Adhesives and Sealants Market Size 2024-2028

The adhesives and sealants market size is forecast to increase by USD 16.5 billion, at a CAGR of 4.36% between 2023 and 2028. The market is witnessing rapid growth attributed to heightened demand in construction and food packaging sectors, buoyed by growing markets in developing nations and a notable shift towards hot-melt adhesives. A growing trend is the expanding application of adhesives in medical devices. However, market expansion faces obstacles stemming from fluctuating raw material prices, impacting profitability and supply chain stability. Despite challenges, the industry remains resilient, leveraging innovation and strategic partnerships to navigate market complexities and capitalize on emerging opportunities, ensuring sustained growth and evolution within the adhesive sector amidst dynamic market forces.

What will be the Size of the Market During the Forecast Period?

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Market Segment Insights

Capitalizing on emerging economies and a burgeoning middle-class population, the market is experiencing an increase, driven by increasing consumer power and the demand for home comfort appliances. As investments flow into the sector, there's a notable shift towards sustainability and ecologically friendly solutions, in line with environmental rules and regulatory requirements set by bodies like the Environmental Protection Agency (EPA). Digitization plays a pivotal role in enhancing efficiency and meeting labeling and documentation standards, while the market witnesses consolidation to streamline operations and meet the growing demand for green structures. However, challenges persist, including the need to navigate restrictions on chemical and petroleum-based goods, solvent-based goods, and stringent external testing expenses. Addressing these restraints requires innovative approaches, such as exploring alternatives like butyl, neoprene, and bituminous materials, while adhering to standards set by the Epoxy Resin Committee (ERC) and tackling concerns related to biocides and waste packaging.

By Technology 

The water-based segment is estimated to witness significant growth during the forecast period. In this type, 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.

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The water-based segment was the largest segment and was valued at USD 31.50 billion in 2018. 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.

Regional Insights

APAC is estimated to contribute 55% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The demand from growing industries like construction, packaging, and transportation industries in the region is expected to propel market growth. This is especially witnessed in India, China, Japan, and Thailand due to government and private entities' large-scale construction and infrastructure projects driving demand for adhesives and sealants. China and India are the largest players in the construction market in the APAC region due to the increasing number of construction activities for the improvement of the national infrastructure. Hence, these factors are likely to boost the growth of the regional market during the forecast period. 

Market Dynamics and Customer Landscape

The market is witnessing strong growth driven by emerging economies, escalating investments, and rising consumer power. Trends indicate a shift towards sustainability, with a focus on ecologically friendly and green structures. However, challenges persist, including stringent environmental rules, regulatory requirements, and the need for compliance with agencies such as the Environmental Protection Agency (EPA). Additionally, the market faces restraints due to the dominance of chemical and petroleum-based goods, as well as high external testing expenses. Navigating these dynamics requires innovation and adaptation to meet evolving consumer demands while ensuring environmental responsibility. The market is experiencing dynamic growth, driven by diverse industries such as textiles & fabrics, where adhesives volume plays a crucial role in enhancing fabric durability. In manufacturing output, adhesives are pivotal for efficient assembly processes, while in drywalls, they provide essential bonding solutions. The tilling industry also benefits from specialized adhesives that ensure strong adhesion of tiles. As demand for advanced adhesives continues to rise, innovations in product formulations are key to meeting the specific needs of these sectors, ensuring improved performance and application versatility.

The market is expanding across various sectors including the automobile sector, packaging segments, and the food and beverage sector. The grocery retail sector has seen increased demand for these products due to the COVID-19 pandemic driving a rise in packaging needs. Additionally, the aerospace and defense industry relies on advanced adhesive solutions, particularly in the hot-melt segment. The textiles and fabrics industry also benefits from innovations in adhesives. As these markets evolve, the focus remains on developing high-performance, versatile adhesives that cater to diverse applications and industry requirements. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

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 multipurpose 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. 

Significant Market Trends

The market is witnessing a significant trend with the growing use of adhesives in medical devices. These adhesives offer greater effectiveness than traditional fasteners, especially in the reusable medical device market, which includes disposable electrocardiograph (ECG) electrodes and grounding plates. Various medical adhesives, such as epoxy, silicones, polysulfides, and polyurethanes, find applications in the medical sector.

Notably, Structalit 701 by Panacol-Elosol GmbH and Loctite 4011 by Henkel AG & Co. KGaA are examples of medical-grade adhesives used in bonding surgical instruments and assembling difficult-to-bond materials, respectively. These emerging applications in medical devices are expected to drive market growth during the forecast period.

