The global adhesives and sealants market size was valued at US$ 44.1 billion and US$ 10.4 billion respectively in 2019 and expected to grow at a compound annual growth rate (CAGR) of 6.7% and 6.1% during the forecast period 2020 to 2027.
Increasing penetration of lightweight passenger vehicles together with lower emissions and higher fuel economy drives the sale of high-performance adhesives across the global automotive industry. These adhesives find numerous applications in both interior and exterior applications in the automotive industry. For instance, they can be used as a substitute of nuts & bolts in a vehicle that significantly reduces its weight and resulting in an improved fuel economy of vehicles. Consequently, traditional welding as well as other mechanical fastening methods predicted to be replaced by the enhanced adhesive materials with superior bonding capabilities.
The adhesives and sealants are prominently used for attaching drywall, tiling applications, bathroom flooring, ceiling applications, fixtures to walls, and molding applications in the construction sector. Thus, rapid growth in the construction industry particularly in the developing countries such as China and India projected to offer lucrative growth opportunities in the near future.
Water-based technology led the adhesives market accounting for nearly 50% of the volume in the year 2019. In this technology, water is used as a diluting medium or carrier and allowed to set by evaporation or absorbed by the substrate. Furthermore, they reduce Volatile Organic Compound (VOC) emissions, increasing environmental awareness, and stringent government regulations are predicted to boost the growth of the segment in the forthcoming years.
In terms of revenue, hot melt technology expected to witness a growth rate of approximately 6% over the analysis period because of its excellent properties. They form rapid bond and therefore are implemented in highly automated manufacturing processes that include converting, assembly, bookbinding, packaging, and footwear.
Pressure sensitive applications of adhesives captured prominent value share of nearly 30% in 2019. In this application, when pressure is applied to the adhesives, they form a bond with the adherent. Water or any other type of solvent is not required for this application. In addition, prominent demand for automotive interior trim assembly, safety labels for power equipment, pressure sensitive tapes, and sound or vibration damping films anticipated to propel the growth of the segment.
Moreover, the automotive adhesives market predicted to register the highest growth over the forecast period. Recent technological advancements in adhesive and sealants have helped to reduce the frequency of spot welding by almost 50% that has helped notably in reducing the overall weight of vehicles. In addition, stringent regulations in the U.S. for improved fuel efficiency have prompted leading manufacturers in the automotive industry to reduce the weight of automobiles thus prospering the demand of automotive adhesives and sealants. Further, an escalating growth of the automobile industry particularly in the BRIC nations expected to foster the growth of the segment over the analysis period.
Based on region, the Asia Pacific adhesives market anticipated to register the highest growth over the forthcoming years. Rapid industrialization, rise in manufacturing output, and strong GDP growth projected to boost the growth of the region. Besides this, supportive government policies predicted to propel the demand of adhesives in construction industry that in turn expected to support the product penetration in the region.
Moreover, the Asia Pacific region is also a front-runner in the sealants market in 2019 with India, china, and Japan as the prime countries that contribute towards the revenue growth. The flourishing manufacturing sector anticipated to fuel the sealants demand from industrial machinery, automotive, and electrical &electronics industries. In the recent past, India and China have witnessed a spike in automotive production because of technology transfer to the sector from western markets. This has enhanced the manufacturing capabilities of the sector leading to boost the overall sales of automobiles in the region.
On the other hand, Europe considered as a significant market for adhesives because of a hub of large number of automobile manufacturers in the region. Adhesives have large application in the automotive industry that include friction, metal/composites bonding, glass, headlight assembly, exterior trims, interiors, body sealing, electrical motors & components, and noise vibration harshness. In terms of sealants, North America examined as the largest market with a revenue share of nearly 23%. This is attributed to the significant presence of end-use industries along with increased spending in the construction sector.
Key Companies & Market Share Insights
The global adhesives and sealants industry is highly fragmented and competitive in nature with more than 65% of share occupied by small and medium enterprises. However, the market expected to enter into consolidation because of various strategic initiatives adopted by the market players such as acquisition to acquire the maximum regional markets. For instance, H.B.Fuller enters into an agreement to acquire a Brazilian adhesives and sealant company, Plexbond Quimica SA, to grow its business in South America.
Some of the prominent players in the adhesives and sealants market include:
Segments Covered in the Report
This research study comprises complete assessment of the market by means of far-reaching qualitative and quantitative perceptions, and predictions regarding the market. This report delivers classification of marketplace into impending and niche sectors. Further, this research study calculates market size and its development drift at global, regional, and country from 2016 to 2027. This report contains market breakdown and its revenue estimation by classifying it based on product, application, and region:
By Adhesives Product
By Adhesives Technology
By Adhesives Application
By Sealants Product
By Sealants Application
By Regional Outlook
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