Market Overview
| Study Period | 2017 - 2028 |
|---|---|
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2028 |
| Market Size (2024) | USD 554.56 Million |
| Market Size (2028) | USD 703.82 Million |
| Growth Rate (2024 - 2028) | 6.14% 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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Germany Sealants Market Analysis by Mordor Intelligence
The Germany Sealants Market size is estimated at 554.56 million USD in 2024, and is expected to reach 703.82 million USD by 2028, growing at a CAGR of 6.14% during the forecast period (2024-2028).
Germany's sealants market is experiencing significant transformation driven by robust construction activity and infrastructure development initiatives. The construction sector remains a cornerstone of the German economy, contributing approximately 5.9% to the country's GDP. The government's ambitious infrastructure development plans are evidenced by major projects like the Digital Park Fechenheim, featuring 100,000 square meters of gross floor area and representing an investment of USD 1.179 billion. This project, initiated in 2023, exemplifies the scale of construction activities driving demand for construction sealants. The focus on sustainable building practices and energy efficiency requirements has led to increased adoption of advanced sealing materials across residential and commercial construction projects.
The electronics and electrical equipment manufacturing sector presents substantial opportunities for electronic sealants applications, particularly in component protection and assembly. Germany maintains its position as the sixth-largest electronics market globally, commanding a 2.6% revenue share, with extensive applications in sensor protection, cable sealing, and electronic component assembly. The industry's evolution towards miniaturization and increased focus on reliability has spurred demand for specialized sealant solutions that offer superior protection against environmental factors while meeting stringent performance requirements.
The automotive sector's transformation towards electric vehicle (EV) production has created new opportunities for specialized automotive sealants applications. Germany's automotive industry, commanding approximately 23% market share in premium car production, is actively investing in EV manufacturing capabilities. The shift towards lightweight materials and new assembly techniques in EV production has necessitated the development of innovative sealant solutions that can accommodate different substrate combinations while maintaining structural integrity and providing essential thermal management properties.
Regulatory compliance and sustainability initiatives are reshaping product development strategies in the German sealants market. The European Union's stringent regulations on VOC emissions and chemical safety have prompted manufacturers to innovate with environmentally friendly formulations. The construction sector's focus on energy efficiency, evidenced by the government's commitment to developing 400,000 new housing units annually since 2022, has driven demand for high-performance construction sealants that contribute to building envelope optimization. This regulatory landscape has accelerated the development of bio-based and low-emission sealant solutions, particularly in residential and commercial construction applications.
Germany Sealants Market Trends and Insights
The government initiatives towards infrastructure including digital parks and hospitals to boost the construction industry
- Construction accounts for 11% of total industrial production output. The construction industry in the country is growing at a slow pace, majorly driven by increasing new residential construction activities. German construction companies are benefiting from soaring demand for real estate, increased investments in buildings, and higher state spending on infrastructure. The upswing in construction has been encouraged by the European Central Bank’s ultra-low interest rates, a growing urban population, and high immigration over the past five years. The sector is also helping to propel overall economic growth.
- In 2021, the construction market in the country registered a 1.99% growth rate compared to the previous year. The German government has initiated the construction of the Digital Park Fechenheim on 10.7 hectares of area, with a gross floor area of 100,000 m2 in Frankfurt-Fechenheim, Hesse, Germany, with an investment of USD 1,179 million. The construction work started in Q3 2021 and is expected to be completed in Q4 2028. In the third quarter of 2021, the country started the construction of the Central Hospital in Lörrach, Baden-Wuerttemberg, with an investment of USD 418 million, and it is expected to be completed by 2025. The project aims to build a center for mental health and a medical department store with a parking garage.
- The growth is likely to be supported by lower interest rates, increased real disposable incomes, and numerous investments by the European Union and the German government. Therefore, with the non-residential and commercial buildings in the country expected to witness significant growth prospects, the construction industry in the country is likely to increase during the forecast period.
