Market Overview
| Study Period | 2017 - 2028 |
|---|---|
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2028 |
| Market Size (2024) | USD 154.51 Million |
| Market Size (2028) | USD 194.81 Million |
| Growth Rate (2024 - 2028) | 5.97% CAGR |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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Australia Sealants Market Analysis by Mordor Intelligence
The Australia Sealants Market size is estimated at 154.51 million USD in 2024, and is expected to reach 194.81 million USD by 2028, growing at a CAGR of 5.97% during the forecast period (2024-2028).
The Australian sealants industry operates within a robust economic framework, with the construction sealants sector contributing approximately 9% to the country's GDP. The market landscape is being transformed by an increasing emphasis on sustainable and energy-efficient building solutions, particularly in commercial construction. This shift is evidenced by national initiatives like the Commercial Building Disclosure (CBD) program, which mandates energy efficiency information disclosure for commercial office spaces exceeding 1000m2. The program has catalyzed the adoption of advanced construction sealants solutions that enhance building energy performance and meet stringent environmental standards.
The electronics and electrical components sector has emerged as a significant growth driver for specialized electronic sealants, particularly in applications involving sensor protection and cable sealing. With the Australian electronics industry projected to reach USD 10.31 billion by 2025, manufacturers are developing innovative sealant solutions specifically designed for electronic component protection and assembly. The integration of smart technologies and the increasing demand for consumer electronics have created new opportunities for high-performance specialty sealants that offer both protection and conductivity properties.
Australia's medical device manufacturing sector has established itself as a global hub, with over 500 manufacturers operating nationwide and serving major economies including the United States, Germany, and China. The industry's expansion has driven demand for specialized medical sealants that can effectively bond with diverse substrates including glass, metal, plastic, and painted surfaces. This growth is complemented by increasing investment in research and development of biocompatible sealant solutions that meet stringent healthcare industry standards.
The market is experiencing a significant transformation through infrastructure development initiatives, supported by a comprehensive infrastructure plan targeting USD 100 billion in investments over the next decade. This substantial commitment has spurred innovation in industrial sealants technologies, particularly those designed for large-scale construction and engineering applications. Manufacturers are responding by developing advanced formulations that offer enhanced durability, weather resistance, and compatibility with modern construction materials, while meeting increasingly stringent environmental regulations and sustainability requirements.
Australia Sealants Market Trends and Insights
Infrastructure segment is likely to dominate the construction industry
- The Australian construction industry is projected to register a CAGR of about 3.98% during the forecast period from 2022 to 2028. The Australian building and construction outlook is significantly brighter than projected, yet, the recovery remains uneven as the pandemic continues to weigh on particular industry sectors and areas. Some areas of building and construction had significant growth in 2021, while others have seen recession and depression. Australian construction adhesives and sealants are projected to register a CAGR of about 3.83% in terms of volume and 5.77% in terms of value during the forecast period (2022 - 2028).
- Although Australian residential construction showed degrowth before the COVID-19 pandemic, the industry was largely focused on the repairs and renovations side, specifically during the years 2018-19. The industry has spent about USD 2.1 billion. Moreover, the government has also introduced the "HomeBuilder" scheme with an investment of AUD 680 million in the wake of the COVID-19 pandemic; as a result of this scheme, the renovation rate had been increased by 14% in 2021 in comparison to that of 2020. Moreover, the non-residential sector and engineering constructions are enjoying stable growth due to large-scale construction work being done by the Australian government in the eastern states.
- Furthermore, the infrastructure plan, which may invest USD 100 billion over the next ten years from 2021, is projected to fuel the demand for adhesives and sealants in the country during the forecast period. According to the industry and skill committee in Australia, the construction sector is expected to grow by more than 2.4% in the next five years from 2021. These factors tend to increase the demand for adhesives and sealants in the country.
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Growing demand for helicopters and lightweight aircraft is likely to continue the growth of the industry
- Australia's aircraft manufacturing and repair industry earned more than USD 2 billion in sales in 2020, a significant drop from a peak in 2015–16 of almost 45%. Early attention has been placed on the domestic market as Australia's aviation and tourist sectors recovered from the severe interruption of the previous two years due to COVID-19. As a result, there is a desire for more services, new routes, and smaller aircraft. At around 38.6% share, Boeing Australia has the largest market share in the country, followed by BAE Systems, Airbus, Lockheed Martin, Raytheon, and Honeywell.
- Historically, Australia has been a significant purchaser of US aircraft and aviation parts. Australian airlines have long been Boeing customers in the commercial aviation industry, but QANTAS stated in December 2021 that it had selected Airbus as its top choice to replace its domestic fleet. Beginning in the middle of 2023, deliveries will continue for the next ten years.
