Industry: Chemicals and Materials
Published Date: August-2024
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 174
Report ID: PMRREP21673
The global automotive adhesives & sealants market is estimated to be valued at US$9.0 Bn in 2024 and is slated to reach a value of US$12.8 Bn by the end of 2031. The market is projected to display a CAGR of 5.2% during the forecast period from 2024 to 2031.
Key Highlights of the Market
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Attributes |
Key Insights |
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Automotive Adhesives & Sealants Market (2024E) |
US$9.0 Bn |
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Projected Market Value (2031F) |
US$12.8 Bn |
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Global Market Growth Rate (CAGR 2024 to 2031) |
5.2% |
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Historical Market Growth Rate (CAGR 2018 to 2023) |
4.8% |
Asia Pacific Takes the Lead in Global Market, Budget Cars at the Forefront
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Region |
CAGR through 2031 |
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Asia Pacific |
7.1% |
Asia Pacific is the dominant force in the global automotive adhesives & sealants market, primarily fueled by the robust demand for both passenger and commercial vehicles.
Countries like China, India, and Japan are major automotive production hubs, driving immense demand for adhesives and sealants.
Increasing purchasing power is fueling the growth of the automotive sector, consequently boosting the demand for related products. China is the world's largest automotive market, with a massive production base and a growing middle class.
India is also rapidly expanding economy with a burgeoning automotive industry, especially in the budget car segment. The region is at the forefront of developing lightweight vehicles, where adhesives play a crucial role in reducing weight without compromising structural integrity.
Robust Supply Chain Accounts for North America’s Rising Lucrative Potential
North America is the second largest regional market for automotive adhesives & sealants, following Asia Pacific. The region, led by the US, boasts a robust automotive industry with a strong emphasis on vehicle lightweighting and advanced manufacturing techniques. This has driven a substantial demand for high-performance adhesives and sealants.
Additionally, stringent fuel efficiency standards and safety regulations have propelled the adoption of these materials in various automotive components.
The presence of key automotive manufacturers and a well-established supply chain ecosystem further contribute to the region's dominance in the automotive adhesives & sealants market.
Polyurethane Resins to Capture the Largest Market Share
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Attributes |
Market Share in 2024 |
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Polyurethane Resins |
30.4% |
Polyurethane resins hold the largest market share of 30.4% in 2024 in the automotive adhesives & sealants market owing to their applications as adhesives and sealants in the automotive industry, specifically for interior and exterior applications.
Polyurethane-based adhesives and sealants are known for their resistance to environmental factors like temperature extremes, UV radiation, and chemicals.
These adhesives and sealants can be formulated to exhibit a wide range of properties, from rigid to flexible, making them suitable for various automotive components. They offer excellent adhesion to different substrates, including metals, plastics, and composites.
Rapid Growth of Assembly Applications Projected
Modern vehicles are equipped with numerous sensors, infotainment systems, and advanced body panels. These components require robust adhesives to ensure secure, durable, and lightweight assembly, enhancing overall vehicle performance and efficiency.
The automotive industry is increasingly adopting lightweight materials such as aluminum, composites, and high-strength steel to improve fuel efficiency and reduce emissions.
Adhesives are crucial for bonding these dissimilar materials, providing strong, flexible joints that traditional mechanical fasteners cannot achieve. The assembly application segment is experiencing the significant growth within the automotive adhesives market.
The surge is driven by the continuous advancements in automotive technology, which necessitates the increased use of adhesives.
Modern vehicles incorporate a high number of sensors, infotainment systems, and body panels, all of which require robust adhesive solutions for effective assembly. As a result, the volume of adhesives used in the automotive industry has seen a significant rise.
Increasing concerns about the emission of greenhouse gases and the trend of lightweight vehicles is boosting the global automotive adhesives & sealants market. Adhesives are used in the automotive industry for the application of bonding and for the functions of providing resistance against heat and corrosion. High performing adhesives are used to bond several automotive components like windshields and wire harnesses.
Automotive sealants play an important role in providing safety and comfort to the vehicle besides contributing in vehicle durability and strength. Automotive sealants also help in achieving consistency and integrity in the vehicle. They also help in providing noise reducing functions to the vehicle and help in absorbing the vibrations of the vehicle.
The rapid adoption of electric vehicles is a key driver for the market. EV manufacturers require specialized adhesives and sealants for battery assembly, thermal management, and lightweight construction, which are essential for enhancing vehicle range and performance.
Global automotive production is on the rise, particularly in emerging economies. This increase in production is driving demand for adhesives and sealants to ensure the structural integrity and performance of vehicles.
The demand for lightweight automobiles is increasing with the increasing concerns regarding the consumption of fuel and the increasing amounts of greenhouse gas emissions. This is leading to a steady growth of the automotive adhesives & sealants market.
The automotive adhesives & sealants market experienced accelerated growth, largely due to the rapid adoption of electric vehicles. The shift toward EVs created new opportunities for adhesive and sealant manufacturers, as these vehicles require specialized solutions for battery assembly, thermal management, and lightweight construction.
The increasing focus on vehicle safety and performance also drove demand for advanced adhesive products. The market recorded a CAGR of 5.2% during the historical period.
The market is expected to witness continued innovation and technological advancements in the early years of this period. Manufacturers will likely focus on developing new formulations with superior properties such as faster curing times, higher strength, and enhanced durability.
