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The global automotive adhesives and sealants market size stood at $7,438.2 million in 2019, and it is expected to demonstrate a CAGR of 7.0% during the forecast period (2020–2030). One of the key growth factors for the automotive adhesives and sealants industry is the increase in the demand for lightweight vehicles, along with the stringent vehicle safety standards and regulations.
The COVID-19 pandemic has caused a negative impact on several markets across the globe, along with leading to the reducing demand for adhesives and sealants from the automotive sector. The growth of the automotive adhesives and sealants industry is directly proportional to the growth of the automotive industry, and the latter one is tightly interconnected with both upstream industries, such as chemicals, steel, and textile, and downstream industries, including repair and mobility services. Additionally, the demand for vehicles has witnessed a significant decline in 2020, as compared to 2019.
The epoxy category generated the highest revenue in 2019, on the basis of type. This dominating share is majorly attributed to the increasing adoption of epoxy adhesives owing to their superior properties, such as rigid bonding, which helps in enhancing the structural integrity of a vehicle. In addition, epoxy adhesives offer excellent dimensional stability, surface hardness, and high-temperature stability, thus are suitable for automotive applications. With the increasing automotive production globally, the consumption of epoxy-based adhesives is likely to increase in the coming years, in turn, boosting the automotive adhesives and sealants market.
The BIW category is projected to demonstrate the fastest growth, on the basis of application. The rapidly growing demand for adhesives and sealants in these applications is ascribed to the increasing popularity of high-performance adhesion solutions in vehicles, as they help in reducing the overall weight. Owing to this, the consumption of automotive adhesives and sealants is expected to witness a rising demand, in turn, driving the automotive adhesives and sealants market.
The BIW category is further sub-categorized into structural and non-structural applications. Of these, the structural BIW category held the larger share in 2019, and the trend is likely to continue during the forecast period. This is ascribed to the increasing need to provide structural bonding to automotive components.
The structural BIW automotive adhesives and sealants market is further categorized into epoxy, acrylics, and polyurethanes, on the basis of the type of adhesives and sealants. Among these, the epoxy category held the largest share in 2019 in the automotive adhesives and sealants market.
The passenger car category showcased the highest volumetric demand for automotive adhesives and sealants in 2019, under the vehicle segment, and the trend is likely to continue during the forecast period, primarily on account of the increasing demand for personal vehicles. In addition, the rise in the disposable income in developing countries, such as China, India, and Brazil, is expected to further augment the demand for passenger vehicles. Owing to such factors, the automotive adhesives and sealants market is expected to witness swift advance in the passenger car category.
Geographically, APAC accounted for the highest consumption, by volume, of adhesives and sealants in automotive applications. This is majorly ascribed to the high economic growth rate, quick development of urban infrastructure, and growing purchasing power of middle-class people in the region. In addition, manufacturers are making hefty investments to expand their production capacities, due to the abundant availability of low-cost labor, thereby making the region a suitable market to tap into.
Owing to such factors, the automotive adhesives and sealants market in the region is witnessing a high-volume consumption, and the trend is likely to continue, with more manufacturers stepping in.
APAC is one of the regions where the sales of vehicles are growing at a rapid pace. Owing to the growth of the gross domestic product (GDP) and per capita income, automotive sales have witnessed a significant rise in recent years. Recent advancements in adhesive technologies in the region are aiding automobile manufacturers in the production of lightweight and fuel-efficient vehicles.
Furthermore, the focus on minimizing the carbon emissions and enhancing the fuel economy, by reducing the vehicles’ weight, has provided an impetus to adhesives, as a bonding material for automobiles. Considering such factors, along with the rapidly increasing investments by manufacturers, the APAC automotive adhesives and sealants market is expected to witness strong growth during the forecast period.
In recent years, it has been observed that automotive manufacturers are switching from traditional techniques to new assembly methods. Manufacturers generally design joints using mechanical fasteners or welds that offer enhanced performance. However, as the preferences of consumers are changing, the quick shift to more-efficient vehicle designs, using lighter-gauge metals, plastics, nonferrous metals, and coated steels, is creating a need for new assembly methods. This, in turn, is resulting in the increasing use of adhesives for the bonding of automotive components, thereby promoting the growth of the automotive adhesives and sealants market.
Automobile manufacturers are making substantial investments in research and development, in order to develop lightweight vehicles, to maximize their speed and power. Lately, manufacturers across the globe have been replacing steel fixtures, such as nuts and bolts, with structural adhesives, which offer excellent bonding properties. The adoption of these adhesives prevents vehicles from gaining weight due to the usage of heavy steel fixtures.
Lightweight vehicles offer excellent fuel efficiency; therefore, with the increasing awareness regarding the benefits of such vehicles, the consumption of adhesives and sealants in the automotive sector is expected to increase rapidly. Such factors are expected to drive the automotive adhesives and sealants market during the forecast period.
Governments across the globe are implementing stringent safety standards and regulations for automobiles. The increasing awareness of consumers regarding vehicle safety has resulted in a rising usage of adhesives and sealants, as they provide strength to automobile parts. Additionally, adhesives are capable of absorbing the impact of head-on collisions. Mastics, which are rubber compounds used in non-structural application areas, during the BIW stage, help fill the vacuum in a vehicle, which aids in shock absorption, thereby leading to an increase in passengers’ safety. Such factors are expected to drive the automotive adhesives and sealants market during the forecast period.
|Base Year (2019) Market Size||$7,438.2 Million|
|Forecast Period (2020-2030) CAGR||7.0%|
|Report Coverage||Market Trends, Value Chain Analysis, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Company Share Analysis, Companies’ Strategic Developments, Product Benchmarking, Company Profiling|
|Market Size by Segments||Type, Application, Vehicle, Geography|
|Market Size of Geographies||U.S., Canada, Germany, France, Italy, U.K., Spain, Russia, Slovakia, Czech Republic, Japan, China, India, Thailand, South Korea, Indonesia, Brazil, Mexico, Argentina, South Africa, Turkey, Iran|
|Secondary Sources and References (Partial List)||Adhesive and Sealant Council, Alliance of Automobile Manufacturers, Automotive Component Manufacturers Association of India, Automotive Industries Association (AIA) of Canada, British Adhesive and Sealants Association, China Adhesives and Tape Industry Association, China Association of Automobile Manufacturers, Czech Automotive Industry Association, European Automobile Manufacturers Association|
The automotive adhesives and sealants market is partially consolidated in nature, with the presence of a few large-scale market players, such as Henkel AG & Co. KGaA, The Dow Chemical Company, Sika AG, and Bostik S.A.
Lately, players in the industry have been expanding their production capacities, in order to serve a wider range of automotive applications, which is expected to help them in getting an advantage over their competitors, in terms of market coverage. For instance:
The automotive adhesives and sealants market offers comprehensive market segmentation analysis along with market estimation for the period 2015–2030.
Based on Type
Based on Application
Based on Vehicle