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North America Roofing Adhesives Market - Forecast(2023 - 2028)
North America Roofing Adhesives Market Overview
North America Roofing Adhesives Market size is forecast to reach $1.5 billion by 2026, after growing at a CAGR of 3.4% during 2021-2026. Globally, the increasing residential and commercial construction activities are propelling the growth of the North America roofing adhesives market. Rising demand for synthetic raw materials such as cellulose nitrate, nitrile rubber, polyvinyl acetate, and others for the production of roofing adhesives in North America has also raised the growth of the market. Additionally, physical interlocking and chemical bonding between materials are possible, and the materials are resistant to the elements with the use of roofing adhesives. Thus, owing to such properties the market for North America roofing adhesives is further estimated to drive new opportunities for the growth of industry in the forecast era.
Impact of Covid-19
The COVID-19 pandemic and its disruption to several manufacturing activities declined the growth of the North America roofing adhesives market in the year 2020. Due to insufficient labor and supply chain disruption, the ongoing residential and commercial construction projects, were set at a pause which affected the market growth. Furthermore, considering the new government norms and reopening of several industries, it is presumed that the market for North America roofing adhesives will return to normal conditions and drive the market growth in the forecast period (2021-2026).
Report Coverage
The: “North America Roofing Adhesives Market Report – Forecast (2021-2026)”, by IndustryARC,
covers an in-depth analysis of the following segments of the North America
roofing adhesives market.
Key Takeaways
- USA dominates the North America roofing adhesives market due to the increasing number of residential and commercial projects in the country.
- Growing urbanization and rising population shifts from rural to urban areas are driving the demand for new residential buildings in developing countries. This growth in residential building demand is boosting the demand for roofing adhesives in North American countries.
- It is expected that the production of adhesives for different innovative substrates and increased R&D activities in the development of innovative low VOC roofing adhesives in North American would be an opportunity in the future growth of the market.
Figure: USA Roofing Adhesives Market Revenue, 2020-2026 (US$ Billion)
North America Roofing Adhesives Market Segment Analysis- By Technology
Solvent-based technology held the largest share in the North America roofing adhesives market in the year 2020. A solvent-based adhesive is a glue or adhesion agent that comes in the form of a liquid. Because they include an adhesive inside a more flexible or spreadable material, solvent-based adhesives are easier to apply. Effective performance will be ensured by a more complete roofing adhesive covering. The solvent evaporates as the solvent-based adhesives are added, allowing the polymer solution to dry quickly. The glue becomes stronger as the solvent evaporates, until there is no solvent left in the solution and the adhesive reaches its maximum effectiveness. Hence, due to these factors the technology is estimated to rise in the projected era and drive the growth of the North America roofing adhesives market.
North America Roofing Adhesives Market Segment Analysis- By End Use
Residential segment held the largest share in the North America roofing adhesives market in 2020 and is projected to grow at a CAGR of 2.9% during the forecast period 2021-2026. Increasing usage of roofing adhesives in the residential facilities to provide enhancing performance, workability, and adhesion for flat roofs and low slope has driven the growth of the market. Currently, the majority of adhesives are used in the residential construction industry to fasten decorative and finishing materials to the exterior and interior of buildings. Additionally, with the rising residential constructions it is anticipated that the market for North America roofing adhesives would also rise in the forecast period. For instance, according to United States Census Bureau, in the year 2020 about 1,286.9 thousand units of new privately owned housing units were completed in the United States. Therefore, the increasing use of roofing adhesives in residential construction activities is expected to drive the growth of the market in the forecast period.
North America Roofing Adhesives Market Segment
Analysis- By Country
USA held the largest share with 45% in the North America roofing adhesives market in 2020. The United States of America dominates the demand for spray polyurethane foams market due to the growing building and construction activities. The rising disposable income and consumer urbanization in the United States country have seen a substantial rise in the construction sectors. In March 2021, the U.S. Department of Commerce and U.S. Department of Housing and Urban Development released its new residential construction statistics for February 2021. As per the statistics, building permits for privately owned housing units were issued at a seasonally adjusted annual rate of 1,682,000 and the seasonally adjusted annual rate of privately owned housing starts was 1,421,000 in February. Thus, an increase in the construction activities will lead towards the rise of the residential industry which would increase the demand for North America roofing adhesives market in the forecast period.
North America Roofing Adhesives Market Drivers
Increase in FDI in construction industries and rise in urbanization is anticipated to boost the market
The demand for construction in emerging countries of North America region is fueled by the movement of huge numbers of people to urban areas in search of work and a better standard of living. It is predicted to enhance the demand for synthetic raw materials such as cellulose nitrate, nitrile rubber, polyvinyl acetate, by fueling demand for roofing adhesives. Civic infrastructure develops at a rapid rate in different parts of the country in North America. Government in the North America region, are attempting to strengthen the country's construction industry. For instance, as per the Associated General Contractors of America, US$1.3 trillion worth of projects is built in North America every year. The increase in the construction activities in North American region along with the rising adoption of the new trend in roofing is highly driving the North America roofing adhesives market growth.
North America Roofing Adhesives Challenges
Volatility in petroleum or crude oil prices
One of the major challenges faced by the North America roofing adhesives market is the volatility in the price of raw material or feedstock derived from petroleum or crude oil for the manufacture of adhesives. Thus price volatility impacts the cost of manufacturing roofing adhesives which is a major challenge for manufacturers. In North America region, crude oil prices are strongly affected by supply – demand gap fluctuations and global macroeconomic and geopolitical factors. According to the U.S. Energy Information Administration, The U.S. benchmark, West Texas Intermediate (WTI) crude oil, averaged $57 per barrel in 2019, down $7 per barrel from 2018. Moreover, the stability of the oil price is dependent upon the combined effects of invariant and variable factors. Thus, the volatility in petroleum or crude oil prices is estimated to create challenges for the growth of the market in the forecast period.
North America Roofing Adhesives Market Landscape
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the North America roofing adhesives market. Major players in the North America roofing adhesives market are Berkshire Hathway, Beacon Roofing Supply, Inc., Carlisle Companies Incorporated, Bridgestone Americas, Sika Group, FiberTite (Seaman Corporation), Innovative Chemical Products (ICP) Group, IKO Industries, GAF Materials Corporation, Owens Corning, and among others.
Acquisitions/Technology Launches
- In April 2021, Innovative Chemical Products (ICP) Group acquired Choice Adhesives in USA to more effectively serve the professional customers in the roofing adhesive market.