Polyurethane Sealants Market

The Polyurethane Sealants market is projected to grow from USD 2.7 billion in 2022 to USD 3.3 billion by 2027, at a CAGR of 4.1%. Glycol and isocyanate react to form polyurethane sealants, which are then produced. It is a compound that is well known for its flexibility and has good resistance to moisture and corrosion. The expansion and contraction of the joint is a common issue with joints. The material's flexibility makes it extremely resistant to cracking brought on by the shifting of joint components. One of the differences is that silicone sealants and adhesives are inorganic, whereas polyurethane sealants and adhesives are organic and natural. Polyurethane sealants are less durable than other high-quality silicone sealants because of their organic composition. One form of sealant that has single-component elastomeric qualities and a tendency to dry at room temperature and humidity is polyurethane sealant.

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Polyurethane Sealants Market Dynamics

Driver: One of the differences is that silicone sealants and adhesives are inorganic, whereas polyurethane sealants and adhesives are organic and natural. Polyurethane sealants are less durable than other high-quality silicone sealants because of their organic composition. One form of sealant that has single-component elastomeric qualities and a tendency to dry at room temperature and humidity is polyurethane sealant. Over the next five years, housing and construction activities will gradually expand across North America and Europe. The construction industry in China is anticipated to increase more quickly than in Europe or North America, despite a significant slowdown during the previous two to three years. Construction levels are rising in nations like India, Southeast Asia, and South America to keep up with the increased rates of urbanization brought on by people moving from rural areas to cities for the better earnings. Construction activity will increase as a result of infrastructure investment. To increase the productive capacity of their economies and fuel the post-Covid economic recovery, governments around the world continue to support significant infrastructure investments. The growth in construction activity will augment the demand for polyurethane sealants.

Restraints: The price and availability of raw materials are key for sealant manufacturers to determine their products' cost structure. The raw materials used by the sealant industry include plastic resins, synthetic rubber, inorganic chemicals, industrial inorganic chemicals, and refined petroleum products. Most of these raw materials are petroleum-based derivatives and are vulnerable to fluctuations in commodity prices. Oil prices have been highly volatile since the end of September 2022, fluctuating by over 11.0%. Rising global demand and recent geopolitical unrest due to the Russia - Ukraine war have been primarily responsible for price fluctuations.

The sealant industry is also affected by higher transport costs due to rising fuel prices and higher manufacturing costs resulting from increasing energy costs. Sealant manufacturers have responded by passing on such price rises to end users, thus, resulting in a decrease in demand.

The price increase is attributed to the ongoing escalation in petrochemical-based raw material costs over the last few months. In addition, consistent global demand and capacity constraints in the production of primary chemicals, rosin, and resin feedstock have further resulted in the imbalance in the demand and supply, and prices of raw material of sealants.

Opportunity: Automotive production is mature in North America and Europe. However, the industry in emerging regions such as Asia-Pacific, South America, and the Middle East & Africa is growing. Growth of polyurethane sealants demand is expected in the automotive sector as the industry moves from lower-priced plastisols sealants to polyurethane sealants. Many sealants are presently used in passenger cars in North America and Europe. However, Asia-Pacific, South America, and the Middle East & Africa use comparatively less amount of sealants due to the adoption of traditional techniques by car manufacturers in these regions. Hence, there is a broad scope for sealant technology to penetrate these regions.

The presence of key manufacturers such as Toyota Motor Corporation (Japan), Nissan Motor Company Limited (Japan), and other top players increased polyurethane sealants consumption in these regions. This is likely to boost the growth of the global polyurethane sealants market. Emerging countries of Asia-Pacific, South America, and the Middle East & Africa are witnessing a number of developments in the automotive industry. These regions have become a hot spot for industrial products in the world.

Challenges: The polyurethane sealants market growth is attributed mainly to the demand from various end-use industries, which further depends on the micro and macroeconomic factors affecting that industry. The economic crisis of 2022 after the Russia-Ukraine war affected the U.S. and European countries substantially, reflected in the low growth in the last quarter of the year. Asia-Pacific countries were also affected, but to a lower extent. Moreover, the after impact of COVID-19 has brought economic crisis in the U.S. and led to significant decline in the growth of automotive and building & construction sectors between 2019 and 2021. As a result, the manufacturers of polyurethane sealants reported lower demand, which had a negative impact on many technologies of polyurethane sealants. Such economic cycles have also adversely affected the R&D on polyurethane sealants. The global decline in production output in 2021 among key industrial end users significantly influenced the development of polyurethane sealants, especially, in automotive, general industrial, and building & construction industries.

