Construction Adhesives Market size is forecast to reach $13.6 billion by 2026, after growing at a CAGR of 5.4% during 2021-2026. A rapidly rising construction industry in the Asia-Pacific & Middle East, and increasing demand for panels and glazing in high-rise buildings are major factors driving the market. The growth of the global construction adhesive market could be fostered by growing demand for construction adhesives worldwide due to increasing construction and infrastructure activities. In addition, their low cost and easy availability are driving global market growth. In the next few years, improved properties combined with better manufacturing methods coupled with technological developments are expected to open up new growth opportunities. However, unstable material prices are the main constraints on global market growth.
Numerous building and construction project’s operations have been halted, owing to the coronavirus pandemic, which is adversely affecting the demand for construction adhesives in the market. No new orders can be taken over neither the existing order production could be completed during the outbreak. There has been a temporary suspension of building and construction activities in various regions. For instance, the construction output in Great Britain fell by a record 35.0% in Quarter 2 (Apr to June) 2020 compared with Quarter 1 (Jan to Mar) 2020. With the decrease in building and construction operation, the demand for construction adhesives has significantly fallen, which is having a major impact on market growth.
The report: “Construction Adhesives Market– Forecast (2021-2026)”, by IndustryARC, covers an in-depth analysis of the following segments of the Construction Adhesives Industry.
By Resin Type: Acrylic, Polyvinyl Acetate, Polyurethanes, Epoxy, Silicones and others.
By Technology: Waterborne, Reactive, Solvent borne, Hot-melt and others,
By End use Industry: Residential Construction (Independent Homes, Row Houses, and Large Apartment Buildings), Commercial Construction (Hospitals and Healthcare Infrastructure, Educational Institutes, Hotels and Restaurants, Banks and Financial Institutions, Airports and Infrastructure, Hyper and Super Market, Shopping Malls and others), Infrastructure, and Industrial Constriction.
By Geography: North America, South America, Europe, APAC, and RoW.
- Asia Pacific dominates the market, owing to increased construction activities and various government initiatives such as 100 smart cities and Housing for all by 2022 in the region.
- Growing demand for new and creative products and the need for research and development in construction adhesives have encouraged businesses to pursue organic and inorganic growth strategies to increase their market share.
- Due to the COVID-19 Pandemic most of the countries has gone under lockdown, due to which operations of various industries including building and construction has been negatively affected, which is hampering the construction adhesives market growth.
Construction Adhesives Market Segment Analysis - Resin Type
The acrylic segment held the largest share in the construction adhesives market in 2020, owing to its wide penetration in construction applications. As they offer excellent water resistance, have good impact strength and outstanding bonding properties, the construction industry prefers acrylic adhesives. In addition, during the forecast period, polyurethane and polyvinyl acetate adhesives are also rising at a significant rate. The use of wood in construction structures leads to modern construction principles and joining methods. In bridges, classrooms, offices, theatres, transmission towers, and multi-family homes, wood is being used increasingly. Polyurethane products have advantages that make them suitable for use in wood applications, such as their solvent-free nature, direct application and environmental compatibility. Polyvinyl acetate (PVA) construction adhesives have been widely used due to their useful and versatile performance in a wide range of applications such as packaging, furniture, laminated paper, textiles and construction. PVA can easily be removed and made available quickly for re-gluing.
Construction Adhesives Market Segment Analysis - By Technology
Water borne adhesives held the largest share in the construction adhesives market in 2020. Water-borne adhesives use water to disperse a resin as a carrier or a diluting medium. They are established by allowing the water to evaporate or to be absorbed by the substrate. These adhesives are compounded by water as a diluent instead of a volatile organic solvent. They can be considered as low-VOC adhesives. Due to their eco-friendly and low-toxic nature, high solid material, and elevated initial adhesion properties, water-borne adhesives are rapidly becoming an integral part of various end-user industries. While the performance requirements of water-borne adhesives have increased over time, due to the technical sophistication of conventional adhesives, research activity has slowed down. By focusing on process technology capabilities and newer techniques, such as nanotechnology, the industry is attempting to revive research. In the building and construction industry, acrylic water-borne adhesives and latex water-borne adhesives are mainly used for various applications. Acrylic water-borne adhesives are mainly used as pressure-sensitive adhesives for tile bonding and laminating purposes in the construction industry, in the form of labels and tapes.
Construction Adhesives Market Segment Analysis - By End Use Industry
The residential construction segment held the largest share in the construction adhesives market in 2020 and is growing at a CAGFR of 5.6% during the forecast period. The growth of the residential sector has been positively affected by government incentives & support for first-time homebuyers in both developed and developing countries. The governments of countries such as India, Germany, Canada and Australia have declared different advantages under various schemes to promote the real estate industry. For instance, first-time buyers with children and an annual income of less than USD 88,000 will benefit from a subsidy of about USD 14,000 in Germany. In 2019, China government invested 1.9 billion on 13 public housing projects. Furthermore, construction projects such as ‘100 smart cities’ and ‘Housing for All by 2022’ in India are influencing residential sector growth, thus supporting construction adhesives market growth.
