Southeast Asia Adhesives and Sealants Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 3.57 Billion |
| Market Size (2029) | USD 4.86 Billion |
| CAGR (2024 - 2029) | > 6.30 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Southeast Asia Adhesives and Sealants Market Analysis
The Southeast Asia Adhesives And Sealants Market size is estimated at USD 3.57 billion in 2024, and is expected to reach USD 4.86 billion by 2029, at a CAGR of greater than 6.30% during the forecast period (2024-2029).
The Southeast Asia adhesives and sealants market faced setbacks due to COVID-19. Global lockdowns and stringent government regulations led to widespread shutdowns of production hubs. However, the market rebounded in 2021 and is projected to see significant growth in the upcoming years.
- Over the short term, growing demand from the construction sector and increasing adoption in the packaging industry are the major factors driving the demand for the market studied.
- However, stringent VOC emissions regulations related to adhesives and sealants are expected to hinder the market's growth.
- Nevertheless, the innovation and development of bio-based adhesives and shifting focus toward adhesive bonding for composite materials is expected to create new opportunities for the market studied.
- Indonesia is expected to dominate the market and witness the highest growth during the forecast period.
Southeast Asia Adhesives and Sealants Market Trends
Building and Construction Segment to Witness Fastest Growth
- Adhesives and sealants, due to their unique characteristics and physical properties, play a pivotal role in the building and construction industry, establishing it as the leading end-user segment in the market.
- Key properties of adhesives and sealants encompass strong cohesion, adhesion, and elasticity, coupled with high cohesive strength and flexibility. They also exhibit a high elastic modulus, resist thermal expansion, and withstand environmental challenges such as UV light, corrosion, saltwater, rain, and other weathering conditions.
- Common applications span across HVAC systems, concrete work, joint cementing, resilient flooring, roofing, and fixed window frames.
- In Southeast Asia, rising construction activities in nations like Indonesia, the Philippines, Malaysia, Vietnam, and Thailand are propelling the demand for adhesives and sealants.
- Malaysia's construction sector, buoyed by substantial government backing, is rapidly modernizing and expanding. As per Malaysian Industrial Development Finance Berhad (MIDF), the sector has seen six consecutive growth periods.
- In the last quarter of 2023, construction commenced on a 17,000 m2, seven-story data center called the Cyberjaya Data Centre in Cyberjaya, Selangor, Malaysia. The Cyberjaya Data Centre comprises 1,830 cabinets with a capacity of 12 MW. Construction is projected to be completed by the second quarter of 2025, thus increasing the demand for the market studied.
- According to the Department of Budget and Management, the Philippines government spent PHP 1204.6 billion (~USD 22 billion) on infrastructure and capital outlays in 2023, marking a 19% rise from the prior year, thus increasing the demand for the market studied.
- As per the data from the Building and Construction Authority, Singapore's construction contracts are projected to be valued between SGD 27 billion (~USD 20.6 billion) and SGD 32 billion (~USD 24.4 billion) in 2023. Public sector projects are anticipated to make up about 60% of this demand, driven by a robust pipeline of public housing initiatives from the Housing Development Board (HDB). Additionally, with a surge in projects like water treatment plants and educational facilities, the demand for adhesives and sealants in Singapore is set to rise.
- Government initiatives and numerous ongoing and planned infrastructure projects are set to influence the demand for adhesives and sealants in Southeast Asia during the forecast period. For instance, In Phuket, Thailand, the Kathu-Patong Tunnel Project, part of the Kathu-Patong Expressway Project, is set to construct a 1.85-kilometer tunnel. With an estimated cost of THB 14.67 billion (~USD 0.43 billion), completion is anticipated by 2027.
- Thailand, a major tourist hub, is seeing significant investments in malls, luxury hotels, and more. The Pattaya Marriott Marquis Hotel, boasting over 900 guest rooms, is the standout project, aiming for a 2024 launch. This dual-property development also features a 398-room JW Marriott and the Pattaya Beach Resort & Spa. By 2027, Marriott plans to introduce four new hotels across its three brands in Bangkok and Pattaya, adding to its existing portfolio of 45 hotels and resorts in Thailand, nine of which are in collaboration with Asset World Corporation.
- As per the data from General Statistics Office of Vietnam, in 2023, Vietnam's construction sector contributed over VND 640.72 trillion (~USD 0.03 trillion) to the GDP, representing 6.27% of the nation's total GDP, which was approximately VND 10.2 thousand trillion (~USD 0.0004 trillion).
- Given these dynamics, the aforementioned factors are poised to shape the demand trajectory for adhesives and sealants in the coming years.