- One of the largest business jet fleets in the Indo-Pacific is operated by Australia. With 184 business jets purchased in 2019, Australia is the second-largest market in the Asia Pacific. In addition, the country is one of the major helicopter operators in the world, with over 2,200 helicopters in operation, with significant prospects in the civilian and defense sectors.
- Australian space companies are among the most active in the world, and the country's space industry is tiny but expanding. In June 2021, the government began negotiations with the United States in order to establish a bilateral Technology Safeguards Agreement (TSA) to promote further space collaboration between the two countries. All the above-mentioned factors are likely to impact the aerospace sector in the country.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Import dependency will likely suppress the industry size in Australia
Segment Analysis: End User Industry
Building and Construction Segment in Australia Sealants Market
The building and construction segment dominates the Australia sealants market, commanding approximately 72% of the market share in 2024. This substantial market presence is attributed to the wide range of construction sealants applications in the industry, including joint sealing, heat sealing, curtain wall installations, glazing, façade work, and various other applications. The segment's growth is further supported by the Australian government's infrastructure development plans and the increasing focus on energy-efficient building construction. The "HomeBuilder" scheme has significantly boosted renovation activities, leading to increased demand for construction sealants. Additionally, the non-residential sector and engineering constructions are experiencing stable growth due to large-scale construction work being undertaken in the eastern states.
Aerospace Segment in Australia Sealants Market
The aerospace segment is projected to exhibit the strongest growth in the Australia sealants market, with an expected growth rate of approximately 8% during 2024-2029. This robust growth is driven by increasing demand for both civil and general aircraft in the country. Australia maintains one of the largest business jet fleets in the Indo-Pacific region and operates over 2,200 helicopters, presenting significant opportunities in both civilian and defense sectors. The expansion of the country's space industry, coupled with enhanced space collaboration with the United States through the Technology Safeguards Agreement (TSA), is expected to further boost the demand for specialized aerospace structural sealants. The segment's growth is also supported by increasing maintenance, repair, and overhaul (MRO) activities in the country's aviation sector.
Remaining Segments in End User Industry
The automotive, healthcare, and other end-user industries make up significant portions of the Australia sealants market. The automotive segment, while smaller, maintains steady demand through aftermarket applications and component manufacturing, particularly with automotive sealants. The healthcare segment is driven by the growing medical device manufacturing sector, with Australia being a major supplier to leading global economies. Other end-user industries, including electronics, marine and locomotive, and DIY sectors, contribute to market diversity through various specialized applications. The electronics industry, in particular, shows promising growth potential due to increasing demand for electronic component manufacturing and assembly applications.
Segment Analysis: Resin
Silicone Segment in Australia Sealants Market
Silicone sealants dominate the Australian sealants market, holding approximately 39% market share in 2024. The segment's prominence is attributed to its diverse applications across multiple industries, particularly in building and construction for both indoor and outdoor applications. Silicone sealants are extensively used in structural glazing due to their superior bond strength and durability. These sealants exhibit exceptional flexibility across a wide temperature range and demonstrate strong resistance to weather, temperature, water, chemicals, and mold formation. The segment's growth is further supported by the implementation of national programs like the Commercial Building Disclosure (CBD) program, which promotes energy-efficient building practices and has increased the demand for glazing in non-residential buildings.
Polyurethane Segment in Australia Sealants Market
The polyurethane sealants segment is experiencing robust growth in the Australian sealants market, driven by its versatile applications and superior performance characteristics. These sealants are manufactured in both single and multi-component formulations, providing flexible and elastomeric sealants seams upon curing. The segment's growth is supported by the increasing adoption in prefabricated construction, which is expected to grow from 3% to approximately 10% of the Australian construction industry. Polyurethane sealants are particularly valued for their customizable properties, including hardness, bond strength, thixotropy, and flexibility, making them ideal for specific application requirements. The segment's expansion is further bolstered by their extensive use in sealing metallic structures and pre-assembled building materials.
Remaining Segments in Resin Segmentation
The Australian sealants market encompasses several other significant resin segments, including acrylic sealants, epoxy sealants, and various specialty resins. Acrylic sealants are valued for their weather resistance and widespread use in door and window applications. Epoxy sealants have carved out a niche in specialized applications requiring high compressive strength and chemical resistance, particularly in industrial and commercial buildings. The specialty resins category, including rubber-based sealants, polyesters, and polysulfides, serves specific industry requirements across electronics, healthcare, and specialized construction applications. Each of these segments contributes uniquely to the market's diversity, offering solutions for specific application requirements and environmental conditions.
