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North America adhesives and sealants market size was USD 14.00 billion in 2020. The impact of COVID-19 has been unprecedented and staggering, with adhesives and sealants witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the market exhibited a decline of 8.4% in 2020 as compared to the average year-on-year growth during 2017-2019. The market is projected to grow from USD 14.52 billion in 2021 to USD 19.35 billion in 2028 at a CAGR of 4.2% during the 2021-2028 period. The sudden rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
These products find wide application usage in construction, automotive, packaging, consumer, footwear, and others. The growing population and an increasing number of cars on the road have led to a rise in the need for energy-efficient and durable vehicles. Various technological developments in the automobile industry and growing demand for alternative fuel technologies have introduced electric vehicles (EVs). The U.S. government is likely to increase electric vehicle (EVs) demand, eventually expanding the market for automotive adhesives.
Companies Face Major Challenges in Supply & Demand Due to COVID-19 Pandemic
Companies operating in the market are experiencing irregularity in supply and demand. COVID-19 outbreak has boosted the development of already fast-growing industries such as medical, sanitation, and food packaging. Manufacturers are expected to set up or extend their production bases to take advantage of the world's current low manufacturing costs. Moreover, the economic toll of the COVID-19 pandemic is vast and ongoing, which has affected the construction and automotive businesses. There is likely to be demand deferment due to a decline in the refurbishment or renovation activities on account of the outbreak.
However, adhesives play a crucial role in the supply chain and are extensively used in paper goods and food packaging. Few companies are emphasizing the necessity of supplying essential goods globally. For instance, in January 2021, H.B. Fuller introduced a new range of adhesive grades with hot melt advanced technology for ultra-cold storage of medication and vaccine packaging.
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Need for Sustainable Adhesives for Greener Future Latest Trend
The growing population, along with a rise in the standard of living, is likely to augment the need for these products. However, environmental concern encourages the development of sustainable and greener products. The use of sustainable adhesive products is safe for human health. Moreover, it helps in reducing carbon footprint. The demand for green adhesives is increasing and encourages new ways of sustainability in the development of these products. For example:
Increasing Demand for Adhesives and Sealants in Residential and Non-residential Construction Projects is Driving the Market
Adhesives & sealants are important tools on the construction site and for various home projects. Sealants are used in construction to prevent fluids and other substances from passing through material joints, openings, or surfaces. They are usually used to close openings between spaces that are too small for other materials such as mortar, concrete, or timber to be used due to flexibility, corrosion resistance, solubility, strength, and appearance permanence properties.
Silicone sealants are elastic sealing materials that offer weather resistance, adhesion, and durability. The product usage increases mainly to protect buildings and structures from earthquakes and provides flexibility for highways and airport runways as they remain flexible and do not crack in cold or warm weather or become brittle. Rising investments in infrastructure activities such as bridges, airports, metro stations, and dams, along with growing demand for panels, expansion joints, flooring, and other construction applications, will drive the market growth.
Although the COVID-19 pandemic has caused challenges for large commercial building construction projects, factories were shut down due to lockdown, leading to rising demand for DIY construction projects. Rapid urbanization, rising per-capita income, favourable government policies, and expanding housing sectors all affect the market, driving demand for home décor and sophisticated architecture. The popularity of wallpaper has resulted in an increase in the demand for wall products.
These products are used in the construction industry have wide applications, including carpet laying, fixing of drywall lamination, mixed in the cement used for joints, fixing of pre-finished panels, adhesion of ceramic tiles, fixing of roofing tiles, and among others. The use of construction adhesives for non-structural and structural bonding on construction sites is gaining importance due to new building methods, new raw materials, and increased time pressure.
The construction market in North America is increasing due to rising demand from the residential and non-residential sectors, as well as government investment in new and current infrastructure projects.
