South East Asia Polyurethane Adhesives Market Size, Share & Trends Analysis Report By Application (Footwear, Automotive, Packaging, Construction, Others), By Country (Indonesia, Thailand, Malaysia), By Country, And Segment Forecasts, 2024 - 2030

Report Overview

The South East Asia polyurethane adhesives market size was valued at USD 330.3 million in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 8.6% from 2024 to 2030. The growth of major end-use industries such as automotive, footwear, construction, and packaging are expected to drive the regional PU adhesives market over the forecast period. The market growth can be credited to the robust expansion of the construction industry as Polyurethane (PU) adhesives offer strong bonding properties, flexibility, and resistance to environmental factors. These characteristics make them suitable for flooring, roofing, and panel bonding. Countries including Indonesia, Vietnam, and the Philippines have witnessed a surge in infrastructure projects, such as residential, commercial, and industrial developments.

Furthermore, the South East Asia region has become a hub for automotive manufacturing with Thailand and Malaysia leading the way. The demand for lightweight and fuel-efficient vehicles has significantly increased, leading to a major market growth of polyurethane adhesives. These adhesives have been extensively used in bonding various automotive components, including interior panels, exterior trims, and structural parts, as they provide strong and durable bonds while reducing the overall vehicle weight.

In addition, the electronics industry has played a significant contributor to the growth of the polyurethane adhesives market. Southeast Asia is a major manufacturing center for electronic devices, including smartphones, tablets, and consumer electronics. The miniaturization of electronic components and the need for reliable bonding solutions in harsh environments have led to increased adoption of polyurethane adhesives. These adhesives offer excellent electrical insulation, thermal stability, and resistance to moisture, which makes them ideal for electronic applications.

Moreover, advancements in polyurethane adhesive technology have significantly contributed to market growth. Manufacturers have continuously developed innovative formulations to enhance the performance characteristics of these adhesives. For instance, the development of moisture-curing polyurethane adhesives has improved their bonding strength and durability in humid conditions, expanding their application range. Additionally, the introduction of bio-based polyurethane adhesives, derived from renewable resources, has gained major traction as a sustainable alternative to traditional adhesives.

Application Insights

The footwear application dominated the market with 25.3% share in 2023 owing to the rise in consumer demand for premium and customized footwear coupled with the increasing disposable incomes. PU adhesives have been increasingly favored in the production of athletic shoes, casual footwear, and specialized footwear due to their ability to provide superior comfort and performance. The integration of advanced technologies, such as 3D printing for custom shoe designs, has further boosted the demand for these adhesives, as they ensure precise and reliable bonding of complex components. Moreover, countries including Vietnam and Indonesia have been leading exporters of footwear, benefitting from competitive labor costs and favorable trade agreements.

The automotive segment is expected to grow at the fastest CAGR during the forecast period owing to the robust growth in the automotive industry. Countries including Thailand and Indonesia have emerged as major automotive manufacturing hubs, attracting significant investments from global automotive giants such as Toyota, Honda, and Nissan. This growth is fueled by favorable government policies, including financial subsidies and incentives, which encourage the establishment and expansion of automotive production facilities. Additionally, the increasing shift towards lightweight and fuel-efficient vehicles has driven the market as PU adhesives provide strong and durable bonds in various automotive components, including interior panels, exterior trims, and structural parts.

Country Insights

The Indonesia polyurethane adhesives market held a dominant market share in 2023 as the country witnessed a surge in residential, commercial, and infrastructure projects, fueled by rapid urbanization and population growth. Manufacturers have highly preferred PU adhesives in construction due to their flexibility, bonding properties, and resistance to environmental factors. These characteristics collectively made them suitable for various applications such as flooring, roofing, and panel bonding. Furthermore, the growing emphasis on green building projects and the use of eco-friendly materials in construction and manufacturing has stimulated market growth. Polyurethane adhesives, known for their low VOC emissions and recyclability, have gained considerable traction as a sustainable bonding solution aligning with this trend.

The polyurethane adhesives market in Thailand is expected to grow at a CAGR of 8.1% owing to the booming automotive industry. Thailand is a leading automotive manufacturing hub in Southeast Asia, attracting substantial investments from global automotive giants. With the increasing demand for lightweight and fuel-efficient vehicles, the PU adhesives market is expected to grow as these sealants offer strong and durable bonds. This trend is further supported by government policies and incentives aimed at boosting the automotive sector. Additionally, the rising disposable income and changing lifestyles of consumers in Thailand have driven the demand for consumer goods, including furniture and electronics, which rely on polyurethane adhesives for assembly and bonding.

Key Company & Market Share Insights

The South East Asia polyurethane adhesives market is moderately concentrated, Major market participants include 3M Company, Ashland Inc., BASF SE, Avery Dennison Corporation, and others. Companies have primarily focused on acquisitions and mergers, new product development, and strategic collaborations to continue with their dominant footprint in the market.

• Ashland provides innovative solutions to pharmaceuticals, personal care, automotive, and construction industries. The company’s product portfolio includes adhesives, coatings, specialty additives, and intermediates.

• 3M, an American multinational conglomerate corporation, is known for its diverse range of products and solutions across various industries, including healthcare, consumer goods, industrial, and safety. The company’s product portfolio includes adhesives, abrasives, laminates, passive fire protection, personal protective equipment, and more.

South East Asia Polyurethane Adhesives Market Report Scope  

South East Asia Polyurethane Adhesives Market Report Segmentation

This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the South East Asia polyurethane adhesives market report based on application and country.

• Application Outlook (Revenue, USD Million, Volume in Kilotons, 2018 - 2030)

  • Footwear

  • Automotive

  • Construction

  • Packaging

  • Others

• Country Outlook (Revenue, USD Million, Volume in Kilotons, 2018 - 2030)

  • Indonesia

  • Thailand

  • Malaysia

  • Rest of South East Asia