High Performance Adhesives & Sealants Market - Forecast(2023 - 2028)

High Performance Adhesives & Sealants Market Overview

High performance adhesives & sealants market size is forecast to reach US$15.3 billion by 2027, after growing at a CAGR of 5.2% during 2022-2027. Globally, the usage of high-performance anaerobic adhesives and sealants in the medical and healthcare segment is projected to drive the high-performance adhesives market growth. These are utilized as UV curable and cyanoacrylic high performance adhesives in medical devices, such as in catheters, syringes, and silicone rubber components. High Performance adhesives & sealants such as vinyl acetate, polyamides, and polysulfide, possess superior heat resistant characteristics and therefore, have many applications in transportation, electrical & electronics and other industries, which is driving the market growth. Additionally, in transportation industry, these thermoplastic adhesives and sealants are widely used in preventing rust and corrosion on automotive body parts, which is further anticipated to boost the growth of the high performance adhesives & sealants market over the projected timeframe.

COVID-19 Impact

The COVID-19 has had a negative impact on adhesives and sealants demand across various end-use industries such as transportation, medical & healthcare, and building & construction, which has reduced high performance adhesives & sealants consumption. There has been a temporary suspension of building and construction activities in various regions, which has adversely affected the high performance adhesives & sealants market growth during the outbreak. For instance, the construction output in Great Britain fell by a record 35.0% in Q2 of 2020 compared with Q1 due to the pandemic. The disruption of the supply chain, resulting in the delay or non-arrival of raw materials, the disruption of financial flows, and the increasing absenteeism of production line workers, forced manufacturers of medical devices and automotive goods to operate at zero or partial capacity. This leads to a decrease in demand for high performance adhesives & sealants, which limited the growth of the market during the pandemic in different regions.

Report Coverage

The report: “High Performance Adhesives & Sealants Market Report – Forecast (2022 - 2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the high performance adhesives & sealants industry.

Key Takeaways

• The Asia Pacific region dominates the high performance adhesives & sealants market owing to the rising growth and increasing investments in the construction industry. For instance, according to the Department for Promotion of Industry and Internal Trade (DPIIT), till December 2020, FDI in the construction industry stood at US$ 23.99 billion.
• Rapidly rising demand for water-based high performance adhesives & sealants due to their high mechanical strength and toughness, has driven the growth of the high performance adhesives & sealants market.
• The increasing demand for high performance adhesives & sealants in transportation sector, due to its usage in preventing rust and corrosion on automotive body parts, has been a critical factor driving the growth of the high performance adhesives & sealants market in the upcoming years.
• However, the rising health and environmental issues by using high performance adhesives & sealants can hinder the growth of the high performance adhesives & sealants market.

High Performance Adhesives & Sealants Market Segment Analysis – By Resin Type

The silicone segment held the largest share in the high performance adhesives & sealants market in 2021. Silicone-based adhesives provide good adhesion and bond strength to wood, natural and synthetic fiber, glass, painted surfaces and other plastics and metals. Silicone-based adhesives and sealants possess excellent electrical and thermal conductivity, adhesion to plastic and metal substrates, and heat resistance as compared to other resins such as epoxy and acrylic. They are utilized in industrial sealing and assembly applications that witness extreme temperature, ultraviolet light, and chemical exposure. Moreover, they are utilized in the manufacture of tapes and labels and provide adhesion to various surfaces, exposed to harsh thermal and chemical conditions. Thus, with the rising usage of silicone, the market for the high performance adhesives & sealants is further estimated to rise over the forecast period.

High Performance Adhesives & Sealants Market Segment Analysis – By End-Use Industry

The medical and healthcare industry held the largest share in the high performance adhesives & sealants market in 2021 and is expected to grow at a CAGR of 5.7% during 2022-2027. The rise in the aging population and advancements in medical devices will increase the usage of UV curable and cyano-acrylic high-performance adhesives, such as in the IV delivery systems, syringes, catheters, silicone rubber components, hearing aids, and other medical devices. The demand for thermoplastic high performance adhesives & sealants is increasing due to developments and advancements in medical devices. Globally, with the rising growth in the medical and healthcare sector, the demand for high performance adhesives & sealants is also estimated to rise. For instance, according to the Invest India, the medical device sector is growing steadily at a CAGR of 15% over the last 3 years and the medical devices industry in India is poised for significant growth with the market size expected to reach US$50 billion by 2025. Thus, with the growing demand for medical devices in the medical and healthcare industry, the high performance adhesives & sealants market would further rise over the forecast period.