Indonesia to Dominate the Market
- Indonesia leads Southeast Asia in the consumption of adhesives and sealants. Key drivers for this growth include rising construction activities, booming electronics production, and heightened demand in the footwear, leather, and healthcare sectors.
- In the footwear and leather industry, adhesives and sealants are essential for bonding materials, ensuring durability, and enhancing product performance. As Indonesia's footwear and leather sector expands, so does the demand for these adhesives and sealants.
- Data from Statistics Indonesia reveals that in 2023, the GDP from leather and footwear manufacturing reached approximately IDR 49.24 trillion (~USD 0.0030 trillion), marking a 2% increase from the previous year. This growth underscores Indonesia's emergence as a global manufacturing powerhouse.
- In the healthcare sector, adhesives and sealants are vital for bonding materials, ensuring durability, and enhancing the functionality of medical devices. With the healthcare sector's growth, the demand for adhesives and sealants is set to rise in the coming years.
- Over the past year, Indonesia has bolstered its healthcare sector through significant investments, both domestic and foreign. The 2023 Health Law (Law No.17 of 2023 on Health) eliminated mandatory health spending, introducing a performance-based budgeting system (PBBS) to promote targeted spending. This law also outlines a six-pillar healthcare transformation, highlighting the government's commitment to enhancing Indonesia's healthcare services.
- According to the Ministry of Health (Indonesia), in 2023, Indonesia's medical equipment exports reached approximately USD 3.34 billion, a 22% increase from the previous year, further fueling the healthcare sector's growth, therby supporting the growth of the market studied.
- As Southeast Asia's largest construction market, Indonesia is ramping up government spending on infrastructure and urbanization to meet the bosltering demand for residential and commercial properties, subsequently increasing the need for adhesives and sealants.
- The construction sector is vital to Indonesia’s GDP. The Ministry of Finance has allocated an IDR 35 trillion (~USD 0.002 trillion) fund from the 2024 budget to the Public Works and Housing Ministry, aiming to boost infrastructure and housing for civil servants. In Q4 2023, construction began on the Sequoia Hills Sentul Residential Development project, a 95-hectare endeavor in Bogor, West Java, set for completion in 2027, aiming to elevate regional living standards.
- In its 2024 budget, Indonesia has set aside IDR 40.6 trillion (USD 2.7 billion) for its new capital city development. Government officials report rapid advancements, with the presidential office and several residential blocks on track for a 2024 completion. This surge in construction investment is poised to elevate the demand for adhesives and sealants.
- In the automotive sector, adhesives and sealants are crucial for bonding materials, ensuring durability, and enhancing vehicle performance. With the country's expanding vehicle production and sales, growth for adhesives and sealants is anticipated to rise during the forecast period.
- Data from the Organisation Internationale des Constructeurs d'Automobiles (OICA) indicates that Indonesia produced 1.39 million automobiles in 2023, down from 1.47 million in 2022. However, vehicle sales saw a 13% uptick, reaching 1.01 million units in 2023.
- After a strong recovery, Indonesia's vehicle market not only bounced back by 2023 but also exceeded pre-pandemic figures. Yet, January 2024 brought a setback, with GAIKINDO noting a 26% decline in overall vehicle sales, dropping to 69,619 units from 94,087 in 2023. Passenger vehicle sales dipped 20% to 56,007 units, while commercial vehicles saw a sharper 43% drop to 13,612 units. Despite this, GAIKINDO anticipates car sales will reach around 1.1 million units in 2024.
- In the electronics sector, adhesives and sealants are vital for bonding materials, ensuring durability, and enhancing device performance. As the electronics sector grows, so does the demand for these adhesives and sealants.
- Data from the Indonesian Electronics Producers Association (Gabel) indicates that domestic sales of electronic products typically see an annual increase of about 11%. Gabel also projects significant growth for the electronics industry, estimating a rise between 5% and 10% in 2024.
- Given these trends across various industries, the demand for adhesives and sealants in Indonesia is poised for growth in the coming years.
Southeast Asia Adhesives and Sealants Industry Overview
The Southeast Asia's adhesives and sealants market is fragmented in nature. The major players (not in any particular order) include 3M, Arkema, Sika AG, H.B. Fuller, and Henkel AG & Co. KGaA, among others.
