The Middle East & Africa adhesives and sealants market is likely to witness a healthy growth, at an estimated CAGR of 5.00%, over 2019-2024. One of the major factors driving the growth of the adhesive and sealant is the shifting focus toward composite joints. The accelerating demand from the automotive industry has also hugely contributed to the growth of the market.
- By technology, water-borne adhesives were estimated to be the largest and accounted for 50% of the Middle East & Africa market in 2018 (in revenue terms).
- By product type, silicone was estimated to be the largest and accounted for 30% of the Middle-East & Africa market in 2018 (in revenue terms).
Key Market Trends
Increasing Demand from the Building and Construction Industry
- Adhesives and sealants, owing to their characteristics and physical properties, have extensive use in the building and construction industry. These properties include good cohesion, adhesion and elasticity, high cohesive strength, flexibility, high elastic modulus of substrate, resistance from thermal expansion, and environmental resistance from UV light, corrosion, salt water, rain, and other weathering conditions.
- They have a myriad of applications. They are used in heating, ventilation, air conditioning (HVAC), concrete, joint cement, manufactured housing, resilient flooring, roofing, wall covering, pre-finish panels, drywall lamination, joints in exterior walls, spandrels, repair of larger cracks, perimeter of doors and fixed window frames, etc.
- The United Arab Emirates and Qatar are expected to remain bright spots for the construction industry throughout 2018, due to the future projects, like the Expo 2020 and FIFA World Cup 2022.
- Building and infrastructure investments in the United Arab Emirates was USD 36,984 million in 2017. Major projects, which are already underway, include One Za'abeel, featuring two towers linked by the "world's largest cantilever", Meydan City, Mohammad Bin Rashid City, Dubai Creek Harbour, Burj 2020 District, Bluewaters Island, Lu'luat Al Raha, and Yas Acres, among others.
- All the aforementioned factors, in turn, are expected to increase the demand for the adhesives and sealants in the region during the forecast period.
Saudi Arabia to Dominate the Adhesives and Sealants Market
- The adhesive and sealant manufacturers in Saudi Arabia are very few, namely, Fafa Adhesive Labeling Industry, 3M Company, Sika AG, SAVETO, and others. The country is highly depending on the imports of adhesive and sealant products to meet the increasing domestic demand.
- The country has generated large-scale projects worth USD 800 billion, to boost its infrastructure in the coming years. The government has expansive plans for the development of social infrastructure, transportation, and energy and utility construction in the country. The country's primary growth in construction has been largely powered by massive government investments and increased inflow of FDI.
- The other major end-user industry for adhesives and sealants in Saudi Arabia is the automotive industry. The country is focusing on establishing itself as the new automotive hub in the Middle East region. Though the country is a large importer of vehicles and auto parts, it is now trying to attract original equipment manufacturers (OEMs) to open their production plants in the country, in order to develop the domestic auto industry.
- Furthermore, the country has experienced a steady growth in new car sales in recent years, with a slight downfall in the past two years. The domestic automotive sales are expected to rebound strongly in the forecast period. According to the General Authority for Statistics, the domestic automotive industry is expected to witness a growth rate of around 4-5% annually, over the next decade, which is expected to augment the market for adhesives and sealants in the country.
- The growth of these industries is expected to continue on an upward trajectory during the forecast period, thus augmenting the adhesives and sealants market in the country.
The Middle East & Africa adhesives and sealants market is highly fragmented, with the presence of many international players and local players with a high degree of competition. Major players in the market include Henkel AG & Co. KGaA, H.B. Fuller Company, Arkema Group (Bostik SA), Sika AG, and ITW Performance Polymers & Fluids (Illinois Tool Works Inc.), among others.
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