Abundant Emission of Chemical Gases During Production to Hamper North America Adhesives and Sealants Market Growth
When these products are applied, a large amount of chemical fumes are released, which are considered toxic and hazardous when breathed. Some adhesives are linked to environmental issues such as air pollution. Volatile organic compounds (VOCs) are often found in building materials such as caulking products, which can be considered dangerous if high in concentration. Benzene and formaldehyde are two types of VOCs often found in construction materials, and are harmful to human health, causing cancer. The U.S. Environmental Protection Agency (EPA) found that if a person is exposed to a high VOC concentration in the air, they may experience throat, eye, nose irritation, headache, breathing difficulties, and long-term damage to the kidney and liver.
Furthermore, producers are concerned about growing customer awareness about health and the environment. Thus, the regulation imposed on their usage is becoming stricter. EPA has mandated VOC limits for these products. California passed a law requiring particular categories of spray adhesives to comply with strict VOC requirements.
Water-Based Adhesives Segment Shall Dominate the Market
The market is segmented on the basis of technology, solvent-based, water-based, reactive, hot melt, and others.
The water-based adhesives segment dominated North America market share in 2020 and may continue its dominance during the forecast period. Rising demand in packaging, construction, automotive, leather, and furniture industries will augment the water-based market in the North American region. Properties such as flexibility, economic efficiency, and durability are the factors that boost the market growth. Government initiatives to increase lightweight vehicle production and strict regulations to curb carbon emissions are key drivers favoring the growth of the market. The ability of adhesives to increase fuel efficiency, lower carbon emissions, and reduce overall vehicle weight may boost the market growth during the forecast period.
North America’s packaging industry is anticipated to be a key driver for the hot-melt adhesives industry due to the presence of some of the largest packaging producers such as Ball Corporation, Owens Illinois, and International Paper. Stringent environmental and governmental regulations for solvent-based is likely to boost the hot-melt market growth in the region. Hot melt demand in the U.S. from the packaging industry may witness a moderate growth rate amid the COVID-19 pandemic due to increased demand for packaged food & beverages. Rising demand for packaging and non-woven goods is driving the market growth.
Silicone Sealants Market is Expected to Gain Impetus During the Forecast Period
Based on resin, the market of sealants is bifurcated into polyurethane, silicone, polysulfide, emulsion, and others.
Silicone sealants are important components in a variety of goods because they offer benefits including flexibility, inertness, temperature resistance, and oil & chemical resistance. An increase in new and innovative construction projects is likely to drive the demand for these products. Silicone sealants can be used to bond many common materials, including plastic, metal, glass, and ceramic.
Polyurethane sealants are widely used technology for new and renovation construction projects due to adhesion strength, flexibility, and hardness. They are preferably used in non-sagging and horizontal joints and vertical applications, including roofing, isolation joints, foundation, and others. PU sealants have low flexibility and high surface adhesion making them suitable in the automotive industry for manufacturing vehicles, repairing auto glass. Also used in installing and manufacturing air conditioning in HVAC systems to reduce vibration and provide sealing in metal sheet joints.
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Paper & Packaging Application in Adhesives Industry is Likely to Dominate During the Forecast Period
Based on application, the adhesive industry is classified as building & construction, paper & packaging, consumer/DIY, leather & footwear, woodworking, automotive & transportation, and others.
Adhesives play an important role in paper & packaging applications. They are needed to produce books, tissues, toilet rolls, magazines, tapes & labels, cigarettes, packaging materials, etc. Typical applications in the paper & packaging industry include flexible packaging, non-woven fabrics, pressure-sensitive products, and the book-binding & graphic art industry. Adhesives are included in almost 80% of food packaging, albeit in tiny amounts. They are used to manufacture rigid packs from carton board, attach labels, laminate layers of food contact materials, and seal flexible packaging, including pouches, lidding, and wrappers.
Strict environmental regulations to reduce the carbon emission of the vehicles have led to a rise in lightweight vehicles, which is likely to drive the market in automotive applications. They make inroads due to their thinner and lighter gauge substrates, which led to plastic & ABS components, unibody & cab-forward designs, and mixed metal joining. Adhesives used in the automotive industry are mostly synthetic, with raw materials such as acrylics, epoxide resins, vinyl acetate monomer, ethylene, propylene, and others. Nonetheless, most of the players in the region are formulating innovative products using renewable and bio-based feedstock, which will augment the market growth.
