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Construction Adhesives Market - Growth, Trends, COVID-19 Impact, and Forecast (2021 - 2026)

Product Code : MDCH00112475
Survey : Mordor Intelligence
Publish On : 20, May, 2022
Category : Chemicals and Advanced Materials
Report format : PDF
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[Report Description]

The market for construction adhesives market size was estimated at USD 7.5 billion in 2020 and the market is expected to grow at a CAGR of more than 6% during the forecast period (2021-2026).

The outbreak of COVID-19 is likely to bring several short-term and long-term consequences in the construction industry, which is likely to affect the demand for construction adhesives and sealants. According to the Associated General Contractors of America (AGC), there may be disruptions to work or cancelled projects, and the demand may be potentially less for “non-essential” projects, like offices, entertainment, and sports facilities. Due to the shutdown of such projects and other construction activites, the demand of construction adhesives tends to constrain.

- In short term, on of the major factors driving the market studied is increase in housing and construction projects in emerging countries. For instance, Singapore witnessed a positive growth in 2019, and the investments into the construction sector are expected to increase over the next few years. In 2020, the total construction demand, which is the value of construction contracts to be awarded, is likely to range between ~USD 28 billion and ~USD 33 billion. Such increase in the construction contracts is majorly due to the allocation of various public sector building projects, such as public housing, private sector projects, etc.
- The rapid growth in construction sector of various emerging economics such as South Korea, Brazil, Indonesia, Argentina, South Africa, Mexico, Poland, Turkey, Egypt, Iran, and Nigeria, where the growth of projects is expected to be significantly high in construction graph, leads the demand of construction adhesives.
- However, stringent environmental regulations related to emission is likely to restrain the growth of the market.
- Increasing demand for bio-based and hybrid adhesives in the construction sector are estimated to create opportunities for the market in the future.
- Asia-Pacific dominated is witnessing the highest growth rate, during the forecast period.

Key Market Trends

Residential Segment to Dominate the Market

- In residential construction, adhesives have several application areas like carpet laying, laminating countertops, installing flooring, wallpapering, etc. The usage of adhesives can reduce the usage of screws and help in weatherproofing the house.
- The residential construction across the globe has been witnessing significant growth over the past few years owing to factors like population growth, migration from rural areas to service sector clusters, and the growing trend of nuclear family among others. Besides, decreasing land to population ratio and the growing trend of constructing high-rise residential buildings and townships have been driving the application of adhesives and sealants in the residential construction segment across the globe.
- In the recent past, the highest growth rate, regarding residential construction was expected to be registered in the Asia-Pacific region, owing to the expanding housing construction market in China and India. Asia-Pacific has the largest low-cost housing construction segment, led by China, India, and various Southeast Asian countries. However, with most of the Asia-Pacific countries being severely affected by COVID-19 on a large scale, the growth is expected to notably slower down in the short run.
- Globally, there has been a significant undersupply to meet the demand for housing. This presented a major opportunity for the investors and developers to embrace the alternative methods of construction and new partnerships, in order to bring forward development. For instance:
- In China, residential investment grew by about 13.9% during the first eleven months of 2019, reaching CNY 9,707.1 billion. The area under residential construction during the period was recorded to have reached 6,276.73 million square meters, indicating a 10.1% growth.
- In India, in November 2019, the Union Cabinet approved to set up an Alternative Investment Fund (AIF) of INR 25,000 crore (USD 3.58 billion) to revive about 1,600 delayed housing projects across the top cities in the country. Besides that, Puravankara Ltd planned an investment of about INR 850 crore (USD 121.6 million) for the development of three ultra-luxury residential projects in Chennai, Bengaluru, and Mumbai, over the next four years.
- In Canada, various government projects, including the Affordable Housing Initiative (AHI), New Building Canada Plan (NBCP), and Made in Canada, have been supporting the expansion of the sector.
- While residential construction growth was prominent through 2019 in regions, such as Asia-Pacific, North America, and the Middle East, the COVID-19 pandemic is expected to severely hit residential construction growth at least over the next two years. As COVID-19 has been severely increasing fatality rate across the globe, housing and new residential construction are likely to be moderate during the foreseeable future.

