MarketsandMarkets: Adhesives and sealants market worth USD 80.0 billion by 2025

According to the new market research report the "Adhesives and Sealants Market by Adhesive Formulating Technology (Water-based, Solvent-based, Hot-melt, Reactive), By Sealant Resin Type (Silicone, Polyurethane, Plastisol, Emulsion, Polysulfide, Butyl), Application, Region – Global Forecast to 2025" from MarketsandMarkets, the global adhesives and sealants market size is expected to grow to USD 80.0 billion by 2025 from USD 63.2 billion in 2020, at a CAGR of 4.8 % during the 2020 – 2025 period.

According to MarketsandMarkets, the key players operating in the market are Henkel AG (Germany), H.B. Fuller (USA), Sika AG (Switzerland), Arkema (Bostik SA) (France), and 3M Company (USA). The major drivers for the market are increased demand for adhesives in the medical industry, increasing demand for adhesives and sealants from the building and construction industry, and growth in the appliances industry. The building and construction segment accounts for the largest share in the sealants market, in terms of value and volume. In several applications, sealants also perform as adhesives. For instance, in structural glazing on glass-walled buildings, sealants also adhere the glass to the building framework. Sealants do not have high tensile strength like adhesives but have superior durability and dependability when exposed to conditions of high humidity, chemical attack, or electrical stress.

Polyurethane is projected to witness the fastest growth of sealants market during the forecast period, in terms of volume. Polyurethane sealants are one of the most widely used technologies for both new construction and renovation projects. These sealants are available in single and multi-component formulations. These sealants provide better tintability, adhesion, and abrasion resistance than silicone sealants. They are commonly used in automotive, parking deck and sidewalk sealing, construction, and marine applications.

APAC has emerged as one of the leading producers as well as consumers of adhesives and sealants due to the increasing domestic demand, rising income levels, and easy access to resources. The automotive and transportation industry is one of the major consumers of adhesives and sealants in this region. The economic growth in the APAC region, particularly in the emerging markets such as India, Taiwan, Indonesia, Malaysia, Thailand, and Vietnam, is contributing to the increase in the number of infrastructure projects, which is expected to drive the demand for adhesives and sealants in the building and construction application.

The growing population and urbanization are driving the residential construction segment in developing countries such as China, India, Indonesia, Vietnam, Brazil, and Mexico. There is an increasing demand for permanent houses in these countries, which, in turn, is driving the demand for adhesives and sealants. There are various applications of adhesives and sealants in the construction industry, such as carpet, tiling, wallpapers, and exterior insulation systems. Adhesives and sealants are also used to hold curtain wall panels and insulating glass units in place. Hence, the increasing demand for adhesives and sealants from the construction industry is a key driver for the market.

Europe and North America are strictly regulated by environmental laws regarding the production of chemical and petro-based products. Agencies such as the Epoxy Resin Committee (ERC) and the European Commission (EC) govern the manufacturing of solvent-based products in these regions. This is affecting the production capacities of manufacturers in the European and North American regions. However, stringent environmental regulations are compelling the manufacturers to focus on producing eco-friendly adhesives.

The stringent regulations by the US EPA (Environmental Protection Association), Europe’s Registration, Evaluation, Authorisation and Restrictions of Chemicals (REACH), Leadership in Energy and Environmental Design (LEED), and other regional regulatory authorities have compelled adhesive and sealant manufacturers to make eco-friendly products with no- or low-VOC levels. The shift toward more sustainable products has provided the manufacturers with significant growth opportunities. There is a growing demand for environmentally-friendly or green buildings, which gives an opportunity for the development of green and sustainable adhesive solutions. Green adhesive solutions are made from renewable, recycled, remanufactured, or biodegradable materials; they are environmentally friendly and provide health benefits to the occupants.

The adhesives and sealants market undergoes frequent changes in terms of standards and rules. The Construction Products Regulation (CPR) implemented new regulations such as regulation (EU) No 305/2011 for the marketing of construction products in the EU. With the new regulations, manufacturers have to bear the additional burden, in terms of labelling and paperwork, to demonstrate compliance and additional external test costs. There are additional substance alerts occurring on a regular basis focusing on biocides and waste packaging, leading to changes in regulatory standards. The adhesives and sealants manufacturers have to abide by the rules and changing standards for commercializing their products. This poses a challenge for manufacturers.

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