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APAC Automotive Adhesives and Sealants Market Overview
The APAC automotive adhesives and sealants market is estimated to attain a size of $3,403.6 million in 2017 and is projected to reach $4,938.0 million by 2023, registering a CAGR of 6.5% during the forecast period. The major factors driving the growth of market are increasing usage of lightweight materials in the vehicle manufacturing and increasing vehicle production in APAC.
APAC AUTOMOTIVE ADHESIVES AND SEALANTS MARKET, BY TYPE, KILO TONS (2013–2023)
Automotive adhesives and sealants are the substances that are used for various bonding and sealing applications in the automotive industry. These materials are chemically similar but functionally different. They help in improving driving comfort, performance, reliability, and safety of vehicles.
On the basis of type, the APAC automotive adhesives and sealants market is segmented into epoxy, acrylics, polyurethanes, rubber, PVC, silicones, and hot melts. Epoxy has been the largest adhesives and sealants type, with a contribution of more than 20.0% in the market in 2017. This is attributed to its superior properties, over other types, such as excellent dimensional stability, surface hardness, high temperature stability, good heat-resistance, cost-effectiveness, fire-resistance, and very low flammability.
Based on application, the APAC automotive adhesives and sealants market is categorized into body in white (BIW), under-the-hood (UTH) and power train, paint shop, and assembly. During the forecast period, the market is expected to witness the fastest growth for assembly application, with 7.6% CAGR. This is attributed to the increasing vehicle manufacturing in the region to meet the increasing need of consumers, driven by the increasing purchasing power.
In APAC, China holds the largest values share in the automotive adhesives and sealants market, with a contribution of more than 50.0% in 2017. China is an emerging economy and is largest in terms of purchasing power parity. Also, almost all major global adhesives and sealants manufacturing companies have their manufacturing plants in this country. These factors make China as the largest market in the region.
APAC Automotive Adhesives and Sealants Market Dynamics
The major trends witnessed in the APAC automotive adhesives and sealants market are the increasing focus of automotive manufacturers on technological advancements and implementation of automotive fuel economy policies in various countries.
One of the trends witnessed in the APAC automotive adhesives and sealants market is the implementation of automotive fuel economy policies in the various countries of APAC. For instance, Asian Fuel Economy Standards (2012) are applied in Asian countries, such as, light-duty vehicles (LDV) standards are given priority and are being developed in Indonesia, Philippines, Thailand, and Vietnam. High-duty vehicles (HDV) standards are applied to Japan and China. As adhesives and sealants help automakers in improving the fuel economy of cars and light trucks, the manufacturers have started using them, in order to meet the policy standards.
The main drivers identified in the APAC automotive adhesives and sealants market are the increasing usage of lightweight materials in the vehicle manufacturing and increasing vehicle production in APAC.
Automobile manufacturers are exploring the ways to create lightest vehicle possible to maximise the speed and power of the vehicle. Lightweight materials being used by the automotive industry include plastic, composites, and aluminum, which are replacing the use of steel by automotive manufacturers. To maintain the integrity of lightweight vehicles, the adhesives and sealants is increasingly used by the automotive manufacturers in the region. Hence, the increasing production of lightweight vehicles in the region is expected to drive the demand of the automotive adhesive and sealant in the coming years.
Lack of proper awareness regarding the usage of adhesives and sealants in automotive industry has been identified as the major restraint in the APAC automotive adhesives and sealants market.
The traditional welding and mechanical fastening of automotive parts is a matured process in the automotive industry. However, such level of maturity with single technology poses challenge for the penetration of products, such as automotive adhesives and sealants, which can offer various advantages. The industry is not well aware and also reluctant in trying out adhesives in place of traditional winding processes. The intensity of challenge is higher in Asian countries, as cost angle is attached to it as well.
APAC Automotive Adhesives and Sealants Market Competitive Landscape
Some of the major players in the APAC automotive adhesives and sealants market are Henkel AG & Co. KGaA, DowDuPont Inc., Sika AG, PPG Industries Inc., 3M Company, Permatex, Bostik SA, DIC Corporation, Huate Bonding Material Co. Ltd., Mitsui Chemicals Inc., and Shin-Etsu Chemical Co. Ltd.