Construction Adhesives Market Outlook:
Construction Adhesives Market size was estimated at USD 12.9 billion in 2024 and is expected to surpass USD 20.7 billion by the end of 2034, rising at a CAGR of 5.2% during the forecast period, i.e., 2025-2034. In 2025, the industry size of construction adhesives is estimated at USD 13.5 billion.
In the market, sustained public infrastructure spending is still the main source of growth, and it continues to drive adhesive demand for concrete, composite assemblies, and joint sealing. Increased federal and state spending on roads, bridges, and transit shows no signs of declining. The recent Infrastructure Investment and Jobs Act (IIJA) allocated over $111 billion for transportation over the next few years, supporting adhesives. However, there are more bio-based adhesives that have also been supported by USDA Renewable Chemicals grants for FY 2023, as much as $26 million to reduce dependence on formaldehyde-based resins.
The adhesives supply chain is shifting towards epoxies and polyurethanes with vertically integrated production of epoxy resins and polyurethane resins. The USITC is currently inquiring if epoxy imports from China, India, South Korea, Taiwan, and Thailand are being dumped in the market, causing domestic damage. US manufacturers expanded production capacity between late 2022 and early 2025 to approximately 16% by rebuilding Gulf Coast facilities. According to the Bureau of Labor Statistics, the Producer Price Index (PPI), which may be for processed intermediate materials - including primary nonferrous metals and basic organic chemicals typically produced in adhesives - saw an increase of 0.5% in May 2025 and approximately a 2.7% increase in the PPI for final demand goods, annualized. Aside from continued domestic investment in adhesive production, many large adhesive manufacturers are also starting to see federal funding for adhesive research and development. The Department of Energy's Advanced Manufacturing Office has allocated $41 million in FY 2024 to low-VOC formulations and projects. We see the adhesives sector continuing to mature and becoming an investment-led sector.
