Report ID: PMRREP34290
Number of Pages: 175
Format: PPT*, PDF, EXCEL
Industry: Chemicals and Materials
Published Date: April-2024
The market is projected to expand at a CAGR of 4.8% and thereby increase from a value of US$78 Bn in 2024 to US$109 Bn by the end of 2031.
Key Highlights of the Market
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Attributes |
Key Insights |
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Adhesives and Sealants Market Size (2024E) |
US$78.0 Bn |
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Projected Market Value (2031F) |
US$109.0 Bn |
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Forecast Growth Rate (2024 to 2031) |
4.8% CAGR |
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Historical Growth Rate (2018 to 2023) |
1.8% CAGR |
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The market is anticipated to experience substantial growth from 2024 to 2031, presenting a compelling absolute dollar opportunity estimated at US$31 billion during this period.
The industry's trajectory is marked by a shift towards innovative formulations designed for specific applications, reflecting an increasing emphasis on sustainability and causing transformative changes in manufacturing processes.
The packaging sector is witnessing a notable uptick in demand for adhesives, propelled by the global surge in e-commerce and the retail industry.
Furthermore, the automotive manufacturing sector is actively adopting adhesives to significantly reduce vehicle weight, a trend gaining popularity and poised to dominate the market's end-use growth.
The future trends shaping the adhesives and sealants market are intricately linked to rapid urbanization and industrial development in developing economies such as China, India, and Brazil, leading to an increased demand for these materials.
Manufacturers are poised to capitalize on substantial growth opportunities across diverse applications, ranging from infrastructure construction to packaging for consumer goods.
Industries such as automotive, aerospace, and construction play a pivotal role in propelling the demand for high-performance adhesives, characterized by exceptional strength, durability, and resistance to extreme conditions.
Notably, epoxy adhesives, renowned for their robust bonding capabilities and resistance, are extensively utilized in aircraft construction.
Furthermore, sustainability emerges as a pivotal force shaping the market, prompting manufacturers to focus on eco-friendly alternatives. This shift involves the use of bio-based or recycled materials with lower VOC emissions.
Water-based and hot melt adhesives are gaining popularity due to their reduced solvent content and energy consumption, reflecting the industry's commitment to environmental responsibility and meeting evolving market demand.
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Get a Customized VersionIncreasing Demand for Lightweight Vehicles Pushing Demand in Automotive Manufacturing
The surge towards e-mobility in the automotive industry is significantly driving the market. Adhesives play a crucial role in the shift to electric vehicles, providing lighter bodies for increased range by replacing bulky mechanical fasteners. This not only reduces weight but also enhances fuel efficiency and extends the vehicle's range.
For example, electric vehicles can utilize up to 50 meters of adhesive for bonding various components. The use of adhesives in vehicles is estimated to trim down the mass by an impressive 300 kgs.
Beyond weight reduction, adhesives strengthen and provide flexibility, enabling innovative body designs and the joining of dissimilar materials. The Ford F-150 truck exemplifies this with structural adhesives bonding the aluminium bed to the steel frame, reducing weight and increasing strength.
These adhesives also serve as vibration dampeners, ensuring a quieter and more comfortable driving experience in both traditional and electric vehicles.
Widening Consumer Electronics and Battery Applications
The electronics industry's quest for miniaturization fuels a robust demand for high-performance adhesives. Essential in compact devices like smartphones, adhesives offer superior strength, flexibility, and thermal management as traditional fasteners become obsolete.
iPhone exemplifies this trend, with a 60% larger screen and a 40% slimmer design, achieved through specific adhesives. Modern adhesives surpass conventional bonding, serving as heat conductors, vibration dampeners, shields against electromagnetic interference, and sensors.
Ongoing innovation focuses on faster curing, improved conductivity, and enhanced durability, aligning with sustainability goals through bio-based options. For instance, Sika's thermally conductive adhesive for battery trays exemplifies the impactful role of R&D in adhesive technology.
Fluctuations in Raw Material Prices
The adhesives and sealants market is intricately linked to crude oil price fluctuations, relying on petrochemical components such as resins, plasticizers, and solvents. The volatility, influenced by geopolitical events, supply chain disruptions, and global demand, significantly impacts production costs.
Manufacturers, faced with surging raw material prices, must decide to absorb the costs, squeezing profit margins, or pass them on to consumers, risking market competitiveness.
The Russia-Ukraine conflict in 2022 exemplifies how geopolitical events spike crude oil prices, directly impacting adhesives production costs.
