The market size of the global automotive adhesives market is anticipated to grow from USD 8.1 billion in 2019 to USD 10.7 billion by 2024, at a CAGR of 5.7% approx., during the forecast period.
Adhesives are plant-based cellulosic derivatives which when processed chemically to create glues. The mixture of natural rubber and additives such as resins and other chemicals is heated to form rubber glue, effective adhesion while joining different materials and also it imparts high-temperature resistance. These adhesives also help to reduce vehicle weight. Structural adhesives such as Acrylics, Epoxy, Polyurethanes, etc. are significantly strong adhesives that it bears stresses and it has several structural applications. These adhesives have several automobile industry applications such as joining the cabins, window glass, LED lighting and interior design of vehicles. This market is expected to grow at a moderate rate due to the slowdown in demand in the automotive industry and the high adoption of automotive adhesives. Automobile adhesives have properties such as high-stress bearing (useful for load-bearing joints, excellent performance against mechanical stresses and weight reduction capability. It also has properties such as body stiffness, enhanced crash performance, durability and resistance against impact, fatigue, heat, and solvents. Due to high elongation and strong bonding properties, polyurethanes adhesives are highly demanded which is widely used for bonding windscreens, side & rear windows of passenger cars, special vehicles and trucks. Moreover, the usage of these adhesives also avoids the entry of water, dirt & salt in the shell of the car body. Additionally, it helps in increased fuel efficiency and performance of the vehicle.
On the basis of product, the global automotive adhesives are segmented into epoxy, acrylic, PVA, silicones, polyurethanes, and others. Based on the application, this market is tri-furcated into the exterior, interior, and electronics. Based on function, this market is categorized into bonding, NVH and sealing. On the basis of industry segmentation, this market is divided into the body-in-white, paint shop, powertrain, and assembly. Based on the vehicle type, this market is categorized into passenger cars, LCV, trucks, buses, and others. On the basis of technology, this market is categorized into hotmelt, solvent-based, solvent-based, water-based, pressure-sensitive, thermosetting and reactive. Based on geography, the market is segmented into North America (NA), Europe (EU), Asia-Pacific (APAC), Latin America (LA) and Middle East & Africa (MEA).
Strong vehicle sales, rising demand for crossover & sports utility vehicles, high adoption of smart cars, technological advancement in the automobile sector are the major growth drivers for the global automotive adhesives market. Also, stricter regulations stimulate vehicle weight reduction, improvised fuel efficiency and performance are factors for market growth. Slowdown in the automotive industry across the globe due to the Adoption of the Paris Climate Change Agreement by United Nations coupled with stringent regulations in the adhesives market has hampered the market growth. Technological advancement in automobile adhesives and rising demand for adhesives in the automotive sector in the emerging economies bring in opportunities for market growth. Manufacturers need to keep track of technological advancement in the adhesives market.
North America continues to be the dominant region in this market, due to rebound in the US market and expansion of the Mexican Market which is driving the market growth at a significantly high pace. Also, Lower prices of feedstocks such as the boom of shale gas which helped in manufacturer profit margin. In APAC, the usage of infotainment systems, high usage of sensors and body panels and higher usage of adhesives has increased the demand for adhesives in the automotive sector which comes after the maturity of the EU & NA market. APAC is anticipated to be accounted for 60% of global passenger car production by 2025 and is also the largest passenger car market. It also is the largest and predicted to be the fastest-growing automotive adhesives market due to economies in the market. This region encapsulates a variable range of economies which are at the different economic development stage and developing multiple industries. With China, a leading automotive adhesives consumer & producer, developing economies such as India & China, production base shifting to APAC (because of saturation in Europe & North America market) which are the factors to drive the market growth in the APAC region. Latin American market follows APAC with a positive market growth potential in Brazil & Argentina, as these countries are experiencing the market growth of automotive sectors. Middle East & Africa market is expected to grow with a significant rate as the growing investment in the automotive sector.
These are the key players in the global automotive adhesives market such as Henkel & Co. KGaA, Bostik S.A, ExxonMobil Chemical Company, The 3M Company, The DOW Chemical Company Sika AG, PPG Industries Inc., Dynea International Oy., Illinois Tool Works Corporation, Jowat AG, Solvay S.A., BASF SE, Ashland Specialty Chemical Company, H.B. Fuller Company, Covalence Speciality Adhesives LLC, Hindustan Adhesives Limited, Forbo Adhesives Switzerland, Hexion Specialty Chemicals.