Market Overview
| Study Period | 2017 - 2028 |
|---|---|
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2028 |
| Market Size (2024) | USD 122.06 Million |
| Market Size (2028) | USD 147.21 Million |
| Growth Rate (2024 - 2028) | 4.80% 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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Thailand Sealants Market Analysis by Mordor Intelligence
The Thailand Sealants Market size is estimated at 122.06 million USD in 2024, and is expected to reach 147.21 million USD by 2028, growing at a CAGR of 4.80% during the forecast period (2024-2028).
Thailand's industrial landscape is experiencing significant transformation, particularly in the construction and infrastructure sectors. The construction sector made a substantial contribution of THB 439.13 billion to the nation's GDP in 2021, highlighting its crucial role in the economy. The government's commitment to infrastructure development is evident through major projects like the Eastern Economic Corridor (EEC) and various residential construction initiatives. The administration has allocated approximately USD 20.4 billion to finance low-cost housing projects and capital expenditures, demonstrating a strong focus on addressing housing demands while stimulating economic growth.
The electronics and electrical equipment manufacturing sector has emerged as a crucial driver of industrial growth in Thailand. The country's electronics exports reached an impressive USD 42 billion in 2021, establishing Thailand as a major electronics manufacturing hub in the ASEAN region. The presence of over 2,300 electronics manufacturing companies employing more than 400,000 people has created a robust ecosystem for industrial applications. This industrial expansion has led to increased demand for specialized electronic sealants in electronic component manufacturing, particularly for applications in semiconductor production and electronic assembly.
The healthcare and medical device sector in Thailand continues to demonstrate remarkable growth potential. The medical devices market is projected to expand significantly, expected to reach USD 3.38 million by 2027, driven by increasing investments in healthcare infrastructure and growing demand for advanced medical equipment. The trend toward using artificial intelligence in healthcare applications and the rising number of robotic surgeries has created new opportunities for specialized medical sealants. The country's position as one of Asia's major exporters of medical devices further reinforces its role in the healthcare manufacturing sector.
Thailand's automotive sector is undergoing a significant transition toward electric vehicle (EV) production, with the government setting an ambitious target to produce 75,000 electric vehicles by 2030. This shift toward sustainable transportation solutions has sparked innovations in automotive sealants technologies, particularly for battery protection and thermal management applications. The integration of advanced materials and smart manufacturing processes has led to the development of high-performance sealants that meet the specific requirements of modern industrial applications, including enhanced durability, chemical resistance, and environmental sustainability.
Thailand Sealants Market Trends and Insights
Increasing spending on public infrastructure projects is likely to facilitate the growth of construction sector
- The Thai construction industry is projected to record a CAGR of about 2.59% during the forecast period 2022-2028. Thailand is one of Southeast Asia's most exciting hubs for contractors, with a huge construction sector to invest in. With increasing public works, such as the construction of transit lines and subway infrastructure, the demand for residential construction has been consistently growing. Residential construction was the largest segment in the Thai construction industry between 2014 and 2019, accounting for more than 40% of its total value in 2019. The construction industry is expected to recover by 2023, with total construction spending having been forecast to rise by 4.5-5% in 2021 and then by 5-5.5% in 2022-2023.
- The major driver in the country for increasing construction will be public-sector spending on infrastructure megaprojects, especially in the Eastern Economic Corridor, where investment in government-backed projects will encourage crowding-in of private-sector investment (e.g., industrial estates). There will also be new opportunities in neighbouring countries as their governments improve national infrastructure in response to continued economic growth and urbanization.
- The segment's growth was further propelled in 2021 as a few residential projects started construction. The projects include the Skyrise Avenue Sukhumvit 64 Mixed-Use Development of USD 507 million and the Arom Wongamat Condominium Tower of USD 117 million, among others. The timelines for completing these projects range from around 2024 to 2025. The growing infrastructure development in the country is expected to generate demand for adhesives over the forecast period.
