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Automotive Adhesives & Sealants Market - Forecast(2023 - 2028)
Automotive Adhesives & Sealants Market Overview
The Automotive Adhesives & Sealants market size
is estimated to reach US$9.8 billion by 2027 after growing at a CAGR of 6.2%
during the forecast period 2022-2027. Adhesives are known as glue, cement, mucilage or pastes which are organic and inorganic
chemical compounds used to bring surfaces together. Sealants are
materials used to block liquid passing through gaps and joints in the
structure of automotive. The Automotive Adhesives & Sealants utilized in the automotive
sector consist of resins such as bitumen, acrylic and others and have growing
utilization in vehicle roofs, under the hood, embedded systems and others. This drives the Automotive Adhesives & Sealants industry. In addition,
new opportunities for vehicle electrification and the increasing trend for
water-based adhesives and sealants are propelling the growth scope for the Automotive Adhesives & Sealants market. The COVID-19 outbreak disturbed the
functioning and growth of the market due to the closure of automotive
production and a halt in manufacturing, logistics disruptions and supply chain
issues. However, with recovery and an established base for the automotive
sector post-pandemic, the applications of adhesives and sealants in automotive are
rising, thereby offering major demand in the market. Thus, the Automotive Adhesives & Sealants industry is anticipated to rise and contribute to the Automotive Adhesives & Sealants market size during the forecast period.
Report Coverage
The “Automotive
Adhesives & Sealants Market Report – Forecast (2022-2027)” by IndustryARC,
covers an in-depth analysis of the following segments in the Automotive Adhesives & Sealants Industry.
By Technology: Water-borne, Solvent-borne, Hot-Melt and
Reactive.
By Resin
Type: Epoxy, Silicone, Acrylics, Polyurethane, Bitumen and
Others.
By Application:
Embedded Systems, Roofs, Body in White, Bonding Composite
Hoods, Powertrains, Studs & Bearings, Dashboard & Trim and Others.
By
End-use Industry: Passenger Vehicles (PV), Light
Commercial Vehicles (LCV), Heavy Commercial Vehicles (HCV) (Trucks and Buses).
By
Geography: North America (the USA, Canada and Mexico),
Europe (the UK, Germany, France, Italy, the Netherlands, Spain, Belgium and the Rest of
Europe), Asia-pacific (China, Japan, India, South Korea, Australia and New
Zealand, Indonesia, Taiwan, Malaysia and the Rest of APAC), South America (Brazil,
Argentina, Colombia, Chile and the Rest of South America) and the Rest of the World [the Middle East (Saudi Arabia, the UAE, Israel and the Rest of the Middle East) and Africa (South Africa, Nigeria and the Rest of Africa)].
Key Takeaways
- Asia-Pacific dominates the Automotive Adhesives & Sealants market, owing to its growing government initiatives toward vehicle electrification and high production for fuel-efficient passenger vehicles in APAC.
- The growing automotive sector, majorly passenger vehicles segment, offers flourishing demand in the Automotive Adhesives & Sealants industry for various applications in embedded systems, under the hood, vehicle body and others. This is contributing to the Automotive Adhesives & Sealants market size.
- The demand for water-borne technology is high due to superior environment-friendly features, excellent adhesion and substitution over solvent-borne. This is boosting the growth in the market.
- However, the rise in raw material (such as resins) prices acts as a major challenge in the Automotive Adhesives & Sealants industry.
Figure: Automotive Adhesives & Sealants Market Revenue Share, by Geography, 2021 (%)
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Automotive Adhesives & Sealants Market Segment Analysis – by Technology
The water-borne segment held the largest Automotive Adhesives & Sealants market share in 2021 and is expected to grow at a CAGR
of 6.4% during the forecast period 2022-2027. Water-based adhesives and
sealants have high demand compared to other types such as hot melt,
solvent-borne and others due to their advantageous features such as substitution
over conventional solvent-based adhesion products, negligible volatile organic
compounds and high efficiency. Due to such superior advantages of water-based
technology over other types, it is increasingly used in Automotive Adhesives & Sealants for vehicles' interior and exterior components. Thus, with the rise
in demand and preference for water-borne technology in the automotive industry,
the water-borne technology segment holds dominance and major growth prospects
in the Automotive Adhesives & Sealants industry during the forecast period.
Automotive Adhesives & Sealants Market Segment Analysis – by End-use Industry
The passenger vehicles segment held a
significant Automotive Adhesives & Sealants market share in 2021 and is
expected to grow at a CAGR of 6.7% during the forecast period 2022-2027. Automotive
adhesives (also known as glue, mucilage, cement and others) and sealants have a
wide range of applications for the passenger vehicles (PV) segment in embedded
systems, under the hood, dashboards and more. The passenger vehicles segment
is rapidly growing due to high demand for lightweight cars, increasing production
for electric motor vehicles, high demand for two-wheelers, three-wheelers and
others as transport sources and rising preference among the middle-class
segment. For instance, according to the
International Organization of Motor Vehicle Manufacturers (OICA), global
passenger car production increased from 55,834,456 units in 2020 to 57,54,295
units in 2021. According to the European Automobile Manufacturers Association
(ACEA), the total motor vehicles produced globally were 79.1 million units,
which increased by 1.3% in 2021 compared to 2020.
