Market Overview
| Study Period | 2017 - 2028 |
|---|---|
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2028 |
| Market Size (2024) | USD 55.56 Million |
| Market Size (2028) | USD 65.87 Million |
| Growth Rate (2024 - 2028) | 4.35% 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. | |
South Africa Sealants Market Analysis by Mordor Intelligence
The South Africa Sealants Market size is estimated at 55.56 million USD in 2024, and is expected to reach 65.87 million USD by 2028, growing at a CAGR of 4.35% during the forecast period (2024-2028).
The South African construction sector continues to be a cornerstone of economic development, contributing approximately USD 5.4 billion to the country's GDP. The government's ambitious infrastructure development initiatives, including a USD 45.3 billion investment plan announced in the 2021 budget, are reshaping the construction landscape. This comprehensive plan encompasses various projects, from residential developments to commercial infrastructure, driving demand for construction materials and sealants for construction. The sector's growth is further supported by demographic shifts, with South Africa's population reaching 60 million in 2021, creating increased demand for housing and infrastructure development.
The automotive manufacturing sector has emerged as a significant driver of industrial growth, with 22 companies actively manufacturing vehicles and components in South Africa. The sector's contribution of 18.7% to domestic manufacturing output underscores its importance in the industrial landscape. The South African Automotive Masterplan (SAAM) has set ambitious targets, aiming to increase production to 1.4 million vehicles annually by 2035, representing 1% of global vehicle manufacturing. This expansion is supported by several vehicle manufacturers who have established production facilities in the country, particularly in key industrial hubs like Gauteng, the Eastern Cape, and KwaZulu-Natal. The demand for sealants for automotive is expected to rise in tandem with this growth, as manufacturers seek advanced solutions to enhance vehicle performance and sustainability.
Infrastructure development has gained momentum with the government's focus on smart city initiatives and sustainable urban development. The planned Smart City project near Lanseria airport in Gauteng represents a significant step toward modern urban infrastructure development. The construction sector has shown resilience and growth potential, evidenced by the 24.8% year-over-year increase in registered building plans to USD 0.52 million in December 2021. These developments are complemented by various processes and land selection initiatives that were scheduled for completion by April 2022. The increased activity in construction projects is driving the demand for specialized sealants for building to ensure durability and efficiency.
Technological advancement and sustainability considerations are increasingly shaping market dynamics, particularly in the construction and automotive sectors. The Green Building Council of South Africa (GBCSA) is leading the country's green revolution in construction, leveraging expertise from the World Green Building Council (WGBC) to promote sustainable building practices. The automotive industry is also embracing technological changes, with manufacturers focusing on lightweight materials and eco-friendly solutions. This shift is particularly evident in the electronic vehicle segment, where manufacturers are investing in new production capabilities and sustainable technologies to meet evolving market demands. The role of industrial sealants in these advancements cannot be overstated, as they provide essential solutions for both construction and automotive applications.
South Africa Sealants Market Trends and Insights
Government initiatives for residential projects to escalate construction works
- South Africa's construction industry is projected to record a CAGR of 2.95% during the forecast period from 2022 to 2028. The construction sector in South Africa is expected to revive the dip in the economy with investments and various activities in the pipeline. In the 2021 budget, the South African government announced plans to enhance the economy with approximately USD 45.3 billion for infrastructure development.
- The construction sector might benefit from the increasing population in the country. According to a survey by Statistics South Africa, the population in South Africa stood at 60 million in 2021, whereas in 2020, it stood at 59.6 million. The increasing population would need more construction amenities, such as education facilities, entertainment facilities, and residential areas. Moreover, the government is planning to develop a Smart City. Various processes, including land selection and others, were to be completed by April 2022. Officials have also clarified that this project is separate from the new 'Smart City' being developed close to the Lanseria airport in Gauteng.
- The Government of South Africa and the private sector recognize the importance of energy-efficient building systems and practices. GBCSA South Africa's advanced green policy is highlighted by the country's participation in the World Green Building Council (WGBC), where it leveraged the expertise and direction of other countries to form the Green Building Council of South Africa (GBCSA). The GBCSA is the organization in charge of South Africa's green revolution for buildings right now. The growing adoption of sustainability and the rising construction activities tend to increase the demand for adhesives and sealants in the country.
