Automotive Adhesives and Sealants Market

SKU: DMCH994 | Last Updated On: Oct 01 2022 | Available Formats

>Automotive Adhesives and Sealants Market Expected to reach a high CAGR 6% By 2029:

Automotive Adhesives and Sealants Market is segmented By Adhesive Technology (Water-borne, Solvent-borne, Reactive, Others), By Resin (Epoxy, Acrylic, Polyurethane, Silicone, Others), By Function (Structural, Non-Structural), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2022-2029.

Automotive Adhesives Sealants Market is growing at a high CAGR of 6% during the forecast period ( 2022-2029).

Adhesives and sealants are chemically similar substances that perform vastly different functions. An adhesive is a substance used for holding together and bonding two different surfaces permanently. A sealant is a substance that attaches to two different surfaces and seals the medium between them, providing a protective barrier against environmental elements such as air and moisture. Automotive manufacturers use adhesives and sealants as an economical substitute for welding and drilling. Furthermore, adhesives attach fragile automotive components such as the front and back windscreen for the front and back of the vehicle are attached to the vehicle body using adhesives.

Automotive Adhesives and Sealants Market Dynamics

The growing global demand for automobiles mainly drives the automotive adhesives and sealants market. The volatility in raw materials prices is a key factor in limiting the growth of this market. 

The growing global demand for automobiles

The demand for automobiles is growing globally, especially in developing regions such as Africa, Middle East and Asia-Pacific. Strong economic growth and industrialization have led to a rapid income increase and improved the population's socio-economic standards. It has led to an aspirational middle class with disposable income. Automotive companies have responded to the growing demand for vehicles by increasing production and expanding their product portfolios to include automobiles in every major price segment. 

Companies have also increased customization options, allowing the consumer to configure the vehicle to his taste and budget. Furthermore, automotive companies have partnered with banks and financial institutions to offer cheaper credit and attractive financing options. Zero down payment, low-interest rates and low monthly payments are some schemes to attract new and first-time buyers. Automotive companies also offer hefty discounts on exchanging old models for upgrading customers.

 Automotive adhesives are used in various manufacturing stages, from attaching the front and back windscreen. Automotive sealants are used for treating the vehicle exterior and paint to protect from damage by harsh UV rays, rain and other environmental elements. The growing demand for automobiles is a key driver for the growth of the global automotive adhesives and sealants market 

Volatility in prices of raw materials

Various types of chemicals are used to produce automotive adhesives and sealants. The chemicals are sourced through a global supply chain with producers and distributors. Logistical delays, supply chain problems and decreased production are all these factors that can affect the prices of these chemicals significantly. 

The volatility in raw material prices creates uncertainty in the market. Producers of automotive adhesives and sealants must raise prices to indemnify themselves from higher input costs. It increases the inflationary pressure on customers, who cut down on the usage of adhesives and sealants, leading to decreasing sales for producers. The volatility in raw materials prices is a key challenge for the market's growth. 

COVID-19 impact analysis

The global automotive adhesives and sealants market was negatively impacted due to the COVID-19 pandemic. The manufacturing of passenger and commercial vehicles globally was hampered due to lockdowns and other restrictions instituted by national governments to curb the spread of the pandemic. However, armored vehicle manufacturing for armed forces continued since few restrictions were imposed upon defense enterprises due to national security concerns.

The global demand for automobiles saw a steep decline in the initial months of the pandemic. However, once the general situation improved by late 2020 and early 2021, demand increased, which was pent-up during the pandemic. Lost demand is expected to recover by the end of 2021 completely. 

Despite short-term challenges, the pandemic will not impact the long-term growth of the global automotive adhesives and sealants market since there is a continuously growing demand for automobiles globally. The demand for automotive adhesives and sealants remains strong and the global market is expected to grow significantly in the coming years.

Automotive Adhesives and Sealants Market Segment Analysis

The global automotive adhesives and sealants market is segmented into type, adhesive technology, resin, function, application and region. Resin's automotive adhesives and sealants are further segmented into epoxy, acrylic, polyurethane, silicone and others. Epoxy is leading within this segmentation since it is one of the most widely used resins. 

The high application of epoxy resin adhesives in various automotive vehicles accounts for its excellent bonding and vibration resistance for interior and exterior components. Other factors, such as high bond strength, ease of application, low cost and widespread availability, make epoxy a popular choice for adhesives.

Automotive Adhesives and Sealants Market

Metrics

Details

Market CAGR

6%

Segments Covered

By Adhesive Technology, By Resin, By Function, and By Region

Report Insights Covered

Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights.

Fastest Growing Region

Asia Pacific

Largest Market Share 

North America

Automotive Adhesives and Sealants Market Geographical Analysis

Asia-Pacific has the leading regional share in the global automotive adhesives and sealants market. Asia-Pacific has some of the fastest-growing economies globally, with many young and aspirational people. China has the largest middle class globally, with other countries such as India, South Korea, Japan, Indonesia and Thailand having large middle-class populations. 

Major demand for passenger and commercial vehicles is generated from countries in the region. More than 20 million passenger vehicles will be sold in China in 2021. India was another major market, with more than 3 million vehicles sold in 2021. Japan and South Korea also registered significant automotive sales. 

Many global automotive manufacturers have started assembly and full-cycle production of cars in various countries of the region. Many automotive brands rely on local design and engineering talent to create models specifically suited for regional markets. Companies are also introducing model trims at various price levels to make them more attractive among all income classes. With sustained economic growth, the demand for new automobiles will continue to grow in the region. Asia-Pacific will retain the largest share in the global automotive adhesives and sealants market in the coming years. 

Automotive Adhesives and Sealants Market Competitive Landscape

The global automotive adhesives and sealants market is competitive due to a wide variety of automotive adhesives and sealants that cater to different automotive applications. Some major players contributing to growth in the market are Wacker Chemie AG, Henkel AG & Co. KGaA, Dow, PPG Industries, Inc., H.B. Fuller Company, 3M, Permabond LLC, Sika AG, Parker Hannifin Corp and Bostik SA. The major players in the market adopt growth strategies such as developing new products and formulations, capacity expansion, joint ventures and collaborations to contribute to the growth of the global industry.

3M

Overview: 3M is a multinational conglomerate that develops and manufactures various abrasives, laminates, fire protection systems, medical equipment, personal protection equipment, car care products, software and optical films. The products mainly find application in markets such as businesses, schools, hospitals and homes. 3M has a presence in more than 70 countries and trades in over 200 countries. 3M was founded in 1902 and is headquartered in Maplewood, Minnesota, U.S.

Product Portfolio

• 3M Black Super Silicone Seal is the company's sealant for automotive maintenance and repair applications. The sealant has excellent resistance against vibration and moisture. The sealant is suitable for metal, wood, glass, ceramic and painted surfaces. The sealant cures rapidly on exposure to air and creates an extremely durable seal. 

Key Developments: 

• In 2022, 3M announced increased investment in sealants and adhesives for the Indian market. The company plans to take advantage of the Indian government's production-linked incentives (PLI) scheme for setting up a new adhesive plant in the country. The adhesives and sealants are mainly intended for automotive electronics. 

Frequently Asked Questions

What is the Projected CAGR value of the Automotive Adhesives and Sealants Market?

Automotive Adhesives and Sealants Market is expected to grow at a CAGR of 5% during the forecasting period 2022-2029.

Which region controlled the global market during 2022-2029?

North America region Controls the Automotive Adhesives and Sealants Market during 2022-2029

Which is the fastest growing region in the Automotive Adhesives and Sealants Market?

Among all regions, Asia Pacific is the fastest growing market share during the forecast period 

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