Southeast Asia Adhesives and Sealants Market Leaders
-
3M
-
Arkema Group
-
Sika AG
-
H.B. Fuller
-
Henkel AG & Co. KGaA
*Disclaimer: Major Players sorted in no particular order
Southeast Asia Adhesives and Sealants Market News
- September 2024: AICA Asia Pacific Holding Pte. Ltd. (AAPH) has signed a share purchase agreement to acquire a 51% stake in ADB Sealant Co., Ltd. (ADBS), which is a subsidiary of Applied DB Public Company Limited (ADB). This strategic acquisition is designed to expand AAPH's product range, strengthen its technological capabilities, and enhance its market footprint. Additionally, the deal is set to reinforce supply chains and deepen collaboration between AAPH and ADBS, boosting the visibility and reach of both brands in Thailand and on the global stage. The merger is also expected to drive substantial growth in the adhesive and sealant markets, particularly in Indonesia and Malaysia, both recognized for their strong market potential.
- December 2023: Bostik Indonesia, a segment of ARKEMA specializing in adhesive and sealant solutions, has appointed PT Boston Tigamitra Construction as its official distributor for Bostik sealant products in Indonesia. PT Boston Tigamitra Construction is a joint venture between the Harmonia Group and the Talenta Group. As the National Distributor, the partnership will cater to a diverse clientele, including building materials retailers, contractors, architectural consultants, building developers and owners, and all players in the construction industry throughout Indonesia.
Southeast Asia Adhesives and Sealants Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Report
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Drivers
4.1.1 Growing Demand from Construction Sector
4.1.2 Increasing Adoption in Packaging Industry
4.1.3 Other Drivers
4.2 Restraints
4.2.1 Stringent Environmental Regulations Regarding VOC Emissions
4.2.2 Other Restraints
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 Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5. MARKET SEGMENTATION (Market Size in Value)
5.1 Adhesive Technology
5.1.1 Water Borne
5.1.1.1 Acrylic
5.1.1.2 Ethylene Vinyl Acetate (EVA) Emulsion
5.1.1.3 Polyurethane Dispersion and CR (Chloroprene Rubber) Latex
5.1.1.4 Polyvinyl Acetate (PVA) Emulsion
5.1.1.5 Other Water-borne Adhesives
5.1.2 Solvent-borne
5.1.2.1 Styrene-Butadiene Rubber (SBR)
5.1.2.2 Styrene-Butadiene Rubber (SBR)
5.1.2.3 Poly Acrylate (PA)
5.1.2.4 Other Solvent-borne Adhesives
5.1.3 Reactive
5.1.3.1 Epoxy
5.1.3.2 Modified Acrylic
5.1.3.3 Silicone
5.1.3.4 Polyurethane
5.1.3.5 Anaerobic
5.1.3.6 Cyanoacrylate
5.1.3.7 Other Reactive Adhesives
5.1.4 Hot Melt
5.1.4.1 Ethylene Vinyl Acetate
5.1.4.2 Styrenic Block Copolymers
5.1.4.3 Thermoplastic Polyurethane
5.1.4.4 Other Hot Melt Adhesives
5.1.5 Other Technologies
5.2 Sealant Product Type
5.2.1 Silicone
5.2.2 Polyurethane
5.2.3 Acrylic
5.2.4 Polyvinyl Acetate
5.2.5 Other Product Types
5.3 End-user Industry
5.3.1 Building and Construction
5.3.2 Paper, Board, and Packaging
5.3.3 Transportation
5.3.4 Woodworking and Joinery
5.3.5 Footwear and Leather
5.3.6 Healthcare
5.3.7 Electrical and Electronics
5.3.8 Other End-user Industries
5.4 Geography
5.4.1 Indonesia
5.4.2 Malaysia
5.4.3 Philippines
5.4.4 Singapore
5.4.5 Thailand
5.4.6 Vietnam
5.4.7 Rest of Southeast Asia
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share (%)**/Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 3M
6.4.2 ADB Sealant Co., Ltd
6.4.3 Arkema Group
6.4.4 Ashland
6.4.5 Avery Dennison Corporation
6.4.6 Beardow Adams
6.4.7 Dow
6.4.8 DuPont
6.4.9 Dymax Corporation
6.4.10 Franklin International
6.4.11 H.B. Fuller Company
6.4.12 Henkel AG & Co. KGaA
6.4.13 Huntsman International LLC
6.4.14 ITW Performance Polymers (Illinois Tool Works Inc.)
6.4.15 Jowat AG
6.4.16 Mapei Inc.
6.4.17 MUNZING Corporation
6.4.18 Pidilite Industries Ltd.
6.4.19 Sika AG
6.4.20 Tesa SE (A Beiersdorf Company)
6.4.21 Wacker Chemie AG
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Innovation and Development of Bio-based Adhesives
7.2 Shifting Focus Toward Adhesive Bonding for Composite Materials
7.3 Other Opportunities
Southeast Asia Adhesives and Sealants Industry Segmentation
Adhesives, often known as glues, cement, mucilages, or pastes, are non-metallic agents applied to one or both surfaces of two distinct items, effectively binding them. Sealants are materials that prevent fluids and other substances from passing through surfaces and mechanical joints. Both adhesives and sealants resist separation and are employed to bond a wide array of materials, including metals, plastics, glass, and wood.
