The adhesives and sealants market size is forecast to exceed $40 billion and $9.5 billion by 2023, respectively, according to a recent report from Global Market Insights Inc. Automotive, packaging and construction have traditionally been high consumption application avenues for the industry. Technology innovation focused on smart and sustainable product solutions could see over 4.5% compound annual growth rate (CAGR) by 2023.
Chinese construction spending was approximately $1.7 trillion in 2013, while India spent approximately $426.5 billion in same year. A significant chunk of this spending was for the infrastructure, construction and automotive industries, which is likely to impact adhesives and sealants market size. Flooring, insulation, panel and partitions, roofing, facades, fire protection and IG units are some notable industry application avenues. Growth in infrastructure development, driven by positive economic indicators will directly influence adhesives and sealants industry demand.
Global automobile production was estimated at approximately 89.7 million units in 2014 and is likely to cross 100 million units by 2018. Increasing plastic and polymer use in vehicles, in order to reduce weight for enhancing efficiency, will most likely drive adhesives and sealants market size, with growth expectations of 4.9% and 5.9% from 2016 to 2023, respectively.
A high degree of regulatory intervention, particularly for toxic residue and environmental impact, could challenge product penetration and pressurize profitability. Raw materials are predominantly synthetic and petro-based, and have significant impact on adhesives and sealants market price trends.
A strong R&D focus to develop and commercialize the bio-adhesive market, using novel feedstock such as soybean polyols, vegetable oil polyamides, polyisoprenes and epoxies, could result in a paradigm shift and change the product matrix significantly. The bio-based adhesives market size accounts for roughly 1-2% of the overall demand and may see sizable gains by 2023.
The waterborne adhesive market size was valued close to $8.5 billion in 2015, and will most likely be the predominant technology by 2023. It helps in reducing volatile organic compound (VOC) emissions, thus eliminating associated costs, which is a key driving factor for demand evolution. Hot melt adhesive market size was close to 1.8 million tons in 2015 and is forecast to significantly grow up to 2023. Hot-melt adhesives have excellent adhesion properties and do not require drying, as with water or solvent-based products and emit low VOCs.
The acrylic adhesives industry revenue was valued at nearly $5 billion in 2015. This product has high adhesion for bonding difficult substrates and faster setting time. Acrylic-based materials are being used in the development of waterborne and heat resistant and UV light curing technology. EVA accounted for a small chunk of the industry with overall consumption estimated close to 470 kilo tons in 2015 and is anticipated to witness significant gains over the forecast period.
The silicone sealants market size was dominant with valuation estimated at over $2 billion in 2015. Growth in end-use industries such as construction, automobiles and machinery is likely to drive demand. Polyurethane (PU) sealants occupied a share of close to 28% in 2015 and are likely grow at below-average rates up to 2023.
The pressure-sensitive applications dominated the glue demand, with valuation over $6.2 billion in 2015. These products are most commonly used with no water or heat treatment in applications such as pressure-sensitive tapes, labels, note pads and automobile trim.
The packaging applications accounted for over 20% of glue demand, with consumption over 2 million tons in 2015. Packaging applications include carton boxes, envelopes, carton closures, cups, flexible packaging, specialty packaging, bags and disposables, PU, water-based and hot melts.
Construction application dominated sealants market share, with revenue generated at an estimated $1.5 billion in 2015. The growing construction industry, especially in BRIC nations, is expected to boost caulking products demand.
Automotive applications accounted for over 18% of caulking products demand in 2015 and are likely to witness the highest gains over the forecast period.
The Asia Pacific (APAC) region,, mainly driven by China and India adhesives and sealants market size domestic consumption, was dominant with valuation close to $11 billion in 2015. Growth of the construction spending in China, India and Indonesia is likely to boost demand. North America, dominant by the U.S., accounted for over 20% of the total volume in 2015 and is likely to grow at a sluggish pace during the forecast period. Europe's silicone sealants market demand was estimated over 150 KT is likely to witness the highest gains during the forecast period. Automotive applications for caulking products in Asia Pacific are valued at over $755 million in 2015, and are likely to grow at a faster pace over the forecast period.
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