Construction Adhesives Market Expected to Reach $16.9 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Construction Adhesives Market," The construction adhesives market was valued at $9.6 billion in 2021, and is estimated to reach $16.9 billion by 2031, growing at a CAGR of 5.9% from 2022 to 2031.

Construction adhesives are used to bond wood materials together, providing a strong, permanent bond that can withstand the stresses of use and exposure to environmental factors. They are used in a wide range of building and construction applications, including flooring, tile and stone installation, roofing, window and door installation, insulation, and concrete and masonry work.

Construction adhesives provide an effective means of bonding and sealing materials together, which can help to improve the safety, durability, and energy efficiency of buildings. They are used to bond and seal electrical and plumbing components, providing a strong, permanent bond that can help to improve the safety and reliability of these systems in construction.

Construction adhesives can be used to seal connections between pipes and fittings, helping to prevent leaks and ensuring that the system remains watertight. Providing a strong, permanent bond that can help to prevent them from shifting or coming loose over time which is better suited for bonding certain materials or for use in specific environmental conditions.

The growth of the global construction adhesives market is majorly attributable to its wide applications in various industries such as residential, commercial, and industrial. Also, the growing demand for construction adhesives in residential housing and infrastructure is expected to driving the market growth during the forecast period.

However, stringent regulations associated with the presence of volatile organic compound (VOC) insolvent-based construction adhesives are projected to hinder the expansion of the market. On the contrary, the surge in demand for bio-based and hybrid adhesives is expected to offer ample growth opportunities for the construction adhesives market. 

Rising government spending on public infrastructure and commercial buildings is driven by population growth, urbanization, and the need to upgrade aging infrastructure. Construction adhesives play a key role in improving the efficiency and durability of these structures, reducing the need for mechanical fasteners.

In 2021, India, the U.S., Israel, and the UAE established a quadrilateral economic forum to focus on infrastructure development projects in the region and strengthen bilateral cooperation. Adhesives can also help improve energy efficiency by creating a tighter seal between components, making buildings more cost-effective and environmentally friendly.

Fluctuations in raw material prices can have a significant impact on the cost and availability of construction adhesives, as they can be influenced by supply and demand factors, as well as global economic and political conditions. The cost of petroleum-based products like solvents and resins can be affected by changes in oil prices, while the cost of fillers like calcium carbonate and talc can be impacted by fluctuations in the mining industry. Manufacturers may need to adjust their pricing or sourcing strategies in response to these fluctuations or look for ways to improve their production efficiency.

The surge in demand for bio-based and hybrid adhesives is expected to provide sufficient development prospects for the construction adhesives market in the future years. Bio-based and hybrid adhesives are becoming increasingly popular in the construction industry, driven by a need to comply with regulations and improve sustainability practices. By using low-emission adhesives, builders and manufacturers can reduce their environmental impact and comply with regulations.

The global construction adhesives industry was significantly impacted by the COVID-19 pandemic, which resulted in supply chain disruptions, production halts, and decreased demand. In the July-September quarter, sales fell by 25%, while commercial construction fell by 46.6% in August.

Despite the pandemic's hurdles, the market is projected to rebound as construction activities resume and demand for housing and infrastructure projects rises. Consumers account for a substantial share of eco-friendly building construction clients, and governments all over the world are investing in infrastructure projects to spur economic growth. Furthermore, the pandemic has raised the emphasis on health and safety, and businesses have had to alter their operations to satisfy new laws.

The construction adhesives market is segmented into resin type, technology, application, and region. On the basis of resin type, the market is categorized into acrylic, polyvinyl acetate, polyurethanes, epoxy, and others. On the basis of technology, the market is categorized into water-based, reactive, solvent-based, and others. On the basis of application, it is categorized into residential, commercial, and industrial. Region-wise the market is studied across North America, Europe, Asia-Pacific, and LAMEA.

The major players operating in the global construction adhesives market include 3M, ARDEX AMERICAS, BASF SE, DAP Global Inc., H.B. Fuller Company, Henkel AG & Co. KGaA, Huntsman International LLC, MAPEI S.p.A., Permabond LLC., and Sika AG

Key findings of the study:

• By resin type, the polyurethanes (PU) segment consists of the highest CAGR of 6.4% during the forecast period.

• By technology, the water-based segment accounted for one fourth share of the market, in 2021.

• By application, the residential segment accounted for more than one fourth of revenue in 2021.

• By region, Asia-Pacific was the highest revenue contributor in 2021, growing with a CAGR of 6.1%.