Automotive Adhesives and Sealants Market: Current Analysis and Forecast (2022-2028)

Automotive Adhesives and Sealants Market: Current Analysis and Forecast (2022-2028)

Automotive Adhesives and Sealants are widely used, from as little as a sensor to as large as a car chassis. Many high-performance autos are made using lightweight composite materials to keep the vehicle's weight to a minimum. As mechanical fasteners must be employed because these composite materials cannot be fused, the weight of the car is increased, they are unsightly, and they run the risk of vibrating loose and improving performance to drive market growth.

The Automotive Adhesives and Sealants Market is expected to grow at a steady rate of around 6% owing to the increasing demand for lightweight vehicles coupled with the rising vehicle safety standards and regulations globally. Major companies in the market offer automotive adhesives and sealants for various applications in the automotive industry. For instance, in Jul 2022, Henkel launched Loctite DRI 2250-W, a thread sealant as well as a thread locker used in the vehicles.

• Based on cure type, the market is segmented into one-part, two-part, anaerobic, heat-cure, hot melt, and others. The hot melt category witnessed the highest CAGR during the forecast period owing to hot melt 100% solids bonding agent quality which is applied in the molten state that forms bonds when cooling. The hot melt formulation includes three main raw materials: Polymers such as ethylene, copolymers, etc. For instance, in May 2022, Bostik's launched their new adhesives named Ethylene Vinyl Acetate (EVA) and Polyolefin (PO) Hot Melt Adhesives that are convenient and satisfy environmental requirements.
• On the basis of resin type, the market is categorized into silicones, polyurethanes, acrylics, epoxy, and others. Among these, epoxy witnessed the highest CAGR during the forecast period. This is mainly owing to the epoxy’s contribution to improving the structural integrity of automobiles. Epoxy is recognized for the stiff bonding properties of epoxy resins, which strengthen and impact-resistant automobiles by enhancing their structural integrity. Furthermore, due to the increased demand for cars and the tight laws for passenger and vehicle safety that are in place, adhesives and sealants are being used more frequently. For instance, in April 2022, The US-based Parson Adhesives planned to expand the wide range of high-performance engineering and structural adhesives and sealants technologies. These include anaerobic, cyanoacrylate, acrylic & methacrylate, epoxy, polyurethane, UV-curable adhesives, silicone, and special polymer-based sealants.
• Based on vehicle type, the automotive adhesives and sealants market has been classified into passenger cars, light commercial vehicles (LCV), and heavy & medium duty commercial vehicles (H/MCV). Passenger cars are expected to grow with a considerable CAGR during the forecast period. This is mainly because of the growing population, increasing demand for passenger automobiles, rising disposable income in emerging economies, revived production levels in improving established markets, and technological developments at the OEM level, which result in greater, more efficient production. The need for passenger automobiles is also expanding because of the expansion of mobility services around the world, which is in turn expanding the demand for automotive adhesives and sealants. According to OICA figures, sales of passenger vehicles increased by 4.8% between 2020 and 2021.
• On the basis of application, the market is categorized into the interior, exterior, under the hood, electronics, powertrain, body-in-white, and others. Among these, the body-in-white is expected to grow at a significant CAGR. This is mainly because high-performance adhesion solutions for body-in-white applications of vehicles are becoming more prevalent. These solutions aid in lowering overall vehicle weight, which lowers fuel consumption. Adhesives are frequently used to bond composite hoods and roofs on sports cars, as well as other external automotive parts. About 20–30% of a vehicle's curb weight comes from body-in-white components, which suggests a large revenue opportunity for component suppliers and other automotive accessories along the automotive value chain. Additionally, these are employed to build on a special chassis with an attached engine, suspension, and fenders.
• For a better understanding of the market adoption of the automotive adhesives and sealants industry, the market is analyzed based on its worldwide presence in the countries such as North America (The United States, Canada, Rest of North America), Europe (Germany, The United Kingdom, France, Spain, Italy, Rest of Europe), Asia-Pacific (China, India, Japan, Rest of Asia-Pacific), Rest of World. APAC is anticipated to grow at a substantial CAGR during the forecast period. This is mainly due to the rising concern about carbon emissions coupled with the growing demand for electric vehicles is in turn increasing the demand for passenger and commercial vehicles in the region which will further increase the demand for the automotive adhesives & sealants market. Moreover, many production facilities are currently in place of Tata Motors and Maruti Suzuki India Limited, and firms like Volkswagen and Mercedes are also setting up their production facilities in India, helping the market's expansion. Also, major players in the market continue to collaborate with one another to develop better adhesives and sealants. For instance, In March 2020, Henkel and Covestro collaborated to develop adhesive solutions for efficient Li-ion cell assembly for electric vehicles. The solution enabled the efficient fixation of cylindrical li-ion battery cells inside plastic cell holders with strong adhesion to the substrate and offers faster production through long open times and short cure cycles.
• Some of the major players operating in the market include BASF SE, Henkel AG & Co. KGaA, The Dow Chemical Company, Sika AG, PPG Industries Inc., 3M, H.B. Fuller Company, Bostik, Evonik Industries AG, Akzo Nobel N.V.