Polyurethane Sealants Market Ecosystem

Based on Type, One-Component segment is estimated to account for the largest market share of the Polyurethane Sealants market

One-component polyurethanes are famous for their elastic qualities, which allow for less shrinkage deformation during curing, greater absorption of external pressure from vibrations and impacts, strong mechanical performances, and adherence to a wide range of substrates. One-component polyurethane can be used for sealing as well as bonding. They provide great mechanical capabilities, adhesion to a wide range of substrates, improved elasticity that permits less shrinkage deformation during curing, and better absorption of external pressure from vibrations and impacts. As a result, flexible lamination, building and construction, transportation, and assembly applications benefit greatly from using one-component polyurethanes.

Based on End Use Industry, the Building and Construction segment is anticipated to dominate the market

In the building & construction segment, polyurethane sealants are mainly used in ceramic tile & flooring installation, pipe cement, roofing, and wall coverings. The revival of the building & construction industry in North America, along with the infrastructure, building & construction of smart cities, and rebuilding efforts after a spate of natural disasters such as earthquakes and tsunamis in Asia-Pacific, are expected to drive the polyurethane sealants market in the building & construction industry in the region.

Polyurethane sealants fix the car upholstery and have several other uses in automobiles. These sealants are formulated with elastomers which give them the required flexibility; they are also used to enhance the dielectric strength. The automotive industry (which includes automotive module sealing using liquid gasket sealants, electronic circuit board protection using liquid potting and encapsulants, exterior vehicle trim, interior vehicle trim, marine, powertrain & under-the-hood components, and vehicle assembly) is driving the polyurethane sealants market as the industry is moving from low-priced plastisols to polyurethane sealants.

The Asia Pacific market is projected to contribute the largest share of the polyurethane sealants market.

Asia Pacific is expected to lead the paints and coatings market in 2022. Asia Pacific is increasingly becoming an important global trade and commerce center. The region is currently the fastest-growing and largest market for polyurethane sealants. With economic contraction and saturation in the European and North American markets, demand is increasing in Asia Pacific. According to the World Bank, manufacturers of polyurethane sealants are targeting this region, as it has the largest construction industry, accounting for approximately 40% of the global construction spending.

The Chinese market for polyurethane sealants has grown rapidly and is projected to witness high growth in the next 5 years due to the continuous shift of the global polyurethane sealants production facilities into the country. In addition, India, Thailand, and Indonesia are investing heavily in new construction projects, which will likely influence the market growth in these countries.

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Key Market Players

The polyurethane sealants market is dominated by a few globally established players such as 3M (US), Arkema N.V. (Bostik) (Netherlands), Sika AG (Switzerland), H.B Fuller (US), Henkel AG & Co.KGaA (Germany), BASF SE (US), The Dow Chemical Company (US), MAPEI S.p.A (Italy), Asian Paints Ltd. (India), ITW Polymers Sealants North America, Inc (US), among others, are the key manufacturers. Major focus was given to the contracts and new product development due to the changing requirements of end users across the world.

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Scope of the Report

Based on type, the polyurethane sealants market has been segmented as follows:

• One-Component
• Two-Component

Based on technology, the polyurethane sealants market has been segmented as follows:

• Building and Construction
• Automotive
• General Industrial
• Marine
• Others

Based on the region, the polyurethane sealants market has been segmented as follows:

• North America
• Europe
• Asia Pacific
• Middle East & Africa
• South America

Recent Developments

• In July 2021, Bostik, the Adhesive Solutions division of Arkema, had launched an ambitious development programme strengthening its polyurethane (PU) sealants with a particular focus on Sealing & Bonding applications for the construction market. This new range of products enables Bostik to be well positioned in this business is driven by new construction in emerging countries and steady demand for higher quality solutions.
• In July 2021, Bostik, the Adhesive Solutions division of Arkema, had launched an ambitious development programme strengthening its polyurethane (PU) sealants with a particular focus on Sealing & Bonding applications for the construction market. This new range of products enables Bostik to be well positioned in this business driven by new construction in emerging countries and steady demand for higher quality solutions.
• In January 2020, 3M entered into an agreement to acquire EMFI S.A. and SAPO S.A. (“EMFI/SAPO”), manufacturers of polyurethane-based structural adhesives and sealants headquartered in Haguenau, France, that complement 3M Industrial Adhesives and Tapes Division’s core industrial adhesives product line and provide access to the fast-growing polyurethane-based structural adhesives and sealants market segment.

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