Major Market Challenge

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. Hence high crude oil prices and market volatility directly impact the cost of acquiring raw materials for the market. For instance, the increasing prices of polyol in the Middle East in September 2020 caused diminished demand for toluene diisocyanate in the region.

Moreover, 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. Hence, 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.

Customer Landscape

The market forecasting research report includes the adoption lifecycle of the market research and growth, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.

Market Customer Landscape

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

3M Co. - The company 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 15 market companies, including: AdCo UK Ltd., 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, and Ter Group

Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.

• Technology Outlook 
  • Water based
  • Solvent based
  • Hot melt
  • Others
• End-user Outlook 
  • Building and Construction
  • Paper and packaging
  • Transportation
  • Leather and footwear
  • Others
• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Argentina
    • Brazil
    • Chile

Market Analyst Overview

In the dynamic landscape of the market, driven by a spectrum of factors, from technological advancements to shifting consumer preferences, the integration of renewable materials, recycled materials, and remanufactured materials is gaining momentum, aligned with the stringent standards set by the European Commission (EC) and the Construction Products Regulation (CPR). As economic growth propels consumer incomes and prompts lifestyle changes, the demand for ecologically friendly or green structures intensifies, fostering a preference for eco-friendly adhesives and sealants. Innovations like nanotechnology enhance adhesion while optimizing temperature and pressure sensitivity. Moreover, advancements in voice recognition technology, artificial intelligence, and smartphones drive demand for lightweight materials and composites, reducing carbon emissions and enhancing fuel efficiency in diverse applications, including refrigeration, consumer electronics, and automotive sectors, thus shaping a sustainable future for the industry.

The global market is experiencing a significant increase, driven by the increasing demand in various industries such as vehicles, building construction, woodworking, and consumer DIY. According to recent reports, the market volume is expected to reach new heights, with key players like Wacker and 3M leading the charge. In the automotive sector, the demand for adhesives and sealants is on the rise due to their use in vehicle manufacturing, particularly in the production of dashboards, body panels, and other fittings. Environmental legislation, such as the reduction of volatile organic compounds (VOCs), is driving the shift towards water-based adhesives and sealants, including acrylic, emulsion, and polysulfide. In the building construction industry, the use of adhesives and sealants is essential for applications like drywall installation, ceiling applications, and bathroom floor coverings. Reactive technology, including solvent-based adhesives, hotmelt adhesives, and reactive others, are widely used for their high bonding strength and durability. The lightweight revolution in the automotive transportation industry is also fueling the demand for advanced adhesives and sealants, such as plastisol and silicone sealants, for bonding and sealing lightweight materials. Additionally, the aerospace defense sector is a significant market for high-performance adhesives and sealants, with epoxy-based products and silicone sealants being the preferred choices. The consumer DIY market is another significant contributor to the market, with discount retailers offering a wide range of products for various applications, from paper packaging and leather footwear assembly to molding and cotton wool and fabrics. The healthcare spending sector is also expected to see growth, with the use of adhesives and sealants in medical devices and equipment. Overall, the future looks bright for the market, with continued innovation and technological advancements driving growth and expansion. The global market is experiencing a significant increase, driven by the increasing demand in various industries such as vehicles, building construction, woodworking, and consumer DIY. According to recent reports, the market volume is expected to reach new heights, with key players like Wacker and 3M leading the charge.

In the automotive sector, the demand for adhesives and sealants is on the rise due to their use in vehicle manufacturing, particularly in the production of dashboards, body panels, and other fittings. Environmental legislation, such as the reduction of volatile organic compounds (VOCs), is driving the shift towards water-based adhesives and sealants, including acrylic, emulsion, and polysulfide. In the building construction industry, the use of adhesives and sealants is essential for applications like drywall installation, ceiling applications, and bathroom floor coverings. Reactive technology, including solvent-based adhesives, hotmelt adhesives, and reactive others, are widely used for their high bonding strength and durability. The lightweight revolution in the automotive transportation industry is also fueling the demand for advanced adhesives and sealants, such as plastisol and silicone sealants, for bonding and sealing lightweight materials. Additionally, the aerospace defense sector is a significant market for high-performance adhesives and sealants, with epoxy-based products and silicone sealants being the preferred choices. The consumer DIY market is another significant contributor to the market, with discount retailers offering a wide range of products for various applications, from paper packaging and leather footwear assembly to molding and cotton wool and fabrics. The healthcare spending sector is also expected to see growth, with the use of adhesives and sealants in medical devices and equipment. Overall, the future looks bright for the market, with continued innovation and technological advancements driving growth and expansion.

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What are the Key Data Covered in this Market Forecast Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2024 and 2028
• Precise estimation of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market's competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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