The Southeast Asia polyurethane (PU) adhesives market is expected to reach $262.5 million by 2020, according to a recent study by Grand View Research Inc. Southeast Asia has become a major automobile manufacturing hub due to its close proximity to demand centers and low manufacturing costs; this is expected to drive the regional PU adhesives demand.
In addition, the increase in construction spending due to growing urbanization rates across major countries has contributed to the market growth. Government support to increase inflow of foreign direct investment (FDI) in Indonesia and Vietnam will have a positive influence on the overall market. Volatile raw material prices may emerge as a major challenge over the next six years.
Footwear emerged as the leading application segment in 2013, representing 25.5% of total market volume. The emergence of Vietnam as a major footwear manufacturing hub is expected to remain a key driving factor for this segment. Vietnam is the second-largest footwear manufacturing nation in the world.
Automotive is expected to have the highest growth rate over the forecast period; the segment is expected to grow at an estimated compound annual growth rate (CAGR) of 7% from 2014 to 2020. The positive outlook for Thailand’s automotive industry is expected to remain a key driving factor for this segment.
For more information, visit www.grandviewresearch.com.