Adhesives and Sealants Market to grow by USD 16.5 Billion from 2024-2028, driven by demand in construction and food packaging, with AI redefining the market landscape - Technavio

NEW YORK, Oct. 21, 2024 /PRNewswire/ -- Report with market evolution powered by AI - The Global Adhesives and Sealants Market size is estimated to grow by USD 16.5 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  4.36%  during the forecast period. Growing demand from construction and food packaging applications is driving market growth, with a trend towards growing use of adhesives in medical devices. However, volatility in raw material prices  poses a challenge - Key market players include 3M Co., 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.

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Market Driver

The medical sector's increasing reliance on adhesives and sealants is fueling market growth. In this field, adhesives frequently surpass the functionality of traditional fasteners. New adhesive technologies are being developed at an accelerated pace for the reusable medical device market. Devices such as disposable ECG electrodes, grounding plates, and others are manufactured using engineering resins like polyphenylene sulfide (PPS), polyolefins, and metals, including aluminum, titanium, nickel, and stainless steel. Medical adhesives consist of epoxy, silicones, polysulfides, and polyurethanes, among others. For instance, Structalit 701 from Panacol-Elosol GmbH is a medical-grade adhesive for bonding surgical instruments. Similarly, Loctite 4011 from Henkel AG and Co. KGaA is a medical device instant adhesive designed for bonding challenging materials that require uniform stress distribution and shear strength. The expanding utilization of adhesives and sealants in medical devices and applications, such as medical wearables and medical electronic devices, is projected to boost the global adhesive and sealants market during the forecast period. 

The Adhesives and Sealants market is experiencing significant growth in various industries. In the Automotive sector, there is a trend towards lightweight vehicles, leading to increased demand for high-performance adhesives like Epoxy and Acrylic. In Building and Construction, materials like Drywalls, Tilling, and Molding are seeing increased usage with Water-Based Adhesives and Emulsion gaining popularity due to environmental legislation against Volatile Organic Compounds. The Paper and Packaging industry relies heavily on Adhesives for assembly, with Acrylic and Hot-Melt Adhesives dominating. In the Consumer and DIY segment, there is a shift towards DIY projects for Bathroom floor coverings and Ceiling applications, driving demand for Silicone sealants. Reactive and other technologies, including Polyurethanes and Polysulfide, are popular in industries like Aerospace and defense and Electronics. Raw material prices and manufacturing output are key factors affecting market growth. Wacker, a leading player, dominates the Silicone sealants market. The Hot-melt segment is also growing due to its ease of use and cost-effectiveness. Discount retailers and the Grocery retail sector are major consumers, with packaging segments driving demand. 

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 Market Challenges

• Adhesives and sealants are essential industrial products manufactured using polymeric materials. Key raw materials for their production include acrylic, silicone, polyurethane, EVA, and others. These materials are often downstream products of crude oil. The price of crude oil significantly influences the cost of adhesives and sealants production. For instance, the Middle East's polyol prices in September 2020 due to the constant rise in polyol prices and the scarcity of cargoes, leading to a decrease in demand for toluene diisocyanate. The US Energy Information Administration anticipates an average Brent crude oil price of USD64 per barrel in Q2 2021, falling below USD60 per barrel by the end of 2022. High crude oil prices in March and April 2021 are primarily due to low crude oil production from the Organization of the Petroleum Exporting Countries and partners. These price fluctuations impact the cost of adhesives and sealants production, potentially hindering market growth.
• The Adhesives and Sealants market faces various challenges in different industries. In Hot-Melt Adhesives, the main hurdle is the competition from Reactive and Others. In Paper and Packaging, the focus is on reducing costs for discount retailers and the grocery sector, impacting the demand for Adhesives and Sealants. In Building and Construction, manufacturing output fluctuations and the need for lightweight solutions pose challenges. In Woodworking, Automotive and Transportation, and Consumer and DIY sectors, the demand for Adhesives and Sealants remains strong. However, raw material prices, especially for Polyurethanes, Silicone, Plastisol, Emulsion, Polysulfide, Butyl, and Polyvinyl acetate, pose a significant challenge. Industries like Electronics, Medical, and Aerospace and Defense require high-performance Adhesives and Sealants, driving innovation in Polyurethanes, Silicones, and Epoxy-based products. Flexible packaging and Healthcare spending are key growth areas for Sealants, particularly Silicones. The Lightweight Revolution in the Automotive industry is leading to increased demand for automotive vehicles, dashboards, and Acrylic product segment. Wacker's Silicone sealants and Reactive technology in Hot-melt segment continue to dominate the market.