Building & Construction Application in Sealants Accounted for the Largest Share in 2020
Based on application, the market is segmented into building & construction, automotive & transportation, consumer, and others.
Building & construction applications dominated the market in 2020 and may continue their dominance up to 2028. In the construction industry, products are used to expand joints, seal cracks, and fill gaps between concrete and joints in concrete roads. In residential buildings, they are used for waterproofing the exterior walls from rain. The increasing use of silicone sealants that provide weather protection to buildings prevents cracks in highways and airport runways, boosting the construction market growth. The rise in government spending in various residential and non-residential projects and growth in the construction business are likely to bolster the market growth in the region. However, the use of lightweight chemicals and green building construction may provide profitable growth opportunities.
The growing population and rise in disposable income have led to the huge sale of passenger cars or vehicles, thus driving the automotive market. A car paint sealant is a synthetic product designed to protect a car’s surface while providing a mirror-like shine. Strict government norms or standards to reduce carbon emission is driving the demand for automotive products.
The need for these products is rising in the United States and Canada, owing to a growing desire for flexible packaging. Consumer behavior is changing, and there is a tendency toward more recyclable items, which has benefitted flexible packaging producers. The United States is the largest market in North America. The rising demand from construction, automotive & transportation, packaging, and electronics industries will augment the market growth in the U.S. Additionally, growing demand for construction projects along the region is likely to accelerate North America adhesives and sealants market growth. Furthermore, booming demand for electronics devices such as laptops, smartphones, electronic components, and others is likely to drive the market growth for the electronic industry in the North American region.
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Automotive manufacturing is one of Canada’s largest industrial sectors, accounting for 10% of manufacturing GDP. Canada’s auto industry produced vehicles (including heavy trucks) and parts worth over USD 98 billion in 2019. The country’s auto industry comprises highly developed independent auto-parts suppliers and manufacturers’ in-house transmission and engine plants. Thus, the growing automotive sector (lightweight vehicles) in the region, coupled with strict vehicle safety regulations and standards, are the key factors boosting the country's automotive market.
Manufacturers are Adopting Strategies to Maintain Their Position in the Adhesives and Sealants Market
North America adhesives and sealants market share is moderately fragmented in nature. Henkel AG & Co. KGaA, H.B. Fuller Company, Arkema Group, Sika AG, and Dow Inc. are some of the market's key players.
The competition is anticipated to intensify as the leading players are actively engaged in expanding their product range. Industry players operate principally based on the product's price and application characteristics. Several major players are engaged in numerous strategic alliances to boost their market share and achieve a competitive advantage. Major players are involved in acquisitions, new product innovation, expanding their manufacturing facilities, investing in research and development, and are looking for opportunities to integrate vertically across the value chain.
An Infographic Representation of North America Adhesives and Sealants Market
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The market research report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, technologies, resins, and applications. Also, the report offers insights into market trends and highlights vital user industry developments. In addition to the factors mentioned above, the report encompasses various factors contributing to the market's growth in recent years.
This report includes historical data & forecasts revenue growth at regional and country levels and analyzes the industry's latest market dynamics and opportunities.
Volume (Kilo Tons); Value (USD Billion)
Technology; Resin; Application; and By Country
By Adhesives Technology
By Adhesives Application
By Sealants Resin
By Sealants Application
Fortune Business Insights says that North America market size was USD 14.00 billion in 2020 and is projected to reach USD 19.35 billion by 2028.
Growing at a CAGR of 4.2%, the market will exhibit steady growth during the forecast period (2021-2028).
The paper & packaging is expected to be the leading segment in the market during the forecast period. The building & construction is expected to be the leading segment in the sealants market during the forecast period.
The rising demand for lightweight vehicles is the key factor driving the market.
Henkel AG & Co. KGaA, H.B. Fuller Company, Arkema Group, Sika AG, and Dow Inc. are major players in the market.
The increasing demand for construction adhesives and sealants in residential and non-residential projects is expected to drive the adoption of products.
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