Automotive Adhesives Market - Forecast(2024 - 2030)

Automotive Adhesives Market size is forecast to reach $4.5 billion by 2025, after growing at a CAGR of 6.1% during 2020-2025. The potential of adhesives to decrease vehicle weight, raise fuel efficiency and reduce carbon emissions is expected to accelerate demand growth over the next seven years. This has contributed to greater component adoption in the automotive industry and thus to the substitution of welding and metal joints with adhesives. Lightweight cars are fuel efficient and have low carbon dioxide emissions. According to Henkel, the use of modern adhesives will decrease the weight of the vehicle by as much as 15.0 per cent. Increased development of lightweight vehicles is expected to fuel the use of adhesives in the automotive industry over the projected period. 

The “Automotive Adhesives Market report – Forecast (2020-2025)”, by IndustryARC, covers an in-depth analysis of the following segments of the Automotive Adhesives Industry.

By Polymer: Polyurethane, Epoxy, Polyvinyl Acetate, Acrylics, Phenolic, Synthetic rubbers, Polyester, Cyanoacrylates, Polyamide, Silicone, and others.

By Formulation: Water based, Solvent based, UV Cured Adhesives, Hot melt, and others.

By Substrate: Polymer, Composite, Metals, Glass, and others.

By Component: One-Component and Two-Component.

By Vehicle Type: Diesel and Petrol Vehicle and Electric Vehicles.

By Application: Body in White, Powertrain, Automotive Electronics, Interiors, and Others.

By Geography: North America, South America, Europe, APAC, and RoW.  

Polyurethane type segment is the fastest-growing technology segments in 2019 in terms of revenue, due to its increased use in the automotive industry, its adhesive bonding improves vehicle longevity, scratch resistance and corrosion resistance. In addition, its UV and heat stabilization properties make it suitable for use in the automotive industry. In addition, growth in demand from end-user industries is expected to complement market growth in automotive adhesives. Polyurethane adhesives have excellent heat tolerance and a fast curing operation. These properties make it easy to use them widely in headlamps, tailgates, fascia, roof modules, assembled parts and spoilers. They are preferably due to their good structural properties and are ideally suited for cross bonding of metals to composites.

Composite type segment is the fastest-growing technology segments in 2019 in terms of revenue. Metallic materials are replaced by composite adhesive bonding agents, which result in decreased vehicle weight and increased fuel economy. In addition, the deployment of adhesives has led to a reduction in noise, vibration and durability of vehicles that fuel the growth of the composite. Moreover, increase in demand for automotive adhesives in Asia-Pacific is projected to fuel industry growth.

Hot melt adhesive is one of the fastest-growing formulation segments on the Automotive Adhesives Market  in 2019, in terms of revenue. Hot melt adhesive based on reactive polyurethane is gaining prominence in the automotive industry due to its ability to offer superior bonding and high resistance to heat, moisture and chemicals. The use of hot melt adhesives in the automobile industry often accelerates the manufacturing process relative to others. 

Diesel and Petrol Vehicle segment held the largest share in 2019. The demand for commercial vehicles is growing due to the collision, adhesives, combined with structural bonding, act as reinforcement and crash-resistant material. Commercial vehicles are predicted to register the highest growth rate during the projected period due to their improved demand. According to the OICA, the production of heavy vehicles rose by 17.3 per cent in NAFTA and 27.1 per cent in South America from 2017 to 2018. Similarly, heavy bus production rose by 5.8% in Europe, 38.2% in South America and 4.2% in Africa. Global production of light commercial vehicles rose by 5.9% during the same period. In the heavy and medium commercial vehicle market, the use of adhesives has increased dramatically in recent years due to growing knowledge of the advantages of adhesives over rivets. As a result, increase in the production of heavy commercial vehicles is a promising sign for the industry. According to the Adhesive and Sealant Committee, the volume of adhesives consumed in North American medium / heavy trucks and buses was 2.4 gallons per vehicle in 2015.

Body in white application segment held the largest share in 2019 by growing at a CAGR of 5.9% during the forecast period 2020 – 2025. Adhesives are increasingly replacing spot welding for bonding the raw vehicle frame. Their deployment results in weight loss, improved collision resilience and decreased metal fatigue. Epoxy and polyurethane are the most widely used products body in white applications. Adhesives help prevent salt, soil and water from penetrating the car body shell. Adhesives help increase body stiffness and toughness and increase crash performance. Each stage of the development of an automobile, whether for non-loading body components or structural parts, uses adhesives of one way or another. Adhesives are used in the manufacturing of engines, body parts, gearboxes and installed parts such as wing mirrors, seats and steering wheels.  

APAC dominated the Automotive Adhesives Market share with more than 45.9%, followed by North America and Europe. APAC is the largest and estimated to be the fastest growing market for automotive adhesives. The area comprises a complex variety of economies with differing levels of economic growth and numerous industrial innovations. With economic recession and saturation in Europe and North America, adhesive producers are moving their manufacturing base to APAC. China is one of the leading manufacturers and users of automotive adhesives in the country. Strengthening the economies of countries such as China and India is drawing new investment in APAC. Key market players are expanding their production of automotive adhesives in APAC, especially in China and India. According to the International Trade Administration, China is the largest vehicle market in the world, with the Chinese government predicting 30 million vehicles to be made by 2020 and 35 million by 2025. Also, according to India Brand Equity Base, India became the fourth largest automotive market in 2018, with sales growing 8.3 percent year-on-year to 3.99 million units. He was also the seventh biggest producer of commercial vehicles in 2018.

Adhesives are gradually replacing spot welding for connecting the raw vehicle structure. Their deployment results in weight loss, improved collision resilience and decreased metal fatigue. Adhesives are used in a range of interior uses, such as dashboards, chairs, speakers, door panels and trunk trim. They play a major role in ensuring sound reduction in order to give travelers a relaxing journey. Adhesives have excellent heat tolerance and a fast-curing operation. These properties make it easy to use them widely in headlamps, tailgates, fascia, roof modules, assembled parts and spoilers. They are preferably due to their good structural properties and are best suited for cross bonding of metals to composites. 

Raw materials used in the production of automobile adhesives constitute a small but important portion of the global chemical industry. Raw materials comprise the bulk of the cost of goods sold (COGS) for automotive adhesives. Material building blocks used to manufacture vehicle adhesives can also be used to create a wide variety of other chemical compounds. Trends in use, price volatility and supply of raw materials all have significant consequences for the formulators of automotive adhesives and the industry as a whole. Not surprisingly, key markets compete for some raw materials and their precursors, especially during times of tight supply. Indeed, the uncertainty of raw material prices or scarcity of supply has resulted in technological capital moving from engineering ventures to the evaluation of new suppliers or alternative products during short supply times.

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Automotive Adhesives Market. In 2019, the market of Automotive Adhesives has been consolidated by the top five players accounting for xx% of the share. Major players in the Automotive Adhesives Market are Sika AG, The Dow Chemical Company, Bayer, Henkel, BASF, 3M Company, Ashland Specialty Chemical Company, H.B. Fuller Company, Hindustan Adhesives Limited, ExxonMobil Chemical Company, Dynea International Oy, Forbo Adhesives Switzerland, Hexion Specialty Chemicals, Covalence Adhesives, and among others.