Market Overview
| Study Period | 2017 - 2028 |
|---|---|
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2028 |
| Market Size (2024) | USD 291.99 Million |
| Market Size (2028) | USD 365.36 Million |
| Growth Rate (2024 - 2028) | 5.76% CAGR |
| Market Concentration | Low |
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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Canada Sealants Market Analysis by Mordor Intelligence
The Canada Sealants Market size is estimated at 291.99 million USD in 2024, and is expected to reach 365.36 million USD by 2028, growing at a CAGR of 5.76% during the forecast period (2024-2028).
The Canadian sealants industry operates within a robust economic framework, significantly influenced by broader industrial and technological advancements. The market's evolution is closely tied to the country's overall economic performance, with the construction sealants sector alone contributing approximately 7% to Canada's GDP. This substantial contribution underscores the importance of industrial sealants across various sectors. The integration of sustainable practices and environmental regulations has become increasingly prominent, with manufacturers focusing on developing eco-friendly formulations and reducing volatile organic compound (VOC) emissions.
Technological innovation continues to drive market transformation, particularly in the electronics and electrical equipment manufacturing sector. The consumer electronics market's anticipated growth rate of over 4% in the coming years is spurring demand for electronic sealants used in potting, protecting materials, and sealing sensors and cables. This growth is complemented by the increasing adoption of smart devices and IoT applications, which require advanced sealing solutions for enhanced durability and protection against environmental factors.
The healthcare sector represents a significant growth avenue for the sealants market, with the medical technology segment expected to achieve a CAGR of 6.23% during 2022-2027. This growth is supported by substantial government investments, including a recently announced USD 2 billion allocation to strengthen healthcare infrastructure. The increasing sophistication of medical devices and equipment has led to growing demand for specialty sealants that meet stringent healthcare industry standards and regulations.
Infrastructure development initiatives are reshaping market dynamics, with the Canadian government planning investments of approximately USD 140 billion for infrastructure developments through 2028. Urban development trends are particularly noteworthy, with Toronto alone expecting the completion of over 30 high-rise buildings by 2025. These developments are driving innovation in sealant formulations, particularly in areas requiring high-performance materials capable of withstanding extreme weather conditions and providing superior durability.
Canada Sealants Market Trends and Insights
Rapid commercial construction and infrastructure investment of around USD 140 billion by 2028 to boost the construction industry
- According to the Canadian Construction Association, the construction sector is one of Canada’s largest employers and a significant contributor to the country’s economic success. The industry contributes 7% of the country’s Gross Domestic Product (GDP). In 2019, the Canadian construction market contracted by 6.5% as the COVID-19 pandemic halted construction activities in the country.
- Despite the COVID-19 pandemic, the Canadian construction market registered a decent growth rate of 6.19% in 2020. The Canadian government approved and implemented infrastructure projects worth USD 180 billion. In 2021 the construction market in the country registered a growth rate of 12.2% compared to the same period in 2020. The Canadian government approved various construction projects, such as New Building Canada Plan (NBCP) and Affordable Housing Initiative (AHI), supporting the sector’s growth. The construction industry in Canada was expected to recover by Q4 2021 and is estimated to experience moderate growth over the forecast period.
- There has been a boom in the construction of skyscrapers in Canada (more specifically in Toronto) in recent times. Over 30 high-rise buildings are expected to be completed by 2025, and another 50 such buildings are in the proposal and planning phase in Toronto. As part of the ‘Investing in Canada Plan,’ the government announced plans to invest nearly USD 140 billion for major infrastructure developments in the country by 2028. Thus, the Canadian construction market is expected to register a CAGR of 3.6% during the forecast period (2022-2028).
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Rising investments from OEMs in Electrical Vehicle production in the country is likely to fuel the automotive production
- Canada is the 11th-largest vehicle manufacturing country in the world and the second-largest in North America. The automotive sector in the country employs nearly 117,200 people. Canada's automotive manufacturing industry is highly integrated with the United States. Automotive components may cross Canadian-US-Mexican borders as many as eight times before being installed in a final assembly. Vehicles are Canada's second-most exported products, of which 93% were exported to the United States in 2020. The decline in automotive production from 2017 to 2019 was due to a demand drop in US markets because of rising interest rates and demand saturation.