High Performance Adhesives & Sealants Market Segment Analysis – By Geography

Asia-Pacific region dominated the high performance adhesives & sealants market with a share of 43% in the year 2021. The Asia Pacific region is predicted to continue its dominance in the market during the forecast period due to the increasing requirement for high performance adhesives & sealants in developing countries such as China, Japan, India, and South Korea. China is expected to continue its dominance in the high performance adhesives & sealants market during the forecast period. This is due to the growth of the transportation and construction industries in the country. For instance, according to International Trade Administration, in China, construction industry revenue was reported to increase from US$ 968 billion in 2019 to US$ 1.1 trillion in 2021. India and Taiwan are also predicted to grow their high performance adhesives & sealants market during the forecast period, with increased investments by the government in construction, transportation, and other end-use industry. High performance adhesives & sealants are used in automobiles for preventing corrosion and rust on the body parts and other components of automobiles. According to Invest India, in 2020, the transportation industry was worth US$ 806.63 billion and is further expected to grow at a CAGR of 5.9%. Thus, the rising usage of high performance adhesives & sealants in various end-use industries will drive the market growth in the forecast period.

High Performance Adhesives & Sealants Market Drivers

Increasing Demand for Water-based Coatings Will Drive the Market Growth

The increasing demand for water-borne coatings is the key driver for the high performance adhesives & sealants market, especially from developing countries. High mechanical strength and toughness are the major properties exhibited by the water-based high performance adhesives & sealants, additionally with electrical and thermal properties. The high cost of high performance adhesives & sealants can be foreshadowed by the excellent properties and long life of the water-based coatings. In addition, high performance adhesives & sealants technology is projected to be majorly adopted due to the low pollution caused by them, under the strict regulations by the government, especially to control the air pollution. In various regions, under the paints and coatings segment, the major share is held by the water-based technology of high performance adhesives & sealants. Thus, the excessive use of water-based coatings in building and construction, transportation, and other end-use industries will drive the growth of the high performance adhesives & sealants market in the forecast period.

Increasing Demand for High Performance Adhesives & Sealants in the Transportation Industry

High performance adhesives & sealants in the transportation industry provide great advantages in preventing rust and corrosion on automotive body parts. It involves applying a primer to metal parts that are anti-corrosive and are made up of a thin epoxy-based coating. Furthermore, with formulations availability, concrete, and steel marine structures are protected by high performance adhesives & sealants, to adhere to wet substrates, such as coating water tanks, outfall structures, fish ladders, and dams. Automotive applied in water suspension uses high performance adhesives & sealants such as vinyl acetate and polysulfide, as a primer, and as two-part liquid marine coatings. In recent years the rising production of automotive has further raised the demand for high performance adhesives & sealants. For instance, according to Organisation Internationale des Constructeurs d'Automobiles (OICA), in Austria, motor vehicle production increased from 86,300 units in 2020 to 92,000 units in the year 2021. Similarly, in the USA, the production of motor vehicles increased from 62,39,401 units in 2020 to 68,57,182 units in the year 2021. With the increasing production of automobiles, it is estimated that in the upcoming years the requirement for high performance adhesives & sealants in the transportation industry will rise. This, will boost the growth of the market.

High Performance Adhesives & Sealants Market Challenges

Rising Health and Environmental Issues Will Hamper the Market Growth

The application of high performance adhesives & sealants emits abundant chemical gases, which are considered to be hazardous when inhaled. Therefore, there are strict regulations applied on their usage. Moreover, the rising awareness about health effects and environmental concerns, have become prominent for manufacturers. The main impact includes skin allergies, irritation of the eyes, nose, throat, and skin, and asthma. The U.S. Environmental Protection Agency, are taking different measures and hence, are implementing stringent rules and regulations on the manufacturers of high performance adhesives & sealants. Thus, the rising health and environmental issues by using high performance adhesives & sealants, will hamper the market growth.

High Performance Adhesives & Sealants Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies players adopt in the high performance adhesives & sealants markets. High performance adhesives & sealants top 10 companies include:

1. Henkel
2. 3M
3. Chugoku
4. H.B. Fuller
5. Illinois Tool Works
6. Arkema
7. Sika AG
8. Royal Adhesives & Sealants
9. Huntsman International LLC
10. Chemique Adhesives, Inc.

Recent Developments

• In April 2020, Chugoku launched solvent-free epoxy coating for water ballast tanks. It also meets new Korean regulations under the Atmospheric Environment Conservation Act for the management of volatile organic compounds (VOCs).
• In July 2020, Arkema acquired Fixatti, a manufacturer of thermos-bonding adhesive powder. This acquisition was done to strengthen the global offering of hot-melt adhesives solutions for niche industrial applications in industries, such as construction, automotive, textile, and others.
• In July 2021, Chemique Adhesives, Inc., a pioneer in the development of solvent-free polyurethane, water- based adhesives and adhesive application equipment, Launches New Turftak LV Synthetic Turf Adhesive, to increases the production efficiencies of synthetic turf installers by as much as 50 percent over traditional turf adhesive offerings.

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