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The global adhesives and sealants market size was valued at USD 47.28 billion in 2019, and it is projected to reach USD 66.44 billion by 2027, exhibiting a CAGR of 4.51 % during the forecast period.
The market is expected grow exponentially owing to the application of adhesives and sealants in the building & construction industry. Their usage has grown rapidly with the introduction of high-performance polymers and formulations. They are considered as the most important materials in the construction activities and the market is likely to grow with the adoption of new technologies and design techniques. Moreover, contractors and craftsmen are constantly experimenting with the new developed products and this is pushing the adhesives and sealants manufacturers to perform trials on new product development. For example, Creative Materials, Inc. has recently launched new gold conductive ink adhesive, 128-24, that offers high effectiveness with less amount of gold requirement.
Disruption in Supply Chain in COVID-19 to Hamper the Growth of the Market
The outbreak of COVID-19 has disrupted most of the supply chains around the world. The adhesives and sealants market is no exception. There has been a logistics issue owing to less availability of manpower as well as resources to some extent. Some raw materials such as alcohol have been diverted to other industries for the manufacturing of essential goods such as sanitizers and cleaning products. Moreover, the absence of consumers in the market has seriously impacted businesses in the second quarter of 2020. For instance, H B Fuller Co. reported 11% decline in business in Q2 2020 as compared to the same period in 2019.
Certain adhesive products witnessed strong demand due to their applications in paper & packaging as well as the healthcare industry. Sealants consumption, on the other hand, is anticipated to be down by double digit figures in 2020 owing to the extension of lockdown and other restrictions that have severely impacted the building and construction activities. Several projects related to road construction activities, buildings, irrigation projects, rural areas, and industrial projects have been halted since the lock down. For instance, the sales of Sika AG, a key provider of sealants, have dropped by 6.1% in this pandemic situation.
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Adhesive Tapes is the New Trend among Engineering Services
Adhesive tapes are the new trend in the market due to their fast working time, flexibility, and quick bonding property. These tapes are becoming a preferred choice for engineers in different fields, ranging from automotive to aviation. Adhesives act as an alternative to mechanical fasteners for all kinds of assemblies and also can be formulated with multiple viscosities as well as be drawn into films and tapes according to the requirements. Additionally, these are gaining popularity owing to the low labor costs and production costs. Moreover, they are also preferred over the traditional adhesives due to the low-odor, which helps to create a comfortable environment for work. In 2016, for example, 3M Industrial Adhesives and Tapes Division designed new adhesive acrylic tapes to offer immediate handling strength and easy tape solutions and also many of the Japanese adhesives companies are working on it.
Growing Demand from Developing Regions to Drive the Market
The tremendous economic growth in the Asia-Pacific region has significantly overtaken the other regions and is, thus, expected to drive the adhesives and sealants market growth. Growing middle-class population, especially in China, is generating strong demand in this region, majorly from the automotive industry OEMs and packaging materials manufacturers such as Amcor, Crown Holdings, Mondi, and others. Rapid urbanization and the population growth are propelling and driving the growth in infrastructure & construction activities in Asia-Pacific, which, in turn, is propelling the demand for adhesives and sealants in this region.
Additionally, Asia-Pacific is also attracting investments for localized production and R&D development to enable faster and efficient catering of customer requirements and maintain long-term competitiveness in this market. This region holds the largest share in the market owing to the large number of construction activities being carried out.
Excessive Amount of Chemicals Used in The Production of Adhesives and Sealants is Hampering the Market Growth
The application of adhesives and sealants emits abundant chemical gases, which are considered to be harmful and hazardous when inhaled. Thus, the regulations imposed on their usage are becoming stricter. Moreover, the rising consumer awareness about health and environment has become a prominent concern for the manufacturers. According to the Vice President of Emerald Performance Materials, “the regulatory landscape is creating significant challenges for the industry. Environment protection agencies such as the U.S. Environmental Protection Agency are taking different measures and thus are placing more hurdles and restrictions on the manufacturers”.
Water-based Segment to Generate the Highest Revenue
Water-based adhesives segment holds a significant share in the market. These materials are supplied as a pre-mixed solution or are formulated as a dry powder, which producers and distributors mix with water to obtain adhesive properties. As the polymer in the water-based adhesives is soluble in water, the bond formed between them is more susceptible to moisture and water. Water-based adhesives are flexible, economical, and available in wider varieties than other adhesives and thus have application in various industries such as packaging, paper, plastic, and fabric.
The reactive adhesives segment is expected to grow at a significant rate as they provide tremendous and long-lasting bond in case of intense moisture and temperature change. This material is ideally used in cell phones, computers, blood-glucose meters, and others as it is not as pressure sensitive as its non-reactive counterparts. Thus, increasing demand for high-tech devices is the primary factor driving the demand for reactive additives and boosting this market growth.
The hot-melt adhesive segment is expected to grow at a fast rate due to the increasing demand for solvent-free adhesives. Moreover, these adhesives provide benefits such as high production speed, short setting time, and smooth surfacing, and can be reactivated by heating and other similar processes. Hot-melt adhesive has applications in industries such as furniture, automotive, construction, and packaging.
