The adhesives and sealants market size is estimated to grow to U.S. $17.33 billion by 2027 at a CAGR of 4.75%. This is according to a new report from Technavio, a global technology research and advisory company., according to Technavio.
The accelerated growth of the market is caused by various factors, including the growing demand for construction and food packaging applications, the growing demand from developing countries, and the shift in preference for hot-melt adhesives.
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Segment type
The water-based segment is estimated to witness significant growth during the forecast period. In this type of adhesives and sealants, water serves as the solvent and these adhesives are preferred due to being more eco-friendly, having enhanced safety, and reduced VOC emissions.
Other features that make it beneficial include resistance to humidity, ultra-violet (UV) radiation, and discoloration. Polyvinyl acetate emulsions are an example of a water-based adhesive.
The water-based segment was the largest segment and was valued at $30.32 billion. Synthetic polymers such as PVA, cellulose ethers, and methylcellulose are used for the formation of this segment of adhesive and sealants among others.
Other sources to help derive them include natural polymers from vegetable sources like dextrin and starches. Stringent regulations regarding the VOC content in adhesives shall result in greater adoption of water-based adhesives, driving this segment of the market during the forecast period.
Market drivers
The growing demand for construction and food packaging applications is driving the market growth. In the building and construction industry, adhesives and sealants serve several functions that include fixing resilient flooring, roof tiles, and roofing systems.
Other uses that require adhesives are the fixing of drywall lamination, anchoring joints in cement to anchor joints, and the fixing of pre-finished panels. For example, 3M Polyurethane Construction Sealant 525, Gray, is a multi-purpose sealant that ensures flexibility on expansion joints and enhances stability, durability, and strength for the building components.
Moreover, adhesives and sealants are widely used in the production of cases, flexible packaging, and cartons which themselves shall be boosted by the growing trend of easy-to-cook meals, packaged food products, and beverages. Additionally, increasing consumer disposable income and the growing demand for housing shall boost market growth during the forecast period.
Market trends
The growing use of adhesives in medical devices is a key trend in the market. This is due to adhesives being more effective than conventional fasteners.
The reusable medical device market, which includes disposable electrocardiograph (ECG) electrodes, grounding plates, and others is increasing in demand. Certain medical adhesives that have applications in the medical sector include epoxy, silicones, polysulfides, and polyurethanes.
For instance, Structalit 701 by Panacol-Elosol GmbH (Panacol) is a medical-grade adhesive that is used in bonding surgical instruments. Meanwhile, Loctite 4011 by Henkel AG & Co. KGaA (Henkel) is specifically used for assembling difficult-to-bond materials that must possess uniform stress distribution and strong shear strength.
The emerging uses of adhesives in medical devices and applications are likely to boost market growth during the forecast period.
Market challenges
The volatility in raw material prices is challenging market growth. Some raw materials used in the production of adhesives and sealants include acrylic, silicone, polyurethane, and EVA, with almost all of them being crude oil derivatives.
As a result, high crude oil prices and market volatility directly impact the cost of acquiring raw materials for the adhesives and sealants market. For instance, the increasing prices of polyol witnessed in the Middle East in September 2020 caused diminished demand for toluene diisocyanate in the region.
High crude oil prices are mostly attributed to low crude oil production from the members of the Organization of the Petroleum Exporting Countries (OPEC) in March and April 2021. Price volatility in crude oil will directly impact the cost of acquiring necessary raw materials, posing a hindrance to market growth during the forecast period.
Market players
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product and service launches, to enhance their presence in the market.
For instance, 3M Co. offers adhesives and sealants such as 3M Scotch-Weld Acrylic Adhesive DP8410NS, 3M Scotch-Weld Epoxy Adhesive DP100 Plus, 3M Aerospace Sealant AC-251 and 3M Marine Adhesive Sealant Fast Cure 4200FC.
The research report also includes detailed analyses of the competitive landscape of the market and information about several market vendors, including:
- Arkema Group
- Avantor Inc.
- Avery Dennison Corp.
- BASF SE
- Beardow and Adams Adhesives Ltd.
- DELO Industrie Klebstoffe GmbH and Co. KGaA
- Dow Chemical Co.
- Dymax Corp.
- Eastman Chemical Co.
- H.B. Fuller Co.
- Henkel AG and Co. KGaA
- Huntsman International LLC
- Indumarsan
- LG Chem Ltd.
- ND Industries Inc.
- RPM International Inc.
- Sika AG
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified.
Key report topics
- CAGR of the market during the forecast period
- Detailed information on factors that will drive the growth of the market between 2023 and 2027
- Precise estimation of the size of the market and its contribution to the market in focus on the parent market
- Accurate predictions about upcoming trends and changes in consumer behavior
- Growth of the market across APAC, Europe, North America, South America, and the Middle East and Africa
- A thorough analysis of the market’s competitive landscape and detailed information about vendors
- Comprehensive analysis of factors that will challenge the growth of market vendors
Filed Under: Adhesives • epoxies