Market Overview
| Study Period | 2017 - 2028 |
|---|---|
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2028 |
| Market Size (2024) | USD 625.48 Million |
| Market Size (2028) | USD 752.56 Million |
| Growth Rate (2024 - 2028) | 4.73% 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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Japan Sealants Market Analysis by Mordor Intelligence
The Japan Sealants Market size is estimated at 625.48 million USD in 2024, and is expected to reach 752.56 million USD by 2028, growing at a CAGR of 4.73% during the forecast period (2024-2028).
The Japanese sealants industry operates within a sophisticated manufacturing ecosystem, characterized by stringent quality standards and technological innovation. The Japanese Industrial Standards Committee (JISC) plays a pivotal role in establishing and maintaining technical standards across various industries, including metals, paints, construction, and electronics. The Ministry of the Environment coordinates environmental policies and initiatives, focusing on environmental conservation and pollution control, which directly influences product development and manufacturing processes in the sealants sector. The Consumer Affairs Agency's oversight ensures product safety and quality, particularly for consumer applications, demonstrating Japan's commitment to maintaining high industry standards.
Technological advancement in the Japanese sealants industry is primarily driven by the growing demand for high-performance sealing materials across various applications. The electronics sector, which accounts for approximately 6% of revenue share, is witnessing significant growth due to increased adoption of consumer electronics among high and middle-income groups. Manufacturers are increasingly focusing on developing innovative solutions that offer improved durability, weather resistance, and environmental sustainability. The industry is seeing a shift towards smart manufacturing processes and automated application systems, enhancing production efficiency and product consistency.
Japan's commitment to sustainable development has become a cornerstone of the sealants industry's evolution. Under the Air Pollution Control Act and Chemical Substances Control Law, manufacturers must adhere to strict VOC emission standards and chemical risk management protocols. The industry is witnessing a transformation in product formulations, with companies investing in research and development to create eco-friendly alternatives that maintain high performance standards. This shift aligns with Japan's broader environmental goals and responds to growing consumer awareness of environmental issues.
The distribution landscape of the sealants market is undergoing significant changes, with companies adopting multi-channel strategies to enhance market reach. Major industry players are establishing robust supply chain networks, combining traditional distribution channels with modern digital platforms. The industry is seeing increased collaboration between manufacturers and distributors to ensure product availability and technical support. Companies are also investing in training programs and technical support services to enhance product application expertise among end-users, particularly in specialized sectors like electronics and healthcare applications.
Japan Sealants Market Trends and Insights
Rising commercial and infrastructure projects to lead the construction industry
- The construction sector in the country is expected to record moderate growth over the next five years, owing to the increasing investments in public and private infrastructure and commercial projects. The Japanese construction adhesives and sealants market is projected to record a CAGR of about 2.89% in volume and 5.35% in value during the forecast period 2022 to 2028.
- Japan is a major area in the field of skyscrapers and high-rise buildings, making it a significant market for consumption. The country hosts various high-rise buildings (nearly 290), with Tokyo being a major hub for such buildings. The planning and construction of such buildings are witnessing decent growth in Japan in the short term. Some construction projects include two high-rise towers for Tokyo Stations, a 37-story and 230 m tall office tower, and a 61-story and 390 m tall office tower, due for completion in 2027. One of the most significant redevelopment projects includes the Yaesu redevelopments project for old buildings to new offices, hotels, residential, retail, and educational facilities, which are due to be completed by 2023.
- In Japan, major construction companies, such as Shimizu, Kajima, Obayashi, Taisei, and Daiwa House, suspended construction work. Although the government has begun to ease its measures to combat the COVID-19 pandemic, it is difficult to predict to what extent work will return to normal. In recent years, before the COVID-19 pandemic, the number and volume of construction and infrastructure projects in Japan had been increasing. As Japan recovers from the pandemic, construction and infrastructure projects should also re-commence. These factors are expected to lead to an increase in the demand for adhesives and sealants.
