Automotive Adhesives & Sealants Market - Forecast(2023 - 2028)

Report Code: CMR 86781 Report Format: PDF + Excel

Automotive Adhesives & Sealants Market Overview

The Automotive Adhesives & Sealants market size is estimated to reach US$9.8 billion by 2027 after growing at a CAGR of 6.2% during the forecast period 2022-2027. Adhesives are known as glue, cement, mucilage or pastes which are organic and inorganic chemical compounds used to bring surfaces together. Sealants are materials used to block liquid passing through gaps and joints in the structure of automotive. The Automotive Adhesives & Sealants utilized in the automotive sector consist of resins such as bitumen, acrylic and others and have growing utilization in vehicle roofs, under the hood, embedded systems and others. This drives the Automotive Adhesives & Sealants industry. In addition, new opportunities for vehicle electrification and the increasing trend for water-based adhesives and sealants are propelling the growth scope for the Automotive Adhesives & Sealants market. The COVID-19 outbreak disturbed the functioning and growth of the market due to the closure of automotive production and a halt in manufacturing, logistics disruptions and supply chain issues. However, with recovery and an established base for the automotive sector post-pandemic, the applications of adhesives and sealants in automotive are rising, thereby offering major demand in the market. Thus, the Automotive Adhesives & Sealants industry is anticipated to rise and contribute to the Automotive Adhesives & Sealants market size during the forecast period.

Report Coverage

The “Automotive Adhesives & Sealants Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Automotive Adhesives & Sealants Industry.

By Technology: Water-borne, Solvent-borne, Hot-Melt and Reactive.
By Resin Type: Epoxy, Silicone, Acrylics, Polyurethane, Bitumen and Others.
By Application: Embedded Systems, Roofs, Body in White, Bonding Composite Hoods, Powertrains, Studs & Bearings, Dashboard & Trim and Others.
By End-use Industry: Passenger Vehicles (PV), Light Commercial Vehicles (LCV), Heavy Commercial Vehicles (HCV) (Trucks and Buses).
By Geography: North America (the USA, Canada and Mexico), Europe (the UK, Germany, France, Italy, the Netherlands, Spain, Belgium and the Rest of Europe), Asia-pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia and the Rest of APAC), South America (Brazil, Argentina, Colombia, Chile and the Rest of South America) and the Rest of the World [the Middle East (Saudi Arabia, the UAE, Israel and the Rest of the Middle East) and Africa (South Africa, Nigeria and the Rest of Africa)].

Key Takeaways

  • Asia-Pacific dominates the Automotive Adhesives & Sealants market, owing to its growing government initiatives toward vehicle electrification and high production for fuel-efficient passenger vehicles in APAC.
  • The growing automotive sector, majorly passenger vehicles segment, offers flourishing demand in the Automotive Adhesives & Sealants industry for various applications in embedded systems, under the hood, vehicle body and others. This is contributing to the Automotive Adhesives & Sealants market size.
  • The demand for water-borne technology is high due to superior environment-friendly features, excellent adhesion and substitution over solvent-borne. This is boosting the growth in the market.
  • However, the rise in raw material (such as resins) prices acts as a major challenge in the Automotive Adhesives & Sealants industry.

Figure: Automotive Adhesives & Sealants Market Revenue Share, by Geography, 2021 (%)

Automotive Adhesives And Sealants Market

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Automotive Adhesives & Sealants Market Segment Analysis – by Technology

The water-borne segment held the largest Automotive Adhesives & Sealants market share in 2021 and is expected to grow at a CAGR of 6.4% during the forecast period 2022-2027. Water-based adhesives and sealants have high demand compared to other types such as hot melt, solvent-borne and others due to their advantageous features such as substitution over conventional solvent-based adhesion products, negligible volatile organic compounds and high efficiency. Due to such superior advantages of water-based technology over other types, it is increasingly used in Automotive Adhesives & Sealants for vehicles' interior and exterior components. Thus, with the rise in demand and preference for water-borne technology in the automotive industry, the water-borne technology segment holds dominance and major growth prospects in the Automotive Adhesives & Sealants industry during the forecast period.

