Southeast Asia Adhesives and Sealants Market Size & Share Analysis (2023 - 2028)
Author: View:73
Southeast Asia's adhesives and sealants market is currently estimated at USD 3 billion. It is expected to reach USD 4.11 billion over the forecast period, registering a CAGR of over 6.5% during the forecast period.
Due to the COVID-19 outbreak, nationwide lockdowns worldwide, disruption in manufacturing activities and supply chains, and production halts negatively impacted the market in 2020. However, the conditions started recovering in 2021, restoring the market's growth trajectory.
The demand for adhesives and sealants is extensively driven by the growing demand from the construction industry and increasing application in the packaging industry.
However, the growth is likely to be hindered by the stringent VOC emissions regulations related to adhesives and sealants.
The innovation and development of bio-based adhesives and shifting focus toward adhesive bonding for composite materials will likely offer opportunities for the adhesives and sealants market.
Indonesia is the region's largest market for adhesives and sealants, where the end-user industries, such as construction, electronics, and packaging, drive consumption.
Due to their characteristics and physical properties, adhesives and sealants include extensive use in the building and construction industry, making it the dominant end-user segment in the adhesives and sealants market.
Some properties of adhesives and sealants include good cohesion, adhesion and elasticity, high cohesive strength, flexibility, the high elastic modulus of the substrate, resistance from thermal expansion, and environmental resistance from UV light, corrosion, saltwater, rain, and other weathering conditions.
They are used in several applications, like heating, ventilation, air conditioning (HVAC), concrete, joint cement, resilient flooring, roofing, fixed window frames, etc.
Growing construction activities in countries such as Indonesia, Philippines, Vietnam, Indonesia, and Thailand are driving the consumption of adhesives and sealants market in the region.
The Vietnamese Government initiated a national housing development strategy for 2021-30 to cater to the demand of low-income earners. Many giant developers stepped in with their plans to develop housing projects. For instance, Vinomes devised a plan to build 500,000 social housing units, while Him Lam Group announced the social housing project Thuong Thanh, which will cover 60,000 sq m. The country’s housing development gained traction with the Prime Minister’s recent announcement of a plan to build more than 1.2 million houses by 2030.
Further, Thailand is one of the largest hubs for tourists. It is witnessing huge investments in expanding and constructing malls, luxury hotels, etc. The Pattaya Marriott Marquis Hotel is the largest project in Thailand’s pipeline, which may be in operation by 2024, with over 900 guest rooms. This new Marriott Marquis will be part of a dual-property development, including the 398-room JW Marriott and the Pattaya Beach Resort & Spa. Marriott may add four new hotels under three of its brands across Bangkok and Pattaya in Thailand by 2027. Marriott’s portfolio in Thailand includes 45 hotels and resorts, including nine properties with Asset World Corporation.
All the abovementioned factors are expected to boost the studied market's growth.
Indonesia dominates the consumption of adhesives and sealants in the region. Growing construction activities, electronics production, and increasing consumption in the packaging industry are some of the key factors driving the growth of the adhesives and sealants market in the country.
In Southeast Asia, Indonesia is one of the largest and fastest-growing markets. Moreover, the Indonesian government started a program to build about one million housing units across Indonesia, for which the government allocated about USD 1 billion in the budget.
Indonesia's construction industry experienced increased growth due to increases in infrastructure construction. In 2022, approximately 148.6 thousand small construction establishments were active in Indonesia.
Indonesia is Southeast Asia's largest automotive production hub. The production of automobiles for the year 2022 accounted for 1,470,146 units, an increase of 31% compared to 2020. Although the penetration of electric vehicles in the country is admissibly low, the future of the electric vehicle industry in the country looks very bright. The government is determined to support the adoption of electric vehicles in the country for producers and consumers. Moreover, the government is giving EV consumers subsidies and tax cuts to EV automakers. Indonesia is pushing for the development and manufacture of electric vehicles and battery production facilities, which in turn is likely to benefit the market growth in the country.
Moreover, Indonesia is developing Jawa 9 and Jawa 10, two new coal-fired power plants, to expand the Suralaya coal-fired steam power plant (CFSPP). Each unit is expected with a capacity of 1 GW. Jawa 9 is estimated to be commissioned in the fourth quarter of 2023, whereas Jawa 10 is scheduled for the first quarter of 2024.
Hence, all such trends in the end-user industries are expected to drive the growth of the adhesives and sealants market in the country over the forecast period.
February 2022: Arkema finalized the acquisition of the Performance Adhesive business of Ashland. The acquisition helped to strengthen Arkema’s adhesive solutions segment and aligned with the company’s strategy to become a pure Specialty Material player by 2024. The value of the transaction was USD 1.65 billion.
February 2022: H.B. Fuller Company announced that it had acquired FournyNV, a provider of various types of adhesives. The company is also engaged in developing bio-based adhesives.
0086-592-2999988
