Construction Adhesives Market To Generate Revenue worth $14,541.9 Million by 2030

The global construction adhesives market is projected to generate $14,541.9 million by 2030 and prosper at a CAGR of 5.3% during 2021–2030. This is credited to the rising number of infrastructure development projects in developed as well as developing countries, especially hospitals, educational institutions, industrial facilities, and airports.

Moreover, there is a huge demand for adhesives in the residential sector due to the increasing disposable income and population in developing countries. The rising preference for trendy home decors, surface textures, and patterns has bolstered the demand for construction adhesives.

Furthermore, to attain a significant position in the market, the players are actively participating in mergers and acquisitions. For instance, in April 2021, Sika Services AG acquired Hematite Products Pvt. Ltd., a subsidiary of Yokohama Rubber Co. Ltd. that offers adhesives and sealants to the construction as well as automotive industries. The acquisition strengthened Sika’s market position in Japan, expanded the market access to all major Japanese OEMs, and extended the product offerings for the Japanese construction industry.

Similarly, in March 2021, Bostik SA, a subsidiary of Arkema SA, acquired the performance adhesives business of Ashland Global Holdings Inc. for non-residential applications in the U.S. Ashland Global Holdings Inc. is a major player in the pressure-sensitive adhesive industry in the U.S., with a focus on high-growth applications, such as decoration, protection, and signage films for automobiles and buildings.

The investments by companies in developing countries, particularly in APAC countries, as well as the rising awareness about green and sustainable building construction, is also driving the market growth. For example, Henkel AG & Co. KGaA announced in 2021 that it will invest approximately $65 million in the construction of a new adhesive technologies innovation center in Shanghai, China.

Water-Based Adhesives Technology Dominates Market

The water-based adhesives category generated revenue of around $4,798.1 million in 2021, and it is set to advance at a CAGR of 5.7% during 2021–2030. This will be on account of these variants’ user-friendliness, easy applicability, low activation temperatures, minimum health risks, and no release of toxic fumes. Products bonded with water-based adhesives have greater moisture resistance than other adhesives. Furthermore, the new product developments and increasing R&D spending are driving the category’s growth. For instance, in March 2022, Toyochem Co. Ltd. launched a new low-odor, low-VOC acrylic pressure-sensitive adhesivefor use on building interiors

APAC Market To Grow Fastest during Forecast Period

The APAC construction adhesives market is expected to register the fastest growth, at a 5.8% CAGR, during the forecast period. This is because countries such as India, China, and South Korea, as well as Southeast Asian nations, are attracting adhesive manufacturers to set up production units. In this regard, the low labor costs and an expansion in the customer base in the region are driving the market growth.

Long-term market growth is expected to be driven by the investments in construction and infrastructure projects. For example, by 2021, the Indian government intended to double its infrastructure investments in areas such as communication, commercial infrastructure, electricity, water, and sanitation. The Indian government has approximately 6,800 projects worth $15 billion, such as smart cities, airports, and the Pradhan Mantri Sadak Yojna under implementation.

Mergers & Acquisitions Are Most-Effective Strategic Measures

Companies offering adhesives for construction applications have been merging with & acquiring similar businesses to remain competitive. For instance, in April 2021, Innovative Chemical Products (ICP Group) announced its acquisition of Choice Adhesives, which provides custom adhesive solutions for a variety of industries. This acquisition strengthens the roofing solutions portfolio of ICP Group through brands such as Polyset and APOC.

Major players in the global construction adhesives market are Toyochem Co. Ltd., H.B. Fuller Company, Henkel AG & Co. KGaA, 3M, Bostik SA, DAP Products Inc., Sika Services AG, Dow Inc., Huntsman Corporation, and PPG Industries Inc.