Water-Based Adhesive Growth Captures Majority of Market
The adhesives and sealants industry is anticipated to expand at a compound annual growth rate (CAGR) of 5.6% during the forecast period.
The global adhesives and sealants market size is expected to reach $82.4 billion by 2025, according to a recent report from Research and Markets. The industry is anticipated to expand at a compound annual growth rate (CAGR) of 5.6% during the forecast period. High demand for adhesives and sealants from the construction, packaging, assembly, and automotive sectors, coupled with their rapidly expanding application scope, are the significant factors stimulating the growth.
The market has witnessed a notable rise in research and development spending, with companies focusing on developing bio-based alternatives due to stern environmental policies. Soybean-derived polyols, vegetable oil-based polyamides, epoxies, and polyisoprenes are the major bio-based adhesives and sealants. However, their cost of production is higher than conventional adhesives, which poses a limitation on their adoption rates.
The water-based adhesives segment captured the highest market share in 2017, owing to environment-friendly product formulation. In addition, the zero emissions of volatile organic compounds (VOCs) by these products is a prominent factor that is expected to propel demand in near future.
Asia-Pacific captured the highest market share of 42.7% in terms of revenue in 2017, due to the significant growth of end-use industries like construction, automotive, and packaging. Asia-Pacific is expected to be the fastest-growing region during the forecast period of 2019-2025. A surge in the automotive sector is expected to have a positive influence on regional market growth.
In terms of revenue, the automotive application of sealants is predicted to witness the fastest CAGR of 6.8%, during the forecast period owing to rising automotive sales in Asia-Pacific. Automotive companies are merging their businesses with leading companies in the adhesives and sealants industry to cut down their cost of procurement and to enhance their supply chain efficiency, as well as to reducing the operational time per unit production.
Asia-Pacific’s fast-paced lifestyle, along with the growing middle class population, is driving growth of the packaging sector. This is expected to boost the adhesives and sealants market as a large volume of adhesive consumption goes into packaging applications, such as carton boxes, envelopes, carton closures, cups, flexible packaging, specialty packaging, bags, and disposables.
Sealants are reportedly finding huge applications in the construction industry due to their quick sealing abilities and longer endurance on substrates. Waterproofing sealants are primarily used for exterior applications, such as terrace, balcony and other building components. Tilting and several other sealants are particularly used in interior applications and, owing to these vivid application scopes, they have high penetration capacity across growing economies with huge building project funds and government aid.
For more information, visit www.researchandmarkets.com.