The Southeast Asia adhesives market is segmented by adhesive technology, sealant product type, end-user industry, and geography. By adhesive technology, the market is segmented into water-borne (acrylic, ethylene vinyl acetate (EVA) emulsion, polyurethane dispersion and CR (chloroprene rubber) latex, polyvinyl acetate (PVA) emulsion, and other water-borne adhesives), solvent-borne (styrene-butadiene rubber (SBR ), polyacrylate (PA), and other solvent-borne adhesives), reactive (epoxy, modified acrylic, silicone, polyurethane, anaerobic, cyanoacrylate, and other reactive adhesives), hot melt (ethylene vinyl acetate, styrenic block copolymers, thermoplastic polyurethane, and other hot melt adhesives), and other technologies. By sealant product type the market is segmented into silicone, polyurethane, acrylic, polyvinyl acetate, and other product types. By end-user industry segments, the market is segmented into building and construction, paper, board, packaging, transportation, woodworking and joinery, footwear and leather, healthcare, electrical and electronics, and other industries. The report also covers the market sizes and forecasts for the Southeast Asia adhesive and sealants market in 6 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of value (USD).
| Adhesive Technology | |||||||||
| |||||||||
| |||||||||
| |||||||||
| |||||||||
| Other Technologies |
| Sealant Product Type | |
| Silicone | |
| Polyurethane | |
| Acrylic | |
| Polyvinyl Acetate | |
| Other Product Types |
| End-user Industry | |
| Building and Construction | |
| Paper, Board, and Packaging | |
| Transportation | |
| Woodworking and Joinery | |
| Footwear and Leather | |
| Healthcare | |
| Electrical and Electronics | |
| Other End-user Industries |
| Geography | |
| Indonesia | |
| Malaysia | |
| Philippines | |
| Singapore | |
| Thailand | |
| Vietnam | |
| Rest of Southeast Asia |
Southeast Asia Adhesives and Sealants Market Research FAQs
How big is the Southeast Asia Adhesives And Sealants Market?
The Southeast Asia Adhesives And Sealants Market size is expected to reach USD 3.57 billion in 2024 and grow at a CAGR of greater than 6.30% to reach USD 4.86 billion by 2029.
What is the current Southeast Asia Adhesives And Sealants Market size?
In 2024, the Southeast Asia Adhesives And Sealants Market size is expected to reach USD 3.57 billion.
Who are the key players in Southeast Asia Adhesives And Sealants Market?
3M, Arkema Group, Sika AG, H.B. Fuller and Henkel AG & Co. KGaA are the major companies operating in the Southeast Asia Adhesives And Sealants Market.
What years does this Southeast Asia Adhesives And Sealants Market cover, and what was the market size in 2023?
In 2023, the Southeast Asia Adhesives And Sealants Market size was estimated at USD 3.35 billion. The report covers the Southeast Asia Adhesives And Sealants Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Southeast Asia Adhesives And Sealants Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Southeast Asia Adhesive Industry Report
The Southeast Asia Adhesives and Sealants market is a dynamic and rapidly evolving sector, segmented by various adhesive technologies such as water-borne, solvent-borne, reactive, hot melt, and other technologies. The market is also categorized by sealant product types including silicone, polyurethane, acrylic, polyvinyl acetate, and other product types. Key end-user industries include building and construction, paper, board, and packaging, transportation, woodworking and joinery, footwear and leather, healthcare, electrical and electronics, and other end-user industries.
The market size and industry overview provide a comprehensive understanding of the market share and market analysis. This market report highlights the market research and market trends, showcasing the market growth and industry report. The industry analysis and market forecast offer insights into the market leaders and the overall market outlook.
Industry information and industry reports are crucial for understanding the industry research and industry sales. The industry size and industry statistics offer a detailed view of the industry trends and market data. The market forecast and market growth are essential for predicting future market leaders and market outlook.
The market overview and market predictions are based on extensive market review and market segmentation. The market value is derived from various industry reports and industry research. The report example and report PDF provide a detailed view of the research companies involved in this market.
In summary, the Southeast Asia Adhesives and Sealants market is a comprehensive and detailed industry with a focus on market data, market forecast, and market growth. The industry analysis and industry outlook provide valuable insights into the market leaders and market value. The market review and market segmentation offer a detailed understanding of the market and its various components.
