New scope of application of structural sealants in greener society triggering the market revenue among regional players

Published On: March 2018

Global Structural Sealants Market Research Report - Forecast till 2023

Adhesives and sealants surrounds us in nature and in our daily lives. Substantial business exists to develop, manufacturer and market these materials and are used within virtually every business and industry including shoes, baby nappies, wrapper of wafers, electronic gadgets, toys and ready to eat packets among others. Moreover, demand in this market is growing year by year owing to strong growth in numerous end use industries. Thus, growing strong bond of adhesives and sealants in day to day life is increasingly seeking new opportunity for manufacturers. In addition to this, the increasing production of synthetic material across end use industries, structural sealants are growing in parts, holding it all together. Furthermore, rising maturity of established markets such as the U.S. and Germany is estimated to provide above average growth on account of shifting manufacturing base to Asia Pacific region.

Building & construction application is likely to have positive impact on the growth of structural sealants market

The primary function of sealants is to fill the gap between surfaces and resist the relative movement of substrate to flow further. Innovation of structural sealants in sealant technology has evolved as specially designed sealants for holding and maintaining integrity of automotive finishes and construction activities. These sealants are self-primer, stable and neutral cure for different structural substrates. Moreover, sealants possess higher elasticity and flexibility as compared to adhesives and display low cohesive strength. The overall structural sealants market is projected strong gain in the demand in building and construction activity. Construction industry has witnessed exponential growth in the past few years on account of increasing demand of structural application across end use industries. For instance, the global construction industry is expected to reach around 10 trillion by 2020. Surge in infrastructural projects such as airports, luxurious hotels, roads and building smart cities are expected to seek increasing opportunity for structural sealant manufacturers.

High rise buildings in metropolitan cities due to space constraint has offered sufficient scope for the growth of structural sealants across the emerging economies. The Middle East and Africa has experienced the fastest growth in 2016 to around CAGR 5.8%. The upcoming international expo in Dubai and expansion of airport project along with FIFA world cup 2022 in Qatar are likely to open new opportunities for structural sealants in construction industry. Similarly, rise in government spending on infrastructure activities and initiatives such as Real Estate Regulation Act (REIT) and 100% FDI are encouraging foreign investors to invest in numerous construction projects. Construction industry in China is expected to increase over the coming years on account of abolition of one-child policy, service driven China economy and development of construction activities in healthcare, education and social infrastructure to boost trading and tourism activity.

Greener and VOC free content in structural sealants are positively impacting the global market

Sealants are extensively used in construction activities to minimize energy consumption and provide structural strength for long term. Generally, environmental impact of sealants raw materials is negligible as compared to the total consumption of construction material in entire building. Low VOC content in sealants provides low emission in environment ensuring safer application across industries. Sealants that are based on 1K component are easier and can be cleaned without using any equipment as compared to 2K component sealants. This benefits the quality of structural sealants as it helps in providing good air quality along with less wastage of materials. Thus, helping to save energy and boosting the demand of greener society in the regional market. LEED promotes sustainability of green building projects. In recent years, the U.S., Canada, as well as Italy has cited LEED projects and are becoming popular in countries like Australia, New Zealand, Dubai and South America. Additionally, rising demand of acrylic structural sealant owing to low VOC content and easy adhesion to non-porous substrate are also expected to open ample opportunities for manufacturer for application in interior parts such as sanitary room and glass windows. Thus, high emphasis for greener building and construction to meet environmental regulation is putting high pressure on structural sealants manufacturer to provide sustainable environment.

Competition scenario: - Global players are holding largest market share and rest is covered by regional market players

As per our analysis, major players are holding considerable market share through generating reasonable revenue each year in the particular market segment. The prominent manufactures operating into the market are BASF SE, Asian Paints Limited, Pidilite Industries, Ltd, Roberlo, AKEMI, Chemence Ltd., H.B Fuller, Dow Corning Corporation, Henkel AG & Co. KGaA and 3M among others.

The global structural sealants market consists of established Tier-1 enterprise and is highly fragmented in nature. The industry witnessed relatively high cost in terms of 2K component structural sealants compared to 1K component sealants. This is attributed towards easy mass production of 1K owing to Low VOC content and less product wastage. Thus, mass production will relatively provide high cross margin across the value chain. In addition to this, the market entry barriers observed in this market are also low in terms of mid-size companies owing to relatively high initial investment. This could promote existing key players to invest in innovative and advanced technology to extend the market share.

Due to aforementioned market scenario, it can be concluded that greener or bio based structural sealants products across end use industries would retain market dominance over the years and consequently pave way for a greener tomorrow.