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Growing popularity of electric vehicles will proliferate automotive production
- The South African automotive sector comprises 22 businesses that manufacture cars and commercial vehicles. Among these are seven major vehicle manufacturers/assemblers [car and LCV] and several medium and heavy commercial vehicle assemblers [MCV, HCV, and buses]. In addition, 21 enterprises are involved in importing and distributing new automobiles in the country. There are over 500 automotive component suppliers, with 180 being first-tier suppliers. BMW, Ford, Isuzu, Mercedes-Benz, Nissan, Toyota, and Volkswagen are the primary drivers of the value chain. These firms significantly impact the economy of Gauteng, the Eastern Cape, and KwaZulu-Natal. These OEMs, together with their suppliers, are at the heart of the three regional clusters, and their socioeconomic contribution is critical to the social upliftment of these areas.
- In 2019, the country recorded about 6,31,921 units of vehicles produced, which drastically reduced to 4,47,213 units in 2020, accounting for a decline of about 29% owing to the COVID-19 pandemic. Due to this, the variation in automotive production between 2019 and 2021 was about -21%, whereas the variation between 2020 and 2021 was recorded at about 12%.
- Over the years, the use of internal combustion engine (ICE) vehicles has contributed significantly to problems such as climate change, environmental pollution, and increased cost of gas. The automotive industry in South Africa is among the highest CO2 emitters, responsible for approximately 20% of total emissions and the third highest contributor to air pollution. Owing to this, the industry has adopted alternatives such as EVs due to their simplicity and technological advancements, which ensure low emissions.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Rapid growth of civil aviation to boost the aircraft component production
Segment Analysis: End User Industry
Building & Construction Segment in South Africa Sealants Market
The building and construction segment dominates the South African sealants market, accounting for approximately 32% of the total market value in 2024. This significant market share is driven by the diverse applications of waterproofing sealants and joint sealants in construction activities, including waterproofing, weather-sealing, crack-sealing, and joint sealing applications. The segment's prominence is further strengthened by ongoing infrastructure development projects and the government's commitment to enhancing the economy through infrastructure investments worth approximately USD 45.3 billion. The construction sector benefits from increasing urbanization and population growth, with various development projects including educational facilities, entertainment venues, and residential areas. Additionally, the country's participation in the World Green Building Council (WGBC) and the formation of the Green Building Council of South Africa (GBCSA) have promoted sustainable building practices, driving the demand for specialized sealants in eco-friendly construction applications.
Aerospace Segment in South Africa Sealants Market
The aerospace segment is projected to exhibit the strongest growth in the South African sealants market, with an expected growth rate of approximately 6% during 2024-2029. This robust growth is attributed to South Africa's position as the most influential nation in the African aerospace sector, with over 120 state-owned and privately held domestic aerospace enterprises. The segment's expansion is driven by increasing demand for aerospace sealants in aircraft manufacturing and maintenance operations, particularly for weather sealing and waterproofing applications. The country's aerospace firms serve as exclusive suppliers of parts and components to major global aerospace companies like Boeing and Airbus, while government-private partnerships and research universities actively contribute to sector development. The National Aerospace Centre (NAC) at the University of Witwatersrand in Johannesburg plays a crucial role in developing a skilled workforce and advancing aerospace technology, further stimulating the demand for specialized aerospace sealants.
Remaining Segments in End User Industry
The automotive and healthcare segments also play vital roles in shaping the South African sealants market. The automotive sector utilizes sealants extensively in vehicle assembly processes, particularly for bonding different substrates like glass, metal, plastic, and painted surfaces. The sector's growth is supported by the South African Automotive Masterplan (SAAM) initiative, which aims to boost domestic vehicle manufacturing. The healthcare segment demonstrates significant potential with applications in medical device assembly, dental procedures, and various medical equipment manufacturing processes, where medical sealants are crucial. The electronics industry, included within other end-user industries, shows promising growth potential due to increasing demand for electronic component assembly and protection applications. These segments collectively contribute to the market's diversification and overall growth trajectory.
Segment Analysis: Resin
Silicone Segment in South Africa Sealants Market
Silicone sealants dominate the South African sealants market, commanding approximately 46% market share in 2024. The segment's leadership position is attributed to its diverse applications across multiple industries, particularly in building and construction for both interior and exterior uses. Silicone sealants offer superior properties including excellent temperature resistance ranging from -50°C to 230°C, UV resistance, and a fast curing time of up to 24 hours. These sealants demonstrate exceptional performance in automotive applications, especially in light commercial vehicles for electronic component assembly. The segment's growth is further supported by the strong market positioning in construction applications such as waterproofing, weather-sealing, and joint sealing, where silicone sealants' durability and versatility make them the preferred choice.
