Construction Adhesives Market - Growth Drivers and Challenges
Growth Drivers
- Expansion of pre-fabricated construction: The modular and prefabricated construction market is expected to expand at a CAGR of 6.6% from 2024 to 2030 as it demonstrates reduced labour costs and faster project delivery. Construction adhesives are key in assembling prefabricated wall panels, flooring systems, and structural components. Demand for adhesives in the modular and prefabricated construction markets increases for seamless bonding, structural stability, and design flexibility, particularly in North America and Europe, where market acceptance and use of prefabrication are increasing in housing and healthcare-related infrastructure.
- Technological advancements in product formulations: Technological developments in polyurethane, epoxy, and acrylic adhesive systems have added improved bond strength, heat resistance, and substrate compatibility. For example, Henkel reports that its new polyurethane adhesives exhibit 31% greater bonding strength for wood panels and structural glazing. Ongoing research and development will continue to produce lighter, stronger, and more durable adhesives for accepted construction applications that support premium prices and market differentiation. The adhesive manufacturer community will continue to focus on hybrid technologies that will combine the mechanical properties of traditional adhesives and reactive adhesives to keep pace with construction methods and standards.
1.Emerging Trade Dynamics & Future Market Prospects
Import-Export Data (Construction Adhesives) 2019-2024
|
Year |
Global Imports (USD Billion) |
Global Exports (USD Billion) |
Top Origin Countries |
Top Destination Countries |
|
2019 |
2.9 |
3.0 |
Japan, Germany, China |
U.S., India, Indonesia |
|
2020 |
2.4 |
2.5 |
China, Germany, Japan |
U.S., Vietnam, Australia |
|
2021 |
2.7 |
2.8 |
China, Germany, Japan |
U.S., India, Malaysia |
|
2022 |
3.6 |
3.5 |
China, Japan, Germany |
U.S., India, Indonesia |
|
2023 |
3.7 |
3.6 |
China, Japan, Germany |
U.S., South Korea, Australia |
|
2024 |
3.9 (est.) |
3.8 (est.) |
China, Japan, Germany |
U.S., India, Indonesia |
Key Trade Routes (2019-2023)
|
Trade Route |
CAGR (%) |
Main Products Shipped |
|
Japan to Asia |
+6.3% |
Epoxy, PU adhesives |
|
Europe to North America |
+4.6% |
Acrylic adhesives |
Significant Trade Patterns
|
Pattern |
Evidence |
|
Construction industry growth |
+6.2% (U.S. 2022) |
|
Chemical exports (Japan to SE Asia) |
USD 9.2B (2019) to USD 11.6B (2023) |
2.Construction Adhesives Market Overview
Price History & Sales Data (2019–2023)
|
Year |
Avg. Price (USD/ton) |
Unit Sales (tons) |
NA Price Trend |
EU Price Trend |
Asia Price Trend |
|
2019 |
$1,201 |
2.2M |
+4% |
+3% |
+2% |
|
2020 |
$1,251 |
2.1M |
+6% |
+5% |
+4% |
|
2021 |
$1,401 |
2.3M |
+13% |
+11% |
+8% |
|
2022 |
$1,551 |
2.5M |
+19% |
+16% |
+11% |
|
2023 |
$1,381 |
2.6M |
-4% |
-9% |
-4% |
Key Price Influencers & Statistical Impact
|
Factor |
Statistical Impact |
|
Raw Material Costs (Crude Oil Derivatives) |
60% of adhesive production costs tied to petrochemicals. Brent crude ↑ 66% (2021) → adhesives ↑ 13%. |
|
Geopolitical Events (Russia-Ukraine War) |
2022 resin shortage (20%) → EU construction adhesive prices ↑ 16%. |
|
Environmental Regulations (VOC Limits) |
EPA 2022 standards increased compliance costs by 9% in North America. |
Challenges
- Performance limitations in extreme conditions: Adhesive performance in extreme temperature environments, or other high-moisture environments, still has a barrier. For example, adhesives can fail in marine conditions or exterior applications due to temperature cycles or UV exposure. In fact, according to the American Concrete Institute, 26% of adhesive bond failures in concrete repair applications were due to improper selection for environmental conditions. This performance deficiency restricts when and how certain products can be used in any critical structural function, thereby limiting the overall growth potential of the market.
- Limited awareness of advanced products: There are still limited adoption rates for high-performance construction adhesives among many smaller to mid-size contractors, as many do not have the same awareness as the larger contractors when it comes to knowledge of their use. For example, in a Global Construction Survey, only 38% of surveyed contractors in emerging Asia-Pacific markets were finding construction adhesives a worthy, environmentally sustainable alternative to traditional mechanical fastening systems. Inadequate knowledge and understanding of the benefits that these products could offer, such as weight savings, durability, energy efficiency, and low carbon credentials, continue to suppress market penetration, specifically in the low-cost housing and infrastructure segments, limiting growth opportunities for manufacturers of premium performance adhesives.
Construction Adhesives Market: Key Insights
|
Base Year |
2024 |
|
Forecast Year |
2025-2034 |
|
CAGR |
5.2% |
|
Base Year Market Size (2024) |
USD 12.9 billion |
|
Forecast Year Market Size (2034) |
USD 20.7 billion |
|
Regional Scope |
|