Competitive Landscape
Top Companies in Australia Sealants Market
The Australian sealants market is characterized by companies focusing heavily on product innovation to maintain their competitive edge and attract customers, particularly in high-performance automotive sealants for automotive, construction, and industrial applications. Leading manufacturers are emphasizing research and development to expand their product portfolios while simultaneously pursuing acquisitions of local companies to gain market share and penetrate new segments. Global companies are increasingly specializing in specific business segments to develop expertise and market-specific solutions, while also prioritizing environmental compliance through the development of non-toxic and low VOC content sealants. Local players maintain their position through customized solutions and strategic partnerships with global companies, leveraging their understanding of regional requirements and established distribution networks. The industry demonstrates a clear trend toward sustainable and environmentally friendly products, with companies investing in innovative formulations that meet stringent regulatory standards while delivering high performance.
Consolidated Market Led By Global Players
The Australian sealants market exhibits a consolidated structure dominated by major global manufacturers who have established a strong local presence through subsidiaries and strategic partnerships. The market leadership is primarily held by multinational conglomerates with diverse product portfolios, including DuluxGroup Ltd, Arkema Group, Henkel AG & Co. KGaA, 3M, and Sika AG, who collectively command a significant market share. These companies leverage their extensive research capabilities, established distribution networks, and strong brand recognition to maintain their market positions, while also benefiting from economies of scale and vertical integration.
The market demonstrates moderate merger and acquisition activity, with global players actively pursuing local acquisitions to strengthen their market presence and expand their product offerings. Local players, though fewer in number, maintain their competitiveness through specialized product offerings and strong customer relationships in specific market segments. The industry structure is further characterized by companies maintaining state-of-the-art production facilities and multiple regional offices to ensure efficient market coverage and customer service, while also investing in research and development centers to drive innovation and maintain technological leadership.
Innovation and Sustainability Drive Future Success
For incumbent companies to maintain and expand their market share, focusing on sustainable product development and technological innovation will be crucial. Market leaders must continue investing in research and development to create advanced formulations that meet evolving customer requirements while complying with increasingly stringent environmental regulations. Companies need to strengthen their distribution networks, enhance their technical support capabilities, and develop customized solutions for specific end-user segments. Additionally, maintaining strong relationships with key construction, automotive, and industrial customers while expanding into emerging applications will be essential for sustained growth.
For contenders aiming to gain ground in the market, developing specialized products for underserved market segments and establishing strong local partnerships will be critical success factors. Companies must focus on building efficient supply chains and developing cost-effective manufacturing processes to compete effectively with established players. The ability to offer innovative solutions for specific applications, particularly in high-growth sectors like healthcare and aerospace, while maintaining competitive pricing will be crucial. Furthermore, companies need to invest in marketing and technical support infrastructure to build brand awareness and customer trust, while also staying ahead of regulatory changes and environmental requirements that could impact market dynamics. The development of specialty sealants for niche applications could provide a competitive advantage in these sectors.
Australia Sealants Industry Leaders
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3M
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Arkema Group
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DuluxGroup Ltd.
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Henkel AG & Co. KGaA
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Sika AG
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- April 2019: Dow completed the separation of its Material Science division through a spin-off of Dow Inc.
Australia Sealants Market Report Scope
Aerospace, Automotive, Building and Construction, Healthcare are covered as segments by End User Industry. Acrylic, Epoxy, Polyurethane, Silicone are covered as segments by Resin.
End User Industry
| Aerospace |
| Automotive |
| Building and Construction |
| Healthcare |
| Other End-user Industries |
Resin
| Acrylic |
| Epoxy |
| Polyurethane |
| Silicone |
| Other Resins |
| End User Industry | Aerospace |
| Automotive | |
| Building and Construction | |
| Healthcare | |
| Other End-user Industries | |
| Resin | Acrylic |
| Epoxy | |
| Polyurethane | |
| Silicone | |
| Other Resins |
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Market Definition
- End-user Industry - Building & Construction, Automotive, Aerospace, Healthcare, and Others are the end-user industries considered under the sealants market.
