Plugging into the Future: Sealants and Adhesives in Advanced Materials

This blog is the second of a four-part series that will dive deeper into advanced materials. This series would not have been possible without the research conducted by Sanjana Vijay, Research Analyst Intern at Speciale Invest, whose effort significantly shaped its content.

In our previous post, we provided an overview of the advanced materials landscape. In this piece, we focus on one of its most commercially mature and widely adopted applications: sealants and adhesives.

Often operating behind the scenes, these materials play a critical role in enabling product performance across sectors—from electric vehicles and smartphones to aircraft and infrastructure. They may not always drive headlines, but they are integral to the success of modern engineering and manufacturing.

What are sealants and adhesives—and why are they important?

At a fundamental level:

• Adhesives are used to bond two surfaces together.

• Sealants fill spaces and prevent the ingress of air, water, dust, or chemicals.

In advanced applications, these materials are engineered to withstand extreme temperatures, vibrations, and chemical exposures. Today’s adhesives can bond dissimilar materials—such as composites to metals—while sealants can maintain flexibility and durability over long periods of use. These capabilities enable manufacturers to build lighter, stronger, and more energy-efficient products.

Moving Beyond Mechanical Fastening

Historically, bolts, rivets, and welds have been the default methods for joining materials. However, these methods add weight, introduce potential weak points, and limit design flexibility.

Modern adhesives address many of these limitations:

• They distribute stress evenly across surfaces.

• Eliminate the need for holes or welding seams.

• Support new design geometries and materials.

This shift is particularly evident in industries that prioritise lightweighting and miniaturisation, such as transportation and electronics.

Industry Applications

Adhesives and sealants are now critical components across a range of industries:

1. Automotive and Electric Vehicles (EVs)

Structural adhesives are widely used to bond body panels, battery enclosures, and crash-critical components. These materials contribute to vehicle weight reduction and enhanced crash safety. Suppliers like Henkel and 3M support OEMs, including Tesla and BYD.

2. Construction and Infrastructure

Sealants are essential for weatherproofing, insulation, and joint protection in buildings. Products used in glazing systems, HVAC installations, and green buildings help meet evolving energy-efficiency and environmental standards. Companies like Sika provide low-VOC, flexible sealants for large-scale global projects.

3. Electronics and Consumer Devices

Miniaturisation has increased the demand for thin, high-performance adhesives. These materials protect against moisture and shock, manage heat, and ensure reliability in compact assemblies. Suppliers like DELO and Dymax serve multiple tiers of the consumer electronics supply chain.

4. Aerospace

Adhesives are used in structural assemblies, cabin interiors, and fuel systems. Lightweight, durable bonding solutions are vital to meet the industry’s stringent safety and fuel-efficiency requirements.

A Mature Market Still Innovating

The global adhesives and sealants market exceeded $70 billion in 2023, driven by sustained demand across packaging, transportation, electronics, and infrastructure.

Despite being a mature segment, innovation continues:

• New chemistries such as UV-curable and bio-based adhesives

• Improved performance in curing speed and material compatibility

• Integration with automation and robotic dispensing systems

There have been 100s of M&A deals globally over the past decade, amounting to more than $16 billion in value. Strategic buyers such as Henkel, H.B. Fuller, and Sika are consolidating speciality capabilities, particularly in green chemistry and high-performance formulations.

What Drives Successful Adoption?

Successful adhesive and sealant technologies tend to share the following characteristics:

1. Ease of Integration Products that are compatible with existing manufacturing processes, such as standard curing equipment or robotic applicators, are adopted more readily.

2. Performance Under Stress Reliability across temperature ranges, mechanical stresses, and environmental conditions is essential—particularly in automotive, aerospace, and electronics.

3. Environmental Compliance Materials with low VOC emissions, higher recyclability, or bio-based content are better aligned with tightening regulations and corporate ESG goals.

4. Application-Specific Design Adhesives developed for a narrow, high-value use case—such as EV battery bonding or optical sensor modules—tend to outperform broad, platform-oriented approaches in early-stage adoption.

Commercial Implications for Investors

For venture and strategic investors evaluating this segment, key signals of commercial potential include:

• Successful industrial pilots

• Repeatable performance across one or more applications. 

• Integration into existing manufacturing lines

Startups with a focused application and close engagement with OEMs tend to scale faster. For example, DELO’s specialisation in adhesives for sensor and camera modules has enabled it to grow steadily without the need for broad platform claims.

In contrast, technologies that rely on non-standard processes or rare raw materials face longer validation timelines and higher adoption friction.

Broader Learnings for Advanced Materials

The adhesives and sealants sector illustrates several recurring themes in the advanced materials ecosystem:

• Utility trumps noveltyProcurement decisions are guided by reliability and compatibility, not technical novelty alone.

• Sustainability is non-negotiableEmissions reduction, recyclability, and green chemistry are increasingly central to material selection.

• Partnerships accelerate developmentStartups that co-develop with OEMs or contract manufacturers benefit from faster iteration and greater product-market fit.

These lessons are broadly applicable across other material domains—coatings, composites, and thermal conductors—and provide a useful benchmark when evaluating innovation in adjacent areas.

Read our previous post (Part 1 of the 4 part series) here

If you’re building in next-generation advanced materials, please do write to us at info@specialeinvest.com

We at Speciale Invest believe in supporting breakthrough technologies that have the potential to solve pressing global problems. As early-stage investors, we like to get our hands dirty early on and support founders in their zero-to-one journeys with patient capital, business development opportunities, and hiring. We enjoy and thrive on the risks associated with backing deep-tech startups in the pre-product stage, assisting them through achieving product-market fit, acquiring early customers, and scalingup. To know more about Speciale’s investments in disruptive technologies, please check our portfolio. ‍