Page 44 - Handbook of Adhesives and Sealants

14 Chapter One

The total U.S. market for adhesive and sealant products is estimated
to be near $10 billion dollars. Figure 1.4a shows the leading adhesives
and sealants products in 1995. Most of the use is in relatively non-
exotic areas such as general-purpose industrial assembly, hot melts,
and binders. The more specialized products account for a relatively
small portion of the overall market. Figure 1.4b shows the leading
adhesives and sealants end-use markets. The largest markets are in-
dustrial assembly, packaging, and wood related products. The U.S. ad-
hesive industry is difficult to define quantitatively because of its
breadth and degree of fragmentation. North America dominates the
world’s adhesive markets with an estimated 38% share of global rev-
enues.
The packaging and construction industries together account for 80%
of adhesives demand. Construction markets are dominated by the use
of phenolic and amino adhesives as binders in wood panels. Non-
structural adhesives account for the largest volume in these markets.
Corrugated boxes are the single largest product for adhesives within
the packaging sectors. Pressure sensitive tapes and labels are also
important products within this segment. The main markets for struc-
tural adhesives are transportation, industrial assembly, and construc-
tion. However, structural adhesives occupy a relatively small segment
of the total adhesives market. The household market is also sizable,
particularly for polyvinyl acetate (wood glue), cyanoacrylates (‘‘super
glue’’), two-part epoxies, and modified acrylic adhesives.
The main sealant market segments are the construction, consumer
products, transportation, industrial, aerospace, appliance, and elec-
tronics segments. The leading market is construction, followed by
transportation and industrial. The types of sealant used in each of
these markets are identified in Table 1.4 and described in later chap-
ters. Synthetic sealants account for nearly 70% of the total sealant
market. Synthetic sealants are dominated by polyurethanes and sili-
cones and benefit from a strong construction industry.

1.3.3 Market trends and drivers
The compounded annual growth rate (CAGR) of adhesives from 1996
to 2003 is expected to be 5.3%, and sealants will have an estimated
CAGR of 4.5%. However, certain products will see growth at several
times that average. The markets for high quality adhesives and seal-
ants, such as epoxies, silicones, and polyurethanes, have grown faster
than the markets for larger volume commodity type products. The rea-
sons for this faster growth rate are:

Lower level of pollutants (especially driving the growth of water
borne and hot melt pressure sensitive materials)