Market Overview
| Study Period | 2017 - 2028 |
|---|---|
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2028 |
| Market Size (2024) | USD 387.75 Million |
| Market Size (2028) | USD 484.52 Million |
| Growth Rate (2024 - 2028) | 5.73% 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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Russia Sealants Market Analysis by Mordor Intelligence
The Russia Sealants Market size is estimated at 387.75 million USD in 2024, and is expected to reach 484.52 million USD by 2028, growing at a CAGR of 5.73% during the forecast period (2024-2028).
The Russian sealants industry is experiencing significant transformation driven by technological advancements and changing consumer preferences. The electronics and electrical equipment manufacturing sector has emerged as a crucial growth driver, with the consumer electronics segment projected to grow at an impressive 9.01% CAGR through 2027. This growth is primarily attributed to increasing demand for electronic components requiring specialized electronic sealants for sensors, cables, and protective applications. The integration of advanced manufacturing technologies and automation has led to enhanced product quality and performance specifications, particularly in applications requiring precise sealing solutions.
The do-it-yourself (DIY) and hardware segment has witnessed substantial expansion, with the industry expected to achieve a 7.08% CAGR through 2027. This growth is fueled by increasing consumer preference for self-installation products and the rising popularity of home improvement projects. The trend has prompted manufacturers to develop user-friendly adhesives and sealants solutions with improved application properties and durability. Additionally, the market has seen a surge in eco-friendly and sustainable specialty sealants products, responding to growing environmental consciousness among consumers and stricter regulatory requirements.
The healthcare sector has emerged as a significant market for specialized sealant applications, particularly in medical device manufacturing and assembly. The Russian government's implementation of new regulations for imported medical devices has created opportunities for domestic manufacturers to expand their production capabilities. This regulatory shift has led to increased investment in research and development of medical-grade industrial sealants, focusing on biocompatibility and sterilization requirements. The market has also witnessed the introduction of innovative sealant formulations specifically designed for healthcare applications.
The commercial real estate sector has demonstrated robust growth, with investments reaching USD 3 billion in 2021, marking a 32% increase from the previous year. This growth has been accompanied by evolving architectural designs and construction methodologies requiring advanced construction sealants solutions. The trend toward energy-efficient buildings and sustainable construction practices has driven demand for high-performance construction sealants with enhanced thermal insulation properties. Additionally, the residential construction sector has shown significant momentum, with new residential areas expanding to 92.6 million square meters, creating sustained demand for various sealant applications in residential construction and renovation projects.
Russia Sealants Market Trends and Insights
Increasing government investments in infrastructure and institutions including healthcare and education to lead the construction industry
- Construction is one of the major industries in the Russian economy which ranked 7th in the economy. The industry shares nearly 5% of the national GDP annually. However, the recent Russia-Ukraine war is expected to impact the country's economic growth, and industrial and construction projects are expected to be delayed due to the divergence of funds to the defense sector and currency devaluation. These factors are expected to impact the Russian construction industry.
- The construction industry output has reduced in 2020 due to the impact of Covid-19. The new floor area has been reduced by 100 million square footage in the same year compared to 2019. The shortage of raw materials, and labor, shut down of international borders for trade exchange, and a few others are the major reasons behind this reduction of construction output during the year in Russia.
- Residential construction is highly demanded in the country. These constructions share more than 60% of the new area built in Russia. Individual housing areas increased by 18.94% in 2021 from 39.8 million square meters in 2020.
- The President of Russia announced the construction of 13 new projects, ranging from education and healthcare to infrastructure development. The President has instructed the government to boost the country's economic growth above the world average by 2025. Thus, the Russian construction market is likely to register a 2% CAGR during the forecast period (2022-2028).
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Rising commercial vehicles production such as trucks propel the automotive production
- The automotive production market in Russia is not growing as it is majorly becoming an importer of passenger vehicles. Foreign companies hold the maximum share in the Russian automotive market as foreign manufacturers' shares accounted for 8.9 million units in 2020 compared to Russian manufacturers' 3.5 million units of passenger vehicles. This was due to geopolitical tensions in Russia in recent years.
- Minimal or null Y-o-Y growth is expected in 2022-2028, which is evident from the fact that car sales decreased by 78.5% Y-o-Y in 2022. Foreign players are leaving the Russian market because of socio-political reasons such as soaring financial sanctions by foreign countries on different resources in terms of exports and imports, growing interest rates by the Russian Federal Bank, and war conditions with the neighboring country Ukraine. Optimistically, there was an announcement made in March 2022 by the Russian Ministry of Industry and Trade to take the automaker CJSC Renault plant under government control to attempt the revival of the automotive industry, which can prevent the automotive market from going into huge losses during the forecast period 2022-2028.
- In the case of commercial vehicles, the production by Russian manufacturers is growing, with leading truck manufacturer Kamaz in Russia having increased the number of trucks produced from 5700 in Q1 of 2018 to 7400 in Q1 of 2021. This increase in the production of trucks is expected to contribute to the growth of the Russian automotive sector in the forecast period 2022-2028.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Despite the crisis from Western countries due to the Ukraine invasion, the Russian investments and aim to achieve 81% domestic manufacturing by 2030 boosts the aerospace demand
Segment Analysis: End User Industry
Building and Construction Segment in Russia Sealants Market
The building and construction segment dominates the Russian sealants market, commanding approximately 79% market share in 2024. This segment's prominence is driven by the extensive use of construction sealants in various construction applications, including waterproofing, weather-sealing, and joint-sealing activities. The segment's growth is further supported by increasing construction investments and residential construction growth across Russia. The segment is also experiencing the fastest growth rate of around 6% through 2029, primarily due to government initiatives like the investment of RUB 450 billion from the National Welfare Fund in building important infrastructures, such as high-speed railway and Trans-Siberian railway projects. Additionally, the development of newer technologies like connected construction, along with continued government funding for infrastructure projects, is expected to enhance construction productivity and efficiency, thereby driving the demand for construction sealants.