- Automotive production declined by a staggering 26.3% in 2020 compared to 2019 due to operational and supply chain restrictions resulting from the COVID-19 pandemic. The ongoing semiconductor chip shortage, caused by pandemic-related production issues and a surge in demand for electronics, has restricted the growth of automotive production in the country. Due to these constraints, automotive production in Canada is expected to record a CAGR of just 1.46% during the forecast period.
- However, the prospects for electric vehicle production are bright in Canada as the country ranks sixth globally for heavy-duty EV production. With more than 700 suppliers of parts and raw materials and investments from global Original Equipment Manufacturers (OEMs) like Ford (USD 1.5 billion), GM (USD 785 million), and Stellantis (USD 1.14 billion) to establish production lines for EVs as well as for EV batteries in Canada, the automotive industry is expected to grow over the forecast period.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- With strong Original Equipment Manufacturers (OEMs) and supply chains of international OEMs and Tier1 partners, the country's aerospace industry maintained one of the largest in the world
Segment Analysis: End User Industry
Building and Construction Segment in Canada Sealants Market
The building and construction segment dominates the Canadian sealants market, commanding approximately 62% market share in 2024. This segment's prominence is driven by extensive applications, including joint sealing, heat insulation, and glazing across residential and commercial construction projects. The segment's growth is further bolstered by significant infrastructure developments across Canada, including over 30 high-rise buildings expected to be completed by 2025 in Toronto alone, with another 50 such buildings in various planning phases. The Canadian government's commitment through the 'Investing in Canada Plan' to inject nearly USD 140 billion for major infrastructure developments by 2028 continues to drive demand. Additionally, the construction sector's contribution of about 7% to the country's GDP, coupled with major projects like the Panda Condominium, Harwood Condominium, and Amazon Distribution Center in Ottawa, further solidifies this segment's market leadership.
Remaining Segments in End-User Industry
The Canadian sealants market encompasses several other significant end-user segments, including healthcare, automotive, aerospace, and other industrial applications. The healthcare segment maintains a strong presence due to increasing investments in medical infrastructure and growing demand for medical device assembly applications. The automotive sector, despite facing challenges, continues to be a crucial consumer of adhesive sealants, particularly in electric vehicle production and automotive assembly operations. The aerospace segment, leveraging Canada's position as one of the largest aerospace markets globally, demonstrates steady demand for specialized elastomeric sealants applications. Other industrial applications, including electronics manufacturing, energy infrastructure, and consumer goods production, collectively form a substantial portion of the market, each contributing to the diverse application landscape of sealants in Canada.
Segment Analysis: Resin
Silicone Segment in Canada Sealants Market
The silicone sealants segment dominates the Canadian sealants market, commanding approximately 42% market share in 2024. This significant market position is attributed to silicone sealants' superior versatility and performance characteristics, including excellent weather resistance, UV stability, and compatibility with both porous and non-porous surfaces. These sealants demonstrate exceptional performance across diverse applications, particularly in the building and construction, automotive, and electronics industries. The segment's strength is further reinforced by silicone sealants' ability to maintain elasticity and stability in extreme temperature conditions ranging from 4°C to 315°C, making them ideal for Canada's varying climate conditions. Their widespread adoption in critical applications such as window installations, concrete expansion joints, and automotive assembly has solidified their market leadership.
Polyurethane Segment in Canada Sealants Market
The polyurethane sealants segment is emerging as a significant growth driver in the Canadian sealants market, demonstrating robust expansion potential. These sealants are gaining increasing adoption due to their superior mechanical strength and excellent adhesion properties, particularly in demanding applications like construction joints and automotive assembly. The segment's growth is being fueled by increasing infrastructure development activities across Canada, including major construction projects and the expanding automotive sector. Polyurethane sealants' ability to perform effectively across a broad temperature range from -40°C to 90°C, combined with their excellent UV resistance properties, makes them particularly well-suited for Canada's diverse climate conditions. The segment is benefiting from ongoing technological advancements and increasing demand for high-performance sealing solutions in both residential and commercial construction projects.
