Technology for Meeting High Performance Demands is Key to Sealant Market
23 February 2000
New Technology for Meeting High Performance Demands is Key to North American Sealant Market
SAN ANTONIO--Feb. 23, 2000--The development of high-performance sealants for industrial and aerospace applications and promising new technologies are the keys to growth in the North American sealants market.Frost & Sullivan's newest strategic research, "North American Sealants Market," is a comprehensive analysis of the fragmented and complex sealant industry. This report may well be the "bible" of the North American sealants market. It provides a detailed analysis of each type of sealant as well as a description of the major application areas. Additionally, it forecasts the market for the sealant type as well as each end-user application for that sealant.
Frost & Sullivan's research indicates that currently, the top three companies account for 21 percent of market revenue. The fact that each of these firms do not even compete in the same market, however, indicates the highly fragmented nature of this industry. While the total North American sealants market is forecasted at $1.76 billion in 1999 to $2.17 billion in 2006, there are significant shifts in the segments that make up this market. A geographical analysis reveals that while the United States accounted for approximately 93 percent of sealant revenue, compared to about 7 percent for Canada, there were major differences in consumption of certain sealant types between these two countries.
There are windows of opportunity for participants who wish long-term success in the industry in terms of both mergers and strategic use of the Internet.
"Rather than a negative factor for smaller players," says Frost & Sullivan's senior industry analyst Tom Mach, "the onrush of mergers and acquisitions in the industry may actually benefit smaller players by giving them more product options and greater access to new markets.
"The explosion of e-commerce resulting from the Internet," Mach continues, "actually provides a strategic tool for sealant firms in improving customer relations, streamlining purchasing and forecasting future demand with a greater deal of precision than before.
The most crucial challenge for the North American sealant industry is the need to establish a consistent standard for classifying sealants. The sealant market is composed of nine different segments; "North American Sealants Market" offers a distinctive definition of sealant and the conditions driving and restraining the nine individual chemical segments.
"There are a number of chemical sealant types, each with its own set of properties that make them more suitable for some applications rather than for others," Mach says. "And these differences and their implications for future sales and marketing programs are described in this study."
Frost & Sullivan presents Marketing Awards each year to recognize companies that have made a positive contribution to the North American Sealant Markets. The 1999 Technology Innovation Award goes to Uniroyal & Sealants Inc., and the 1999 Merger & Acquisition Strategy Award was given to Polyspec Inc. Frost and Sullivan has also presented awards in other categories to Red Devil, Sascho, DAP and Essex Specialty Products (now Dow Automotive).
Frost & Sullivan, which is headquartered in Mountain View, Calif., is a global leader in international marketing consulting and training. Frost & Sullivan monitors the North American sealant industry for market trends, market measurements and strategies. This ongoing research is used to complement the "Adhesives & Sealants Custom Subscription." Free executive summaries of both reports are available to the press.
Along with publishing in-depth market consulting reports, Frost & Sullivan also provides custom consulting needs to a variety of national and international companies.
"North American Sealant Market" Report: 7149-37 Date: March 2000 Price: $4,450