Ongoing research seeks innovative formulations using alternative materials to mitigate challenges posed by the strong correlation between crude oil and polymer resin prices, necessitating industry adaptation for long-term growth.
Key market trends include the transformative impact of automation and robotics, ensuring precise and efficient adhesive application, especially in high-volume production.
Advances in dispensing systems and curing technologies result in faster processing and improved product quality. Sustainability plays a crucial role, driving a shift towards eco-friendly options with bio-based or recycled materials and lower VOC emissions. Water-based and hot melt adhesives gain popularity for reduced solvent content and energy consumption.
High-performance adhesives are in demand in automotive, aerospace, and construction, offering exceptional strength and durability, with epoxy adhesives widely used in aircraft construction.
The industry experiences a digital transformation, influencing sourcing, distribution, and marketing through online platforms and e-commerce channels, enhancing manufacturers' reach.
Digital tools facilitate product development, simulation, and customer support, fostering efficiency and innovation.
Rapid urbanization, and industrial development in emerging economies like China, India, and Brazil drive increased demand across applications, from infrastructure to consumer goods packaging.
Boom in E-commerce Market Elevating Prospects of Packaging Adhesives and Sealants
The e-commerce surge is tightly knitting together the adhesives and sealants market at a rapid pace. As online shopping experiences unprecedented growth, there is a simultaneous escalation in the demand for secure and efficient packaging.
Adhesives play a ubiquitous role, from sealing boxes to crafting tamper-evident labels. This upswing propels market expansion, necessitating a call for innovation.
The emphasis is on devising cost-effective and sustainable solutions capable of catering to diverse packaging needs with swift application. The future holds promise for adhesives that can adeptly navigate the dynamic and fast-paced realm of online retail.
Pacing Construction Activity
The building and construction industry is dynamic, continually adopting new technologies and materials to create structures that are not only robust but also highly efficient.
Adhesives and sealants have become indispensable in this evolution, experiencing a significant uptick in demand for multiple reasons. They contribute to faster and more efficient construction by eliminating the need for traditional mechanical fasteners, reducing both construction time and labor costs.
For instance, adhesives facilitate the swift assembly of pre-fabricated wall panels on-site, expediting the construction of apartments, hotels, and office buildings.
Additionally, modern adhesives provide impressive strength and flexibility, effectively bonding diverse materials and resulting in structures with enhanced integrity and resistance to seismic forces.
Sealants play a pivotal role in improving energy efficiency by preventing air leaks and drafts, leading to significant energy savings and contributing to certification programs like LEED, and BREEAM.
Moreover, sealants act as a frontline defense against water damage, ensuring watertight protection and extending the lifespan of structures.
Adhesives Continue to See the Most Extensive Sales
Among sealants and adhesives, the later segment dominates the market due to larger demand and utilization from application industries. Adhesives and Sealants Market which are primarily used to bond surfaces together find their application not only in packaging industry but also in footwear, leather, woodworking, construction, and many more industries.
Adhesives have become an irreplaceable part of these industries. Manufacturers are also developing industry specific adhesive grades that serves to the specific purpose of the application and result in higher performance and optimum pricing. As a result, the demand for adhesives is expected to remain higher with the growth in end-use industries.
On the other hand, sealants are used to fill the gap between surfaces to stop leakage, and passing of water, air or any other material from them. Sealants have specific application in construction industry where they are extensively used for tile fixing.
In recent times, sealants have found application in electronics industry and many manufactures have developed specific grade of electronic sealants for the industry.
Water-Based Adhesives and Sealants Gains Traction in Line with the Sustainability Boom
Based on technology type, water-based adhesives and sealants are growing fast in demand among end-use industries. The rising preference for eco-friendly and less hazardous chemicals is driving the market for water-based adhesives over their solvent-based counterparts.
The sustainability megatrend across chemical industries is influencing the market participants to opt for solutions that reduce the environmental and social impact.
Water-based adhesives and sealants turns out to be perfect fit for these applications. It is key to note that water-based adhesives hold more than 50% market share in packaging adhesive solutions.
Building & Construction, Followed by Automotive & Transportation, at the Forefront of Adoption
New opportunities abound for adhesives and sealants in the building and construction industry, driven by the transformative role they play in facilitating the use of lighter construction materials. This not only enhances structural strength but also contributes significantly to enhanced energy efficiency.
The application of structural adhesives in skyscrapers stands out, as these adhesives not only reinforce structural integrity but also contribute to reducing overall weight, aligning seamlessly with sustainable design principles.
