The Automotive Adhesives Market size is expected to grow from USD 8.5 billion in 2020 to USD 11.8 billion in 2025, with a CAGR of 5.8%, over the forecast period 2020 - 2025.
What are Automotive Adhesives?
Adhesives are lightweight components used to bond metals, composites, plastics, and other materials. Adhesives are increasingly used in the automotive industry to bond various vehicle components such as fasteners and structural modules. The increased adoption of adhesives by vehicle manufacturers is reducing vehicle mass; increases the rigidity of the front and rear side bodies; improves performance in the event of a collision; and minimizes noise, vibration and harshness (NVH). In addition, bonding leads to the formation of new innovative vehicle body designs and mixed material designs composed of high strength steels, non-ferrous metals, plastics and composites. Additionally, the adhesives provide high bond strength to various substrates and can be used to bond dashboards, door panels, electronic components, lighting and lens covers, as well as steel components and alloy.
Polyurethane adhesives are the most widely used adhesives, providing an extremely strong bond. In addition, they offer good resistance to heat, humidity and chemicals. They are flexible and durable, while providing good impact resistance. Adhesives and sealants are in high demand from the automotive industry. Factors such as high temperature resistance ability, exceptional bond strength and durability make adhesives and sealants suitable for automotive applications. Therefore, with innovation and R&D in the automotive industry, mainly to reduce the weight of the vehicle, polyurethane resins are expected to be in great demand.
Growth if the market is driven by increased sales of automotive adhesives due to the underlying strength in vehicle sales, technological advancements in automotive manufacturing, and the adoption of smart cars. In addition, metal components are replaced with compounds to bond them with adhesives, resulting in reduced weight of cars and improved fuel efficiency. In addition, growth in demand for automotive adhesives in Asia-Pacific is expected to drive the market growth. In addition, bonding in the automotive industry results in bonding technology indispensable for the design of multi-material light vehicles.
However, rising commodity prices and the effect of the recession on end-use industries are the main factors that are likely to slow the growth of the market.
Automotive Adhesives Market - By Technology
Reactive and other technologies segment recorded the highest volume share of 68.8% in 2020. Products based on this technology have experienced a high growth rate in recent years due to their excellent durability under environmental conditions. unfavorable. as well as its strong adhesion. In addition, these provide a performance advantage over solvent based or hot melt products by curing to a material that resists melting.
Water-based technology is expected to experience the fastest growth rate of 5.7%, in terms of revenue, from 2020 to 2025, due to the environmental factor associated with the technology. Water-based adhesives emit low emissions during their manufacturing process, which is expected to increase their consumption compared to other technologies.
Hot melt is one of the fastest growing technology segments, in terms of revenue, in the industry. Polyurethane-based reactive hot-melts are gaining popularity in the automotive industry due to their ability to provide superior bonding and high resistance to heat, moisture and chemicals. In addition, the use of hot melt in the automotive industry speeds up the production process compared to water and solvent based products.
Automotive decals are suitable for various applications such as exterior, interior, powertrain, electronics, body blanks and chassis. The raw body segment accounted for the largest volume share of 34.3% in 2020. Adhesives are increasingly replacing spot welding for bonding vehicle body blanks. Its application leads to weight reduction, greater impact resistance and less metal fatigue. Epoxy and polyurethane are the most used products in the body in white application.
The interiors segment is expected to be the fastest growing application segment during the forecast period. Adhesives are used in various interior applications such as dashboards, seats, roofs, door panels and trunk linings. They play an important role in removing sound to provide a comfortable ride for passengers.
The exterior segment was one of the main stock segments in 2020. Adhesives are used on the headlights, hand pieces, windshield, hood, roof and various other exterior components of a vehicle. Its use allows for an even load distribution over the rivets, which helps motor vehicles, such as buses, to perform better in rollover and impact testing.
Polyurethane adhesives have excellent heat resistance and a rapid curing process. These properties allow them to be widely used in headlights, hatchbacks, fairings, roof modules, overhead parts and spoiler. Acrylics find application in the exterior, interior, powertrain, electronics, and virgin bodywork. They are preferred primarily because of their strong structural properties and are ideal for bonding metals to composites.
The adhesives segment accounted for the largest share of sales with 48.5% in 2020. Adhesives are increasingly used as bonding agents in light vehicles. Structural adhesives are quickly replacing mechanical fasteners as they offer several advantages such as weight reduction, bonding of different substrates such as metal to plastic, improved aesthetics and flexibility in the design of the final assembly.
NVH is expected to be the fastest growing segment, in terms of volume, during the forecast period. The growing consumer preference for a quiet and comfortable driving experience is driving OEMs to comply with NVH standards. Stickers help achieve NVH levels and provide better driving experience. For example, 3M, one of the major players in the market, offers sound absorbing cushions that are effective in reducing noise, clicks and vibrations in a vehicle's audio system.
Sealing is another important function, as the safety and reliability of automotive applications is highly dependent on a strong seal between the various components. The gasket helps prevent damage to the vehicle by protecting it from adverse environmental conditions, such as gas or hazardous material leaks and corrosion.
Automotive Adhesives Market - By Vehicle
The passenger car segment occupied the largest share in 2020, with 68.9% of the total market volume. The increased production of electric vehicles is expected to drive the growth of the global automotive adhesives market. In addition, together with the structural bonding, the adhesives act as a shock absorbing and impact resistant material in the event of an accident.
