Silicone Adhesives And Sealants Market - Forecast(2023 - 2028)

Silicone Adhesives and Sealants Market Overview

Silicone Adhesives and Sealants Market size is forecast to reach US$5.5 billion by 2026, after growing at a CAGR of 5.8% during 2021-2026. Silicone adhesives and sealants offer versatility, resistance to extreme temperatures, durability, outstanding performance features, and are ideal for various applications in the electronics, aerospace, construction, and healthcare industry. UV cured adhesives are used in electronic beams for curing without any excessive heat generation. Silicone Adhesives and Sealants are used in commercial and home construction, which is exposed to extraordinary climate conditions, including direct sunlight, rain, and solidifying temperatures. Apart from this, modified silicon polymer technology is mainly utilized in the adhesives and sealants world. This technology is used in construction applications, such as waterproofing, glazing, and insulating. On the other hand, organic adhesives including thermosets in the manufacturing of adhesive and sealants products are expected to enhance production speed, in turn, which is expected to emerge as the most significant growth driver for silicone adhesives and sealants market.

Covid-19 Impact

The COVID-19 pandemic has changed the order of the supply chain of products. COVID-19 created change in the global market due to the temporary closure of manufacturing plants and across industries such as automotive, transportation, construction which halted their progress. In addition, in March 2021 according to the International Organization of Motor Vehicle Manufacturers (OICA), vehicle production in Europe, North America, and South America fell by 21%, 20%, and 30%, respectively. Also, according to U.S. Census Bureau, the construction spending in the US decreased 0.8% in January 2021, which in turn has affected the demand and production of sealants and adhesives as well, thereby limiting the market growth.

Report Coverage

The report: “Silicone Adhesives and Sealants Market – Forecast (2021-2026)”, by Industry ARC, covers an in-depth analysis of the following segments of the silicone adhesives and sealants industry.
By Product: One Component and Two Components
By Technology: Pressure Sensitive Adhesives (PSAs), and Non-Pressure Sensitive Adhesives (Non-PSAs)
By End-Use Industry: Building and Construction {Residential Buildings (Apartments, Raw Houses, Dormitories, Hotels, others), Commercial Buildings (Office Buildings, Warehouses, Shopping Malls, Hospitals, Medical Centers, others), Educational Institutes (Universities, Schools, others), Others}, Packaging Industry (Food & Beverages, Personal Care Products, Others), Home Appliances (HVAC System, Refrigerators, Dishwasher, Others), Aerospace & Aircraft, Textile Industry, Pharmaceutical and Medical Sector, Electrical and Electronics, and Others
By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, Italy, France, Spain, Netherlands, Russia, Belgium, and Rest of Europe), Asia Pacific (China, Japan, India, South Korea, ANZ, Indonesia, Taiwan, Malaysia, and Rest of Asia Pacific), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), and RoW (Middle East and Africa)

Key Takeaways

• Asia-Pacific region dominated the silicon adhesive and sealants market, due to the high consumption of adhesive and sealants products in emerging and developing Asian countries such as India, China, Japan, Malaysia, South Korea, and others.
• Pidilite Industries acquired India's Huntsman Group's subsidiary for Rs. 2,100 crores (US$ 283.38 million).  This acquisition was done with retail portfolio of adhesives and sealants.
• Increasing demand for silicone adhesives and sealants with high protection from warmth and substance responses add to its broad use in the aerospace & aircraft industry.
• Increasing consumption in the pharmaceutical and medical sector as they provide better treatment in a safer environment to the patient and is expected to drive the silicone adhesives and sealants industry.
• Additionally, increasing development in polymer technology with outstanding performance is expected to witness sustainable growth from end-use industries such as electronics, aerospace, construction, and healthcare industry.

Figure: APAC Silicone Adhesives and Sealants Market Revenue, 2020-2026 (US$ Billion)

Silicone Adhesives and Sealants Market Segment Analysis – By Product

One component segment is projected to witness the highest share in the silicon adhesive and sealants market during the forecast period. One component silicone adhesive requires a humidity of 5% to 95% and temperature 40 ⁰F to 100 ⁰F (5°C and 40°C) to cure the adhesive and sealants. For rapid curing of an adhesive film, it requires a high thickness of film. One component silicone adhesive is used extensively in aircraft and aerospace applications. Furthermore, due to its high flexibility and strong adhesion to a wide range of substrates such as metals, rubbers, and others, it is widely used in transport industries. Hence, the rise in demand for one component is a major growth component of the silicone adhesive and sealants market. 

Silicone Adhesives and Sealants Market Segment Analysis – By Technology

Pressure-sensitive adhesive (PSA) technology dominated the silicone adhesives and sealants market in 2020. With this technology silicon, adhesive and sealants are used to assemble electronic devices, to labeling food packaging, and mountings graphics displays. PSA technology does not require solvent, water, or heat to activate the adhesive. The bond is directly influenced by the amount of pressure that is used to apply the adhesive on the surface. Silicone adhesives are relatively expensive and have a very low initial tack, but can withstand higher temperatures than organic adhesives like synthetic rubber and acrylic adhesive. The use of pressure-sensitive adhesive technology in high-performance applications has been increasing due to advances in organic adhesives and also this technology is suitable for skin contact and transdermal drug delivery. Hence, the demand for PSA technology increases from the medical sector, in turn, which is estimated to grow the market size.

