Automotive Adhesives Market By Application Area (Interior, Exterior); By Structure (Structural, Non-Structural); By Resin (Polyurethane, Epoxy, Acrylics, Silicone, SMP, MMA, Others (polysulfide, rubber, polyamide, and others)}; By Application (Body in white, Paint shop, Assembly, Powertrain, Others); By Vehicle Type (Passenger car, LCV, Truck, Bus, Aftermarket); By Technology (Hot Melt, Solvent Based, Water Based, Pressure Sensitive, Reactive, Thermosetting); By Region (North America, Europe, Asia Pacific, Latin America, Middle East & Africa) - Global Market Analysis, Trends, Opportunity and Forecast, 2022-2032
Automotive Adhesives Market Overview
Global automotive adhesives market witnessed a market value of USD 4.9 billion in 2022 and is estimated to reach USD 9.4 billion in 2032, registering a compound annual growth rate (CAGR) of 6.7% between 2022 and 2032. These are chemical substances created using the cellulose derived from the trees and other plants which can be applied either on one or both surfaces that are meant to be joined together such as assembling rubber, metal, glass, plastics and numerous other materials during the manufacture of automobiles. They can be found naturally or can be synthetically produced, with raw materials such as vinyl acetate monomer, acrylics, polyester resins, epoxide resins and others depending on their end use.
Every stage of production of an automobile, whether uses adhesives in one form or other. They contribute to an increased rigidity, better temperature resistance, equally distribute the stress across the joint and lines, quieter, more durable and safer , enhance the design flexibility, reduces mass of vehicle and minimizes noise, vibration, and harshness (NVH) of the car body.
As the future of global automotive adhesives market looks promising, the global automotive adhesives market is expected to grow at a healthy CAGR in the near future.
Automotive Adhesives Market Drivers
The growth of this market is attributed to major factors including the high demand for lightweight materials from automotive sectors, the increase in demand for automotive industries, underlying strength in vehicle sales, replacement of mechanical fasteners with adhesives technological advancements in manufacturing of automobiles, increase in content of adhesives in vehicles and adoption of smart cars, consistent growth and presence of wide range of suppliers, distributors and manufacturers, rise in stringency in emission norms and consumer demand for fuel-efficient vehicles, increase in sales of electric vehicles, government incentives, rise in competition among automakers to offer vehicles at attractive prices.
Although adhesives help in reducing harmful vehicular emissions, they contribute to VOC emissions. Consequently, several regulatory bodies have set certain guidelines & standards pertaining to their use to reduce environmental & health-related risks. And accordingly, manufacturers are switching to environment-friendly adhesives and are formulating innovative products using bio-based & renewable feedstock which is likely to propel industry growth.
Innovations along with increasing advancements in the automobiles, such as higher usage of sensors, infotainment systems, and body panels, are expected to heighten the efficiency and safety standards for automobile manufacturers. Also, apart from cars and electric vehicles, manufacturers in the automotive adhesives market are increasing the availability of tailored products for truck, caravan, and bus manufacturers.
Furthermore, ban on the use of metal bumpers undertaken to prevent and reduce the death rate due to accidents, which is expected to boot the demand for adhesives to join less harmful materials, such as plastics and composites, together in car bumpers is expected to fuel the market growth.
However, changes in the development of hybrid cars and electric vehicles have made it challenging for adhesive manufacturers to keep up with the changing demands of end users. Also, since the global economy has slowed down due to the COVID-19 outbreak, manufacturers are focusing on fulfilling the demand in critical automotive manufacturing projects to maintain business continuity.
With this, the rise in raw material prices, effect of recession on end-use industries and strict regulations pertaining to volatile organic compounds (VOCs) on the part of environmental protection agencies are expected to hinder the global market growth in the coming years.
Automotive Adhesives Market Segmentation
By Application Area
- Others (polysulfide, rubber, polyamide, and others)
- Body in white
- Paint shop
By Vehicle Type
- Passenger car
- Hot Melt
- Solvent Based
- Water Based
- Pressure Sensitive
Automotive Adhesives Market Regional Insight
The APAC region is the largest and the fastest-growing automotive adhesives market and has also consistently dominated the global market share owing to increase in the demand for adhesives in the automobile & transportation industry, increasing sales of vehicles presence of key players and their expanding production capacities, the high economic growth rate, quick development of urban infrastructure, and growing purchasing power of middle-class people in the region, increasing investments, advancements in adhesives technologies, adhesive manufacturers shifting their production bases to APAC etc.
However, despite being the largest region for automotive industry across the globe, Asia-Pacific has witnessed a decline in the recent past. But, despite the decline in the region's automotive industry, Asia-Pacific is still the largest consumer of automobiles and hence automotive adhesives and sealants.
The North America is expected to witness slow growth rate as compared to other regions. The production of passenger cars in North America declined consecutively in the past years. However, The US is expected to be a major contributor to the regional market growth due to increasing production and sale of automobiles in the country.
The Middle East, Latin America & Africa is expected to witness substantial growth in this market owing to the increasing growth opportunities in the automotive industry in this region. Turkey and South Africa are expected to be the major contributors to the growth of the regional market. Latin America is expected to register a steady CAGR with the reviving economic and political stability in Brazil, Venezuela, and Colombia.
Europe has the second-largest market share in this market owing to the growth of the automotive industry. Though, Europe’s overall vehicle production declined by 0.3% in 2017 and 1.4% in 2018 compared to the previous years, growing emphasis on electric and lightweight vehicles is expected to boost the consumption of adhesives over the coming years.
Automotive Adhesives Market Key Players
- Beardow & Adams (Adhesives) Limited
- Henkel AG & Co.
- Arkema S.A.
- Hunstman International LLC
- Jowat SE
- B. Fuller Company
- Franklin International
- Sika AG
- The Dow Chemical Company
- Hindustan Adhesives Limited Top of Form
- Other Key & Niche Players
- In Oct 2020, Pidilite Industries, the manufacturers of the popular Fevicol brand of adhesives signed a definitive agreement to acquire the US-based Huntsman Group's Indian subsidiary for â‚¹2,100 crore.
- In Nov 22020, HumiSeal, global innovator in electronics protection and assembly announced the introduction of their complete line of liquid, optically clear adhesives (LOCA). LOCA materials provide enhanced optical properties and improved durability of optical devices and displays. These products are specifically formulated for those industries which require rigorous performance standards - wireless communications, automotive displays, medical devices, and aerospace and avionic controls among others.
Timeline Considered for Analysis:
- 2021: Base Year
- 2022 to 2032: Forecast Period
Research Scope and Deliverables
Overview & Executive Summary
Market Drivers, Trends, Challenges and Opportunities
Market Size and Forecast Projections
Macroeconomic Indicators of Various Countries Impacting the Growth of the Market
Extensive Coverage of Industry Players including Recent Product Launches and Market Activities
Porter’s Five Force Analysis
Market Segmentation Analysis:
Industry report analyzes the global automotive adhesive market by the following segments:
- Application Area
- Vehicle Type
Customization: We also offers customization’s in the industry report as per the company’s specific needs.
Key Questions Answered in the Global Automotive adhesive Industry Report
- What is the overall market size in 2019? What will be the market growth during the forecast period i.e. 2022-2032?
- Which region would have high demand for product in the upcoming years?
- What are the factors driving the growth of the market?
- Which sub-market will make the most significant contribution to the market?
- What are the market opportunities for existing and entry-level players?
- What are various long-term and short-term strategies adopted by the market players?