Asia-Pacific Region to Dominate the Market

- Asia-Pacific accounted for the largest market for construction adhesives, owing to huge demand from the construction market in India, China, and various countries in Southeast Asia.
- The development of 100 smart cities in countries, like India and Government projects, such as ‘Housing For All’ by 2022, significant growth in the construction sector.
- Countries such as Indonesia, Singapore, Vietnam, restructuring of South Korea’s construction industry are some of the few factors driving the construction adhesives market growth in the Asia-Pacific region.
- The number of commercial offices and buildings in the region has increased since the last decade, owing to the growth of major economic & business centers and the competition among the construction players for attractive looks and sustainable & economical construction has also increased the demand for construction adhesives
- China’s construction industry developed rapidly, due to the central government’s push for investment in the construction industry, as a means to sustain economic growth.
- “Made in China 2025” was introduced by the government, the initiative is aimed at improving industry efficiency, product quality, and brand reputation. This may spur the development of domestic manufacturers and may increase competitiveness.
- The Chinese government rolled out massive construction plans, including making provision for the movement of 250 million people to its new megacities over the next ten years, despite efforts to rebalance its economy to a more service-oriented form.
- The construction industry is the second-largest industry in India with a GDP contribution of about 9% and has shown promising growth in 2019 with a re-energized output of around 8%. It is predicted that India’s construction industry is set to emerge as the third-largest market in the world, with a size of almost USD 1 trillion by the end of forecast period.
- Smart cities mission is another major project undertaken by the government which will construct more than 100 smart cities all over the country to achieve rapid urbanization in the country. In 2018-2019 budget, INR 6,450 crores has been allocated to the smart city mission against Rs 6,169 crore in 2018-2019 budget, an increase of 4.5%.
- India has also been witnessing significant interest from international investors in the construction space. Foreign Direct Investment (FDI) in Construction Development sector (townships, housing, built up infrastructure and construction development projects) stood at USD 25.66 billion during April 2000 to March 2020, according to Department for Promotion of Industry and Internal Trade (DPIIT).
- In Asia-Pacific region, the COVID-19 pandemic had a crucial impact on the construction sector, which is sensitive to economic cycles. The major countries such as India, and China are majorly impacted during this pandemic. Due to social distancing policy, every construction projects were shut down, and largely, from construction materials to equipment, every market got affected. This factor have highly constrained the demand of construction adhesives on the same side, which have restrained the growth of the market.

Competitive Landscape

The construction adhesive market is consolidated. Some of the major players include Henkel AG & Company KGaA, Dow, H.B. Fuller, Arkema Group, and 3M, among others.

Reasons to Purchase this report:

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1.1 Study Assumptions
1.2 Scope of the Study



4.1 Drivers
4.1.1 Growing Investments in Construction Industry
4.1.2 Increase in Housing and Construction Projects in Emerging Countries
4.2 Restraints
4.2.1 Stringent Environmental Regulations
4.2.2 Impact of COVID-19
4.3 Industry Value Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition

5.1 Type
5.1.1 Water-based
5.1.2 Solvent-based
5.1.3 Hot-melt
5.1.4 Reactive
5.1.5 Other Types
5.2 Application
5.2.1 Residential
5.2.2 Commercial
5.2.3 Infrastructure
5.2.4 Industrial and Institutional
5.3 Geography
5.3.1 Asia-Pacific China India Japan South Korea Rest of Asia-Pacific
5.3.2 North America United States Canada Mexico
5.3.3 Europe Germany United Kingdom Italy France Rest of Europe
5.3.4 South America Brazil Argentina Rest of South America
5.3.5 Middle-East and Africa Saudi Arabia South Africa Rest of Middle-East and Africa

6.1 Mergers & Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 3M
6.4.2 Adhesive Technologies Corp.
6.4.3 Arkema Group (Bostik)
6.4.4 Ashland Inc.
6.4.5 Avery Dennison Corp.
6.4.6 DAP Products Inc. (RPM International)
6.4.7 Don Construction Products (DCP) Limited
6.4.8 Dow
6.4.9 Franklin International
6.4.10 Gorilla Glue Inc.
6.4.11 H.B. Fuller Company
6.4.12 Henkel AG & Co. KGaA
6.4.13 Huntsman International LLC.
6.4.14 ITW (Illinois Tool Works Inc.)
6.4.15 Lord Corp. (Parker Hannifin Corp.)
6.4.16 Mactac
6.4.17 MAPEI S.p.A.
6.4.18 Sika AG
6.4.19 Wacker Chemie AG


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