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Nearly 50.1% share of the overall automotive production among the ASEAN countries is likely to drive the industry in Thailand
- The Thai automobile sector has grown tremendously over the last 50 years. The country is constantly advancing its next-generation automotive industry to follow the S-Curve promotion with better value-added production, and it also aims for the automotive industrial policy to be aligned with the environmental protection policy. Thailand is the largest auto producer in the ASEAN region. In 2020, production totaled 1,427,074 units, accounting for 50.1% of total ASEAN production. This was followed by Indonesia (690,150 units, or approximately 24.2%) and Malaysia (485,186 units, or approximately 17.0%).
- In 2019, the country recorded about 20.13,710 units of vehicles produced, which drastically reduced to 14,27,074 units in 2020, accounting for a decline of about 29% owing to the COVID-19 pandemic. As a result, the variation in automotive production between 2019 and 2021 amounted to about -16%, whereas between 2020 and 2021, the variation was recorded at about -1%.
- Thailand, ranked as the 11th largest automotive producer in the world and the first in ASEAN, is poised to become ASEAN's EV center, owing to its well-established value chain, which provides the industry with top-notch quality products at a competitive price. Thailand's EV stock has been steadily increasing in response to local demand. More importantly, several well-known Thai corporations have been actively investing in EV charging infrastructure around the country, indicating rising confidence in future demand increases. Efforts by governmental and private sector institutions to increase EV infrastructure, such as charging stations, suggest that Thailand's EV ecosystem is developing rapidly.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Increasing number of domestic and international passengers will boost the aerospace industry
Segment Analysis: End User Industry
Building and Construction Segment in Thailand Sealants Market
The building and construction segment dominates the Thailand sealants market, commanding approximately 48% market share in 2024. This significant market position is driven by the diverse applications of construction sealants in both residential and commercial construction projects, including joint sealing, weatherproofing, curtain wall installations, glazing, and façade applications. The segment's growth is further supported by Thailand's position as one of Southeast Asia's most dynamic construction hubs, with increasing investments in public infrastructure projects like transit lines and subway systems. The government's continued support for the Eastern Economic Corridor (EEC) development and focus on residential construction projects has maintained strong demand for construction sealants, particularly silicone sealants and polyurethane sealants that offer superior weatherproofing and durability properties.
Aerospace Segment in Thailand Sealants Market
The aerospace segment is emerging as the fastest-growing sector in the Thailand sealants market, projected to expand at approximately 7% CAGR from 2024 to 2029. This robust growth is primarily attributed to Thailand's strategic positioning as a key aviation hub in the ASEAN region. The expansion of major airports, including Bangkok Suvarnabhumi (BKK), Don Muang (DMK), and U-Tapao (UTP), is driving increased demand for specialized aerospace sealants. The country's ambitious plans to establish itself as a prominent MRO (Maintenance, Repair, and Operations) center in the Asia-Pacific region, supported by significant investments in airframe maintenance facilities and component manufacturing, are expected to further boost the demand for high-performance aerospace sealants in aerospace applications.
Remaining Segments in End User Industry
The automotive sector represents a significant portion of the Thailand sealants market, driven by the country's position as ASEAN's largest automotive manufacturing hub and its growing focus on electric vehicle production. The healthcare segment continues to expand due to Thailand's status as a major medical device manufacturing center in Asia, with increasing demand for specialized medical sealants. The other end-user industries segment, which includes electronics, marine applications, and DIY sectors, maintains steady growth supported by Thailand's strong electronics manufacturing sector and diverse industrial applications requiring specialized sealing solutions, including marine sealants.
Segment Analysis: Resin
Silicone Segment in Thailand Sealants Market
Silicone sealants dominate the Thailand sealants market, holding approximately 40% market share in 2024. The segment's leadership position is attributed to silicone sealants' exceptional elasticity, weather resistance, and versatility across diverse applications. These sealants demonstrate superior performance in both interior and exterior applications, particularly in structural glazing of windows in wall facades. Their ability to bond effectively with multiple substrates, including glass, plastics, metals, repainted surfaces, and fiberglass, makes them indispensable in construction applications. The segment's strength is further reinforced by silicone sealants' unique properties such as solvent-less composition, low shrinkage characteristics, and wide temperature operating range from 40°F to 100°F, making them suitable for Thailand's tropical climate conditions.
