Industry Outlook
Adhesives & Sealants market was valued at USD 51,745.3 million in 2017 to USD 79,450.8 million by 2026, expected to grow at a CAGR of 4.9% between 2018 and 2026. Adhesives & Sealants find its applications in varied end-use industries such as paperboard & packaging, building & construction, woodworking, transportation, footwear & leather, healthcare, electronics, and others. Adhesives & sealants are gaining traction owing to rising consumers demand innovative and advanced materials to fasten substrates dissimilar in physical structure, resist vibration and external conditions and distribute stresses over a wide area. Apart from aesthetic bonding solution, eco-friendly adhesives & sealants offer environmental benefits, such as reduced Volatile Organic Compound (VOC) expected to fuel the market growth during the forecast period. Adhesives and sealants are often considered together because they both adhere and seal. However, sealants have higher elongation and lower strength as compared to adhesives. Sealants are mainly used to seal assemblies and joints, therefore, it requires sufficient adhesion to the substrates and resistance to environmental conditions to remain bonded over lifetime of the assembly. Adhesives are most preferred material for holding- and bonding-related applications. On contrary, sealants with higher flexibility fill gaps and cracks in low movement joints.
Asia-Pacific dominated the Adhesives & Sealants market in terms of value and volume consumption and projected to witness the fastest growth between 2018 and 2026. China, Japan, and India are major consumers in the Asia-Pacific adhesives & Sealants market. Whereas, North America and the Europe regions are the most active markets in terms of strategic initiatives by players operational in the market. However, strict environmental regulations regarding the use of high VOC compounds expected to hamper the growth of Adhesives & Sealants market in Europe. Consequently, manufacturers are focusing on developing eco-friendly products.
Environmental regulations have adversely affected the market for adhesives and sealants. Various environmental agencies such as U.S. EPA is working aggressively to reduce the impact of VOCs and other potentially hazardous materials on the environment, workers in manufacturing environments, and end users. Manufactures as well as end users are shifting from solvent-based to water-borne adhesives for certain applications to tackle the environmental concerns is one of the examples of this trend. However, benefits from such reforms are still debatable as the costs associated with compliance and raw materials are on the higher side.
Key manufacturers of adhesives and sealants include 3M Company (U.S.), Illinois Tool Works Inc. (U.S.), H.B. Fuller (Netherlands), Bostik Ltd. (France), Henkel AG & Company (Germany), Sika AG (Switzerland), Avery Dennison (U.S.), RPM and International Inc. (U.S.) among others.
"Growing Demand for Low VOC, Green & Sustainable Adhesives makes Water-borne Adhesives Dominant Sub-segment by Formulation Type"
In 2017, water-based segment accounted for the major market share and expected to maintain its dominance over the forecast period. This is attributed to its viability as an alternative to conventional solvent-based adhesive products. Moreover, the increasing demand for environment-friendly adhesives acts as an opportunity for the market water-borne segment growth. Water-based adhesives are free of toxic elements and hazardous organic elements, thus fulfilling the regulations.
Reactive & Other adhesives is projected to grow with the fastest CAGR during the forecast period. The market of this segment is driven by various factors, such as increasing demand for light-weight vehicles, rapid growth of solar electricity market, and global construction sector.
"Silicone Segment is Expected to Dominate the Sealants Market by Resin Type throughout the Forecast Period"
Silicone-based sealants segment accounted for over 40% market share of global Sealants market in terms of market value owing to its high compatibility, strength, stability, and durability, which makes it an ideal solution for bonding in construction applications. Silicone sealants mainly find its applications in building and construction end-use industries for structural glazing, sealing metal-to-glass joints on windows and doors, and for bathroom and kitchen appliances. Other demanding applications include expansion joints between dissimilar materials, and for weather sealing in high-rise buildings, airport runways, and highways. Other major end-use industries includes electrical/electronic, automotive, appliance, etc.
Silicone-based sealants are followed by polyurethane-based sealants, as these sealants are replacing polysulfide sealants in many applications. Polyurethane-based sealants estimated to register the highest CAGR during the forecast period.
"Paperboard & Packaging to Dominate Adhesives & Sealant Market By End-use Industries"
Paperboard & Packaging represents over 35% market value share of the global Adhesives & Sealants market in 2017-2018. Increasing demand from the consumer goods sector coupled with the growing population resulting in a large end user base, boosting the paperboard & packaging industry leading to high growth in Adhesives & Sealant market. Increasing demand for adhesives in the packaging industry owing to growing online retail shopping with rising internet technologies and web applications, has largely contributed to the growth of the packaging industry. Moreover, growing cosmetics and food & beverage industries due to the urbanization, rising population, increasing consumer demand for quality products, and consumers inclining toward technology fuelling the demand for adhesives & sealants for packaging in these industries.
Automotive follows the paperboard & packaging end-use industry in terms of value and volume consumption. Growth in production of automotive coupled with efforts to improve fuel efficiency through weight reduction by using composites materials that can be bonded with adhesives is one of the major driving factors for this industry.
"Growing End-use Industries in Asia Pacific Projected to Catapult the Market Growth"
Asia-Pacific Adhesives & Sealants market held the largest market value share in 2017. Growing end-use industries such as building & construction, paperboard & packaging, and automotive boosting the demand for adhesives & sealants in this region. Asia-Pacific is also identified as the fastest growing market during the forecast period. Increased government budgets for development projects in India, China, & Indonesia may boost regional demand. Other factors such as rising disposable income and strong economic growth resulting in increased government & consumer spending and increased demand for goods. These factors are expected to positively contribute to the growth of Adhesives & Sealants in Asia-Pacific.
Countries such as China, Japan, India, and Indonesia have witnessed a tremendous growth in production of automotive from 2012 to 2016, and this trend is expected to continue in coming years, which in turn will propel the demand for adhesives & sealants in automotive industry.
"Merger & Acquisition is the Preferred Strategy of Key Players"
Adhesives & Sealants market is highly fragmented market with the presence of numerous small and big players. Factor such as need for new technology, geographic expansion, product offering expansion, and environmental regulations favor merger & acquisition strategy for growth, making it the most preferred strategy among the key players. There are more than 100 acquisitions that have been reported since 2014. Small manufacturers are striving to address new and advanced performance requirements and building strong distribution network to get an edge over their competitors. Whereas, listed players seek to lower their costs and capture new growth opportunities as they feel pressure from quarterly performance measures, shareholders and stock analysts. Key manufacturers of adhesives and sealants include 3M Company (U.S.), Illinois Tool Works Inc. (U.S.), H.B. Fuller (Netherlands), Bostik Ltd. (France), Henkel AG & Company (Germany), Sika AG (Switzerland), Avery Dennison (U.S.), RPM and International Inc. (U.S.) among others.
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Adhesives & Sealants market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
|---|---|
| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Million |
| Segmentation | |
Formulation
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Resin
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Region Segment (2022-2032; US$ Million)
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Key questions answered in this report