Advanced sealants are increasingly being utilized to optimize indoor air quality and minimize drafts in energy-efficient buildings, catering to the growing demand for environmentally conscious construction practices.
The implementation of intelligent sealants in homes adds another dimension, allowing structures to adapt to temperature changes, thereby improving comfort levels and reducing overall energy consumption.
Similarly, the automotive and transportation sector offers compelling opportunities, particularly with the rising prominence of electric vehicles (EVs).
Adhesives are indispensable in the manufacturing of lightweight components crucial for EVs, extending their range and significantly reducing emissions. Adhesives also play a pivotal role in noise reduction within vehicles, creating quieter and more comfortable cabins.
Envisioning a future of noise-free drives underscores the silent strength of adhesive technology in the automotive industry, contributing not only to comfort but also aligning with the broader trend towards sustainable and eco-friendly transportation solutions.
East Asia Spearheads with Strong Demand Surge Across End-Use Industries
The East Asia region asserts its dominance in the global adhesives and sealants market, commanding an impressive 30% market share. Projections indicate that the region is well-positioned to sustain this leading role in the forecast period.
The prevalence of a vast array of end-use industries in countries such as China, Japan, and South Korea contributes to the region's robust demand, integral for various joining and fixing applications.
Boasting over 20% of the global population, east Asia region experiences substantial demand for consumer goods, fuelling the need across diverse sectors, including packaging, footwear and leather, medical accessories, electronics, and woodworking.
Notably, the region's excellence in automotive manufacturing, particularly in China, Japan, and South Korea, establishes east Asia as a hub for vehicle production.
Given the growing emphasis on lightweight EV manufacturing, the future for adhesives and sealants in the East Asia region appears highly promising.
North America Holds the Promise in Long Term
North America holds the highest per capita consumption for adhesives and sealants market. The market dynamics of this region is prominently shaped by the US market holding about 90% of the market share.
The growing automotive and aerospace industry in the country is a key factor driving the innovations. High quality products that can withstand harsh weather conditions and enhanced performance are the prime choice for high end applications.
Similarly, the medical grade adhesives and sealants are experiencing high demand in the market owing to growing preference for high quality medical facilities. However, the North American market reaching maturity resulting in rising consolidation through merger and acquisitions by leading market participants.
Prominent companies are at the frontline of this sector holding slightly less than one-third of the market share. These companies have vast experience in adhesives and sealants market, excellent R&D capabilities, and state-of-art production facilities that marks them apart from their competitors.
However, several companies also exert considerable influence in regional markets, boasting robust and well-established supply networks, along with a strong brand reputation. Consequently, these companies present formidable challenges to the market leaders.
Supply-side Dynamics and Business Strategy
In the year 2022, the global trade value of adhesives and sealants surpassed US$ 16 billion. The leading countries in the export were China, Germany, and the U.S., collectively contributing to approximately 47% of the global trade for the year. Success in the market hinges on product diversification, innovation, and a robust distribution network.
Diversifying products allows companies to offer solutions to various industries, while innovation ensures the delivery of high-quality solutions. An effective distribution network is crucial for positioning the right products in the right markets.
Market participants excelling in all three segments have witnessed substantial growth. For example, Henkel AG & Co. KGaA boasts an extensive product portfolio catering to industries such as paper board & packaging, building & construction, woodworking & joinery, automotive & transportation, footwear & leather, and medical.
The company allocates approximately 2.3% of its revenue to research and development, and its vast global distribution network positions it as the largest entity in the adhesives and sealants market, holding a substantial 15% market share.
The anticipated impact of this investment involves the creation of job opportunities, fostering economic development, and expanding the range of available products in the region.
The acquisition is expected to fortify Bostik's positions in South Africa and Sub-Saharan Africa, particularly in the dynamic industrial, construction, and DIY markets.
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Attribute |
Details |
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Forecast Period |
2024 to 2031 |
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Historical Data Available for |
2018 to 2023 |
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Market Analysis |
US$ Million for Value |
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Key Regions Covered |
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Key Countries Covered |
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Key Market Segments Covered |
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Key Companies Profiled |
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Report Coverage |
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Customization & Pricing |
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The market is anticipated to grow at a CAGR of 4.8% during the projected period.
The adhesives and sealants market was valued at US$78 Bn in 2024
China held the largest market share in 2024
The prominent players in the market are Henkel AG & Co. KGaA, H.B. Fuller, Sika AG, Arkema SA, 3M Inc., and Dow Inc.
Automotive & transportation segment is expected to grow at the fastest growth during the forecast period.
