Adhesives and Sealants Market Size, Share & Trends Report

Adhesives and Sealants Market Size, Share & Trends Analysis Report By Technology, By Product, By Application, By Region (North America, Europe, Asia Pacific, CSA, MEA), And Segment Forecasts, 2019 - 2025

  • Published Date: Feb, 2019
  • Base Year for Estimate: 2017
  • Report ID: 978-1-68038-081-1
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2016
  • Number of Pages: 200

Industry Insights

The global adhesives and sealants market size was valued at USD 52.55 billion in 2017 and is expected to witness a CAGR of 5.6% from 2018 to 2025. Increasing demand from automotive, construction, packaging, furniture, footwear, and pressure sensitive applications is the primary factor driving the growth.

Rising penetration of lightweight passenger cars with higher fuel economy and lower emissions has driven sales of high-performance adhesives across the global automotive industry. These adhesivesfind diverse usage in both interior and exterior automotive applications. For instance, they can reduce weight by substituting nuts and bolts and thereby increase the fuel economy of vehicles. As a result, the traditional welding and other mechanical fastening methods are expected to be replaced by enhanced adhesives with superior bonding capabilities.

China adhesives market

The adhesives and sealants are majorly used fortiling applications, attaching drywall, fixtures to walls, ceiling applications, bathroom flooring, and molding applications in the construction sector. Therefore, rapid growth of the construction industry, especially in emerging economies like China and India is expected to create growth opportunities in near future.

Stringent regulations formulated by the environmental authorities on the utilization of adhesives with high Volatile Organic Compounds (VOCs) are anticipated to push the industry participants to launch bio-based adhesives. Hence, the manufacturers are undertaking various strategic initiatives, such as extensive R & D activities for the production of sustainable products.

Key raw materials used for manufacturing adhesives are sourced from crude oil and petrochemicals. Volatile prices of these products have affected the profitability of participants in the recent past and is likely to have a major impact on growth of the adhesives and sealants market in near future.

Technology Insights

Water based technology dominated the adhesives market accounting for 49.3% of the volume in 2017. In this technology, water is used as a carrier or diluting medium and is allowed to set by evaporation, or absorbed by the substrate. Furthermore, they reduce VOC emissions and increasing environmental awareness and stringent regulations are projected to propel the segment growth in the forthcoming years.

In terms of revenue, adhesives based on hot melt technology is estimated to register a CAGR of 5.9% during the forecast period owing to excellent properties. They form a rapid bond and hence are used in highly automated manufacturing processes such as assembly, converting, packaging, book binding, and foot wear.

The solvent based technology adopts organic solvents as a carrier or diluting medium. They are widely utilizedin outdoor and long-term applications due to their high bond strength, and excellent heat and chemical resistance. However, increasing crude oil prices coupled with environmental and work safety regulations are expected to restrict the demand for this technology.

Product Insights

In terms of revenue, acrylic is predicted to witness the fastest CAGR of 6.3% in adhesives market during the forecast period. Acrylic based materials are significantly being used in the development of waterborne, heat resistant, and UV light curing adhesives. Moreover, they have fast setting time, robust bonding characteristics, and good environmental resistance.

Polyurethane adhesives accounted for significant volume share in 2017. The solidity, low viscosity, and less cure time offered by these adhesives are the significant features driving their penetration in footwear, packaging laminations, bonding fiberglass, and automotive windshield bonding.

PVA based adhesives are cost-effective and are predominantly used for porous surfaces, such as wood and paper. Packaging and furniture applications that involve joining wood and paper substrate accounts for almost 90% of the PVA adhesive consumption. It is also used in the construction industry in flooring and panel installation. Growing packaging industry coupled with increasing infrastructure spending in emerging economies is expected to benefit the segment growth.

Silicone emerged as the leading product segment of the overall sealants market in terms of volume in 2017. Silicone is gaining acceptance owing to favorable properties and laws supporting their application in a wide range of industries. The product finds application in construction industry owing to high-temperature resistance.

Acrylic sealants are one of the fastest growing product segments. Favorable physical properties, such as good peel, impact and tensile lap shear strengths are driving the product demand. Excellent adhesion properties exhibited on substrates such as steel and aluminum is expected to boost demand from automotive, consumer, and construction industries.

Application Insights

In terms of revenue, pressure sensitive applications of adhesives captured a significant market share of 27.8% in 2017. In this application, adhesives form a bond with the adherent on application of pressure. There is no requirement of water or any kind of solvent in this application. Significant demand for pressure sensitive tapes, safety labels for power equipment, automotive interior trim assembly, and sound/vibration damping films is anticipated to drive the segment growth.

In terms of revenue, automotive adhesives market is expected to witness the highest CAGR during the forecast period. Recent technological advancements has helped reduce spot welding by almost 50% which has helped reduce the overall weight of automobiles. In addition, stringent regulations in U.S. to increase fuel efficiency have prompted major manufacturers to reduce weight of automobiles thus driving the demand. Moreover, growth of the automobile industry in the BRIC nations is also expected to drive the segment over the forecast period.

