The global floor sealer and finisher market size was valued at USD 2.53 billion in 2022. It is estimated to reach USD 4.80 billion by 2031, growing at a CAGR of 7.38% during the forecast period (2023–2031).
Several floors require sealers to fill, cover, or seal the gaps and microscopic pores in the surface before applying floor finish. Sealers aid in the adhesion of the finish to the floor. Except for solid vinyl, all resilient flooring requires sealers. Sealers are semi-permanent floor coverings that resemble paints in appearance and performance. They are typically more difficult to apply effectively and remove than other finishes. Sealers have a more complicated chemical makeup than finishes. Sealers come in two forms - water-based or solvent-based sealers.
A seal is a substance that prevents staining agents from penetrating flooring by soaking into and sealing the pores found naturally in highly absorbent materials. A finish is a substance that coats the floor's surface with an invisible protective layer that serves as a stain-resistant barrier. Most constructions prefer applying floor sealers and finishers in three construction segments: residential, commercial, and public infrastructure.
Global infrastructure project investments expect to increase phenomenally by the end of 2040, likely to induce economic and demographic changes in several countries worldwide. Major constructors estimate that about 59% of the global infrastructure spending would be channeled to the Asia-Pacific region. Infrastructural projects in Latin America and the Middle East and Africa are expected to be highly promising from 2020−2025. The construction industry is witnessing steady growth worldwide, and floor sealer and finisher products are increasingly gaining importance in the market.
Additionally, government agencies in several growing economies are keen to encourage innovations in the infrastructure sector. Constructions firms and construction materials manufacturers (including floor sealers and finishers) are constantly innovating, shifting from traditional construction methods to modern technology in all construction and construction-related works. This has resulted in more advanced products, expected to significantly contribute to market growth.
All construction projects use sealers and finishes, including low rises, high rises, mass townships, etc. Governments are launching programs in many nations to offer inexpensive housing for everyone soon. The demand for sealers and finishers is anticipated to increase as the number of residential buildings constructed increases. For instance, the development of 'Affordable housing' has become an urgent and important topic of discussion in China. In addition, construction activities are significantly increasing in private and public projects in Hongkong. The demand for floor sealers and finishers is expected to increase in public housing development projects, described by its great repetitiveness and bulk production. Not only public housing builders but vendors can also target builders of private houses with high disposable income that are more likely to invest in decorated and finished floors, hence driving the market growth.
Most building constructors and associations globally and about 65% of construction firms estimate that the lack of skilled labor will significantly impact productivity during the forecast period. Construction businesses are looking for ways to cope with the skilled labor shortage. This has created a challenge for the global construction industry, restraining the floor sealer and finisher market.
After the global recession in 2008, around 1 million construction workers left their construction jobs, never to return. The United States Labor Bureau stated that more than half a million construction jobs were vacant in North America by 2019. This phenomenon has been observed in most growing economies worldwide, where the construction industry is a major revenue contributor. These factors are ultimately slowing down construction jobs across the globe. Therefore, the lack of skilled labor in the market expects to witness significant challenges.
Home improvement activities are considered a major spending sector among millennials that can promote the market for floor sealers and finishers. The drivers supporting the home improvement segment are rapid urbanization, an aging generation, and increasing disposable incomes in developing countries, thus supplementing the floor sealer and finisher market. The other factors are renovation and remodeling trends owing to product innovations in various categories such as kitchens, bathrooms, accessories, and interiors.
Furthermore, the aging population drives the market for floor sealers and finishers. Older people prefer to stay in the same house instead of shifting to a new one. As a result, remodeling and renovation projects are common, which in turn is fueling the market for retrofit projects. Before purchasing their first house, younger millennials prefer to rent or live at home. The low availability of starter homes has delayed homeownership among younger generations while increasing the amount of maintenance. Nonetheless, millennials will be the largest group to enter the home market in the future, creating opportunities for the floor sealer and finisher market.
The global floor sealer and finisher market are bifurcated into product, application, end-user, and distribution channels.
Based on product, the global market is divided into solvent-based and water-based products.
The solvent-based segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 6.87% over the forecast period. The polymers in solvent-based floor sealers and finishers are not present as separate particles; instead, they form continuous and clear polymer solutions. After applying them to the floor, the solvent evaporates, and the polymer chains merge and eventually entangle. Solvent-based floor sealers and finishers are the most widely used and witness high demand by professionals. However, governments impose strict regulations on the use of solvents for many industries. This is major because solvent-based sealers and finishers harshly impact the environment during production and application. Several builders are trying to use less solvent-based sealers and finishers as the world moves toward sustainable home building. Therefore, many builders are shifting from solvent-based floor sealers and finishers to water-based ones. These factors are harming the market growth.
Based on application, the global market is bifurcated into concrete, wood, terrazzo, and others.