Automotive Adhesives & Sealants Market Segment Analysis – by End-use Industry

The passenger vehicles segment held a significant Automotive Adhesives & Sealants market share in 2021 and is expected to grow at a CAGR of 6.7% during the forecast period 2022-2027. Automotive adhesives (also known as glue, mucilage, cement and others) and sealants have a wide range of applications for the passenger vehicles (PV) segment in embedded systems, under the hood, dashboards and more. The passenger vehicles segment is rapidly growing due to high demand for lightweight cars, increasing production for electric motor vehicles, high demand for two-wheelers, three-wheelers and others as transport sources and rising preference among the middle-class segment. For instance, according to the International Organization of Motor Vehicle Manufacturers (OICA), global passenger car production increased from 55,834,456 units in 2020 to 57,54,295 units in 2021. According to the European Automobile Manufacturers Association (ACEA), the total motor vehicles produced globally were 79.1 million units, which increased by 1.3% in 2021 compared to 2020.

Automotive Adhesives & Sealants Market Segment Analysis – by Geography

The Asia-pacific region held the largest Automotive Adhesives & Sealants market share in 2021 up to 56%. The robust growth of Automotive Adhesives & Sealants in this region is influenced by the rising production and development of automotive vehicles and the established base for auto manufacturers in major countries such as China, India, Japan, South Korea and others. The automotive industry is growing rapidly in the Asia-pacific region due to factors such as flourishing vehicle electrification projects, high demand for fuel-efficient vehicles and urbanization. According to the China Association of Automotive Manufacturers (CAAM), the production and sales of new energy vehicles reached 1.29 million units and 1.25 million units in the quarter 1st of 2022 respectively, showing an increase of 140% year-on-year. According to the Federal Chamber of Automotive Industries, the new vehicle registration in Australia represented an increase of 1.2% with 101,233 units in March 2022 compared to March 2021. According to the Society of Indian Automobile Manufacturers (SIAM), the total automotive vehicle production in India rose from 22,655,609 units in 2020-21 to 22,933,230 units in 2021-22. With the rise in automotive production and development, the applications of adhesives and sealants for embedded systems, dashboards & trims, bearings, under the hood and others are rising. This is anticipated to boost its growth scope in the Asia-Pacific during the forecast period.

Automotive Adhesives & Sealants Market Drivers

Bolstering Growth of the Electric Vehicles Sector:

Automotive Adhesives & Sealants have major applications for electric vehicles in heat transfer materials, EV batteries and others due to their superior properties such as excellent bonding, durability and strong adhesion. The electric vehicles sector is growing significantly due to factors such as a rise in subsidies and incentives for electric vehicle promotion, emphasis on zero emissions of carbon & harmful gases and the latest technological developments. According to the International (IEA), the sales of electric cars tripled in 2021 to reach 3.3 million units compared to the previous years. According to a report by the India Energy Storage Alliance (IESA), the electric vehicle segment in India is anticipated to reach the 63 lakh unit mark per year by the year 2027. The EV market is projected to expand at 44% between 2020 and 2037. According to International Energy Agency (IEA), electric car production saw a rapid increase of 43% in 2020 over 2019. Thus, with the rise in production and growth of electric vehicles, the applications of Automotive Adhesives & Sealants for interior and exterior components are growing, which is boosting the demand and driving the Automotive Adhesives & Sealants market.

