Adhesives and Sealants Market Report: By Technology (Water-Borne, Solvent-Borne, Reactive, Hot-Melt), Product Type (Silicone, Polyurethane, Acrylic, Polyvinyl Acetate), End User (Building & Construction, Paper, Board, & Packaging, Woodworking & Joinery, Automotive & Transportation, Footwear & Leather, Healthcare, Electrical & Electronics) – Global Industry Size and Growth Forecast to 2030

Market Overview

The global adhesives & sealants market was estimated to generate $66,649.9 million in 2021, growing with a CAGR of 4.9% during 2021–2030, to further expand to $102,604.3 million by 2030. This is majorly attributed to the growing product application in the construction and automotive industries. Furthermore, the increasing demand for these materials from the packaging industry, coupled with the surging vehicle safety standards and regulations, are propelling the industry.

The COVID-19 pandemic had a negative impact on the adhesives & sealants industry globally, with a few end-use sectors, such as automotive, building & construction, and electrical & electronics, severely affected. For instance, in February 2020, the Chinese automobile industry recorded an around 90% decrease in the sales of new vehicles. Additionally, total vehicle sales in European countries dropped by over 23%. However, the business is expected to regain momentum in the coming years due to the resumption of activities in the above-mentioned industries.

Lucrative Opportunities in Bio-Based Adhesives and Sealants

The development of bio-based adhesives and sealants is expected to create immense opportunities for the players operating in the market. Due to the rising environmental concerns, companies are developing bio-based products to replace chemical-based products. Additionally, in order to enhance the sustainability efforts without compromising performance, companies are developing advanced technologies for these bio-based products.

For example:

• In December 2021, Bostik SA announced the launch of Nuplaviva, a series of new products, Nuplaviva 50 and Nuplaviva 75 with 50% and 75% bio-sourced content, respectively, for disposable hygiene article manufacturers.
• In May 2021, Henkel AG & Co. KGaA announced the commercial availability of LOCTITE HHD 3544F, a line of bio-based polyurethane reactive (PUR) hot-melt adhesives for consumer electronics assembly.

Another trend in the adhesives & sealants market is the increasing penetration of electric vehicles worldwide. According to the International Energy Agency, new registrations of electric cars hit a new record 3 million in 2020.

Moreover, the worldwide electric car stock hit the 10-million mark in 2020, a 43% increase over 2019. The use of adhesives and sealants in electric vehicles is low due to the fewer engine-related assemblies in such automobiles, but as the focus on increasing the structural integrity picks up, along with the strengthening need for reducing the overall weight, the demand for adhesives is expected to increase in the coming years.

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Water-Borne Adhesives Held Dominating Share

Among all technologies, water-borne adhesives accounted for the largest share, of more than 50%, in the adhesives market in 2021. Water-borne adhesives, also known as water-based adhesives, are created by combining water, polymers, and additives. They are suitable for both porous and non-porous materials. They are utilized in the manufacturing of a wide range of products, including books, home appliances, medical tapes, and packaging. Because they are low on VOCs, they are environment-friendly. Moreover, they have excellent heat resistance, high tack, and appreciable water resistance.

Healthcare Sector To Show Fastest Growth

The use of adhesives in healthcare applications is set to grow at the highest CAGR, of around 6%, during 2021–2030. Medical-grade adhesives are used to bond products such as catheters, needles, plastic enclosures, dialysis filters, syringes, blood bags, and tube connectors. These medical products are typically produced from a variety of synthetic materials, including difficult-to-bond plastics, such as PEEK, PE, and PP.

The three types of standard adhesives often used in the healthcare industry are pressure-sensitive, dissolvable, and electrically conductive adhesives. Medical tapes, for instance, use pressure-sensitive adhesives. The growing use of adhesives in different medical applications, including advanced wound care dressings, skincare, dental, surgical and incise drapes, otology, diabetes care devices, and prostheses, is a major factor driving the industry expansion.

Silicone Sealants Hold Major Revenue Share

The silicone category is expected to hold the largest revenue share, over 40%, in 2030. This dominance can be attributed to the ability of silicone adhesives and sealants to withstand high and low temperatures, insulating qualities, high durability, water repulsion, strong thermal stability, and low chemical reactivity.

Asia-Pacific (APAC) To Witness Fastest Growth in Coming Years

Geographically, APAC generated the most revenue in the global adhesives market in 2021, owing to the rapid economic growth, increasing infrastructure investments, rising purchasing power, and shifting adhesive & sealant production from developed regions to APAC. Furthermore, the product demand in APAC is predicted to rise at the highest rate globally during the forecast period. Because of their booming automotive sectors and burgeoning consumer populations, China and India are seeing a significant increase in the use of adhesives in the automotive, healthcare, and packaging industries. Packaging applications account for the highest consumption of these materials due to the high demand for them in the food & beverage, consumer goods, e-commerce, and personal care industries.

On the other hand, Europe held the largest revenue share in the sealant industry in 2021. The regional industry is expected to grow at a CAGR of around 4.0%, as many premium car manufacturers, such as Audi AG and Daimler AG, have production bases in the continent.

Additionally, more than 40% of the patent registrations in Germany originate from the automotive industry. Sealants are widely used in automotive applications, including gasket placing, sealing of core plugs, and bonding of automotive hoses. Hence, with the rise in the production of automobiles, the demand for automotive sealants in the region is expected to increase during the forecast period.

Key Players Engaged in Product Development and Collaborations

The global adhesives & sealants market is competitive, and the major players are increasingly engaging in partnerships and developing new products to strengthen their position. For instance,

• In September 2021, Henkel AG & Co. KGaA and Pregis LLC announced a partnership to develop advanced protective packaging, to meet environmental goals.
• In July 2021, Bostik SA, a division of Arkema Group, announced the launch of a polyurethane sealant line for the construction market.

Key Players in Global Adhesives & Sealants Market Are:

• Henkel AG & Co. KGaA
• The Dow Chemical Company
• Sika AG
• PPG Industries Inc.
• 3M Company
• H.B. Fuller Company
• Arkema Group (Bostik SA)
• Avery Dennison Corporation