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Adhesive and Sealants Market is Expected to Witness High Demand From Construction and Automotive Industry

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News provided by

Acumen Research and Consulting

Feb 14, 2020, 19:30 ET

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LOS ANGELES, Feb. 14, 2020 /PRNewswire/ -- The global adhesive and sealants market size is expected to reach USD 83 billion by 2026 growing at a CAGR of 5% over the forecast period 2018 to 2026.

Adhesives can be defined as substances that have properties that are capable to join surface permanently. This process involves two dissimilar bodies that are held in intimate contact such that mechanical force or work can be transferred across the interface. Adhesive, also known as glue, cement, mucilage, or paste, is any non metallic substance applied to one surface, or both surfaces, of two separate items that binds them together and resists their separation. The main difference between adhesives and sealants is due to their properties such as sealants have low strength and high elongation as compared to adhesives. The main objective of a sealant is to seal the assembly joints. Sealants generally contain inert filler material and are usually formulated with an elastomer to give the required flexibility and elongation.

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With the rising construction and reconstruction activities across the globe and flourishing automotive sector there is a constant increase in demand for high quality bonding material that is able to withstand high temperature and harsh environmental conditions are some factors providing a growth prospective to the adhesives and sealant market. In addition, high demand for bonding material from furniture and footwear industry is expected support the growth.

Moreover, presence of large number of players and inclination towards increase the business presence is resulting in approach towards strategic merger and acquisition which is expected to increase their customer base and enhance product portfolio is another factor support the growth of the global market.

However, fluctuation raw material prices and stringent government regulations pertaining to product approval are some factor that is expected to pose a threat to the market growth. Moreover, availability of various alternatives is expected to hinder the market growth.

Increasing investment by major players for technological advancements and R&D activities is expected to create new revenue opportunities for players operating in the target market over the forecast period. In addition, rising eco-friendly approach, use of water based adhesives, and introduction of innovative products are among other factors expected to further support the revenue growth of the market.

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Stringent government regulation in developed countries related to VOC emission from Epoxy and solvent based products, coupled with rising environmental regulations is shifting manufacturers focus on development of eco-friendly products. This is expected to increase demand for water based products which in turn is positively impacting the segment growth.  

Stringent government regulations and increasing demand from construction sector and packaging sector for water based adhesives and sealants are some major factors drive growth of the target market in North America. In addition, presence of major players operating in the countries such as US and Canada and introduction of new products is expected to further support the market growth in this region. Moreover, business expansion activities through strategic agreements and partnerships are expected to further support the market growth in North America. In 2017, BASF entered into a strategic collaboration with HP Indigo for development of water-based adhesive solutions for flexible packaging. This collaboration is expected to enhance the company product portfolio.

Rapid industrialization in developing countries, growing demand from electronic manufacturers for adhesive that has high bonding capacity, along with developing automotive sector are major factors that are expected to bolster the market growth in Asia Pacific region. In addition, prominent players approach towards shifting the manufacturing to developing countries owing to easy availability of raw materials and low cost labor is another factor expected to boost the market growth in this region.

Some of the major players operating in the global market include BASF SE, 3M Company, The Dow Chemical Company, Ashland Inc., Avery Denison Corporation, Arkema, Beardow & Adams Limited, Eastman Chemical Company, Ellsworth Adhesives, H.B Fuller Company, Henkel AG & Co., Momentive Specialty Chemical Industries, N.D. Industries Inc., Sika AG, Uniseal Inc.

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Developing bio-based products and establishment of new manufacturing plant are some important strategies adopted by the major players in order to gain a competitive edge.

  • In 2019, BASF established a new production facility at Ludwigshafen site in Germany in order to double its manufacturing capacity for UV acrylic hotmelts sold under the brand name acResin. This expansion will help the company to strengthen its position in solution provider for sophisticated applications in adhesives sector.
  • In 2018, Arkema announced the acquisition by the Bostik-Nitta joint-venture of the industrial adhesives of Nitta-Gelatin Inc., as well as the construction of a new world-scale adhesives plant in Japan. These operations will enable Bostik to supply its Japanese customers in the buoyant nonwoven markets for hygiene applications and in packaging, labelling, transportation and electronics industrial markets.

Market Segmentation

Market By Adhesive Technology

  • Water Based
  • Solvent Based
  • Hot Melt
  • Reactive & Other

Market By Adhesive Product

  • Acrylic
  • PVA
  • Polyurethanes
  • Styrenic Block
  • Epoxy
  • Eva
  • Other

Market By Adhesive Application

  • Pressure sensitive applications
  • Packaging, Construction
  • Furniture
  • Footwear
  • Automotive
  • Other

Market By Sealant Product

  • Silicones
  • Polyurethanes
  • Acrylic
  • Polyvinyl acetate
  • Other

Market By Sealant Application

  • Construction
  • Automotive
  • Packaging
  • Assembly
  • Pressure sensitive tapes
  • Consumers
  • Other

Market By Geography

  • North America
  • Europe
  • China
  • Southeast Asia
  • Japan
  • India

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Acumen Research and Consulting (ARC) is a global provider of market intelligence and consulting services to information technology, investment, telecommunication, manufacturing, and consumer technology markets. ARC helps investment communities, IT professionals, and business executives to make fact based decisions on technology purchases and develop firm growth strategies to sustain market competition. Among the industries served include aerospace and defense, information and communication technology (ICT), semiconductor and electronics, healthcare and pharmaceuticals, chemicals, advanced materials, banking, finance services and insurance (BFSI), and others.

Our collective industry experience of over 100 years has helped us to offer appropriate market information and our global reach and regional connects ensures appropriate insights into regional markets to guarantee apt delivery of information.

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SOURCE Acumen Research and Consulting

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