Automotive Adhesives and Sealants Market To Generate Revenue Worth $11,643.5 Million in 2030
- Published: December 2021
The increasing demand for lightweight vehicles and surging vehicle safety standards and regulations are the major growth drivers for the global automotive adhesives and sealants market. Due to the aforementioned factors, the industry is projected to generate $11,643.5 million revenue in 2030, advancing at a CAGR of 6.1% during 2020–2030.
Due to the COVID-19 pandemic, the overall automotive industry had experienced a liquidity crunch, with limited room to cut fixed costs, and a decline in cash flow, due to a drop-in vehicle demand, while short-term liabilities and salaries were still needed to be paid. However, increase in electric vehicle subsidies and improvements in safety standards around the world are the major factors strengthen the sales and demand for adhesives and sealants in the long run.
Epoxy Category Dominated the Market
The automotive adhesives and sealants market is categorized into epoxy, acrylics, polyurethanes, rubber, polyvinyl chloride (PVC), silicones, hot melts, and others, based on type. Of these, the epoxy category dominated the market during the historical period. This is mainly due to its rigid bonding property, which helps in increasing the structural integrity of vehicles.
Moreover, the market for automotive adhesives and sealants is categorized into body-in-white (BIW), under-the-hood (UTH) and power train, paint shop, and assembly, based on application. Among these, the BIW category is expected to witness the fastest growth, during the forecast period, owing to the growing popularity of high-performance adhesion solutions for BIW application of vehicles.
Geographically, the Asia-Pacific (APAC) region held the largest share of the automotive adhesives and sealants market, in 2020, and it is projected to retain its position in the forecast period as well. This is majorly ascribed to the increasing purchasing power of people and growing economic growth in the region. Moreover, the regional market is expected to record the highest growth rate during the forecast period, owing to the increasing usage of various types of substrates, such as aluminum and carbon fiber, which, in turn, is expected to increase the demand for adhesives and sealants in the coming years.
Facility Expansions and Mergers and Acquisitions Are Most-Effective Strategic Measures Taken by Players in the Market
Players in the global automotive adhesives and sealants industry have been frequently involved in facility expansions and mergers and acquisitions to gain a significant position in the market. For instance, in March 2021, Sika AG acquired the flooring adhesives business of DriTac Flooring Products LLC, a U.S.-based floor covering adhesives company with an especially strong position in wood floor bonding. The acquisition would contribute to Sika’s increased presence among floor covering installers and distributors, while accelerating its expansion in the interior finishing market in the U.S.
Similarly, in October 2020, Sika AG expanded its capacity in the rapidly growing mortar market in China. In addition to profiting from strong demand, Sika could also benefit from the launch of new products and the expansion of its distributor network offering solutions directly to craftsmen and do-it-yourself (DIY) customers.
Major players operating in the automotive adhesives and sealants market include Henkel AG & Co. KGaA, The Dow Chemical Company, Sika AG, PPG Industries Inc., 3M Company, H.B. Fuller Company, Permatex Inc., Bostik S.A., Illinois Tool Works Inc., and EFTEC AG.