Silicone Adhesives and Sealants Market Segment Analysis – By End-Use Industry

Building and construction sector held the largest share in the silicone adhesives and sealants market in 2020 and is growing at a CAGR of 5.3% during this forecast period, due to their excellent chemical and physical properties as compared with other organic adhesives or sealants. Silicone sealants and adhesives bond diverse materials such as concrete, glass, granite, steel, and plastics stay affixed and absorb stress and movement from wind or earthquakes. Sealants are also protecting joints and materials from moisture, heat, corrosion, sunlight, ultraviolet radiation, pollution, and other chemicals. Hence, increasing real sector investment is supports silicon adhesives and sealants. According to the National Bureau of Statistics real estate investment in August 2020 rose 11.8% in China. Additionally, increasing advancement in polymer technology for production speed is expected to emerge significant growth of the market.

Silicone Adhesives and Sealants Market Segment Analysis – By Geography

The Asia Pacific dominated the silicone adhesives and sealants market in 2020 with a share of more than 45%. China and India are expected to witness high demand for adhesives and sealants during the forecast period, with the growing need for consumer products, personal protective equipment from the healthcare industry, and packaging products in the FMCG. According to the Indian Brand Equity Foundation (IBEF), the fast-moving consumer goods (FMCG) sector accounts for 50% of FMCG products sales in India thus, the FMCG market grew at 9% - 10% in 2020. Furthermore, the healthcare market in India is expected to reach US$ 372 billion by 2022. Hence, all such factors are expected to have a steady growth for the silicone adhesives and sealants market during the forecast period.

Silicone Adhesives and Sealants Market Drivers

Increasing Consumption of Silicone Adhesives and Sealants

Silicone adhesives and sealants are often used for automobiles, home appliances, and sensors in electronic devices. These are waterproof and UV-resistant adhesive that withstands temperatures from -65°F to 300°F. With this property, it is a perfect adhesive and sealant for repairs in hot areas such as plumbing, engines, or HVAC systems, as well as some industrial purposes, such as sealing various gaskets and ductwork. For construction projects such as sealing gaps or cracks around windows, door frames, baseboards, walls, and molding, an adhesive that combines acrylic and silicone is a better option. Therefore, Henkel invested INR 400 crore (US$ 5.68 billion) in 2019 for its new production facility nearby Pune, which  is increasing the consumption of high-performance solutions in adhesives and sealants. 

Increasing Demand from End-Use Industry

Silicon adhesive and sealants help to reduce the weight of vehicles and enhance fuel efficiency which is creating growth in the aerospace sector. According to India Brand Equity Foundation (IBEF), the Union Ministry of Defense formulated the Defense Production and Export Promotion Policy 2020 aims for aerospace & defense products and services space to generate revenue and exportation worth Rs. 175,000 crore (US$ 23.49 billion) and Rs. 35,000 crore (US$ 4.70 billion), respectively by 2025. In addition, increasing demand for adhesives in the medical sector for better treatment is enhancing the market growth. According to the National Institution for Transforming India (NITI0 Aayog, India’s biotechnology market is expected to grow around 30% per year to reach $100 billion by 2025. Also, growing employment in UV cured adhesives and polymer technology to improve production pace and offer high bonding is estimated to raise the global demand for silicon adhesive and sealants. For instance, there has been a surge in the consumption of adhesives for food packaging purposes. This is a result of changing food habits and an increase in ready-to-cook meals. Therefore, the demand for silicone adhesive and sealants will continue to grow near future.

Silicone Adhesives and Sealants Market Challenges

Increasing Consumer Awareness Regarding Health and Environment

Silicone sealants are hard to get off and can build up on the skin, leading to acne. It can especially cause irritations for people who have sensitive skin. Also, it is not good for the environment because it is not bio-degradable. Silicone sealants are similar to organic adhesive-like rubber. It takes a very long time to decompose and is also not recycled. Hence, increasing awareness is expected to pose a challenge for the silicon adhesives and sealants market.

Silicone Adhesives and Sealants Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Silicone adhesives and sealants market. Major players in the Silicone Adhesives and Sealants Market are:

1. 3M
2. Henkel Corporation
3. ALSTONE
4. McCoy Soudal
5. Dow Corning Corporation
6. Momentive
7. Aerol Formulations Private Limited
8. Wacker Chemie AG
9. MASTERBOND
10. AVERY DENNISON
11. Sika AG
12. ACC Silicones Ltd.
13. American Sealants, Inc.
14. Novagard Solutions
15. NITTO DENKO CORPORATION, and among others.

Acquisitions/Technology Launches

• In 2020, Bostik has introduced new technology and materials like Kizen™, a hot-melt adhesive for cardboard packaging based on water-white technology, which combines ease of use with strong bond performance. This will accelerate the further growth of adhesives. 
• In 2019, Solvay strengthened its collaboration with Safran through a long-term agreement to supply high-temperature composites and adhesives for several critical engine components.
• In 2019, Avantor, a life sciences material provider, will be highlighting its latest technologies including its NuSil biocompatible silicon adhesive, at the MD&M West.

Relevant Reports

Silicone Adhesives Market – Forecast (2021 - 2026)
Report Code: CMR 1199

Aerospace Adhesives & Sealants Market – Forecast (2021 - 2026)
Report Code: CMR 0689

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