Epoxy Adhesives For Automotive Market - Forecast(2023 - 2028)

Epoxy Adhesives For Automotive Market Overview

Epoxy Adhesives For Automotive Market size is forecast to reach US$2.3 billion by 2027, after growing at a CAGR of 5.8% during 2022-2027. Epoxy adhesive is a synthetic mixture of a resin or epoxy polymer and a hardener used to attach or join a variety of components in the automotive sector. They help to set the components strong, and durable and help to withstand extreme stress and environmental conditions. Automotive adhesives include different types such as acrylic, polyurethane, and cyanoacrylate among others. The growth in lightweight vehicles is one of the major factors driving the market growth for epoxy adhesives. The growing incorporation of lightweight materials in the automotive and transportation industry is also supporting the market growth during the forecast period. Adhesives help to a reduction in the overall weight of the final product, which has become a crucial factor in the automotive industry in recent years.

Impact of Covid-19

The COVID-19 outbreak led to major economic problems and challenges for the oil & gas and industries globally. According to the International Monetary Fund (IMF), the global GDP growth declined by 3.5% owing to the economic impact of COVID-19. Governments all across the globe announced strict measures to slow the spread of the coronavirus and only the production of essential commodities was allowed, which impacted the non-essential commodity industries, thereby impacting the production of epoxy adhesives. According to OICA, in 2020 approximately 78 million motorized vehicles are produced in the world, which is 16% down compared to 2019.

Report Coverage

The Report: “Epoxy Adhesives for Automotive Market Report – Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Epoxy Adhesives For Automotive industry.

Key Takeaways

Figure: Asia Pacific Epoxy Adhesives For Automotive Market Revenue, 2021-2027 (US$ Billion)

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Epoxy Adhesives For Automotive Market Segment Analysis – By Type

The two-component segment held the largest share with 42% in the Epoxy adhesives for the automotive market in 2021 and is anticipated to grow at a significant CAGR during the forecast period 2022-2027. Two-component is widely preferred for structural adhesives due to its high strength property. They offer various advantages such as vibration & shock resistance, fast curing at ambient temperatures, long-term durability, strong adhesion to different substrates, and dimensional stability among others. These are some of the major properties driving the demand for a two-component type segment. According to the data published by Jerry a car insurance company, in 2020, electric car sales made up just 2% of new automotive sales in the U.S., compared to 10% in Europe and 6% in China. According to European Environment Agency, Electric car registrations in 2020 were close to 1,325,000 units, up from 550,000 units in 2019.

Epoxy Adhesives For Automotive Market Segment Analysis - By Engine Type

The ICE engine type segment held the largest share with 92% in the epoxy adhesives for the automotive market in 2021 and is anticipated to grow at a significant CAGR during the forecast period 2022-2027. Internal combustion engines (ICE) are the most common form of heat engines, as they are used in vehicles, boats, ships, airplanes, and trains. They are named as such because the fuel is ignited in order to do work inside the engine. Epoxy adhesives are used in different applications during car manufacturing they are used in chassis, glassworks, body in white among others, In the automotive industry adhesives are used for joining seats, spoilers tailgates, and side skirts, bumpers, headlights, and dashboards, among others. The electric engine segment is expected to grow at a high CAGR during the forecast period. Many car manufacturers are slowly replacing ICE engines with electric engines. According to the BMW organization, the company plans to invest 400 million euros ($475 million) for a manufacturing line for electric vehicles in place of those with conventional engines at its historic Munich factory.

Epoxy Adhesives For Automotive Market Segment Analysis – By Geography

The Asia Pacific region dominated the Epoxy Adhesives For Automotive Market in terms of revenue with a share of 48% in 2021 and is projected to dominate the market during the forecast period (2022-2027). The presence of key manufacturers including DuPont, Ashland, Huitian New Materials Co. Ltd., and Henkel AG, are driving the market growth for Epoxy Adhesives For Automotive in the Asia Pacific region. The growing production of passenger vehicles in developing nations such as India and China is supporting the market growth during the forecast period. According to the International Organization of Motor Vehicle Manufacturers (OICA), the total automobile production in China reached 2,60,82,220 units in 2021, an increase from 2,52,25,242 units in 2020, and 2,57,20,665 units in 2019 respectively. The electrical vehicle industry is picking at a rapid pace with 100% FDI. According to the article published by India Briefing (Dezan Shira & Associates), in September 2021, a production-linked incentive scheme for the automotive sector was approved by the Cabinet to boost the manufacturing of electric vehicles and hydrogen fuel cell vehicles and India reported sales of over 300,000 EV units in 2021. Hence the growth in the automotive sector is driving the market for epoxy adhesives market.

Epoxy Adhesives For Automotive Market Driver

Growing Demand for Lightweight and Low Carbon-Emitting Vehicles

Epoxy Adhesives are generally used in the automotive industry for bonding different components. Modern lightweight design requires new bonding technologies in addition to new materials to decrease the weight of the vehicle. Automotive manufacturing companies have been involved in the use of multi-material joining with structural adhesives to lower vehicle weight, fuel consumption, and carbon dioxide emissions. Epoxy adhesives provide structural advantages for bonded components. Structural bonding adhesives offer stable bonding and increase the overall efficiency and effectiveness of a conventionally joined structure. Epoxy adhesives are used in joining non-weldable and/or heat-sensitive components and materials, joining various metallic and non-metallic substrates with regard to avoiding galvanic corrosion, and also reducing cycle times and costs by reducing spot welds. The major economies are majorly concentrating and reduction of on co2 emissions, so the automobile manufacturers are investing hugely in developing lightweight vehicles. According to the US Department of Energy (DOE), the total vehicle's weight is being reduced by 10% by manufacturers to increase fuel economy. According to Hedges Company review, the United States has around 17.55 million light vehicles registered in 2020. They also mentioned, Toyota company has registered around 2,112,940 units of light vehicle sales in the US during 2020-2021.

Increasing Demand for Non-Hazardous, and Sustainable Adhesives

Epoxy adhesive is an extremely strong adhesive, used for building automobiles, bicycles, boats, and other products that require high strength bond. Epoxy is safe for the user, and it doesn't emit toxic fumes. It may leach small quantities of hardeners and other toxic compounds through hydrolysis. Bio-based epoxies are a relatively new class of bio-sourced resins that are produced from renewable sources such as unsaturated vegetable oils, saccharides, tannins, and cardanols, among others. Hence growing demand for sustainable adhesives from the automobile industry is driving the market for epoxy adhesives.

Epoxy Adhesives For Automotive Market Challenges

Availability of substitute products in the market

The adhesives for automotive have several substitutes such as PU, acrylic, silicone, silyl modified polymer, and more. These substitutes have similar chemical properties, performance, and other similar factors such as bonding different materials such as wood, metal, glass, fiber, and others. Silyl modified polymers adhesives also find significant usage in the automotive & transportation industry. They also reduce the weight of vehicles and offer excellent performance characteristics and find their application in auto components as well as in the interiors and exteriors of automobiles. The average price of epoxy adhesives ranges from US$ 6,300-to 6,700/ton whereas other adhesives range from US$4,500 to 6,000/ton.

Epoxy Adhesives for Automotive Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Epoxy Adhesives For Automotive Market. Epoxy Adhesives For Automotive top 10 players include:

1. Henkel AG
2. Sika AG
3. 3M Company
4. H.B. Fuller
5. DuPont
6. Illinois Tool Works Incorporation
7. Ashland
8. RPM International
9. Lord Corporation
10. Huntsman Corporation
11. Other Compnaies

Recent Developments

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