Growing Automotive Aftercare Sector:

Automotive Adhesives & Sealants have flourishing demand in the automotive aftercare segment for repair and maintenance. The automotive aftercare segment is flourishing rapidly due to the increasing trend for vehicle customization, vehicle servicing and maintenance activities. The factors such as crashes, wear & tear and others in automotive vehicles support the demand for the automotive aftermarket. According to the Autocare Association, the auto care, repairs and maintenance sector in the US is projected to reach US$383 billion by the year 2024. According to Hedges & Company, the personal consumption of aftermarket auto parts rose by 8% in the US in October 2020 compared to October 2019. Thus, with the rise in vehicle repair, maintenance and customization trend in the automotive sector, the applications of adhesives (also known as glue, cement and mucilage) and sealants in automotive vehicles for plastic components, vehicle bodies and others are rising. This, in turn, is driving the Automotive Adhesives & Sealants industry.

Automotive Adhesives & Sealants Market Challenge

Volatility in Raw Material Prices:

The raw material used in Automotive Adhesives & Sealants includes plastic resin, inorganic chemicals and refined products. Most of the raw materials used are petroleum derivatives and are vulnerable to price fluctuations due to oil supply disruptions and disturbances in exploration and production activities. According to the U.S. Energy Information Administration (EIA), the Brent crude oil price increased from an average of US$87/barrel in January 2022 to US$123/barrel in June 2022. With the growing price fluctuations, the cost of various adhesive resins is increasing, which leads to a halt in productivity and demand. Thus, the Automotive Adhesives & Sealants industry faces a major growth slowdown.

Automotive Adhesives & Sealants Industry Outlook

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Automotive Adhesives & SealantsMarket. The top 10 companies in the Automotive Adhesives & Sealants Market are:

1. Sika AG
2. H.B. Fuller Company
3. AkzoNobel N.V.
4. Bostik
5. BASF SE
6. Henkel & Co.
7. Jowat AG
8. 3M
9. Arkema
10. Evonik Industries

Recent Developments

  • In April 2021, Sika AG acquired Hamatite, a provider of adhesives and sealants to the automotive and construction sector. The acquisition intended to strengthen the market position and diversify the product offering.
  • In March 2020, Henkel and Covestro collaborated to develop adhesive solutions for Li-ion cell assembly in electric vehicles. The solution offered efficient fixation of li-ion cells with strong adhesion.
  • In February 2019, Huntsman introduced the latest high-performance adhesives range, named ARALDITE 2050 and ARALDITE 2051. These adhesives were designed to accelerate the automotive bonding and high-temperature range.