The integration of smart materials and nanotechnology in adhesives and sealants will also be a key market trend, driving performance improvements and expanding application possibilities in the automotive sector. The market is estimated to exhibit a CAGR of 5.2% in the coming years.
Electrification and Growth of the Electric Vehicle Market
The significant growth of the electric vehicle market is one of the most significant and recent drivers for the automotive adhesives & sealants market. As global demand for EVs continues to surge, driven by technological advancements, consumer preferences, the need for specialized adhesives and sealants in EV manufacturing has become increasingly critical.
One of the primary applications of adhesives and sealants in EVs is in battery assembly and thermal management. Electric vehicles rely heavily on large battery packs, which need to be securely bonded and insulated to ensure safety and efficiency.
High-performance adhesives are essential for bonding battery cells and modules, providing structural integrity and thermal management to prevent overheating and ensure optimal performance. Sealants play a crucial role in protecting battery components from moisture, dust, and other contaminants, enhancing the longevity and reliability of EV batteries.
The shift toward lightweight construction in EVs is another key factor driving the demand for automotive adhesives & sealants. Reducing vehicle weight is crucial for extending the driving range of electric vehicles, and adhesives offer an effective solution for bonding lightweight materials such as aluminum, composites, and plastics.
Fluctuating Raw Material Prices
One of the most significant restraints for the automotive adhesives & sealants market is the volatility in raw material prices. The production of adhesives and sealants relies heavily on petrochemical derivatives, such as acrylics, polyurethanes, and epoxies.
The prices of these raw materials are subject to fluctuations due to various factors, including changes in crude oil prices, supply chain disruptions, and geopolitical tensions. Fluctuating raw material prices directly impact the manufacturing costs of adhesives and sealants.
When prices of key raw materials rise, manufacturers face increased production costs, which can reduce profit margins. This cost pressure may be passed on to end-users, such as automotive OEMs, potentially leading to higher prices for finished vehicles.
Raw material price volatility is often accompanied by supply chain disruptions. Natural disasters, political instability, and trade restrictions can all affect the availability and cost of essential raw materials. Such disruptions can lead to delays in production and delivery schedules, impacting the overall supply chain and causing uncertainties for manufacturers and customers alike.
Stringent Regulatory Requirements
The automotive adhesives & sealants industry is subject to stringent regulatory requirements, which can act as a restraint to market growth. Regulations related to environmental protection, health and safety, and product performance are becoming increasingly stringent, necessitating significant investments in compliance and product development.
Adhesives and sealants must comply with various environmental regulations aimed at reducing volatile organic compound emissions and minimizing the environmental impact of manufacturing processes.
Compliance with these regulations often requires reformulating products to reduce VOC content, which can be a complex and costly process.
Safety regulations require manufacturers to ensure that their products are safe for use and do not pose health risks to workers or end-users. Meeting stringent regulatory standards involves significant costs, including investments in research and development, testing, and certification. These costs can be particularly challenging for smaller manufacturers with limited resources.
Innovation in Sustainable and Eco-Friendly Products
With increasing awareness of environmental issues and the implementation of stringent regulations, the development of sustainable and eco-friendly adhesive and sealant solutions offers a promising future opportunity for industry participants.
As automotive manufacturers strive to reduce their environmental footprint, there is a growing demand for adhesives that align with these sustainability goals.
One of the primary areas of innovation is the formulation of low volatile organic compound adhesives and sealants. Low VOC products minimize harmful emissions during application, improving air quality and reducing environmental impact.
The automotive industry is increasingly adopting circular economy principles, focusing on the recyclability and reusability of materials. Adhesive and sealant manufacturers can capitalize on this trend by developing products that facilitate the recycling process.
Recyclable adhesives and those that enable easy disassembly of bonded components support the circular economy by reducing waste and promoting material recovery.
By aligning with circular economy practices, industry participants can differentiate themselves and meet the evolving demands of automotive manufacturers committed to sustainability.
Companies are investing significantly in research and development to innovate and introduce new adhesive and sealant formulations. Also, they focus on developing products with superior performance characteristics, such as fast curing times, high strength, and thermal stability.
Recent Industry Development
December 2023
Arkema has successfully acquired Arc Building Products, an Ireland-based company renowned for its expertise in construction adhesives and sealants. This strategic acquisition aims to bolster Arkema's portfolio in the construction sector, enhancing its market presence and expanding its range of high-performance adhesive solutions.
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Attributes |
Details |
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Forecast Period |
2024 to 2031 |
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Historical Data Available for |
2018 to 2023 |
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Market Analysis |
US$ Billion for Value |
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Key Regions Covered |
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Key Countries Covered |
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Key Market Segments Covered |
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Key Companies Profiled |
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Report Coverage |
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Customization & Pricing |
Available upon request |
By Resin Type
By Application
By Vehicle Type
By Region
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The significant growth of the electric vehicle market is a key driver for market growth.
Innovation in sustainable and eco-friendly products presents a key opportunity for the market players.
The market is estimated to be valued at US$9.0 Bn in 2024.
Polyurethane resins hold the largest market share of 30.4% in 2024.
A few of the leading market players are 3M, PPG Industries, Inc., and BASF SE.