Silicone Sealant to Account for Largest Share Backed by Excellent Binding Properties”
Silicone sealant is the most commonly used sealant as it is much more than simple glue, and thus holds the largest share in the market. These sealants are vital components in thousands of products, as they provide advantages such as flexibility, resistance to temperature, water resistance, oil & chemical resistance, and inertness. The major application of silicone sealant is in the building & construction industry and is expected to increase in the forecast period due to infrastructural developments across the world.
Polyurethane sealant holds a significant share in the global sealant market. Silicone and polyurethane sealants both fall into elastomeric material categories and are used to fill gaps and keep water and air out. Despite these similarities, they have different chemical properties, lifespan, and cost and thus have different types of applications. Polyurethane sealant is used in industries such as building & construction and automotive due to its properties such as quick-drying and moisture resistance.
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Packaging and Building & Construction Segment to Exhibit a Significant CAGR
The paper & packaging segment held the largest share in the global adhesive market. This segment is anticipated to witness ascendant demand in the upcoming years due to rising demand for packaged food. More than 80% of food packaging contains adhesives, and thus adhesives are indispensable in this industry. Also, adhesives have wide applications in the bonding of refined paper and finish surfaces, and therefore have significant demand in the paper industry.
Building and construction holds the largest share in the sealants market. The building & construction sector is on a growth trajectory and is continuously reporting considerable gains in revenue. As a result, the demand for building elements is also rising, boosting the need for sealants and fueling the adhesives & sealants market in the process. Sealants find a variety of applications in flooring, glazing, walls, ceilings, and windows, and thus the market for sealants will continue to grow as the building & construction industry expands.
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The other major applications include automotive & transportation, consumer, and others. Adhesives and sealants demand in automotive & transportation segment is expected to grow at a high rate, owing to an increase in the demand for lightweight, efficient, and eco-friendly cars.
Asia Pacific Adhesive & Sealants Market Size, 2016-2027 (USD Billion)
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Asia Pacific is expected to hold the major adhesives and sealants market share during the forecast period, owing to the rising demand from the building & construction, packaging, and automotive industries. The market in Asia-Pacific is driven by factors such as rising in population and rising expenditure in the industrial sector. Rising population is augmenting the demand for vehicles, leading to high demand for adhesives & sealants in the automotive industry. Also, rapidly increasing building & construction activities in Asia-Pacific is also augmenting the product demand.
Asia-Pacific is the largest consumer of these materials, and China holds the largest share. China, Japan, and India are the key countries contributing to the growth of this regional market owing to the demand from building & construction and automotive sectors in these countries. Moreover, Japanese adhesive companies such as 3M Japan Limited, Alteco Inc., Sika Ltd., and others are constantly investing in research and development activities and have made great contributions in this market. Several manufacturing plants are under construction in India and China with improved production capacities.
The demand for adhesives and sealants in North America is increasing due to higher preference for flexible packaging. Changing trend in consumer behavior and inclination towards more recyclable products has benefited the manufacturer in the flexible packaging market.
On the other hand, Europe is projected to witness significant growth in the market. Henkel, Arkema, and Wacher Chemie AG are the top adhesive companies in Europe and are major contributors in the global market. Stringent environmental regulations in Europe and increasing demand for green adhesives offer lucrative opportunities to the manufacturers, according to the adhesives and sealants market report.
The product demand in Latin America has been negatively affected by the recent economic downturn. However, the demand has remained stable in this region mainly due to the uptake of these materials from the building & construction industry.
Iran has the largest market in the Middle East and Egypt is the largest market in Africa in terms of consumption as the building & construction sector is growing tremendously. According to the Saudi Vision 2030, there will be 70% increase in the manufacturing facilities in the region.
Market Players to Strengthen Position by Offering Innovative Solutions
Major producers of adhesives and sealants are located in Europe, but the demand is high from Asia-Pacific, leading to a consolidated market. The producers in North America and Europe are continuously adopting acquisition strategies to strengthen their position in the market and to drive the business growth of their organisations. Key players in the market have, therefore, developed strong regional presence, distribution channels, and product offerings to maintain their position in the market.
An Infographic Representation of Adhesives and Sealants Market
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The research report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, end-use industries, and countries. Also, the report offers insights into the current market trends and highlights the vital industry developments. In addition to the factors mentioned above, the report encompasses various factors that have contributed to the growth of the market over recent years.
Value (USD Million) and Volume (Kilo Ton)
Adhesive and Sealants By Geography
Fortune Business Insights says that the global adhesives and sealants market value was at USD 47.28 billion in 2019 and is projected to reach USD 66.44 billion by 2027.
The market will exhibit steady growth at a CAGR of 4.51% in the forecast period (2020-2027).
The water-based adhesive segment is expected to be the leading technology segment for market during the forecast period.
Increasing demand from the building & construction industry is driving market growth.
Asia-Pacific is expected to hold the highest share in the market.
Building & construction application is expected to drive the adoption of these products.
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