Polyurethane Segment in Thailand Sealants Market
The polyurethane sealants segment is experiencing robust growth in the Thailand sealants market, projected to grow at approximately 5% during 2024-2029. This growth trajectory is primarily driven by increasing adoption in construction and automotive applications. The segment's expansion is supported by the rising demand in residential construction projects and the government's continued investment in infrastructure development. Polyurethane sealants are particularly favored for their superior bonding strength, chemical resistance, and durability in demanding applications such as installing skylights and windows, mounting fixtures, sealing gutters, ductwork, and pipe flanges, and forming expansion joints. The segment's growth is further bolstered by Thailand's expanding automotive sector and the increasing focus on electric vehicle production.
Remaining Segments in Resin Segmentation
The Thailand sealants market features several other significant resin segments, including acrylic sealants, epoxy sealants, and other specialized resins. Acrylic sealants have established a strong presence in construction and DIY applications, particularly valued for their versatility and ease of application. The epoxy sealants segment, while smaller, plays a crucial role in specialized applications requiring high strength and chemical resistance, particularly in industrial and automotive sectors. Other resin types, including rubber-based sealants, polyesters, polysulfides, and butyl rubber sealants, cater to specific niche applications where specialized properties such as high movement capability and service elongation are required. These segments collectively contribute to the market's diversity and ability to meet varied application requirements across different industries.
Competitive Landscape
Top Companies in Thailand Sealants Market
The Thailand sealants market is characterized by companies focusing on strategic initiatives to maintain and expand their market presence. Product innovation remains a key trend, with manufacturers developing high-performance industrial sealants specifically tailored for automotive and construction applications. Companies are strengthening their operational capabilities through investments in research and development while also expanding their distribution networks across the country. Strategic partnerships and acquisitions are being pursued to enhance market reach and technological capabilities, particularly in emerging application segments. The industry players are increasingly emphasizing sustainable and environmentally friendly product development, responding to growing environmental consciousness among end-users. Additionally, companies are focusing on customization capabilities and technical support services to differentiate their offerings in the competitive landscape.
Fragmented Market with Strong Global Players
The Thailand sealants market exhibits a fragmented structure with a mix of global conglomerates and local specialists competing for market share. Global players like Henkel, Sika AG, and Dow maintain a significant presence through their established manufacturing facilities and extensive distribution networks in the country. These multinational companies leverage their advanced technological capabilities and broad product portfolios to serve diverse end-user industries. Local players contribute to market dynamics by offering specialized products and maintaining strong relationships with regional customers. The market has witnessed several strategic acquisitions, such as Sika AG's acquisition of Hamatite from Yokohama Rubber Co., indicating ongoing consolidation efforts.
The competitive landscape is further shaped by the presence of Japanese and European manufacturers who have established production facilities in Thailand to serve the ASEAN region. These companies benefit from Thailand's strategic location and well-developed infrastructure. Market participants are increasingly focusing on developing local manufacturing capabilities and strengthening their distribution networks to enhance their competitive position. The industry structure promotes healthy competition while allowing both global and local players to maintain their market positions through differentiated strategies and specialized product offerings.
Innovation and Distribution Drive Market Success
Success in the Thailand sealants market increasingly depends on companies' ability to innovate and maintain strong distribution networks. Incumbent players are focusing on developing application-specific solutions, particularly for high-growth sectors like automotive sealants and construction. Companies are investing in research and development to create products with enhanced performance characteristics while also expanding their technical support capabilities. The establishment of local manufacturing facilities and strategic partnerships with distributors has become crucial for maintaining market share. Additionally, market leaders are strengthening their position by offering comprehensive product portfolios that cater to diverse end-user requirements.
For contenders looking to gain ground, focusing on niche applications and developing specialized products presents significant opportunities. Companies are investing in building strong relationships with key end-users and offering customized solutions to address specific application requirements. The ability to provide technical support and after-sales service has become increasingly important for market success. While substitution risk remains relatively low due to the specific performance requirements of adhesives and sealants, companies need to stay ahead of evolving regulatory requirements, particularly regarding environmental standards. The development of eco-friendly products and compliance with international quality standards has become essential for long-term success in the market.
Thailand Sealants Industry Leaders
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3M
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Dow
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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
- 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.
- January 2020: H.B. Fuller Company introduced a new range of Gorilla professional-grade adhesives and sealants for MRO industrial applications.
Thailand 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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