The primary driver for the adhesives & sealants market is the greater integration of these products into the automotive and construction industries. In 2021, the market stood at $66,649.9 million and it is projected to touch $102,604.3 million by 2030. It will advance at a CAGR of 4.9% from 2021 to 2030, owing to the rising vehicle safety standards, accompanied by skyrocketing demand for these products in the packaging industry.
With the outbreak of COVID-19, several end-use sectors, including electrical & electronics, building & construction, and automotive, were impacted badly. Thus, the pandemic had a negative effect on the adhesives & sealants market, due to the disruption in the supply chain. For example, the automobile industry in China witnessed a 90% fall in the demand for new vehicles. Similarly, there was a drop of 23% in the sales of vehicles in Europe. Nonetheless, with the resumption of activities in these sectors, the business will recover prospectively in the future.
The improvements in bio-based sealants and adhesives will lead to the creation of lucrative opportunities for players in the adhesives & sealants market. This can be credited to the attempts made to substitute chemical-based products with bio-based products, due to the surging environmental concerns. Moreover, companies are adopting technologically advanced bio-based products to achieve the two-fold motifs of improving sustainability standards without settling on the current performance level. For instance, Nuplaviva, a string of products with bio-sourced content, was launched by Bostik SA in December 2021.
Increasing deployment of electric vehicles globally will spur the adhesives & sealants market growth. The registration of electric cars in 2020 touched a 3-million mark, as per the International Energy Agency. Furthermore, a 10-million mark was touched by the global electric car inventories in the same year, which increased by around 45% as compared to 2019 figures. Even though there is a lower use of sealants and adhesives in electric vehicles, the demand for these products will potentially grow with the rising pivot on emphasizing reducing overall vehicle weight.
APAC rules the adhesives & sealants market by generating the highest revenue, and this trend will be exhibited in the forecast period as well, due to the surging infrastructure spending, robust economic growth, and increasing purchasing power of consumers, in the region. Moreover, the rising consumer population and the developing end-use sectors, such as packaging, healthcare, construction, and automotive, will augment the need for adhesives and sealants.
Therefore, the snowballing demand for these products in the packaging industry, coupled with the rising vehicle safety standards will create lucrative opportunities for market players to maximize their profits.
Source: P&S Intelligence