Germany Sealants Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2028

Germany Sealants Market Trends

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.

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.    

OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT

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.

Free With This Report

We provide a complimentary and exhaustive set of data points on global and regional metrics that present the fundamental structure of the industry. Presented in the form of 24+ free charts, the section covers rare data on various end-user production trends including automobile production, newly built construction floor area, packaging production, aircraft deliveries, footwear production, and regional data on adhesives and sealants demand, etc.