Construction Adhesives Market Segment Analysis - By Geography
Asia Pacific region held the largest share in the construction Adhesives market in 2020 up to 32%, owning to growth in construction projects in countries such as India, Malaysia and others. For instance, in 2019, China approved to invest $142 billion in 26 infrastructure projects. According to India Brand Equity Foundation (IBEF), India plans to spend US$ 1.4 trillion on infrastructure in the next five years. In addition, in February 2020, the Asian Development Bank approved a loan of $631 million to develop the Vishakhapatnam-Chennai industrial corridor. In addition, the government's Udan scheme in India is aimed at making air travel affordable, improving regional connectivity, and developing regional airports. In February 2020, the Union Budget presented has proposed creating 100 new airports by 2024 to help growing air traffic under the Centre's Udan scheme. Thus, it is anticipated that with the flourishing construction industry, there will be an upsurge in the demand for construction adhesives.
Construction Adhesives Market Drivers
Increased demand for construction adhesives in the residential housing and infrastructure markets.
Construction adhesives are used in numerous applications in the construction industry, such as carpet laying, tile installation, wallpaper, and so on. The growth of the construction adhesives market has been spurred by these applications. However, the growing investments in infrastructure development such as airports, bridges, dams, and metro stations are driving the demand for adhesives for various applications. The increase in the middle-class population has also resulted in a rise in housing demand. This is expected to fuel the demand growth of building adhesives. The Government of India has reportedly worked out the specifics of the two new grant schemes under Prime Minister Awas Yojana (PMAY). The two new subsidy slabs from the government are aimed at fueling the real estate market and achieving housing for all by 2022. These schemes will apply to loans with a tenure of 20 years, as opposed to the existing maximum of 15 years. As a consequence, the number of economically weaker (EWS)/low income (LIG) families would now fall within the scope of the PMAY schemes. This will increase the formal credit flow to rural areas, which is expected to be used not only for the construction of new houses, but also for the conversion of existing old houses to new houses. Thus, these government initiatives are anticipated to drive the demand for construction adhesives. The Union Ministry also pursued USD 2.88 billion (INR 185 billion) to develop seven cities around the Delhi-Mumbai Industrial Corridor (DMIC) across six states. The USD 90 billion DMIC project, consisting of Uttar Pradesh, Haryana, Rajasthan, Gujarat, Maharashtra and Madhya Pradesh, is being established in cooperation with Japan as a manufacturing and trading hub. Industrial hubs and eco-friendly cities along the Delhi Mumbai Industrial Corridor (DMIC) are projected to double job opportunities, triple industrial production, and boost exports by doubling employment opportunities. This will primarily drive the country's construction adhesives market, as well as the entire APAC region.
Increased demand for green adhesives.
Demand for green adhesives or those with low VOCs is being driven by the growing trend of using environmentally-friendly or green products in different applications. Strict regulations imposed by USEPA (United States Environmental Protection Agency), European REACH (Registration, Assessment, Authorisation and Restriction of Chemicals), Energy and Environmental Design Leadership (LEED) and other regional regulatory authorities have encouraged manufacturers to develop low-VOC adhesives that are environmentally friendly. The move towards a more sustainable portfolio of goods has given the industry a major opportunity for growth. Henkel's OSI Green Series, for instance, offers environmentally friendly caulks, sealants and adhesives for the green construction process. Under the brand name Titebond GREENchoice, Franklin International also develops environmentally-friendly building adhesives. These green adhesive solutions are made of renewable, recycled, remanufactured or biodegradable materials, which also support the health of the occupants by using these environmentally friendly products.
Construction Adhesives Market Challenges
Environmental regulations in North American and European countries.
Construction adhesives with fewer than 10 percent VOCs are now needed in major parts of the world. Europe and North America are strictly governed by environmental regulations affecting the manufacture of chemicals and petro-based goods. The processing of solvent-borne products in these regions is regulated by agencies such as the Epoxy Resin Committee (ERC), the European Commission (EC) and other regulatory bodies. For instance, In January 2018, the EU released the German version of DIN EN 16516, a test standard that uniformly governs the measurement of emissions of construction materials, including adhesives. The strict regulation to restrict VOC emissions is therefore expected to hinder the market growth. These regulations are restraining the growth of the construction adhesives market.
Construction Adhesives Market Landscape
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Construction Adhesives Market. In 2020, the market of Construction Adhesives Market has been consolidated by the top five players accounting for xx% of the share. Major players in the Construction Adhesives market includes Henkel, 3M, Bostik, Sika, H.B. Fuller, BASF , Dow Chemical, DAP Products, Franklin International, Illinois Tool Works, Avery Dennison among others.
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