- Product - All sealant products are considered in the market studied
- Resin - Under the scope of the study, resins like Polyurethane, Epoxy, Acrylic, Silicone, and Others are considered
- Technology - For the purpose of this study, One component and Two component sealant technologies are taken into consideration.
| Keyword | Definition |
|---|---|
| Hot-melt Adhesive | Hot melt adhesives are generally 100% solid formulations, based on thermoplastic polymers. They are solid at room temperature and are activated upon heating above their softening point, at which stage they are liquid, and hence, can be processed. |
| Reactive Adhesive | A reactive adhesive is made up of monomers that react in the adhesive curing process and do not evaporate from the film during use. Instead, these volatile components become chemically incorporated into the adhesive. |
| Solvent-borne Adhesive | Solvent-borne adhesives are mixtures of solvents and thermoplastic, or slightly cross-linked polymers, such as polychloroprene, polyurethane, acrylic, silicone, and natural and synthetic rubbers (elastomers). |
| Water-borne Adhesive | Water-borne adhesives use water as a carrier or diluting medium to disperse a resin. They are set by allowing the water to evaporate or be absorbed by the substrate. These adhesives are compounded with water as a diluent, rather than a volatile organic solvent. |
| UV Cured Adhesive | UV curing adhesives induce curing and create a permanent bond without heating by using ultraviolet (UV) light or other radiation sources. An aggregation of monomers and oligomers is cured or polymerized by ultraviolet (UV) or visible light in a UV adhesive. Because UV is a radiating energy source, UV adhesives are often referred to as radiation curing or rad-cure adhesives. |
| Heat-resistant Adhesive | Heat-resistant Adhesives refer to those that do not break down under high temperatures. One aspect of a complicated system of circumstances is the adhesive's capacity to withstand disintegration brought on by high temperatures. As the temperature rises, adhesives may liquefy. They can withstand stresses resulting from differing coefficients of expansion and contraction, which might be an additional advantage. |
| Reshoring | Reshoring is the practice of moving commodity production and manufacturing back to the nation where the business was founded. Onshoring, inshoring, and back shoring are further terms used. Offshoring, the practice of producing items abroad to lower labor and manufacturing costs, is the opposite of this. |
| Oleochemicals | Oleochemicals are compounds produced from biological oils or fats. They resemble petrochemicals, which are substances made from petroleum. The oleochemical business is built on the hydrolysis of oils or fats. |
| Nonporous Materials | Nonporous materials are substances that do not permit the passage of liquid or air. Nonporous materials are those that are not porous, such as glass, plastic, metal, and varnished wood. Since no air can get through, less airflow is required to raise these materials, negating the requirement for high airflow. |
| EU-Vietnam Free Trade Agreement | A trade agreement and an investment protection agreement were concluded between the European Union and Vietnam on June 30, 2019. |
| VOC content | Compounds with limited solubility in water and high vapor pressure are known as Volatile Organic Compounds (VOCs). Many VOCs are human-made chemicals that are used and produced in the manufacture of paints, pharmaceuticals, and refrigerants. |
| Emulsion Polymerization | Emulsion polymerization is a method of producing polymers or connected groups of smaller chemical chains known as monomers, in a water solution. The method is often used to make water-based paints, adhesives, and varnishes, in which the water stays with the polymer and is marketed as a liquid product. |
| 2025 National Packaging Targets | In 2018, the Australian Environment Ministry set the following 2025 National Packaging Targets: 100% of the packaging must be reusable, recyclable, or compostable by 2025, 70% of plastic packaging must be recycled or composted by 2025, 50% of average recycled content must be included in packaging by 2025, and problematic and unnecessary single-use plastic packaging must be phased out by 2025. |
| Russian Government’s Import Substitution Policy | The Western sanctions suspended the distribution of several high-tech items to Russia, including those required by the raw material export sectors and the military-industrial complex. In response, the government launched an "import substitution" scheme, appointing a special commission to oversee its implementation in early 2015. |
| Paper Substrate | Paper substrates are paper sheets, reels, or boards with a base weight of up to 400 g/m2 that has not been converted, printed or otherwise altered. |
| Insulation Material | A material that inhibits or blocks heat, sound, or electrical transmission is known as Insulation Material. The variety of insulation materials includes thick fibers like fiberglass, rock and slag wool, cellulose, and natural fibers as well as stiff foam boards and sleek foils. |
| Thermal Shock | A temperature change known as thermal shock generates stress in a material. It commonly results in material breakdown and is especially prevalent in brittle materials like ceramics. When there is a quick temperature change, either from hot to cold or vice versa, this process occurs abruptly. It occurs more frequently in materials with poor heat conductivity and insufficient structural integrity. |
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Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: The quantifiable key variables (industry and extraneous) pertaining to the specific product segment and country are selected from a group of relevant variables & factors based on desk research & literature review; along with primary expert inputs. These variables are further confirmed through regression modeling (wherever required).
- Step-2: Build a Market Model: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
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