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Construction Adhesive Market Size To Hit $15.34 Billion By 2030, Owing To Increasing Investments in Infrastructure Sector Globally | Grand View Research, Inc.

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Construction Adhesive Market Size To Hit $15.34 Billion By 2030, Owing To Increasing Investments in Infrastructure Sector Globally | Grand View Research, Inc.

June 07
08:21 2022
Construction Adhesive Market Size To Hit $15.34 Billion By 2030, Owing To Increasing Investments in Infrastructure Sector Globally | Grand View Research, Inc.
Grand View Research, Inc. – Market Research And Consulting.
According to a new report published by Grand View Research, emerging economies are expected to remain key markets for construction adhesives demand, as 60% of infrastructure investment is projected to be attracted by these countries.

Construction Adhesive Industry Overview

The global construction adhesive market size was valued at USD 9.65 billion in 2021 and is expected to reach USD 15.34 billion by 2030, projecting to advance at a revenue-based CAGR of 5.3% during forecast period.

Growing investments in the infrastructure sector worldwide are likely to push the demand for construction adhesives during the forecast period. As per the United Nations’ report on infrastructure in 2021, increasing investments in the infrastructure segment can add 0.6% to the global GDP. This addition can be more in some countries, including the U.S. and Brazil where it is up to 1.3% and 1.5%, respectively. Emerging economies are expected to remain key markets for construction adhesives demand, as 60% of infrastructure investment is projected to be attracted by these countries.

Gather more insights about the market drivers, restrains and growth of the Global Construction Adhesive Market

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.

 

U.S. Construction Adhesive Market size, by resin type, 2020-2030 (USD Billion)

 

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.

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. Infrastructure investments in the country are likely to boost the demand for adhesives over the coming years.

 

Construction Adhesive Market Segmentation

Based on the Resin Type Insights, the market is segmented into acrylic, polyurethanes, polyvinyl acetate, epoxy and others

  • 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.

 

Based on the Technology Insights, the market is segmented into water-based, solvent-based and reactive & others

  • 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.

 

Based on the Application Insights, the market is segmented into residential, commercial and industrial

  • 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.

 

Based on the Regional Insights, the market is segmented into North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa

  • 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.
  • 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.

 

Market Share Insights:

  • June 2021: U.S. government announced a USD 1.2 trillion infrastructure plan to support the country’s economic growth. The plan makes investments in transportation, water management, broadband, telecommunications, energy, and more.
  • August 2020: The state railway operator of China announced its plans to double the high-speed railway network over the next 15 years.

 

Key Companies Profile:

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.

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

 

Order a free sample PDF of the Construction Adhesive Market Intelligence Study, published by Grand View Research.

 

About Grand View Research

Grand View Research is a full-time market research and consulting company registered in San Francisco, California. The company fully offers market reports, both customized and syndicates, based on intense data analysis. It also offers consulting services to business communities and academic institutions and helps them understand the global and business scenario to a significant extent. The company operates across multitude of domains such as Chemicals, Materials, Food and Beverages, Consumer Goods, Healthcare, and Information Technology to offer consulting services.

Web: https://www.grandviewresearch.com

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Website: https://www.grandviewresearch.com/industry-analysis/construction-adhesive-market

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