth?
A5. The key driver in the adhesive dispensing system market growth is attributable to the fact that there is increasing adoption of adhesive dispensing solutions among various end-user industries.