TAGS: Sustainability / Natural Adhesives Sealants
Markets and Markets (M&M) anticipates that the global adhesives & sealants market size was USD 76.5 billion in 2023 and is projected to reach USD 95.0 billion by 2028, at a CAGR of 4.4%, between 2023 and 2028. The adhesives & sealants market is expected to be driven by the growth in emerging economies. The increasing number of applications of adhesives & sealants in the paper & packaging, automotive & transportation, and building & construction industries is likely to offer new growth opportunities for the market, globally.
The adhesives and sealants market in India is predicted to develop at the fastest rate due to rising demand from the expanding packaging industry. In terms of adhesive demand, Asia Pacific is a developing market. China and India have been the main drivers behind the market's fast expansion in Asia Pacific and internationally. These nations' rise is linked to substantial economic growth and significant investments in the packaging, automotive, and transportation industries.
Adhesives & Sealants Market Dynamics
Driver: Cooking appliances, washing appliances, refrigeration, and home comfort appliances are all part of the appliance sector. The sector is capital-intensive and fragmented, with numerous significant firms contending for market share. Increasing consumer incomes and frequent lifestyle changes boost appliance demand. Rising demand for smartphones, voice recognition technology, and artificial intelligence, combined with falling pricing, is driving up demand for consumer electronics.
A variety of factors, including rising consumer power, digitization, sustainability, consolidation, and a growing middle-class population, are driving the rapid rate of change in the worldwide market for home appliances. These developments place a premium on investments and economies of scale, while also creating significant possibilities in the appliance market.
Restraints: Environmental rules govern the manufacture of chemical and petroleum-based goods in Europe and North America. The manufacture of solvent-based goods in these regions is governed by organizations such as the Epoxy Resin Committee (ERC) and the European Commission (EC). This has an impact on manufacturing capacity in Europe and North America. Environmental laws are driving manufacturers to work on manufacturing environmentally friendly adhesives.
Opportunity: The USEPA (United States Environmental Protection Association), Europe's Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH), Leadership in Energy and Environmental Design (LEED), and other regional regulatory bodies have compelled adhesive and sealant manufacturers to create eco-friendly products with no- or low-VOC levels. Manufacturers have seen tremendous growth as a result of the transition towards more sustainable products. Henkel, a leading adhesives and sealants firm, provides solvent-free and environmentally friendly products such as H4500, H4710, H4720, and H3151.
There is an increasing need for ecologically friendly or green structures, which opens up the possibility of developing green and sustainable adhesive solutions produced from renewable, recycled, remanufactured, or biodegradable materials.
Challenges: The adhesives and sealants sector is subject to periodic changes in terms of standards and regulations. The Construction Products Regulation (CPR) established new rules for the marketing of construction products in the EU, such as Regulation (EU) No 305/2011. Manufacturers must shoulder the increased burden of labeling and documentation, as well as higher external testing expenses, as a result of the new laws. Additional material warnings concentrating on biocides and waste packaging are issued on a regular basis, causing regulatory requirements to shift. To commercialize their goods, adhesives, and sealants producers must follow the norms and evolving requirements. This presents a problem for producers.
Building & Construction: Largest Market Share
In terms of value and volume, the building and construction segment dominates the sealants industry. Sealants also serve as adhesives in a variety of applications. Sealants, for example, bind the glass to the building framework in structural glazing on glass-walled buildings. Sealants lack the great tensile strength of adhesives but offer improved longevity and reliability when subjected to high humidity, chemical assault, or electrical stress. Silicones allow for some movement between the bonded pieces, which helps to dissipate some of the shearing stresses caused by variances in the thermal expansion of different materials.
In recent years, the use of silicone sealants has risen. Butyl, neoprene, bituminous, and polyurethane sealants have been substituted by silicone in high-demand applications such as filling expansion joints in concrete highways. This is due to the fact that using a lower-performing sealer causes quick degradation of roadway concrete and the underlying rock substrate.
The increased development of curtain wall structures has increased global demand for one- and two-component silicone sealants. Silicone sealants have grown in popularity in the electronics sector in recent years due to their increasing usage in protecting electronic components from heat, moisture, contamination, and unintentional damage. These sealants are used in appliances and electrical gadgets to secure connections and sensors.
Highest Growth in North American Region
Historically, North America has been a significant market for adhesives and sealants. In terms of product innovation, the area has also been a leader. The North American market's primary nations include the United States (the most dominating market, accounting for a substantial proportion), Canada, and Mexico. The United States has one of the world's major automotive marketplaces and is home to several worldwide car and automotive component manufacturers.
The North American adhesives and sealants market is heavily controlled by the Environmental Protection Agency (EPA), which is responsible for product monitoring and marketing. During the projected period, these factors are likely to play a major influence in boosting the adhesives & sealants market.
Henkel AG (Germany), H.B. Fuller (US), Sika AG (Switzerland), Arkema (Bostik SA) (France), 3M (US), Huntsman Corporation (US), Illinois Tool Works Inc. (US), Avery Dennison Corporation (US), Dow Inc. (US), and Wacker Chemie AG (Germany) are the key players operating in the global market.
Source: Markets and Markets (M&M)