Remaining Segments in Resin
The Canadian sealants market features several other important resin segments, including acrylic sealants, epoxy, and various other specialty resins, each serving specific application needs. Acrylic sealants have carved out a significant niche due to their fast curing times and low VOC emissions, making them particularly attractive for environmental compliance. Epoxy sealants continue to maintain their importance in specialized applications requiring high strength and chemical resistance, particularly in electronics and industrial applications. Other specialty resins, including rubber-based sealants, polyesters, and polysulfides, contribute to the market's diversity by offering specialized solutions for specific industry requirements, such as chemical resistance, flexibility, or temperature stability, thereby completing the comprehensive range of sealing solutions available in the Canadian market.
Competitive Landscape
Top Companies in Canada Sealants Market
The leading companies in the Canadian sealants market are demonstrating a strong commitment to innovation and sustainable product development, with a particular focus on eco-friendly and low-VOC formulations. Companies are increasingly investing in research and development to expand their product portfolios and develop application-specific solutions, especially for growing segments like electric vehicles and green buildings. Operational excellence is being pursued through strategic manufacturing facility locations and robust distribution networks across the country. Many players are strengthening their market presence through technical assistance and consultancy services, while also expanding their e-commerce capabilities. The industry is witnessing strategic moves centered around capacity expansions, particularly in high-performance sealants production, along with an increased focus on color customization and DIY product offerings to capture diverse market segments.
Consolidated Market Led By Global Players
The Canadian adhesives and sealants market exhibits partial consolidation, with major global conglomerates dominating the competitive landscape through their established brands and comprehensive product portfolios. These multinational companies leverage their extensive research capabilities, advanced manufacturing facilities, and well-established distribution networks to maintain their market positions. The presence of local specialists is notable in specific application segments, particularly in the construction and automotive sectors, where they compete through specialized product offerings and local market knowledge. The market structure is characterized by a mix of diversified chemical companies and specialty sealants manufacturers, with the top players controlling a significant portion of the market share.
The market demonstrates moderate merger and acquisition activity, primarily driven by global players seeking to strengthen their presence in the Canadian market through strategic acquisitions of local companies. Companies are particularly interested in acquisitions that provide access to established distribution networks, existing customer relationships, and complementary product portfolios. The industry structure is evolving with an increasing focus on vertical integration and expansion of manufacturing capabilities within Canada to better serve the local market and reduce dependency on imports.
Innovation and Sustainability Drive Future Success
For incumbent companies to maintain and expand their market share, a focus on technological innovation and sustainable product development will be crucial. Market leaders are investing in developing advanced formulations that meet increasingly stringent environmental regulations while maintaining high-performance standards. Success in the market increasingly depends on the ability to offer comprehensive solutions that include technical support, application expertise, and customization capabilities. Companies are also strengthening their position through strategic partnerships with key end-users and investment in digital capabilities to enhance customer service and operational efficiency.
New entrants and challenger companies can gain ground by focusing on niche market segments and developing specialized products for specific applications. The growing emphasis on environmental sustainability presents opportunities for companies offering innovative, eco-friendly solutions. Success factors include building strong relationships with local distributors, offering competitive pricing without compromising quality, and providing excellent technical support. The regulatory environment, particularly regarding VOC emissions and safety standards, continues to shape market dynamics and influence product development strategies. Companies that can effectively navigate these requirements while meeting evolving customer needs will be better positioned for long-term success.
Canada Sealants Industry Leaders
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3M
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Henkel AG & Co. KGaA
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MAPEI S.p.A.
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RPM International Inc.
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SIKA AG
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- January 2020: H.B. Fuller Company introduced a new range of Gorilla professional-grade adhesives and sealants for MRO industrial applications.
- April 2019: Dow completed the separation of its Material Science division through a spin-off of Dow Inc.
Canada 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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