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Segment Overview 

This adhesives and sealants market report extensively covers market segmentation by  

1. Technology 
• 1.1 Water based
• 1.2 Solvent based
• 1.3 Hot melt
• 1.4 Others
2. End-user 
• 2.1 Building and construction
• 2.2 Paper and packaging
• 2.3 Transportation
• 2.4 Leather and footwear
• 2.5 Others
3. Geography 
• 3.1 APAC
• 3.2 Europe
• 3.3 North America
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Water based-  The adhesives and sealants market is a significant industry, supplying essential products for various applications. Companies manufacture these materials to bond and seal different surfaces. Adhesives serve to join materials together, while sealants prevent the passage of air, water, or other substances. Market growth is driven by factors like increasing construction activities, automotive production, and packaging industries' demands. Producers continuously innovate to offer high-performance, cost-effective solutions.

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Research Analysis

The Adhesives and Sealants market encompasses a wide range of applications, including vehicles, construction, and consumer goods. In the construction industry, materials like cement, drywalls, fittings, and molding are frequently bonded using adhesives and sealants. Ceiling applications, bathroom floor coverings, and tile adhesion are other common uses. Environmental legislation and the reduction of Volatile Organic Compounds (VOCs) have driven the development of water-based and solvent-free adhesives. The automobile sector utilizes reactive technology and hot-melt segments for manufacturing components. Acrylic adhesives dominate the packaging segments, while discount retailers and the grocery retail sector rely on these products for product assembly and shelf-ready packaging. The aerospace and defense industry uses high-performance adhesives for bonding critical components. The COVID-19 pandemic has affected manufacturing output, but the market is expected to recover due to the essential nature of these products. Wacker is a leading player in the silicone sealants market.

Market Research Overview

The Adhesives and Sealants market encompasses a wide range of applications across various industries. In the Automotive sector, these materials play a crucial role in assembling components in vehicles, from dashboard production to bonding body panels. In Construction, adhesives and sealants are essential for tiling, drywall installation, and ceiling applications, among others. In Bathroom floor coverings and Molding, water-based adhesives are increasingly popular due to their eco-friendliness. Environmental legislation and the reduction of Volatile Organic Compounds (VOCs) have driven the demand for alternative adhesive technologies, such as Acrylic, Epoxy, and Water-Based Adhesives. The Lightweight Revolution in the Automotive industry has led to the increased use of Hot-Melt Adhesives and Reactive and Other types of adhesives. The Paper and Packaging industry relies on adhesives for various applications, while Building and Construction, Woodworking, and Electronics industries also heavily utilize these materials. In the Consumer and DIY sector, adhesives find extensive use in Leather and Footwear, Assembly, and various household projects. Polyurethanes, Silicone, Plastisol, Emulsion, Polysulfide, Butyl, and other types of adhesives and sealants cater to diverse industries, including Aerospace and Defense, Healthcare, and Flexible Packaging. Raw material prices and packaging segments, including discount retailers and the grocery retail sector, also impact market trends. The Adhesives and Sealants market continues to evolve, driven by technological advancements and industry demands.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Technology
• Water Based
• Solvent Based
• Hot Melt
• Others
• End-user
• Building And Construction
• Paper And Packaging
• Transportation
• Leather And Footwear
• Others
• Geography
• APAC
• Europe
• North America
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio