Construction Adhesive Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Construction Adhesive Market Trends & Growth Drivers

Green Adhesives Are Trending in Worldwide Building Sector

• The implementation of stringent regulations by government bodies to limit the VOC content in adhesives is further fueling the market growth.
• For instance, in 2020, China implemented new VOC standards for companies manufacturing adhesives, coatings, cleaning products, and inks.
• Similarly, the U.S. Green Building Council outlines the limits for the VOC content in sealants and adhesives.
• Apart from VOCs, regulations have been implemented for reducing energy and water use as well.
• This demands construction adhesives that require less water and energy-intensive technologies to cure in place and are also durable amidst rain, heat, snow, and other environmental forces.
• This durability means that over time, adhesives need to be applied fewer times, thus saving more energy and water.

Population Growth, Urbanization, and Industrialization Drive Market Growth

• The growing infrastructure investment all over the world is the primary factor driving the market growth.
• For instance, in its 2024–25 budget, the Indian government has allocated USD 132 billion (INR 11.11 trillion) for infrastructure development.
• Similarly, as per the U.S. Census Bureau, construction spending in the first five months of 2024 in the country rose by 8.8% from the same period the previous year, reaching USD 836.3 billion.
• The rising infrastructure investments could raise the global GDP by more than 0.5% over the next decade.
• Countries such as India, China, and the U.S. are the major contributors to the global GDP owing to their huge infrastructure investments.
• All this is a result of the growing population, which is set to touch 10.8 billion by the mid-2080s, as per the World Population Prospects 2024 report of the United Nations.
• Further, increasingly, this population is shifting to cities; currently, 5% of the global population lives in cities, a number that will touch 68% by mid-century.
• This raises the demand for infrastructure development on a massive scale to accommodate this population, which continues to demand improved facilities and is able to pay for them.
• This is because with industrialization and the expansion of the corporate sector, more people now have jobs, which raises their spending power.
• Hence, governments are increasing their construction spending in both urban and rural areas to offer a better quality of life to citizens.

Oriented Strand Boards To Provide Lucrative Market Opportunities

• The majority of the builders are adopting oriented strand boards over plywood for floors and walls in sustainable projects.
• OSBs have a lower price and do not require mechanical bolts or cement, as they can be simply fixed through wax and polyurethane adhesives.
• In comparison to plywood for a typical 2,400-square-foot house, OSB usage lowers the construction cost by around USD 700.
• Moreover, they offer high durability and tensile strength, uniformity of structure with no gaps, voids, and laps, deflection resistance, and versatility for usage on wall, roof, and floor sheathing, single-layer flooring, subflooring, structural insulated panels, ceilings/decks, wood I-joist webs, mezzanine decks, and furniture.
• Further, their high strength prevents warping and allows them to resist seismic loads and high winds. OSBs can even be treated with a range of chemicals to make them fireproof, decay- and water-resistant

Construction Adhesive Market Analysis

Type Insights

The acrylic category holds the largest share in 2024, of 40%. This is be on account of the rapid growth of the construction industry in the APAC and MEA regions. Acrylic adhesives are preferred in the construction sector on account of their strong bonding with substrates, high impact strength, and excellent water resistance.

For instance, China currently has a large number of airport construction projects in the expansion stage, such as Beijing Capital International Airport, Chengdu Shuangliu International Airport, and Guangzhou Baiyun International Airport. In addition, the Chinese government has announced major plans for the relocation of 250 million people to new megacities over the next ten years.

Polyurethane adhesives are expected to witness the highest CAGR in the market during the forecast period, of 6.0%. This will be because they can bind to almost all types of substrates, such as plastic, wood, glass, and concrete.

With the implementation of infrastructure development programs all over the world, the product is expected to offer lucrative opportunities in the forecast period. For instance, Arkema has implemented a program to bolster its polyurethane adhesives, with a focus on bonding and sealing applications in the construction industry. The company is developing its new range of polyurethane products based on low-isocyanate as well as solvent-free formulations.

The report offers insights for the following types:

• Acrylic (Largest Category)
• Polyurethane (Fastest-Growing Category)
• Polyvinyl acetate
• Epoxy 
• Others

Application Insights

The residential category accounts for larger revenue share in 2024, of 65%. This is attributed to the high-volume usage of construction adhesives in residential buildings. This is mainly due to the higher investments in residential construction activities than for industrial and commercial construction. As per an Indian government organization, the ‘Housing for All” scheme is set to bring investments of USD 1.3 trillion in the residential sector by 2025.

The non-residential category will witness the higher CAGR, of 5.5%, over the forecast period. The increasing spending on the development of commercial, civic, and industrial infrastructure around the world drives this category. This trend is bolstered by the rising demand for high-performance and sustainable construction chemicals in these sectors.

The following applications have been covered:

• Residential (Larger Category)
• Non-Residential (Faster-Growing Category)

Technology Insights

Water-based adhesives are expected to witness the fastest growth in the market during the forecast period. They also hold the largest share in 2024, on account of the high moisture resistance offered by water-based adhesives in comparison to those based on other technologies. In addition, they have a low VOC content, are environment-friendly, and offer excellent heat resistance.

The technology segment is categorized as follows:

• Water-Based (Largest and Fastest-Growing Category)
• Solvent-Based
• Hot-Melt
• Reactive
• Others

Regional Analysis

• The APAC construction adhesives market dominate the market in 2024, with 45% share, and it will also grow the fastest during the forecast period, at 5.7% CAGR.
• This is mainly attributed to the increasing disposable income, expanding construction activity, and strong economic growth.
• In addition, the snowballing government spending on infrastructure and rising demand for low-VOC adhesives drive the market growth.
• For instance, China is set to invest around USD 13 trillion in the building sector by the end of 2030.
• Similarly, Southeast Asian nations are witnessing rampant urbanization, and infrastructure is being modernized to keep pace.
• Many regional countries, especially Vietnam and Thailand, are also emerging as industrial hubs, thus further driving the usage of adhesives and other construction materials.
• Moreover, India has several megaprojects underway currently, including MAHSR (INR 1.8 lakh crore), Bharatmala (INR 4.10 lakh crore), Sagarmala (INR 6.01 lakh crore), Delhi–Mumbai Expressway (USD 3.1 billion/INR 1 lakh crore), and Jewar Airport (INR 29,650 crore).
• These projects will require huge volumes of all kinds of construction materials, including adhesives.

The below-mentioned regions and countries are covered:

• North America
  • U.S. (Larger and Faster-Growing Country Market)
  • Canada
• Europe
  • Germany (Largest and Fastest-Growing Country Market)
  • U.K.
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (APAC) (Largest and Fastest-Growing Regional Market)
  •  China (Largest Regional Market)
  • Japan
  • India (Fastest-Growing Regional Market)
  • Rest of APAC
• Latin America (LATAM)
  •  Brazil (Largest and Fastest-Growing Regional Market)
  • Mexico
  • Rest of LATAM
• Middle East and Africa (MEA)
  • South Africa
  • Saudi Arabia (Largest and Fastest-Growing Regional Market)
  • U.A.E.
  • Rest of MEA

Construction Adhesive Market Share

The construction adhesives market is fragmented as there are diverse types of adhesives for equally diverse building applications. Moreover, each adhesive technology and resin has varying advantages and specific applications. Additionally, construction regulations and methods vary across countries, which means that no one company has a clear upper hand. Smaller companies also find it easier to penetrate this market as adhesive manufacturing is not as capital-intensive.

Construction Adhesive Market News

• In July 2024, Henkel AG & Co. KGaA completed the phase 3 construction of its sealant, adhesive, and surface treatment product manufacturing plant in Kurkumbh, near Pune, Maharashtra.
• In June 2024, Sika AG completed the construction of a manufacturing plant in the Liaoning province in China. The plant will produce tile adhesives, mortars, and waterproofing solutions
• In March 2024, Henkel AG & Co. KGaA showcased its sustainable adhesives for building components and furniture at Interzum 2024, held in Guangzhou on March 28–31.
• In April 2023, DAP Products Inc. launched three new concrete repair products: concrete crack filler, anchoring adhesive, and all-purpose adhesive & filler.