Global adhesives market

Packaging application for sealants held a market share of 15.6% in terms of volume in 2017. Innovation in packaging is at its peak with the introduction of flexible packaging. Sealants are used in the packaging sector to ensure package stays sealed throughout warehousing, distribution, display, and usage. The rapidly expanding packaging industry in Asia Pacific is estimated to augment the utilization of sealants.

Sealants are also extensively utilized in industrial assembly as they offer flexibility in processing and improve the longevity of assembly. Polyurethane and acrylics are the major sealant types in industrial assemblies. The resurged demand for agricultural and mining equipment is expected to drive demand for sealants in industrial assembly over the forecast period.

The positive manufacturing outlook is certainly benefitting the consumption of sealants in this application segment. High GDP growth in G-20 countries is expected to fuel the demand for sealants over the forecast period.

Regional Insights

In terms of revenue, Asia Pacific adhesives market is anticipated to witness the fastest CAGR of 7.2% during the forecast period. Rapid industrialization, strong GDP growth, and rise in manufacturing output are estimated to propel the regional growth. In addition, supportive government policies are expected to drive the construction industry, which in turn is expected to support product penetration in the region.

Asia Pacific also led the sealants market in 2017 withChina, India, and Japan as the primary growth generators. Growing manufacturing sector is anticipated to drive sealants demand from automotive, industrial machinery, and electrical and electronics industries. In the recent past, China and India have witnessed a spike in automotive production due to the technology transfer to the sector from western markets.

The Europe adhesives market is largely led by Germany, France, and U.K., in terms of consumption, across a wide range of applications. The regional growth is mainly driven by increasing demand from automobile, medical, engineering, and electronics. Water-borne and reactive segment led, owing to their rising utilization in construction and paper and packaging applications.

North America was one of the largest regional segments in the sealants market with a revenue share of 22.7%. The demand is majorly driven by the presence of a large number of end use industries and rising construction spending in U.S. Moreover, easy availability of raw materials in the form of shale gas coupled with numerous strategic initiatives adopted by companies, such as 3M, BASF, and Avery Denison is expected to generate demand over the forecast period.

Adhesives and Sealants Market Share Insights

The global industry is highly fragmented in nature with over 65% market share occupied by medium and small enterprises. However, the market is entering into consolidation as manufacturers are adopting various strategic initiatives, such as acquisition to capture the regional markets. For instance, H.B.Fuller acquired a Brazilian adhesives and sealant company, Plexbond Quimica SA, to expand its business in the emerging economies of South America.

In addition, expansion is also a significant strategy adopted by the companies to gain competitive advantage and major market share. For instance, in September 2017, BASF announced that it will be opening up a new plant in China for the production of specialty amines. This multi-product plant is expected to have the manufacturing capacity of 21,000 metric tons per year.

Report Scope

Attribute

Details

Base year for estimation

2017

Actual estimates/Historical data

2014 - 2016

Forecast period

2018 - 2025

Market representation

Revenue in USD million, volume in kilotons, and CAGR from 2017 to 2025

Regional scope

North America, Europe, Asia Pacific, Central & South America, and the Middle East & Africa

Country scope

U.S., Canada, Mexico Germany, U.K., France China, India, Japan, Brazil, and Saudi Arabia

Report coverage

Revenue and volume forecast, company share, competitive landscape, growth factors, and trends

15% free customization scope (equivalent to 5 analyst working days)

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Segments Covered in the Report

This report forecasts revenue and volume growth at global, country, and regional levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global adhesives and sealants market report on the basis of technology, product, application, and region:

  • Adhesives Technology Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

    • Water based

    • Solvent based

    • Hot melt

    • Reactive & other

  • Adhesives Product Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

    • Acrylic

    • PVA

    • Polyurethanes

    • Styrenic block

    • Epoxy

    • EVA

    • Other

  • Adhesives Application Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

    • Pressure sensitive applications

    • Packaging

    • Construction

    • Furniture

    • Footwear

    • Automotive

    • Other

  • Sealants Product Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

    • Silicones

    • Polyurethanes

    • Acrylic

    • Polyvinyl acetate

    • Other

  • Sealants Application Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

    • Construction

    • Automotive

    • Packaging

    • Assembly

    • Pressure sensitive tapes

    • Consumers

    • Other

  • Adhesives Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • U.K.

      • France

    • Asia Pacific

      • China

      • India

      • Japan

    • Central & South America

      • Brazil

    • Middle East & Africa

      • Saudi Arabia

  • Sealants Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • U.K.

      • France

    • Asia Pacific

      • China

      • India

      • Japan

    • Central & South America

      • Brazil

    • Middle East & Africa

      • Saudi Arabia

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