Automotive Adhesives Market

Automotive Adhesives Market touched USD 6.3 billion in 2021 and is estimated to reach USD 9.1 billion in 2029 and the market is estimated to grow at a CAGR of 4.7% from 2022-2029 attributed to surge in demand for low-carbon emitting vehicles.

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Major Automotive Adhesives Market Drivers

Automotive adhesives market is majorly driven by government initiatives promoting the production of lightweight and low-carbon emitting vehicles, advancements in commercial transport infrastructure in developed countries and increasing demand for automotive adhesives from Asia-Pacific region. Demand for adhesives majorly comes from countries like Japan, China and India. China is world’s largest automotive adhesives market as huge volumes of vehicles are manufactured in the country. Environment-friendly adhesives have become popular in Japan due to strict regulations set by government to control VOC emissions. While the automotive adhesives industry in India is driven by increasing domestic demand for automobiles and government initiatives promoting manufacturing of automobiles in the country. As per recent estimates, Indian Automobile industry became third largest vehicle market in 2022, selling over 4.25 million units of new vehicles during the same year. Government of India included Automobile and Auto component industry, under its Production Linked Incentive (PLI) scheme to attract investments in the Automotive manufacturing chain value by giving financial incentives to local manufacturers of Advanced Automotive Technology (AAT). Such initiatives will boost the demand for automotive adhesives in the region in coming years.

Adhesives are gaining popularity in automotive industry owing to its high mechanical strength and capability to reduce vehicle’s weight, reduce carbon emissions and increase overall fuel efficiency. These features have increased the demand for replacing welding and metal joints with adhesives in automotive sector. Moreover, countries worldwide are setting targets to reach zero emission level, which has given a major push to the adoption of electric vehicles (EV). Autonomous electric vehicles are driverless or robotic vehicles, uses electricity rather than gasoline to operate. Transformation of global Automotive industry towards electrification, is expected to make autonomous electric vehicles more affordable to consumers in forthcoming years. In electric vehicles adhesives are majorly used in sensors, cameras and radars. As governments are framing policies to commercialize autonomous vehicles, demand for EV adhesives is expected to increase in future, which will create lucrative opportunities for automotive adhesives manufacturing companies.

Some of the raw materials used for manufacturers used in manufacturing adhesives in the automotive industry includes inorganic chemicals and plastic resins. However, majority of these raw materials are derived petroleum and their prices can vary as the prices of commodity fluctuates. In the recent times, prices of crude oil have significantly upwards due to disruptions in the global supply chain, which is one of the major factors restricting the growth of automotive adhesive market.

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Based on Resin, MMA segment is estimated to expand at a robust CAGR.

Methyl Methacrylate (MMA) based adhesives are gaining traction in the automotive industry owing to its ability vehicle’s weight and performance features. MMA based adhesives are increasingly used in interiors and exteriors of automobile.

Technology: Segment Analysis

Manufacturers are focussing to use water-based technology due to its strong bond strength and capability to maintain its durability during harsh climatic conditions. Hot-Melt technology is gaining traction in the market as it offers resistance against heat and chemicals.

Based on Application, Assembly segment is expected to grow at the fastest CAGR.

Technological advancements in the field of sensors and infotainment systems, which are used in automobiles, have increased demand for adhesives in the automotive industry.

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Regional: Segment Analysis

North America and Europe are matured markets and are thus expected to grow at a slow rate. Governments in various countries are providing incentives to automotive manufacturers to boost the production of electric vehicles. Adoption rate of EVs in China ranges between 20-25% of the new vehicles sold. In United States, adoption rate is estimated to be 5-7%, as major chunk of the population prefers to buy SUVs and pick-up trucks. In addition, automotive adhesives market in Mexico is driven by improvements in the living standards of consumers, increasing demand for passenger cars and growing population growth rates. Approximately 1,014,680 units of light vehicles were sold in Mexico in 2021, which indicates an increase of 27.9% as compared to 2020. As the demand for automobiles continues to grow, automotive production is expected to return pre-pandemic levels by 2024 in Mexico. Enterprises in countries such as Argentina and Brazil are focussing to expand their automotive production facilities. For instance, in 2019 H.B Fuller, a major adhesives manufacturing company based out of United States inaugurated its adhesives manufacturing facility in Brazil.