The concrete segment owns the highest market share and is anticipated to exhibit a CAGR of 6.33% over the forecast period. Concrete floor sealers and finishers are a type of sealers that apply to concrete floors to protect them from damage, corrosion, and staining. Concrete floor sealers and finishers are made using a variety of chemical combinations, with epoxy, acrylic, and polyurethane being the most widely used binders. The concrete sealer market is anticipated to grow quickly in the construction industry because of rising product demand in flooring applications and better aesthetics. Furthermore, during the forecast period, the increased need for beautiful flooring in driveways, garages, sidewalks, courtyards, and parking lots worldwide expects to fuel market growth. The growing need for bio-based products to reduce greenhouse gas emissions expects to open up new market possibilities in the coming years.
Based on the end-user, the global market is bifurcated into residential, commercial, and industrial.
The residential segment dominates the global market and is predicted to exhibit a CAGR of 6.78% during the forecast period. The residential flooring business has already observed widespread application of flooring solutions to refurbish or modify homes. Residential flooring now leads the flooring industry and anticipates to remain so in the next years. The increasing demand for flooring due to new construction, renovations, and replacements will be a primary growth driver for the residential floor sealer and finisher industry. Furthermore, the market for floor sealers and finishers has grown with urbanization in emerging countries and new housing and home remodeling activities. Also, hardwood and softwood floorings have become increasingly popular in the residential sector as they represent the owner's preferences and tastes. Therefore, the demand for wood floor sealer and finisher products is predicted to rise as the application of hardwood flooring grows in the residential sector.
Based on the distribution channel, the global market is segmented into offline and online.
The offline segment is the largest contributor to the market and is projected to exhibit a CAGR of 6.71% over the forecast period. Regarding offline distribution channels, the floor sealer and finisher are majorly distributed through B2B brick-and-mortar stores such as hypermarkets and supermarkets. Moreover, some sales are conducted by selling products directly to vendors through dealers/distributors. Retailers serve the company's public face and the customer's point of purchase. Due to frequent contact with end-user clients, these merchants are equally significant for vendors. In many important emerging markets, retailers are preferred to distributors for product distribution. Sellers must maintain strong bonds with retailers to stay one step ahead of their competitors.
Based on region, the global floor sealer and finisher market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.
Asia-Pacific is the most significant global floor sealer and finisher market shareholder and is estimated to grow at a CAGR of 7.94% over the forecast period. Due to cheap labor costs and readily available raw materials, the manufacturing industry is flourishing in the Asia-Pacific region, fueling foreign investments and expanding the floor sealer and finisher market. Also, the region's expanding middle class and rising standard of living will increase the need for architectural coatings, boosting the market for floor sealers and finishers. Apart from this, environmental concerns and health and safety issues drive the market for water-based floor sealers and finishers.
Additionally, the regional architectural flooring market will grow due to government investments in the region's infrastructure and industrial sectors, which will also increase the market for floor sealers and finishers. The market for floor sealers and finishers has been expanding recently due to the demand for high-quality infrastructure in developing nations like China and India. Furthermore, foreign direct investments will accelerate market expansion in developing nations like India. The expansion of the construction, industrial, and commercial sectors has been facilitated by rapid urbanization. The Asia-Pacific area's floor sealers and finishers market is expanding due to all these factors.
Europe is anticipated to exhibit a CAGR of 6.99% over the forecast period. The Europe region was hit hard due to Brexit in 2018 and later in 2019 due to the COVID-19 pandemic. The region's economy slowed, witnessing slow growth in construction, automotive, and other industries. In 2019, the major economies of Europe, such as Germany, Italy, France, and the UK, weakened. This affected the demand for floor sealers and finishers in the region. The region's floor sealer and finisher market expects to witness high growth post-2021 as construction activities are expected to resume after the impact of the COVID-19 pandemic. Furthermore, due to stringent government regulations, the demand for floor sealers and finishers will rise in the region. Using organic solvents in architectural flooring has led to restrictions on VOC emissions imposed by the European Union. Henceforth, the demand for water-based floor sealers and finishers will likely grow in the region because floor sealer and finisher products contain zero to low VOCs.
North America anticipates strong revenue growth as the US construction industry has recovered from the recession. The market in the US is extremely fragmented, with a significant number of small-scale companies. Heavy industrialization, improved infrastructure, customer acceptability, and high consumer spending drive the North American floor sealer and finisher industry. Furthermore, North America's growing demand for sealers is driven by the increasing need to restore and repair older structures. However, the region's strict laws on solvent-based sealers are expected to be a key stumbling block to overall growth.
In the Middle East and Africa, the demand for floor sealers and finishers depends relatively on the expansion rate of the construction industry in the region. The growth in the construction industry in Morocco and Egypt has outperformed the other countries by production and sales volume. Growing trading activities and foreign direct investments from leading construction material manufacturers worldwide expect to drive the market throughout the forecast period. The African floor sealer and finisher market's performance is expected to vary significantly, signifying that some countries are witnessing surging growth rates and some with contracting market demand.
In Latin America, the floor sealer and finisher market are majorly supported by commodity prices, growing construction activities, and strong exports of construction materials. Brazil is one of the largest construction markets in Latin America. The market witnessed notable improvements, with significant growth in 2019 compared to the previous year. Increasing Public-Private Partnership (PPP) initiatives across the region have attracted several key vendors in the global market to extend their supply chain and operations into the emerging economies of Latin America.
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