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Despite the government regulations on carmakers, electrical vehicles demand is likely to propel the automotive industry
- The automotive manufacturing industry is the most important industry in Germany, and 24% of the domestic industry revenue is generated from this industry. Automotive production in Germany declined by 9.4% in the third quarter of 2018, as the country experienced an economic slowdown in the second half of 2018, coupled with the problems in the implementation of the new Worldwide Harmonized Light-Duty Vehicles Test Procedure (WLTP).
- Over 75% of the automotive units manufactured in Germany are destined for international markets, which are mainly the United States, China, and other EU countries. The trade conflicts between the United States and China sapped away the global demand in 2019. This, coupled with the new EU-28 standard of CO2 emissions, which mandates carmakers to achieve average CO2 emissions of 95 grams per kilometer across newly-sold vehicles, has briefly restricted automotive production in the country.
- In 2020, the COVID-19 pandemic hit hard on the already declining automotive production. In 2020, automotive production fell by 24.5% Y-o-Y, and the supply chain constraints that quickly followed, coupled with the semiconductor chip shortage in 2021, have further declined automotive production by 10.8% compared to 2020 levels. The long-lasting effects of chip shortages and supply chain restrictions are expected to restrict automotive production in Germany in the forecast period. The German government's e-mobility plan aims to achieve 15 million EVs on the road by 2030. This is expected to drive up automotive production in the country. Due to all these factors, Germany's automotive production is expected to increase during the forecast period.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- New innovations in aircraft models by companies such as Boeing and Airbus, as well as the ramping up of commercial aircraft manufacturing to boost the aerospace industry
Segment Analysis: End User Industry
Building & Construction Segment in Germany Sealants Market
The building and construction segment dominates the Germany sealants market, commanding approximately 55% of the total market value in 2024. This significant market share is primarily driven by the extensive application of construction sealants in various construction activities, including joint sealing, heat insulation, glazing, and façade work. The German government's commitment to residential construction through initiatives like housing subsidies and infrastructure development projects has substantially contributed to the segment's dominance. The construction of new buildings and ongoing renovation works, particularly in residential and commercial sectors, continues to fuel the demand for silicone sealants and polyurethane sealants. Silicone and polyurethane-based sealants are particularly popular in this segment due to their superior adhesion properties to both porous and non-porous construction materials.
Healthcare Segment in Germany Sealants Market
The healthcare segment is emerging as the fastest-growing sector in the Germany sealants market, projected to expand at approximately 6% CAGR from 2024 to 2029. This growth is primarily driven by the increasing focus on medical technology development and healthcare infrastructure expansion across Germany. The government's initiatives to enhance healthcare system efficiency through increased public funding and investments in medical technology are creating substantial opportunities for sealant manufacturers. The demand is particularly strong in medical device manufacturing, equipment assembly, and healthcare facility construction. Medical sealants, especially silicone-based sealants, are gaining significant traction in this segment due to their biocompatibility, sterilization resistance, and versatile application possibilities in medical equipment manufacturing.
Remaining Segments in End-User Industry
The automotive, aerospace, and other industrial segments collectively represent significant opportunities in the Germany sealants market. The automotive sector, despite facing challenges, continues to drive demand through electric vehicle manufacturing and component assembly applications. The aerospace industry maintains steady demand for specialized high-performance structural sealants in aircraft manufacturing and maintenance operations. Other industrial applications, including electronics manufacturing, the energy sector, and general industrial assembly, contribute substantially to market growth through diverse application requirements. These segments particularly value epoxy sealants and acrylic sealants for their specific performance characteristics in specialized applications.
Segment Analysis: Resin
Silicone Segment in Germany Sealants Market
The silicone sealants segment dominates the German sealants market, commanding approximately 43% market share in 2024, driven by its versatile applications across multiple industries. Silicone sealants have gained significant traction due to their superior adhesion properties to both porous and non-porous surfaces, including metal, ceramics, composites, polymers, and polished surfaces. The segment is experiencing robust growth and is projected to grow at around 6% through 2029, primarily driven by increasing demand from the electric vehicle manufacturing sector where silicone sealants provide excellent thermal stability. The segment's growth is further bolstered by expanding applications in electronics assembly, particularly as Germany's electrical and electronics industry continues to show strong export performance. Additionally, silicone sealants' weather resistance properties and long-term durability make them particularly suitable for construction applications, especially in exterior installations and structural glazing.
