The building and construction tapes market size is forecast to reach US$5.3 billion in 2027 after growing at a CAGR of 4.3% during 2022-2027. Double sided tape is anticipated to contribute immensely to the building and construction tapes market in the forecast period. The demand for double sided tape is increasing due to its high use in the mounting of glass elements and bonding of door panels. Masking tapes are also poised to contribute effectively to the market’s growth owing to their high usage in painting in construction activities. Polyethylene is expected to drive the market’s growth owing to its superior floor marking quality and durability. Other raw materials such as polyvinyl chloride, polypropylene, polyethylene terephthalate, paper, aluminum foil will witness decent demand in the forthcoming years. The residential sector is poised to drive the building and construction tapes market in the forecast period owing to increased activity in the housing segment. The region in the Asia-Pacific is projected to drive the market’s growth owing to expansion in the construction activity in the region. However, fluctuation in raw material prices might hamper the market’s growth in the forecast period.
COVID-19 Impact
The target market was hit by the covid-19 pandemic with disruption in the supply chain, factory shutdown, and cross border regulations. Apart from few sectors and applications in healthcare, all other industries were severely hit during the pandemic. Due to COVID-19, the prices of crude oil experienced a historical drop which directly impacted the prices of raw materials used in the building and construction tapes, ultimately fluctuating the price of the final products. However, the speedy recovery of the construction industry put the building and construction tapes back on track. According to Scapa Industrial, which is a leader in the manufacturing of industrial tapes and adhesives, mentioned in their March 2020 COVID-19 Supply Continuity report that the supply was satisfactory with the required demand during the pandemic. Going forward, the building and construction tapes market will witness massive requirements to fill the demand gap created due to the pandemic.
Report Coverage
The report: “Building and Construction Tapes Market Forecast (2022 -2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Building and Construction Tapes Industry.
By Product Type: Double Sided Tape, Single Sided Tape, Duct Tape, Masking Tape, HVAC Tape, Safety Barricade Tape, Electrical Tape, Foam Tape, Others.
By Raw Material: Polyvinyl Chloride, Polyethylene Terephthalate (PET), Polypropylene, Polyethylene, Paper, Aluminum foil, Foam, Plastic film, Others.
By Application: Industrial, Residential, Commercial, Office, Medicals, Hotels and Restaurants, Concerts Halls and Museums, Educational Institutes, Sports Arena, Others.
By Geography: North America (USA, Canada, Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, Rest of Europe), Asia Pacific (China, Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, Rest of Asia Pacific), South America (Brazil, Argentina, Colombia and Rest of South America), and RoW (Middle East and Africa).
Key Takeaways:
- Polyethylene is expected to contribute to the market’s growth during the forecast period. Polyethylene is a key raw material in the building and construction tapes market owing to its excellent properties like abrasion resistance, high strength, excellent adhesion, etc.
- The residential building segment is anticipated to drive the market’s growth in the coming years owing to higher investment and new housing projects. As per the 2021 statistical report by the European Construction Industry Federation, the housebuilding segment in 2021 is expected to witness an investment growth rate of 5.5%.
- The Asia-Pacific region is poised to contribute extensively to the building and construction tapes market in the forecast period due to massive expansion in construction activities in the region. For instance, in the 2021 budget, the government in Malaysia announced the full stamp duty exemption on both the loan agreement and instrument of transfer for first time home buyers in the country between 2021 to 2025. This stamp duty waiver will encourage numerous Malaysians who are looking to purchase a house in the country.
Building and Construction Tapes Market - By Product Type
Double-sided tape dominated the building and construction tapes market in 2021 and is growing at a CAGR of 4.5% in the forecast period. Double sided tape is gaining traction in building construction due to its excellent bonding qualities which help in window and door bonding. This type of tape is considered a better option over screws and rivets as the surface tension is spread uniformly throughout the surface. Owing to such superior qualities, construction professionals are using more double-sided tape in the building and construction sectors. For instance, according to Echotape, a US based company that provides adhesive tape solutions, stated in its April 2020 official blog that the company is thrilled to witness growing usage of double-sided tape by construction professionals in the construction industry, especially for seaming the building envelope to acquire improved HERS (Home Energy Rating System) score. Furthermore, as per May 2021 official blog by Echotape, Train2Build, a company that provides training and consulting for house building is an old customer of Echotape which announced that double-sided tape is their go to tape for windows and doors. This increasing demand for double sided tape in the construction sector will drive the growth of the building and construction tapes market globally in the forecast period.
Building and Construction Tapes Market - By Raw Material
Polyethylene dominated the raw material segment in the building and construction tapes market in 2021. The raw materials possess excellent properties such as robust adhesion, abrasion resistance, reliable bonding, and offer clean peel which makes it a desirable choice in building and construction applications. Polyethylene also assists in precise floor marking and identification in the building, pillar, ground, etc. under harsh conditions Owing to these high qualities of polyethylene, manufacturers are inclined towards developing enhanced building and construction tape made up of polyethylene. For instance, Canada based Intertape Polymer Group, which deals with construction tapes, launched a new flame retardant polyethylene tape in May 2021 which is ideal for building construction. This highly advanced polyethylene tape is ideal for surface protection and sealing requirements. This type of advancement in the field of building and construction tapes segment with the implementation of polyethylene will boost the growth of the target market in the forecast period. Other raw materials like polyvinyl chloride, polypropylene, polyethylene terephthalate, foam, aluminum foil will contribute significantly to the market’s growth in the forecast period.