Remaining Segments in End User Industry
The other significant segments in the Russian sealants market include automotive, aerospace, healthcare, and other end-user industries. The automotive segment utilizes structural sealants for replacing bulkier frames and joinery components, while the aerospace sealants sector employs them for various aircraft manufacturing and maintenance applications. The healthcare segment is driven by the increasing demand for medical device assembly and sealing applications. Other end-user industries, including electronics manufacturing, consumer goods, and DIY applications, collectively contribute to market growth through diverse applications such as potting, protecting, and gap-filling requirements. Each of these segments plays a crucial role in maintaining the overall market dynamics and contributing to the industry's development through their specific application requirements and technological advancements.
Segment Analysis: Resin
Silicone Segment in Russia Sealants Market
Silicone sealants dominate the Russian sealants market, holding approximately 37% market share in 2024. These sealants are extensively preferred across industries due to their superior properties, including chemical inertness, non-toxicity, and remarkable temperature resistance ranging from 4°C to 315°C. Their versatility in adhering to various substrates, including plastics, aluminum, steel, and fabrics, combined with a high peel strength of around 1.6 N/mm2, makes them particularly valuable in construction and automotive applications. The segment's prominence is further strengthened by silicone sealants' extensive use in connecting body joints and seams, sealing glass, and filling gaps in bricks and walls across residential and commercial construction projects.
Silicone Segment Growth in Russia Sealants Market
The silicone sealants segment is projected to maintain its market leadership with robust growth through 2024-2029, driven by approximately a 6% annual growth rate. This growth trajectory is supported by increasing residential construction activities in Russia, with expanding applications in modern building techniques and automotive manufacturing. The segment's growth is further bolstered by silicone sealants' superior performance characteristics, including excellent elasticity, stability across extreme temperatures, and resistance to aging, vibrations, and shock. These properties make them indispensable in high-performance applications across various industries, particularly in construction where durability and reliability are paramount.
Remaining Segments in Resin
The Russian sealants market features several other significant resin segments, including polyurethane sealants, acrylic sealants, epoxy, and other specialized resins. Polyurethane sealants are valued for their high mechanical and adhesion strength, particularly in automotive and construction applications. Acrylic sealants have gained traction due to their quick-drying properties and compatibility with various materials, while epoxy sealants are preferred for their high strength and low shrinkage characteristics. Other specialized resins, including rubber-based and bituminous sealants, cater to specific industrial applications requiring unique performance characteristics such as enhanced flexibility or weather resistance.
Competitive Landscape
Top Companies in Russia Sealants Market
The Russian sealants market features prominent players like Soudal Holding, Sika AG, Henkel AG, MAPEI SpA, and Arkema Group leading the competitive landscape. Companies are increasingly focusing on product innovation, particularly in developing sustainable and eco-friendly specialty sealants solutions with lower VOC emissions and improved performance characteristics. Operational agility is demonstrated through extensive distribution networks and localized production facilities across Russia, enabling better market penetration and customer service. Strategic moves in the market primarily revolve around expanding production capacities, strengthening local distribution partnerships, and investing in research and development capabilities. Companies are also emphasizing technological advancement in manufacturing processes and expanding their product portfolios to cater to diverse industry applications, from construction to automotive sectors.
Market Dominated by Global Manufacturing Giants
The Russian adhesives and sealants market structure is characterized by the strong presence of multinational corporations that have established local manufacturing facilities and distribution networks in the country. These global players leverage their advanced technological capabilities, extensive research and development resources, and established brand reputation to maintain their market positions. The market demonstrates a moderate level of fragmentation, with the top five companies collectively holding a significant but not overwhelming share, while numerous smaller local players serve specific regional markets or specialized applications.
The competitive dynamics are shaped by a mix of large diversified chemical companies and specialized sealant manufacturers, each bringing different strengths to the market. While global conglomerates benefit from economies of scale and integrated supply chains, specialized players compete through focused expertise and customized solutions. Market consolidation activities have been notable, with companies like Soudal Holding making strategic acquisitions of local manufacturers to strengthen their market presence and expand their production capabilities in Russia.
Innovation and Distribution Drive Market Success
For incumbent companies to maintain and expand their market share, developing innovative products that meet evolving customer needs while complying with environmental regulations is crucial. Success factors include investing in sustainable technologies, strengthening local manufacturing capabilities to ensure supply chain resilience, and building strong relationships with key end-user industries. Companies must also focus on developing comprehensive service offerings, including technical support and customization capabilities, while maintaining cost competitiveness through operational efficiency.
New entrants and challenger companies can gain ground by focusing on underserved market segments and developing specialized solutions for specific applications or industries. Building strong distribution networks and establishing strategic partnerships with local players can help overcome entry barriers and gain market access. Companies must also consider the increasing importance of environmental regulations and sustainability requirements, particularly in construction and automotive applications. Success in the market increasingly depends on the ability to offer products that meet both performance requirements and environmental standards while maintaining competitive pricing. The role of industrial sealants in these sectors is becoming more pronounced, offering opportunities for growth and innovation.
Russia Sealants Industry Leaders
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Arkema Group
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Henkel AG & Co. KGaA
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MAPEI S.p.A.
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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
- June 2019: Soudal acquired Profflex, a Russia-based foam and sealant manufacturer, to strengthen its position in the Eastern European market.
- April 2019: Dow completed the separation of its Material Science division through a spin-off of Dow Inc.
Russia 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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