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In addition to being home to renowned automotive manufacturers including Toyota, Honda, and Nissan, the demand for EVs is rising the automotive industry
- Japan is home to the world's largest automotive companies, such as Toyota, Honda, and Nissan, of which Toyota is the world's second-largest company in terms of market capitalization. Toyota's sales revenue showed a 15% Y-o-Y growth in the fiscal year ending March 2022, suggesting an increasing trend of automotive market growth in Japan. Passenger vehicle sales in Japan are expected to reach 3951.71 thousand units by 2027.
- Due to the impact of the COVID-19 pandemic, the sales of automobiles reduced drastically because of nationwide lockdowns, overall economic slowdown, decreased exports, supply chain disruptions, etc. These factors led to a decrease in the sales volume of automobiles in 2020 as passenger car sales fell from 3997 thousand in 2019 to 3841 thousand in 2020.
- Japan witnessed a decrease in automotive market revenue in 2021 compared to 2020 because of the increasing awareness of environmental concerns and increased use of public transport in the cities of Japan. The government is also supporting the cause by making public transport more efficient than before. The railways cover nearly 72% of the public transportation system in Japan.
- Japan witnessed peak sales of electric vehicles in 2017 because of the launch of new plug-in hybrid vehicles, which appealed to consumers. The electric vehicles segment of the automotive industry is expected to record a CAGR of 24.39% in 2022-2027. The number of electric vehicles sold in Japan is expected to be 165.5 thousand by 2027. This will lead to an increase in the overall revenue of the automotive industry in Japan.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Spacecraft and defense aircraft activities to boost the aerospace sector in Japan
Segment Analysis: End User Industry
Building and Construction Segment in Japan Sealants Market
The building and construction segment dominates the Japan sealants market, commanding approximately 54% of the market share in 2024. This significant market position is attributed to the extensive application of silicone sealants and other types in various construction activities, including joint sealing, insulation, curtain wall installations, glazing applications, and façade work. The segment's dominance is further strengthened by Japan's robust construction sector, particularly in the development of high-rise buildings and skyscrapers, with Tokyo being a major hub for such construction activities. The implementation of stringent building standards and the growing focus on sustainable development practices in Japan's construction industry have led to increased demand for high-performance sealants that meet specific requirements for weatherproofing, waterproofing, and thermal insulation.
Aerospace Segment in Japan Sealants Market
The aerospace segment is emerging as the fastest-growing sector in the Japan sealants market, driven by the country's expanding aviation industry and increasing involvement in global cooperative development of civil aircraft. The segment is projected to experience robust growth through 2024-2029, with an expected growth rate of approximately 6%. This growth is primarily fueled by the rising demand from the defense industry and the increasing production of civil aircraft. The segment's expansion is further supported by Japan's focus on advancing satellite and transportation technologies, particularly in space activities. The demand for specialized aerospace sealants is also being driven by the increasing need for 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 Japan sealants market, each contributing uniquely to market dynamics. The automotive segment maintains a strong presence due to Japan's position as a global automotive manufacturing hub, with major manufacturers utilizing polyurethane sealants for various applications in vehicle production. The healthcare sector demonstrates steady growth, particularly in medical device manufacturing and equipment sealing applications, where medical sealants play a crucial role. Other end-user industries, including electronics, marine, and general industrial applications, continue to drive market growth through diverse applications ranging from electronic component sealing to industrial equipment maintenance.
Segment Analysis: Resin
Silicone Segment in Japan Sealants Market
Silicone sealants dominate the Japanese sealants market, accounting for approximately 45% market share in 2024. The segment's leadership position is attributed to its versatile applications across multiple industries, particularly in construction and automotive sectors. Silicone sealants offer exceptional thermal conductivity with an operating temperature range from -50°C to 250°C and tensile strength up to 400 psi, making them ideal for sealing hybrid circuits, PCBs, integrated circuits, and various construction applications. These sealants demonstrate superior weather resistance, durability, and excellent adhesion properties, which has led to their widespread adoption in both interior and exterior applications. The segment's growth is further supported by increasing residential construction activities and the rising adoption of electric vehicles in Japan.