Building and Construction Tapes Market - By Application
The residential building segment dominated the building and construction tapes application segment in 2021 and is growing at a CAGR of 4.7% in the forecast period. This segment is poised to contribute to the market’s growth in the forecast period owing to increasing residential projects and its sales globally. More housing projects are coming up which will require higher usage of building and construction tapes for bonding operations. For instance, according to the US Census Bureau July 2021 value of construction data, the total dollar value of private residential construction work done in July 2021 was $772,963 as compared to $608,617 in 2020 in the US which is a growth in the construction spending. The residential segment in the US is expected to maintain a positive trend in the coming years as well. Similarly, the residential house building in the European region is witnessing increased activity in 2021. As per the June 2021 data by Euroconstruct, which is a construction sector forecasting network in Europe, stated that the residential construction segment will maintain a stable growth rate throughout 2021. This growth in residential housebuilding across the globe will demand higher usage of building and construction tapes which will ultimately contribute to the market’s growth in the forecast period.
Building and Construction Tapes Market - By Geography
The Asia-Pacific region dominated the building and construction tapes market with a market share of 32% in 2021, owing to rapid expansion in the construction activity, increased investment in infrastructure, and rampant urbanization in emerging economies such as China and India. Masking tapes and double-sided tapes are expected to witness increased usage in the region’s construction industry. The construction industry is booming aggressively in the region despite the COVID-19 impact. According to the Q4 2020 Global Construction Monitor report by the Royal Institution of Chartered Surveyors (RICS), the construction market gained positive momentum in Asia-Pacific (+8) especially in China (+16). The market in China will witness a steady growth rate in 2021. Similarly, as per the 2021 data by India Brand Equity Foundation (IBEF), India is projected to become the third largest construction industry by 2022. This massive development in the construction sector will demand higher utilization of different tapes, thereby driving the building and construction tapes market in the forecast period. The European region is expected to contribute significantly to the market’s growth in the coming years. For instance, as per Eurostat’s August 2021 report, the building construction sector in the Euro Area and European Union jumped by 3.1% and 3.8% respectively in June 2021. This upward trend in the European construction sector will help the building and construction tapes market to grow exponentially in the forecast period.
Building and Construction Tapes Market Drivers
Growing awareness for eco-friendly products will drive the market’s growth
The strict regulations imposed by different governments are allowing the manufacturers and corporates to adopt bio-based materials for the development of building and construction tapes. This way, better sustainability will be achieved, making innovation in building and construction tapes product list in the coming years. For instance, according to June 2021 report by European Adhesive Tape Association (AFERA), adhesive tapes are a hidden source of the tape industry for climate neutrality by 2050. This awareness by European Adhesive Tape Association about making eco-friendly adhesive tapes is the result of the European Green Deal announced by the European government in December 2019 to make Europe’s climate neutral by 2050. To innovate and promote adhesive tapes as sustainable solutions, AFERA has set up Sustainability Working Group (Sus-WG) by joining hands with Lohmann GmbH & Co.KG, a Germany based company that deals with adhesive tapes. Such awareness among manufacturers and associations will result in the innovation of new sustainable building and construction tapes which will contribute to the market’s growth in the coming years.
Expanding construction sector will drive the market’s growth
The rise in construction sector activity such as increased investment and new construction project announcements is projected to drive the market’s growth in the forecast period. Apart from the healthcare, the construction industry was the other sector that bounced back efficiently post COVID-19. There were certain regions related to the construction sector which posted decent growth even during the pandemic which was a massive relaxation for the building and construction tapes market. According to the European Construction Industry Federation 2021 statistical data, new housebuilding, non-residential, and renovation projects are projected to witness an investment growth rate of 4.8%, 2.6%, and 5.7% respectively. Similarly, according to 2021 India Brand Equity Foundation (IBEF) data, the construction development sectors in India received an FDI inflow amounting to US$25.93 between April 2000 and March 2021. Masking tapes, double sided tapes, foam tapes, etc, are witnessing higher usage in the construction sector and this high investment will further amplify their usage, which will augment the market’s growth in the forecast period.
Building and Construction Tapes Market Challenges
Raw material price fluctuation might hinder the market growth
Some of the raw materials involved in the manufacturing of building and construction tapes are facing a price fluctuation, courtesy of the pandemic. Raw materials like polypropylene, polyvinyl chloride, polyethylene terephthalate, polyethylene, etc, are produced from petroleum but due to volatility in petroleum price, the prices of raw materials are also fluctuating, which might affect the target market growth. In 2020, the prices of petroleum witnessed a historical drop due to lockdown restriction and supply chain disruption. On top of that, the oil price war between Saudi Arabia and Russia further deteriorated the petroleum oil price. As per the Organization of the Petroleum Exporting Countries (OPEC), production of crude oil was dropped to 7.7 million barrels per day till Dec 2020, making it the single largest reduction in output in history. As per BP statistics, the oil price averaged $41.84/bbl, in 2020 which was the lowest price since 2004. This reduction in crude oil demand resulted in volatility in petroleum price even in 2021, and this might hinder the growth of the building and construction tapes market in the forecast period.
Building and Construction Tapes Market Industry Outlook
Investment in R&D activities, acquisitions, product and technology launches are key strategies adopted by players in the Building and Construction Tapes Market. Major players in the Building and Construction Tapes Market are:
- Tesa
- 3M
- Saint-Gobain
- Henkel AG & Co
- Scapa Industrial
- Lohmann GmbH & Co.KG
- Shurtape Technologies
- Avery Dennison Corporation
- Others
Acquisitions/Product Launches
- In April 2021, Shurtape Technologies launched a new shurtape brand CP 27P, which is a multi-surface floor marking tape. This is an easy to remove floor marking tape developed. Such development in adhesive tapes contributes to the building and construction tapes market.
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Report Code: CMR 0240
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