The global construction adhesive market was surpassed at USD 9.7 billion in 2021 and is expected to hit around USD 15.5 billion by 2030, growing at a CAGR of 5.35% from 2022 to 2030.
The emergence of COVID-19 affected the construction industry around the world in 2020, and its impact continued in 2021 and 2022 as well in certain countries.
Construction represents close to a 13% share of the global GDP. Thus, a short impact on the sector affects the materials demand, thereby reducing the growth of the market. Most of the construction sites during the first half of 2020 faced numerous challenges associated with operations and supply chains. However, the market started recovering in 2021. Construction spending on infrastructure projects is likely to rise in 2022, on account of the passage of public and private investments.
Focus on sustainable construction and infrastructure projects is anticipated to assist the market growth during the coming years. Governments may provide stimulation to the economy by encouraging carbon reduction targets. These incentives might come in the form of direct public funds and policy changes. Companies expect demand for sustainable buildings and communities that promote healthier lifestyles, which is anticipated to drive the demand for construction adhesives.
The adoption of digitization and emerging technologies is another key factor, which is likely to provide a boost to the building & construction sector and associated materials over the long term. Contractors are likely to use remote collaboration at various stages of projects using digital models. Distributors of adhesives and other building materials are focusing on minimal physical interactions, especially with e-commerce sites for which sales teams can handle customers and orders with digital tools.
Investments in construction and infrastructure projects are anticipated to drive market growth in the long run. For instance, the Indian government has plans to double its infrastructure investments in sectors such as communication, commercial infrastructure, energy, and water & sanitation over the next five years, as of 2021. Also, as per the National Infrastructure Pipeline, there are over 6,800 identified projects worth USD 15 million in the country. Projects such as airport development in smart cities and Pradhan Mantri Sadak Yojna Project are likely to offer new opportunities for market players.
Scope of The Report
|Market Size in 2021||USD 9.7 billion|
|Revenue Forecast by 2030||USD 15.5 billion|
|Growth rate from 2022 to 2030||CAGR of 5.35%|
|Forecast Period||2022 to 2030|
|Segmentation||Resin type, technology, application, region|
|Companies Covered||H.B. Fuller; 3M; Sika AG; Dow; Bostik SA; Henkel AG & Co. KGaA; DAP Products, Inc.|
Resin Type Insights
Acrylic was the largest segment in 2021 and accounted for a revenue share of over 45.0% of the global market. The preference for acrylic adhesives is increasing in the construction sector mainly due to exceptional bonding properties, good impact strength, and excellent water resistance. The segment is projected to witness a growth rate of 5.1% from 2022 to 2030.
Epoxies are structural adhesives and are likely to observe a growth of 4.8%, in terms of revenue, during the forecast period. These adhesives can be used on various substrates in the construction industry, wherein a strong bond is required. They are used in laminated woods for roofs, decks, walls, and other applications. These have high heat and chemical resistance and are used to bond stone, glass, metal, wood, and some plastics.
In terms of volume, the polyurethanes segment accounted for a volume share of over 11.0% in 2021 and is likely to grow at a lucrative pace. Polyurethane adhesives are paintable, have water resistance, low odor, low VOC content, and the ability to work in cold and hot environments. They are used in interior as well as exterior construction applications.
In terms of revenue, water-based products accounted for a share of nearly 44.0% in 2021 of the global market. Products made using this technology have higher moisture resistance compared to other adhesives, which is likely to contribute to the growth of the segment. New product development along with an increase in R&D spending is likely to offer new avenues for vendors of water-based construction adhesives.
Solvent-based products are used in high-performance applications in the construction industry and are likely to witness lucrative growth during the projection period. Demand from structural and non-structural applications is projected to keep a positive momentum for this segment.
The market players are focusing on the development of advanced solutions to increase their market share through R&D investments. Reactive adhesives are projected to witness healthy growth on account of their high bond strength and excellent durability in harsh environmental circumstances.
In terms of volume, the residential segment accounted for a market share of over 32.0% in 2021. Incentives for first-time house buyers are projected to assist the residential construction sector around the globe. For instance, in the 2022 budget, the Canadian government has introduced Tax-Free First Home Savings Account. This will assist first home buyers to save up to USD 40,000.
The commercial segment is likely to observe a growth rate of 5.6%, in terms of revenue, from 2022 to 2030. Government packages and incentives are projected to boost infrastructure and residential sectors, thereby positively influencing the growth of the construction adhesive market. For instance, the Mexican government is preparing a multi-billion infrastructure package for investment in highways, ports, energy, and telecommunications.
The industrial application segment accounted for a revenue share of over 30.0% in 2021. Increasing FDIs in emerging countries, particularly for manufacturing industries, is likely to bolster the market growth of the industrial segment. For instance, in December 2021, the Maharashtra government in India signed MoUs worth around USD 659.7 million for various sectors such as steel, electric vehicles, space research, biofuel, food processing, and ethanol production, among others.
Europe accounted for a volume share of over 34.0% in 2021. Europe’s infrastructure spending was flat in 2020; however, it observed a y-o-y growth of 1.5% in November 2021, compared to the same period from the previous year. As per the latest EU Construction Outlook Report, the construction sector is poised to grow by 2.5% in 2022, compared to 2021.
Asia Pacific was the largest regional market and is likely to maintain its position during the forecast period. China is the leading consumer of construction adhesives and accounted for a volume share of over 20.0% of the global market in 2021. Massive investments in the infrastructure sector of the country are projected to promote the use of construction adhesives. For instance, in August 2020, the state railway operator of China announced its plans to double the high-speed railway network over the next 15 years.
The construction sector of North America is one of the leading sectors globally and contributes significantly to the global GDP. Strong economic growth, increase in household formation, and low mortgage rates are expected to be the key factors aiding the growth in residential construction. However, the demand for multi-family housing is expected to decline during the forecast period, which may have a moderate effect on residential construction.
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