Polyurethane Segment in South Africa Sealants Market
The polyurethane sealants segment is experiencing robust growth in the South African market, projected to expand at approximately 5% CAGR during 2024-2029. This growth trajectory is driven by increasing adoption in automotive and construction applications, where polyurethane sealants' excellent tear and abrasion resistance properties make them particularly valuable. The segment's expansion is further supported by various vehicle manufacturers expanding their production in South Africa, backed by government incentives through the Automotive Production and Development Plan (APDP). The International Finance Corporation's support for automotive manufacturing expansion, exemplified by their USD 150 million loan to BMW, is expected to create additional opportunities for polyurethane sealants in the automotive sector.
Remaining Segments in Resin Segmentation
The South African sealants market features several other important resin segments including acrylic sealants, epoxy sealants, and other specialized resins. Acrylic sealants play a crucial role in construction applications, particularly in joint fillings and DIY applications, offering rubber-like properties when cured. Epoxy sealants are valued for their fast curing time and effectiveness in repair applications, while other specialized resins, including rubber-based sealants, polyesters, and polysulfides, cater to specific industrial requirements. These segments collectively contribute to market diversity, offering solutions for various specialized applications across industries such as construction, automotive, and industrial manufacturing.
Competitive Landscape
Top Companies in South Africa Sealants Market
The South African sealants market is characterized by companies focusing heavily on product innovation as a key competitive strategy, particularly in developing high-performance automotive sealants and construction sealants for automotive and construction applications. Companies are increasingly emphasizing environmental sustainability by developing non-toxic and low-VOC content sealants to meet growing regulatory requirements and consumer preferences. Operational agility is demonstrated through companies maintaining robust distribution networks and offering customized solutions to meet specific industry needs. Strategic partnerships and capacity expansion initiatives are becoming prominent ways for companies to strengthen their market position, with many players looking to acquire local manufacturers to leverage existing distribution channels and customer relationships. The market also sees continuous investment in research and development capabilities to expand product portfolios and maintain competitive advantages.
Market Structure Shows Mix of Global-Local Players
The South African sealants market exhibits a fragmented structure with a mix of global conglomerates and local specialists competing for market share. Global players like Soudal Holding, Sika AG, and Dow leverage their extensive research capabilities and broad product portfolios to maintain strong positions, while local players capitalize on their deep understanding of regional market dynamics and established distribution networks. The market demonstrates moderate consolidation, with the top five companies collectively maintaining a significant presence through their diverse product offerings and strong customer relationships.
The competitive landscape is shaped by companies' ability to provide comprehensive solutions across multiple end-user industries, particularly in the construction and automotive sectors. Market participants are increasingly focusing on vertical integration strategies to better control their supply chains and enhance operational efficiency. The industry sees ongoing merger and acquisition activities as larger companies seek to expand their geographic presence and product capabilities, while smaller players often become acquisition targets due to their specialized expertise or strategic market positions.
Innovation and Distribution Drive Future Success
Success in the South African sealants market increasingly depends on companies' ability to develop innovative products that meet evolving industry requirements while maintaining cost competitiveness. Incumbent players must focus on strengthening their research and development capabilities, expanding their distribution networks, and developing closer relationships with key end-users to maintain their market positions. Companies need to invest in sustainable product development and maintain compliance with environmental regulations while also focusing on operational efficiency to manage production costs effectively.
For contenders looking to gain market share, the focus should be on developing specialized products for specific applications or industry segments where they can build competitive advantages. Building strong relationships with distributors and offering superior technical support services are crucial strategies for market expansion. Companies must also consider the increasing concentration of end-users in the construction and automotive sectors, while being mindful of potential substitution risks from alternative sealing technologies. Success will largely depend on the ability to navigate regulatory requirements, particularly regarding environmental standards and product safety specifications, while maintaining product quality and performance standards.
South Africa Sealants Industry Leaders
Arkema Group
Dow
Henkel AG & Co. KGaA
Sika AG
Soudal Holding N.V.
- *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.
South Africa 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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