The rapid increase in the demand for lightweight automotive vehicles, along with the increasing safety standards and regulations, is the major factor promoting the growing consumption of automotive adhesives and sealants. Owing to such factors, the global automotive adhesives and sealants market is expected to generate revenue worth $12,646.8 million by 2030, demonstrating a CAGR of 7.0% during the forecast period (2020–2030).
On account of the ongoing COVID-19 pandemic, the automotive adhesives and sealants market has witnessed a significant negative impact. The nationwide lockdown across several countries has led to the shutdown of various manufacturing facilities, which, in turn, has disrupted the supply chain of raw materials. Moreover, the sales volume of vehicles has witnessed a huge decline in the first two quarters of 2020, in comparison to 2019. Nevertheless, with the lifting of the lockdowns, the market is likely to showcase a recovery in the coming times.
Epoxy Adhesives To Generate Highest Revenue
The automotive adhesives and sealants market has been categorized into epoxy, acrylics, polyurethanes, rubber, polyvinylchloride (PVC), silicones, hot melts, and others, on the basis of type. Among these, the epoxy category generated the highest revenue in 2019, and the trend is likely to continue during the forecast period. This is majorly ascribed to the increasing adoption of epoxy adhesives in the automotive sector, due to their advantageous properties, which include the enhancement of the structural strength of the vehicle.
Additionally, they provide excellent flexural, tensile, shear, peel, and compressive strength, owing to which their adoption is witnessing a rise. Considering such factors, the consumption of epoxy adhesives is projected to increase in the automotive adhesives and sealants market during the forecast period.
On the basis of application, the automotive adhesives and sealants market is categorized into body in white (BIW), under-the-hood (UTH) and powertrain, paint shop, and assembly categories, among which the BIW category accounted for the highest volumetric demand for automotive adhesives and sealants in 2019. Lately, there has been an increase in the awareness regarding the benefits of high-performance adhesion solutions in automobiles, most importantly a reduction in the overall weight of a vehicle. This, in turn, also helps in fuel efficiency, thereby leading to lower operating costs. Considering such factors, the consumption of such materials in BIW applications is projected to increase, in turn, driving the automotive adhesives and sealants market in the coming years.
Geographically, the Asia-Pacific (APAC) automotive adhesives and sealants market is projected to showcase the fastest growth during the forecast period. This is majorly ascribed to the rapid increase in the investments made by European automobile manufacturers to expand their geographical presence in the Southeast Asian market, in order to exploit its high potential. Additionally, the rise in the disposable income in emerging economies, such as China, India, Indonesia, and Thailand, is expected to further offer umpteen growth opportunities to the industry in the coming years.
Capacity Expansion Serving as Key Strategic Measure
Manufacturers active in the automotive adhesives and sealants industry are putting an immense focus on developing and implementing expansion strategies.
For instance, in March 2019, H.B. Fuller Company announced that it has established H.B. Fuller Japan G.K. in Japan. The subsidiary strengthens its engineering adhesive segment, by offering high-performance adhesives, including reactive adhesive chemistries, in Japan. The subsidiary serves the electronics, transportation, renewable energy, aerospace, general industry, and medical device markets.
Browse report overview with detailed TOC on "Automotive Adhesives and Sealants Market Research Report: By Type (Epoxy, Acrylics, Polyurethanes, Rubber, Polyvinylchloride, Silicones, Hot Melts), Application (Body In White, Under-The-Hood and Power Train, Paint Shop, Assembly), Vehicle (Passenger Cars, Light Commercial Vehicle, Heavy and Medium Commercial Vehicle) - Global Industry Analysis and Demand Forecast to 2030" at:https://www.psmarketresearch.com/market-analysis/global-automotive-adhesive-and-sealant-market
Additionally, in December 2017, H.B. Fuller Company started the operation of a newly developed automotive competency center in Mannheim, Germany. The key objective of this facility is to produce different types of adhesives, to be used by different automobile manufacturers in the country.
The Dow Chemical Company, Sika AG, Bostik S.A., PPG Industries Inc., Permatex Inc., Illinois Tool Works Inc., EFTEC AG, Henkel AG & Co. KGaA, 3M Company, and H.B. Fuller Company are some of the key players operating in the global automotive adhesives and sealants market.