Automotive Adhesives & Sealants Market Segment Analysis – by Geography
The Asia-pacific region held the largest Automotive Adhesives & Sealants market share in 2021 up to 56%. The robust growth of Automotive Adhesives & Sealants in this region is influenced by the rising production and development of automotive vehicles and the established base for auto manufacturers in major countries such as China, India, Japan, South Korea and others. The automotive industry is growing rapidly in the Asia-pacific region due to factors such as flourishing vehicle electrification projects, high demand for fuel-efficient vehicles and urbanization. According to the China Association of Automotive Manufacturers (CAAM), the production and sales of new energy vehicles reached 1.29 million units and 1.25 million units in the quarter 1st of 2022 respectively, showing an increase of 140% year-on-year. According to the Federal Chamber of Automotive Industries, the new vehicle registration in Australia represented an increase of 1.2% with 101,233 units in March 2022 compared to March 2021. According to the Society of Indian Automobile Manufacturers (SIAM), the total automotive vehicle production in India rose from 22,655,609 units in 2020-21 to 22,933,230 units in 2021-22. With the rise in automotive production and development, the applications of adhesives and sealants for embedded systems, dashboards & trims, bearings, under the hood and others are rising. This is anticipated to boost its growth scope in the Asia-Pacific during the forecast period.
Automotive Adhesives & Sealants Market Drivers
Bolstering Growth of the Electric Vehicles Sector:
Automotive Adhesives & Sealants have major applications for electric vehicles in heat transfer materials, EV batteries and others due to their superior properties such as excellent bonding, durability and strong adhesion. The electric vehicles sector is growing significantly due to factors such as a rise in subsidies and incentives for electric vehicle promotion, emphasis on zero emissions of carbon & harmful gases and the latest technological developments. According to the International (IEA), the sales of electric cars tripled in 2021 to reach 3.3 million units compared to the previous years. According to a report by the India Energy Storage Alliance (IESA), the electric vehicle segment in India is anticipated to reach the 63 lakh unit mark per year by the year 2027. The EV market is projected to expand at 44% between 2020 and 2037. According to International Energy Agency (IEA), electric car production saw a rapid increase of 43% in 2020 over 2019. Thus, with the rise in production and growth of electric vehicles, the applications of Automotive Adhesives & Sealants for interior and exterior components are growing, which is boosting the demand and driving the Automotive Adhesives & Sealants market.
Growing Automotive Aftercare Sector:
Automotive Adhesives & Sealants have
flourishing demand in the automotive aftercare segment for repair and maintenance. The
automotive aftercare segment is flourishing rapidly due to the increasing trend
for vehicle customization, vehicle servicing and maintenance activities. The
factors such as crashes, wear & tear and others in automotive vehicles
support the demand for the automotive aftermarket. According to
the Autocare Association, the auto care, repairs and maintenance sector in the
US is projected to reach US$383 billion by the year 2024. According to Hedges
& Company, the personal consumption of aftermarket auto parts rose by 8% in
the US in October
2020 compared to October 2019. Thus, with the rise in vehicle repair,
maintenance and customization trend in the automotive sector, the applications
of adhesives (also known as glue, cement and mucilage) and sealants in
automotive vehicles for plastic components, vehicle bodies and others are
rising. This, in turn, is driving the Automotive Adhesives & Sealants industry.
Automotive Adhesives & Sealants Market Challenge
Volatility in Raw Material Prices:
The raw material used in Automotive Adhesives & Sealants includes plastic resin, inorganic chemicals and refined products. Most
of the raw materials used are petroleum derivatives and are vulnerable to price
fluctuations due to oil supply disruptions and disturbances in exploration and
production activities. According to the U.S. Energy Information
Administration (EIA), the Brent crude oil price increased from an average of
US$87/barrel in January 2022 to US$123/barrel in June 2022. With the growing
price fluctuations, the cost of various adhesive resins is increasing, which
leads to a halt in productivity and demand. Thus, the Automotive Adhesives & Sealants industry faces a major growth slowdown.
Automotive Adhesives & Sealants Industry Outlook
Technology launches, acquisitions and R&D
activities are key strategies adopted by players in the Automotive Adhesives & SealantsMarket. The top 10 companies in the Automotive Adhesives &
Sealants Market are:
1. Sika AG
2. H.B. Fuller Company
3. AkzoNobel N.V.
4. Bostik
5. BASF SE
6. Henkel & Co.
7. Jowat AG
8. 3M
9. Arkema
10. Evonik Industries
Recent Developments
- In April 2021, Sika AG acquired Hamatite, a provider of adhesives and sealants to the automotive and construction sector. The acquisition intended to strengthen the market position and diversify the product offering.
- In March 2020, Henkel and Covestro collaborated to develop adhesive solutions for Li-ion cell assembly in electric vehicles. The solution offered efficient fixation of li-ion cells with strong adhesion.
- In February 2019, Huntsman introduced the latest high-performance adhesives range, named ARALDITE 2050 and ARALDITE 2051. These adhesives were designed to accelerate the automotive bonding and high-temperature range.
Relevant Reports
Report Code: CMR 0741
Report Code: CMR 0711
Report Code: CMR 76681
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