Name: Indonesia Adhesives and Sealants Market and Analysis Report – Opportunities and Forecast 2025-2032
SKU: GR24AB-01-00403
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Indonesia Adhesives and Sealants Market and Analysis Report – Opportunities and Forecast 2025-2032

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Indonesia adhesives and sealants market is anticipated to witness a rapid CAGR of 6.1% largely due to the rise in construction projects and the growing automotive sector.

Major Market Drivers and Emerging Trends

The market is primarily propelled by the rapid growth of the construction sector which increases the need for adhesives and sealants. With the surge in urbanization along with the rising government infrastructure investments for projects including airports and railways, the construction industry is expanding thereby driving market growth. These projects are intended to strengthen connectivity and lower logistics expenses while stimulating economic expansion. A national infrastructure development initiative worth USD 430 billion has been introduced by the government which focuses on constructing expansive rail systems and expanding roads. With the capital being relocated to Nusantara, there are new prospects for fostering environmentally sustainable urban planning and advancing smart city projects. The growing population and expanding middle class are also fueling the need for residential properties which results in more home construction and thus driving Indonesia adhesives and sealants market size growth.

Additionally, substantial expansion in the automotive sector is further fueling market growth. The automotive industry relies on specialized adhesives for vehicle assembly and maintenance which drive higher market demand. The strategic position of the country as an automotive hub also positively impacts the adhesive and sealants market.

Market growth has been further propelled by the increasing preference for sustainable products alongside innovations in adhesive technologies. Indonesia has put in place rigorous regulations to reduce VOC emissions particularly in industrial uses like adhesives. The Ministry of Environment and Forestry’s updated guidelines led the government to enforce stricter limits on VOC in industrial adhesive products. These regulations focus on minimizing air pollution by fostering adhesives with low VOC in industries like construction and automotive. Penalties are imposed on companies that fail to comply with these standards which motivate sustainable adhesive solutions.

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Based on technology, water based adhesives are projected to dominate the market. Waterborne adhesives rely on water to carry or dilute the resin which sets as the water evaporates or is absorbed by the surface. These adhesives use water as a diluent instead of an organic solvent with high volatility which makes them categorized as low VOC. Indonesia favors waterborne adhesive over solvent options because it is more eco-friendly as it contains fewer VOCs that can damage the environment.

Based on product, acrylic adhesives lead the market because of their versatility and excellent performance. These adhesives are commonly utilized in sectors like construction and packaging because of their excellent adhesive properties and ability to withstand heat or chemicals. The shift towards lightweight materials within the automotive industry has also significantly enhanced the need for acrylic adhesives.

Based on application, the building and construction segment leads the market fueled by expansive infrastructure development initiatives across the country. Adhesives are favored over conventional fastening techniques because of their stronger bonding capabilities which improve building durability and shorten construction timelines. The growing need for adhesives with high performance in applications including flooring and tiling contribute to the continued segment dominance.

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The packaging sector is also expanding quickly with adhesives being used in applications including cardboard and laminating paper. It can also work to attach labels and seal product containers like soft drink cans. These adhesives optimize packaging production by allowing faster bonding and tighter seals. Fast-curing sealants also offer versatile and dependable solutions for numerous packaging materials. Consumer goods production is also contributing to market growth. Manufacturing items like furniture and household appliances requires adhesives and sealants. The rising domestic consumption thereby drives the need for these materials.

In Indonesia, Java continues to be the leading market with Sumatra and Kalimantan following closely behind. The growing need for adhesives is driven by the rapid urbanization and industrialization in these areas. The market is dominated by cities like Jakarta and Bandung owing to their strong industrial presence in fields like automotive and consumer goods manufacturing. These urban centers see increased demand for adhesive in several industries driven by robust supply chains and multinational companies in the area. Serving as a strategic gateway in Southeast Asia, Indonesia is a vital manufacturing and export center for market in the region.

Top Market Players

Several leading market participants include 3M, Dextone Indonesia, Sika AG, Mapei Inc, Alteco, among others.

Key Developments

- In 2024, Sika revealed that it has significantly increased the production capacity at its Bekasi plant which is the largest manufacturing site in Indonesia. Situated close to Jakarta, the facility focuses on producing mortars including tile adhesives along with facade systems. With this growth and its expanded distribution network, the company can better address the increasing need from infrastructure and residential projects in the fourth most populated country globally.
- In 2023, Bostik Indonesia selected Boston Tigamitra Construction as the exclusive distributor for Bostik sealants in the country. The National Distributor partnership will provide services to building material retailers and architectural consultants along with other participants in the construction industry nationwide.

Segments covered in the Report:

The Indonesia Adhesives and Sealants Market has been segmented on the basis of Adhesives Technology, Adhesives Product, Adhesives Application, Sealants Product, and Sealants Application. Based on the Adhesives Technology, the market is segmented into Water Based, Solvent Based, Hot Melt, and Reactive & Others. Based on the Adhesives Product, the market is segmented into Acrylic, PVA, Polyurethanes, Styrenic Block, Epoxy, EVA, and Others Product. Based on the Adhesives Application, the market is segmented into Paper & Packaging, Consumer & DIY, Building & Construction, Furniture & Woodworking, Footwear & Leather, Automotive & Transportation, Medical, and Others Application. Based on the Sealants Product, the market is segmented into Silicones, Polyurethanes, Acrylic, Polyvinyl Acetate, and Others Product. Based on the Sealants Application, the market is segmented into Construction, Automotive, Packaging, Assembly, Consumers, and Others Application.

Report Coverage	Details
Market Revenues (2024)	USD Million
Market Base Year	2024
Market Forecast Period	2025-2032
Base Year & Forecast Units	Revenues (USD Million)
Market Segment	By Adhesives Technology, By Adhesives Product, By Adhesives Application, By Sealants Product, By Sealants Application
Regional Coverage	Indonesia
Companies Profiled	3M, Dextone Indonesia, Sika AG, Mapei Inc, Alteco, among others; a total of 5 companies covered.
25% Free Customization Available	We will customize this report up to 25% as a free customization to address our client’s specific requirements

Market Segmentation