Top Market Players

Various notable players operating in the market are Henkel & Co. KGaA, Sika AG, 3M Company, Dupont, H.B. Fuller Company, Huntsman International LLC, Ashland, PPG Industries, Illinois Tool Works Corporation, L&L Products, Lord Corporation, Jowat SE, and Dymax Corporation, among others.

Key Developments:

• • In March 2022 Bostik entered into an agreement to distribute its Born2Bond Engineering Adhesives, and other adhesives including industrial and adhesives and sealants along with other Bostik Industrial Adhesives and Sealants across Europe, Africa and Middle-East.
  • In May 2021, Bostik, a major supplier of innovative adhesives solution announces its plans to acquire EdgeAdhesives to expand its high-performance products and services in the United States market.
  • In April 2021, Sika AG completes acquisition of Hamatite, which is leading manufacturer of adhesives and sealants based out of Japan. This acquisition enabled the company to strengthen its position in Japanese market.
  • In April 2019, Henkel, a leading coating and adhesives manufacturer, based out of Germany inaugurated a new OEM application center in Rocky Hill, CT. This lab will increase company’s capability to design customized applications and technologies to cater increasing consumer’s demand.

Segments Covered in the Report

The global Automotive Adhesives market has been segmented on the basis of Resin, Technology, Application, Vehicle Type and key regions. Based on technology, the market is segmented into Reactive, Water-Based, Hot-Melt, Solvent-Based and Others. Based on resin, the market is segmented into Polyurethane Adhesives, Epoxy Adhesives, Acrylics Adhesives, Silicone Adhesives, SMP Adhesives, MMA Adhesives and Others. Based on application, the market is segmented into Body in White, Powertrain, Paint Shop and Assembly. Based on vehicle type, the market is segmented into Passenger Cars, LCV, Truck, Bus and Aftermarket.

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Market Segmentation

Global Automotive Adhesives Market by Resin

• • Polyurethane
  • Epoxy
  • Acrylics
  • Silicone
  • SMP
  • MMA
  • Others

Global Automotive Adhesives Market by Technology

• • Reactive
  • Water-Based
  • Hot-Melt
  • Solvent-Based
  • Others

Global Automotive Adhesives Market by Application

• • Body in white
    • Antiflutter
    • HEM Flange Bonding
    • Seam Sealing/Spot Sealant
    • Structural Bonding
  • Paint shop
    • Underbody Sealing
    • Seam Sealing
    • Underbody Coating
    • Sound Deadening
  • Assembly
    • Direct Glazing
    • Trim Parts
    • Sunroof
    • Headliner
    • Upholstery
  • Powertrain
    • Liquid Gasket

Global Automotive Adhesives Market by Vehicle Type

• • Passenger car
  • LCV
  • Truck
  • Bus
  • Aftermarket

Global Automotive Adhesives Market by Region

• • North America Automotive Adhesives Market (Option 1: As a part of the free 25% customization)

    • By Resin
    • By Technology
    • By Application
    • By Vehicle Type
    • US Market All-Up
    • Canada Market All-Up

  • Europe Automotive Adhesives Market (Option 2: As a part of the free 25% customization)

    • By Resin
    • By Technology
    • By Application
    • By Vehicle Type
    • UK Market All-Up
    • Germany All-Up Market All-Up
    • France Market All-Up
    • Spain Market All-Up
    • Rest of Europe Market All-Up

  • Asia-Pacific Automotive Adhesives Market (Option 3: As a part of the free 25% customization)

    • By Resin
    • By Technology
    • By Application
    • By Vehicle Type
    • China Market All-Up
    • India Market All-Up
    • Japan Market All-Up
    • Rest of APAC Market All-Up

  • RoW Automotive Adhesives Market (Option 4: As a part of the free 25% customization)

    • By Resin
    • By Technology
    • By Application
    • By Vehicle Type
    • Brazil Market All-Up
    • South Africa Market All-Up
    • Saudi Arabia Market All-Up
    • UAE Market All-Up
    • Rest of world (remaining countries of the LAMEA region) Market All-Up

Major Players Operating the Automotive Adhesives (Option 5: As a part of the Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • Henkel & Co. KGaA
  • Sika AG
  • 3M Company
  • Dupont
  • B. Fuller Company
  • Huntsman International LLC
  • Ashland
  • PPG Industries
  • Illinois Tool Works Corporation
  • L&L Products
  • Lord Corporation
  • Jowat SE
  • Dymax Corporation