Find Out More About Construction Adhesive Market Global Growth With Rising CAGR And Forecast Till 2030

Posted by Mrudula Karmarkar on October 14th, 2022

The global construction adhesive market size is expected to reach USD 15.34 billion by 2030, according to a new report by Grand View Research, Inc. The market is projected to advance at a revenue-based CAGR of 5.3% 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.

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Commercial construction is anticipated to remain a key driver for the long-term growth of the U.S. market. It accounted for over 34.0% of the revenue share in 2021 and is likely to grow at a moderate CAGR during the forecast period. Adhesives are widely utilized in commercial and residential buildings for bonding insulation foams, plastics, wood-based panels, plasterboard panels, and other synthetic raw materials. The non-residential sector spending remained low for the most part of 2021. Spending across offices, healthcare, educational, transportation, and commercial settings witnessed the largest y-o-y decline in July 2021. Overall spending declined by 11% in July 2021, compared to pre-pandemic levels. However, additional funding for infrastructure is likely to boost the spending over the next few years.

Construction Adhesive Market Report Highlights

• Based on resin type, in terms of both revenue and volume, acrylic was the largest application segment in 2021. It accounted for a revenue share of 45.6% in 2021. Advantages such as flexibility to join various materials and strong structural adhesive properties are likely to promote the growth of the segment
• In terms of revenue, water-based adhesives are anticipated to expand at a CAGR of 5.5% from 2022 to 2030. Low volatile organic compounds and less odor are the benefits of water-based construction adhesives, which are the key contributing factors to the segment growth
• Commercial emerged as the largest application segment in terms of volume in 2021. Demand for offices, restaurants, and other small & medium businesses is likely to benefit the segment growth
• Asia Pacific is expected to witness the fastest growth during the forecast period. Government funding for commercial projects in India and China is likely to assist the adhesive demand in the construction sector

Regardless of the challenges associated with the supply chain, such as higher costs for raw materials and building materials, non-availability of materials, and lack of skilled labor, the residential sector in the country is likely to witness stable growth in the near future. The residential construction sector is mainly supported by strong demand for bigger houses, low mortgage rates, and low housing inventory in the U.S.
The construction adhesive players in the market are focusing on new product developments, which are eco-friendly and have low VOC emissions. Also, they are focusing on the development of products with the ability to join different types of substrates, high bonding strength, and consistent performance.

The development of eco-friendly products is likely to remain a major focus area for market players. These products create minimal environmental impact, and therefore a surge in the product demand is expected to be witnessed in the coming years.

Some prominent players in the global construction adhesive market include:

• 3M
• Bostik SA
• DAP Products, Inc.
• H.B. Fuller
• Henkel AG & Co. KGaA
• Sika AG
• Dow