U.S. Adhesives And Sealants Market Growth & Trends
The U.S. adhesives and sealants market size is expected to reach USD 12.7 billion by 2030, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 4.7% over the forecast period. The increasing investments in the Electric Vehicles (EVs) industry is expected to augment the demand for adhesives and sealants in the country across the forecast period.
For instance, the U.S. government targets to make half of the new auto fleet electric by 2030. Also rising investment by the private players is anticipated to increase the market growth. For example, in May 2022, Hyundai Motor Group announced that they are going to invest USD 5.5 billion in the construction of an EV manufacturing plant in Georgia. The plant is going to commence by 2025.
Adhesives and sealants are used as mechanical fasteners in various industries such as aerospace, automotive, and packaging. These products can resist aging, softening, or cracking when they are exposed to high pressure and temperature. Thus, it can help to reduce material consumption and also helps in the weight reduction of the vehicle.
Based on technology, reactive and other held the largest revenue share of the U.S. adhesives market in 2021. Reactive-based products are used in applications where substrates require high strength and substantial permanency such as high-tech devices. The increasing production of the high-tech devices in the country is expected to boost the consumption of reactive-based products in the said forecast period.
The paper and packing application segment in the country is expected to register a 4.9% growth rate from 2022 to 2030 of the U.S. adhesives market. The growth is attributed to the increasing demand for bio-based packing anticipated to propel the demand for hot melt technology-based products. As hot melt adhesive in packaging areas offers 100% recyclability making it ideal for bio-based packaging.
Based on region, the South U.S. held the largest revenue share in 2021. The growing investment in the infrastructure and construction industry coupled with the increasing production of EVs is driving the growth of the market. For instance, In April 2022, Navistar Inc. opened a new assembly plant for the mass production EV trucks in Texas.
The U.S. adhesive and sealant market is highly competitive in nature owing to the presence of numerous market players. The manufacturers are following strategies such as acquisition and mergers to stay ahead in the competition. For instance, in April 2022, APPLIED Adhesives acquired Denver-based PRIME Industries. The acquisition aims at enhancing the company’s foothold in the North American region.
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U.S. Adhesives And Sealants Market Report
U.S. Adhesives And Sealants Market Report Highlights
- Based on technology, the water-based segment is likely to witness a CAGR of 5.0%, in terms of revenue, from 2022 to 2030. The growth of technology is attributed to changing lifestyles, which has increased the consumption of packaged food
- Based on end-use, the medical segment is expected to register a lucrative growth from 2022 to 2030. Owing to increasing expenditure by government and private players in the medical industry
- Based on region, the West segment is expected to register a CAGR of 4.9%, in terms of revenue, across the forecast period. Factors such as rising investment in the construction of residential and commercial buildings are contributing to the growth of the market in the region
- Based on end-use, the footwear and leather is expected to expand at a CAGR of 5.7% in terms of revenue over the forecast period. The changing lifestyle habits and rising income of the people are driving the demand for footwear and leather in the country