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1. Automotive Adhesives & Sealants Market - Market Overview
    1.1 Definitions and Scope
2. Automotive Adhesives & Sealants Market - Executive Summary
    2.1 Key Trends by Technology
    2.2 Key Trends by Resin Type
    2.3 Key Trends by Application
    2.4 Key Trends by End-use Industry
    2.5 Key Trends by Geography
3. Automotive Adhesives & Sealants Market – Comparative analysis
    3.1 Market Share Analysis - Major Companies
    3.2 Product Benchmarking - Major Companies
    3.3 Top 5 Financials Analysis
    3.4 Patent Analysis - Major Companies
    3.5 Pricing Analysis (ASPs will be provided)
4. Automotive Adhesives & Sealants Market - Startup companies Scenario Premium Premium
    4.1 Major startup company analysis:
        4.1.1 Investment
        4.1.2 Revenue
        4.1.3 Product portfolio
        4.1.4 Venture Capital and Funding Scenario
5. Automotive Adhesives & Sealants Market – Industry Market Entry Scenario Premium Premium
    5.1 Regulatory Framework Overview
    5.2 New Business and Ease of Doing Business Index
    5.3 Successful Venture Profiles
    5.4 Customer Analysis – Major companies
6. Automotive Adhesives & Sealants Market - Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porter's Five Force Model
        6.3.1 Bargaining Power of Suppliers
        6.3.2 Bargaining Powers of Buyers
        6.3.3 Threat of New Entrants
        6.3.4 Competitive Rivalry
        6.3.5 Threat of Substitutes
7. Automotive Adhesives & Sealants Market – Strategic Analysis
    7.1 Value/Supply Chain Analysis
    7.2 Opportunity Analysis
    7.3 Product/Market Life Cycle
    7.4 Distributor Analysis – Major Companies
8. Automotive Adhesives & Sealants Market – by Technology (Market size – US$ Million/Billion)
    8.1 Water-borne
    8.2 Solvent-borne
    8.3 Holt-Melt
    8.4 Holt-Melt
    8.5 Reactive
9. Automotive Adhesives & Sealants Market – by Resin Type (Market size – US$ Million/Billion)
    9.1 Epoxy
    9.2 Silicone
    9.3 Acrylics
    9.4 Polyurethane
    9.5 Bitumen
    9.6 Others
10. Automotive Adhesives & Sealants Market – by Application (Market size – US$ Million/Billion)
    10.1 Embedded System
    10.2 Roofs
    10.3 Body in White
    10.4 Bonding Composite Hoods
    10.5 Powertrains
    10.6 Studs & Bearings
    10.7 Dashboard & Trim
    10.8 Others
11. Automotive Adhesives & Sealants Market - by End-use Industry (Market Size - US$ Million/Billion)
    11.1 Passenger Vehicles (PVs)
    11.2 Light Commercial Vehicles (LCVs)
    11.3 Heavy Commercial Vehicles (HCVs)
        11.3.1 Trucks
        11.3.2 Buses
        11.3.3 Others
12. Automotive Adhesives & Sealants Market - by Geography (Market Size - US$ Million/Billion)
    12.1 North America
        12.1.1 The USA
        12.1.2 Canada
        12.1.3 Mexico
    12.2 Europe
        12.2.1 The UK
        12.2.2 Germany
        12.2.3 France
        12.2.4 Italy
        12.2.5 The Netherlands
        12.2.6 Spain
        12.2.7 Belgium
        12.2.8 The Rest of Europe
    12.3 Asia-pacific
        12.3.1 China
        12.3.2 Japan
        12.3.3 India
        12.3.4 South Korea
        12.3.5 Australia and New Zeeland
        12.3.6 Indonesia
        12.3.7 Taiwan
        12.3.8 Malaysia
        12.3.9 The Rest of APAC
    12.4 South America
        12.4.1 Brazil
        12.4.2 Argentina
        12.4.3 Colombia
        12.4.4 Chile
        12.4.5 The Rest of South America
    12.5 The Rest of the World
        12.5.1 The Middle East
            12.5.1.1 Saudi Arabia
            12.5.1.2 The UAE
            12.5.1.3 Israel
            12.5.1.4 The Rest of the Middle East
    12.5.2 Africa
        12.5.2.1 South Africa
        12.5.2.2 Nigeria
        12.5.2.3 The Rest of Africa
13. Automotive Adhesives & Sealants Market – Entropy
    13.1 New Product Launches
    13.2 M&As, Collaborations, JVs and Partnerships
14. Automotive Adhesives & Sealants Market – Industry/Competition Segment Analysis Premium
    14.1 Company Benchmarking Matrix – Major Companies
    14.2 Market Share at Global Level - Major companies
    14.3 Market Share by Key Region - Major companies
    14.4 Market Share by Key Country - Major companies
    14.5 Market Share by Key Application - Major companies
    14.6 Market Share by Key Product Type/Product category - Major companies
15. Automotive Adhesives & Sealants Market – Key Company List by Country Premium Premium
16. Automotive Adhesives & Sealants Market Company Analysis - Business Overview, Product Portfolio, Financials and Developments
    16.1 Company 1
    16.2 Company 2
    16.3 Company 3
    16.4 Company 4
    16.5 Company 5
    16.6 Company 6
    16.7 Company 7
    16.8 Company 8
    16.9 Company 9
    16.10 Company 10 and more
*"Financials would be provided to private companies on best-efforts basis."
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