The global adhesives and sealants market size is expected to reach U.S. $95.41 billion by 2028, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 6.0% from 2021 to 2028. Rising investments in construction and infrastructure are projected to play a key role in the expansion of the market.
The adoption of adhesive products is substituting the usage of mechanical fasteners in the industries such as automotive, aerospace, and packaging. The use of such products instead of conventional equipment offers a reduction in the final weight of the product, which has become a key focus area in the automotive and aerospace industries over the last half-a-decade.
Most formulators in the packaging industry also rely on adhesives rather than heavy bolting techniques to minimize their freight charges.
Additionally, there are changes in material consumption patterns — wherein materials such as aluminum, metal, and paper are being replaced by highly durable materials — are anticipated to positively affect the product demand in packaging applications over the next eight years. Consistent demand for packaging products from the food and beverage industry is predicted to remain the key driver for the market in the U.S.
The major demand across multiple applications is fr high-quality, sustainable, and eco-friendly products. The demand is high for adhesives and sealants, which have lower levels of volatile organic compounds (VOCs), give out fewer emissions, and provide aesthetic bonding solutions across numerous substrates — simultaneously meeting the international and regional government regulations.
Water-based products are considered environment-friendly since they contain zero VOCs. They also provide good long-term high temperature and moisture resistance. Increasing demand for bio-based products is also expected to augment the demand for hot-melt technology over the forecast period and contribute to the expansion of the paper and packaging segment.
The Covid-19 pandemic affected the demand for adhesives and sealants in the U.S. According to the government report, the GDP of the U.S. shrunk by 3.5% in 2020 from 2019 owing to a decline in the manufacturing output of the end-use industries such as building and construction, automotive and transportation, aerospace and defense, packaging, and consumer.
Overall, adhesives volume registered Y-O-Y growth of 0.4% in 2020.
The paper and packaging segment was the largest segment in the adhesives industry and accounted for a revenue share of over 25.0% in 2020. Flexible packaging is projected to provide new avenues for market players over the coming years. A sudden rise in healthcare spending positively affected the demand for packaging products on account of the demand for PPE kits, surgical masks, and other healthcare products.
The building and construction segment is projected to provide several opportunities in the industry. This segment in the adhesives and sealants industry is witnessing rapid technological and architectural innovation. Airports, mining facilities, transportation routes, and even residential projects are undergoing an immense transformation to comply with transitioning standards and specifications.
Demand for products in the assembly of electrical and electronics components is projected to benefit the global market.
The silicones segment accounted for the largest share of over 30.0% in 2020, in terms of volume, in the global sealants market. The segment is projected to grow on the account of rising construction activities and investments in infrastructure space. The construction of chemical/industrial process plants, stadiums, bridges, museums, concert halls, research facilities, and medical buildings is projected to benefit the expansion of the segment.
Polyurethane adhesive products exhibit superior properties such as fast curing, good abrasion and chemical resistance, and excellent bond strength on various substrates such as metal, plastic, rubber, wood, and glass. These products are generally based on reactive technology and contain polymers, which have urethane linkages. These materials provide solidity, low viscosity, as well as less cure time to the adhesive.
Epoxy-based products adhere to a wide variety of materials and their superior properties are dependent on the nature of cross-linking polymers. They provide high resistance to chemicals and environments and high-temperature resistance, along with high strength bonding on a variety of substrates. These adhesives are generally based on reactive technology.
Overall, expect to see the following products:
- Styrenic Block
- Polyvinyl Acetate
In 2020, the reactive and others segment held the largest revenue share of over 45.0% in the global adhesives market. Reactive technology-based products offer several advantages and thus are the key factors behind the growth of the segment. These advantages include high manufacturing speed owing to short stetting time, higher heat resistance, and strong adhesion properties to a wide range of substrates.
The hot-melt segment is anticipated to grow at a lucrative pace from 2021 to 2028. Within the textiles and fabrics industry, the use of polyester hot-melt adhesives started gaining prominence in the last decade. The wider use of the product was observed in cotton, wool, and fabrics sub-sectors over the last few years. The reason being the product greatly improves the anti-pilling performance of cotton-woven fabrics while enhancing the elastic recovery rate of the fabric.
The use of hot-melt adhesive products in the dashboard of automotive vehicles is increasingly becoming popular across the globe. These products find applications in the dashboard wherein they offer reduced vibrations, coupled with greater insulation from the sound. The increased focus to offer soundproof ride is likely to push the product’s penetration in the automotive industry over the forecast period.
The market for adhesive and sealants is characterized by the presence of medium and large producers, which have local as well as international presence. These producers observed a reduction in demand during 2020 owing to the COVID-19 pandemic. Value chains at different levels witnessed different obstacles such as shortage of raw materials and labor and halting of industrial production.
In 2020, several players reported heavy losses owing to low demand for adhesives as manufacturing operations in the end-use industries were suspended due to nationwide lockdowns and other government restrictions. For example, in the first nine months of 2020, Henkel’s sales decreased by around 4.5%.
A few of the prominent players in the global adhesives and sealants market include:
- 3M Company
- Ashland Inc.
- Avery Denison Corporation
- H B Fuller
- Henkel AG
- Sika AG
- Wacker Chemie AG