Commercial vehicles are expected to show the fastest growth rate during the forecast period due to their increasing production. According to OICA, heavy truck production increased by 18.4% in NAFTA and 28.3% in South America from 2019 to 2020. Likewise, heavy bus production increased by 5.9%. % in Europe, 39.4% in South America and 5.3% in Africa. Global production of light commercial vehicles increased 5.8% over the same period.
In the segment of medium and heavy commercial vehicles, the use of adhesives has increased significantly in recent years due to the growing awareness of its advantages over rivets. Therefore, the growth in the production of heavy-duty vehicles is a positive sign for the industry.
North America and Europe are expected to experience a slow growth rate compared to other regions. The production of passenger cars in North America has declined consecutively over the past four years (in addition, the total production of vehicles in Europe decreased by 0.4% in 2019 and by 1.5% in 2019 compared to previous years. The use of adhesives in these regions, however, the increasing emphasis on electric and light vehicles is expected to boost adhesive consumption in the years to come.
Asia-Pacific accounted for the largest volume share of 54.5% in 2020. This share is the result of growing opportunities in developing countries in terms of vehicle manufacturing and technological innovation. The presence of growth opportunities has led manufacturers to expand their production capabilities and expand their reach in the market.
The regions of Central and South America and the Middle East and Africa are expected to register faster growth rates during the forecast period. Growing growth opportunities are pushing adhesive manufacturers to expand their capabilities and regional presence in these regions. For example, in June 2019, H.B. Fuller announced the opening of its new adhesives centre in Brazil after recognizing the potential of the Latin American market.
The Key Players operating in the Global Automotive Adhesives are
Automotive adhesives market players are expected to be affected by the coronavirus pandemic. Closures and restrictions in the manufacturing and automotive sectors in several countries have been key issues that have held back revenues and market developments in the near term. Automotive OEMs have been hit hard by operating costs and capital issues, due to raw material delivery delays, which in turn also affect the adhesives market for automobiles. With continued restrictions on supply chains and the current threat to worker health, manufacturers should be pushing employees who don't have production lines to work from home. Additionally, manufacturing facilities are subject to strict social distancing and other regulatory guidelines, which will create short-term operational challenges as long as the crisis lasts.
1.1 Market Definition
1.2 Study Deliverables a
1.3 Base Currency, Base Year and Forecast Periods
1.4 General Study Assumptions
2. Research Methodology
2.2 Research Phases
2.2.1 Secondary Research
2.2.2 Primary Research
2.2.3 Econometric Modelling
2.2.4 Expert Validation
2.3 Analysis Design
2.4 Study Timeline
3.1 Executive Summary
3.2 Key Inferences
4. Drivers, Restraints, Opportunities, and Challenges Analysis (DROC)
4.1 Market Drivers
4.2 Market Restraints
4.3 Key Challenges
4.4 Current Opportunities in the Market
5. Market Segmentation
5.1.5 Y-o-Y Growth Analysis, By Type
5.1.6 Market Attractiveness Analysis, By Type
5.1.7 Market Share Analysis, By Type
5.2.2 Blank body
5.2.5 Y-o-Y Growth Analysis, By Application
5.2.6 Market Attractiveness Analysis, By Application
5.2.7 Market Share Analysis, By Application
6. Geographical Analysis
6.1.1 Regional Trends
6.1.2 Impact Analysis
6.1.3 Y-o-Y Growth Analysis
22.214.171.124 By Geographical Area
126.96.36.199 By Type
188.8.131.52 By Application
184.108.40.206 By Indication
6.1.4 Market Attractiveness Analysis
220.127.116.11 By Geographical Area
18.104.22.168 By Type
22.214.171.124 By Application
126.96.36.199 By Indication
6.1.5 Market Share Analysis
188.8.131.52 By Geographical Area
184.108.40.206 By Type
220.127.116.11 By Application
18.104.22.168 By Indication
6.2 North America
6.1.2 United States
6.3.6 South Korea
6.5 Latin America
6.4.5 Rest of Latin America
6.6 Middle East & Africa
7. Strategic Analysis
7.1 PESTLE analysis
7.2 Porter’s Five analysis
7.2.1 Bargaining Power of Suppliers
7.2.2 Bargaining Power of Consumers
7.2.3 Threat of New Entrants
7.2.4 Threat of Substitute Products and Services
7.2.5 Competitive Rivalry within the Industry
8. Market Leaders' Analysis
8.1 Huntsman International LLC
8.1.2 Product Analysis
8.1.3 Financial analysis
8.1.4 Recent Developments
8.1.5 SWOT analysis
8.1.6 Analyst View
8.5 BASF SE
8.6 Bemis Associates Inc
8.8 Covestro AG
8.9 HB Fuller Company
8.10 Henkel AG & Co
9. Competitive Landscape
9.1 Market share analysis
9.2 Merger and Acquisition Analysis
9.3 Agreements, collaborations and Joint Ventures
9.4 New Product Launches
10. Market Outlook and Investment Opportunities
a) List of Tables
b) List of Figures
Global Automotive Adhesives Market By Region, From 2020-2025( USD Billion )
Global Automotive Adhesives Market By Type, From 2020-2025( USD Billion )
Global polyurethane Market By Region, From 2020-2025( USD Billion )
Global epoxy Market By Region, From 2020-2025( USD Billion )
Global others Market By Region, From 2020-2025( USD Billion )
Global Automotive Adhesives Market By Application, From 2020-2025( USD Billion )
Global Blank body Market By Region, From 2020-2025( USD Billion )
Global powertrain Market By Region, From 2020-2025( USD Billion )
Global others Market By Region, From 2020-2025( USD Billion )