The Global "Polyurethane Sealants Market" is expected to grow at a CAGR of 5% during the forecasting period (2022-2029).
Polyurethane sealants are a quick-drying and moisture-cured sealant that is used in many industries including building, construction, and the automotive industry. It is generally used for sealing joints in walls and floors. It works well on concrete, and it also seals and bonds fiberglass panels.
The rapid growth of the automotive industry, due to various socio-economic factors, is driving the demand for sealants. The rising volumes of production and an increase in the number of variants of vehicles sold around the globe have further propelled this demand.
According to the statistics published by the International Organization of Motor Vehicles Manufacturers (OICA), 96.8 million vehicles (passenger vehicles and commercial vehicles) were sold globally in 2017 compared to 93.9 million and 89.7 million in 2016 and 2015 witnessing a growth rate of 3.08% in 2017 and 4.6% in 2016 respectively.
Further, sealants find extensive use in the automotive industry for both interior and exterior applications. Interior applications comprise the use of sealants for sealing doors and windows. These properties are expected to help drive consumption of polyurethane sealants market during the forecast period.
However, fluctuating raw material prices and a shortage in the supply of raw materials hinder the market growth.
Based on the type, the global polyurethane sealants market is broadly segmented classified into One-Component and Two-Component. Among all of the type, one component dominates the market in terms of maximum usage in various applications such as windows and doors, but can also be used in many other residential or construction applications. This component is usually based on aromatic diisocyanates.
Further, recently developed One-Component polyurethane sealant technology is based on silane-terminated prepolymers. The silane-terminated prepolymer eliminates the potential for the sealant to foam when in contact with moisture. This, along with colorfast properties, makes silane-terminated sealants attractive to the construction market.
Based on the end-user, the global polyurethane sealants market is segmented into Building & Construction, Automotive, Marine, and Others. Building & Construction dominate the market in terms of maximum growth. The rising population and demand for luxurious homes are significant factors for the growth.
Based on the region, the global polyurethane sealants market is segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa. Among all of the regions, Asia Pacific dominated the global polyurethane sealants market in terms of increasing building and construction activities and awareness of environmental hazards in emerging economies such as India, China, the Middle East, Thailand, Indonesia, Brazil, and Argentina.
Another economic growth factor is increasing population in countries such as China and India. With a population of around 4.3 which is 60 percent of the world’s population. Currently, there are 1.8 billion in South and South-West Asia, 1.6 billion in North and North-East Asia, 0.6 billion in South-East Asia, 0.2 billion in North and Central Asia, and 38 million in the Pacific. China and India account for almost one-third of the global gross domestic product (GDP) measured in terms of purchasing power parity (PPP).
Global Polyurethane Sealants market is fragmented with the presence of many local and international players. The versatility in product features and opportunities of market growth through new product launches is poised to intensify competitiveness among companies.
The companies follow the strategy of the product launch in a bid to increase company revenue and financial resources.
For instance, in June 2018: Momentive Performance Materials Inc. has launched a pressure-sensitive adhesive (PSA). The newly developed adhesive is mainly used in specialty masking and assembly tapes, which are used in Electronic and Industrial market segments.
The companies are focused on collaborations and strategic partnerships to increase polyurethane sealants demand across all industries.
For instance, In April 2019, BASF selected Azelis Americas as the distributor for polyurethane chemicals in the Coatings, Adhesives and Binders, Sealants and Elastomers (CASE) market effective. Azelis, with the recent acquisition of Chemroy Canada, would distribute the BASF polyurethane line in the U.S. and Canada.
May 2017, H.B. Fuller Company has signed an agreement to purchase Royal Adhesives & Sealants, a leading manufacturer of high-value specialty adhesives and sealants. This business consistently delivers industry-leading growth rates, EBITDA margins, and free cash flow that are expected to enhance H.B. Fuller’s position as a global leader in the adhesives industry.
In May 2016 Innovative Chemical Products Group has acquired Fomo Products Inc. to expand its position in the polyurethane sealants and adhesives sector. The acquired business would be integrated into ICP Adhesives and Sealants Inc., a division of ICP Group.
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