Remaining Segments in Resin Segmentation
The German sealants market encompasses several other significant resin segments, including polyurethane sealants, epoxy sealants, acrylic sealants, and other specialty resins. Polyurethane sealants have established a strong presence in the construction sector due to their excellent mechanical strength and flexibility at varying temperatures. Epoxy sealants are primarily utilized in surface protection applications for concrete and masonry, offering unique two-component curing mechanisms that provide permanent chemical bonding. Acrylic sealants have found their niche in construction applications where paintability is required, particularly for interior applications and crack filling in brickwork. The remaining specialty resins, including polysulfides and butyl rubber-based sealants, cater to specific industrial applications where specialized performance characteristics are required.
Competitive Landscape
Top Companies in German Sealants Market
The German sealants market is characterized by continuous product innovation and strategic developments among key players. Companies are increasingly focusing on developing sustainable and eco-friendly sealant solutions, particularly targeting low VOC emissions and renewable-based formulations to meet stringent environmental regulations. Operational agility is demonstrated through the establishment of local production facilities and technical centers, enabling manufacturers to respond quickly to market demands and provide customized solutions. Strategic moves in the market include expanding product portfolios through research and development, particularly in high-performance industrial sealants for construction and automotive applications. Market leaders are strengthening their distribution networks through partnerships with local distributors and investing in digitalization to improve customer reach and service efficiency. Companies are also expanding their presence through capacity additions and strategic acquisitions to gain access to new technologies and market segments.
Market Structure Shows Mixed Global-Local Presence
The German sealants market exhibits a partially fragmented structure with a mix of global chemical conglomerates and specialized manufacturers. Global players like Sika AG, Henkel, and 3M leverage their extensive research capabilities and worldwide presence to maintain market leadership, while local specialists such as EGO Dichtstoffwerke focus on niche applications and regional customer relationships. The market demonstrates a balanced competitive landscape where international companies operate through local subsidiaries and manufacturing facilities to maintain close customer proximity and ensure quick response times.
The industry is witnessing steady consolidation through strategic acquisitions and partnerships, particularly among mid-sized players looking to expand their technological capabilities and market reach. Companies are increasingly focusing on vertical integration to secure raw material supply and enhance cost competitiveness. Local manufacturers are strengthening their position by offering specialty sealants for specific applications and maintaining strong relationships with regional construction and automotive industries. The market also sees collaboration between companies for technology sharing and product development, especially in emerging applications like electric vehicles and sustainable construction.
Innovation and Sustainability Drive Future Success
Success in the German sealants market increasingly depends on companies' ability to develop innovative, sustainable products while maintaining cost competitiveness. Market incumbents are focusing on expanding their eco-friendly product portfolios and investing in research and development to meet evolving customer requirements, particularly in high-growth segments like electric vehicles and green buildings. Companies are also strengthening their technical support services and developing integrated solutions to create higher value propositions for customers. The ability to provide customized solutions and maintain strong relationships with key industry sectors remains crucial for maintaining market position.
For contenders looking to gain market share, specialization in high-growth applications and development of innovative solutions for specific industry challenges present significant opportunities. Companies need to focus on building strong distribution networks and establishing technical centers to provide local support and customization capabilities. The increasing focus on sustainability and environmental regulations creates opportunities for new entrants with innovative, eco-friendly solutions. Success also depends on developing strong relationships with end-users in key industries and the ability to provide comprehensive technical support and application expertise. Companies must also consider potential regulatory changes regarding environmental standards and prepare for increased scrutiny of product sustainability credentials. Additionally, the development of adhesive sealants tailored for specific industrial applications can offer a competitive edge.
Germany Sealants Industry Leaders
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3M
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H.B. Fuller Company
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Henkel AG & Co. KGaA
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Sika AG
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Soudal Holding N.V.
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- December 2020: WACKER launched renewables-based silicone sealants extending its silicone sealants portfolio.
- 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.
Germany 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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