Polyurethane Segment in Japan Sealants Market
The polyurethane sealants segment is projected to experience significant growth during 2024-2029, driven by its expanding applications in construction and automotive industries. These sealants offer superior mechanical strength and adhesion properties, making them particularly suitable for demanding applications. Polyurethane sealants demonstrate excellent chemical resistance and cold resistance properties, with tensile stress varying from 0.9 to 2.10 N/mm2. The segment's growth is supported by increasing residential construction activities and infrastructure development projects across Japan. The versatility of polyurethane sealants in replacing bulkier metal frames and joinery components in automotive applications, contributing to vehicle weight reduction and improved fuel efficiency, is expected to further drive market growth.
Remaining Segments in Resin
The remaining segments in the Japanese sealants market include acrylic sealants, epoxy sealants, and other resin-based sealants, each serving specific application needs. Acrylic sealants are valued for their quick-drying properties and compatibility with various materials, making them popular in construction applications. Epoxy sealants offer high strength and low shrinkage during curing, finding applications in specialized industrial and construction uses. Other resin-based sealants, including rubber-based and oil-based variants, cater to niche applications requiring specific performance characteristics. These segments collectively contribute to the market's diversity, offering solutions for various sealing requirements across different industries.
Competitive Landscape
Top Companies in Japan Sealants Market
The Japanese sealants market features both global chemical conglomerates and domestic specialists competing for market share. Companies are focusing on developing sustainable and environmentally friendly sealant solutions to align with stringent Japanese building standards and regulations. Product innovation is primarily centered around high-performance sealants for specific applications in the construction and automotive sectors, with an emphasis on weather resistance and durability. Operational strategies include establishing robust distribution networks, maintaining multiple manufacturing facilities across the country, and investing in research and development centers. Strategic moves in the market are characterized by joint ventures and partnerships to strengthen local presence, while expansion efforts are focused on enhancing production capabilities and broadening product portfolios through technological advancement.
Fragmented Market with Strong Local Players
The Japanese sealants market exhibits a fragmented structure with a mix of international chemical corporations and well-established domestic manufacturers. Global players like Sika AG, Henkel, and 3M leverage their technological expertise and worldwide presence, while domestic companies such as Shin-Etsu Chemical and Cemedine maintain strong market positions through their deep understanding of local requirements and established distribution networks. The market demonstrates moderate consolidation, with the top five companies collectively holding a significant but not dominant position, indicating healthy competition and opportunities for growth.
The market has witnessed strategic consolidation through mergers and acquisitions, particularly exemplified by Sika AG's acquisition of Hamatite from Yokohama Rubber Co. Ltd. This trend reflects the industry's move toward combining complementary strengths, with global players seeking to enhance their local market presence while domestic companies focus on technological advancement through partnerships. Companies are increasingly pursuing vertical integration strategies to maintain control over supply chains and ensure product quality while expanding their market reach through diversified distribution channels.
Innovation and Sustainability Drive Future Success
Success in the Japanese industrial sealants market increasingly depends on companies' ability to develop innovative, sustainable products while maintaining strong distribution networks. Incumbent players must focus on expanding their product portfolios with environmentally friendly solutions, particularly for the construction and automotive sectors, while maintaining close relationships with key customers. Companies need to invest in research and development to create advanced formulations that meet specific industry requirements, while also establishing efficient supply chain networks to ensure consistent product availability and quality.
For contenders looking to gain market share, the focus should be on developing specialized products for niche applications while building strong relationships with local distributors and end-users. Success factors include understanding and adapting to Japan's strict quality standards and environmental regulations, which create significant entry barriers but also opportunities for differentiation. Companies must also consider the increasing demand for sustainable solutions and the growing importance of technical support services. The market's future will be shaped by the ability to provide comprehensive solutions that address both performance requirements and environmental concerns, while maintaining cost competitiveness and operational efficiency.
Japan Sealants Industry Leaders
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3M
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Shin-Etsu Chemical Co., Ltd.
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Sika AG
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THE YOKOHAMA RUBBER CO., LTD.
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ThreeBond Holdings Co., Ltd.
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- November 2021: The Yokohama Rubber Co. Ltd divested its Hamatite adhesives and sealants business, bought by Sika AG.
- April 2021: Sika AG signed an agreement to acquire The Yokohama Rubber Co. Ltd's adhesives division, Hamatite, based in Japan. Hamatite offers polyurethanes, hot melts, and modified silicones technology adhesives and sealants for the automotive and construction industries.
Japan 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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