Automotive Hot Melt Adhesives Market Size, Competitive Landscape and Market Forecast - 2029

SKU: DMCH2922 | Last Updated On: Jun 22 2022 | Available Formats

> Global Automotive Hot Melt Adhesives Market Expected to reach a high CAGR during the forecast period 2022-2029: DataM Intelligence

Global Automotive Hot Melt Adhesives Market is segmented By Product Type (Glue Sticks, Spray Adhesives, Bulk Hot-Melt), By Material Type (Ethylene-vinyl Acetate (EVA), Polyamide, Thermoplastic Rubber, Polyolefin (PO, APO/APAO), Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2022-2029

 

Market Overview:

The Global Automotive Hot Melt Adhesives Market is expected to grow at a CAGR during the forecasting period (2022-2029).

Hot melt adhesives are formulations based on thermoplastic polymers that can be softened and reshaped on heating above their melting point. These adhesives are applied to the material in a liquid state and offer easy to clean application with minimum toxicity. The major trend witnessed in the automotive hot melt adhesives market is switching from traditional techniques to new assembly methods by automobile manufacturers. Growth in commercial and passenger vehicles is expected to drive market growth during the forecast period. The automotive hot melt adhesives market is expected to grow with a CAGR of XX% during the forecast period. The market value is likely to reach USD xx million in 2027, from its recorded value of USD xx million in 2019.

 

Market Dynamics:

High usage in carpets and headliners to withstand high vibration

The hot-melt adhesive has found many automobile applications, including carpets, headliners, engines, transmission, radiators, batteries, seats, and many more. Many applications in automobiles require high heat-resistant materials that can hold the parts together and sustain them for a long time. Carpets face movement push and high heat every day, which require strong adhesion. Also, cargo and passenger movement makes it even difficult for the carpet to stick to the bottom. The headliner also faces high heat in arid regions, which further puts pressure on adhesive. In Arid climate regions, roof temperature reaches more than normal and requires hot-melt adhesive to withstand high temperatures. The automobile body is also fitted with a hot-melt adhesive that holds doors and panels. In September 2019, Lecta launched a new Adestor Hot melt adhesive range, which can be used in automobile, food, and packaging applications.

However, instability in raw materials' cost is the major restraint factor limiting the global automotive hot melt adhesives market. The volatile cost of raw materials such as ethylene-vinyl acetate, thermoplastic rubber, polyolefin, and polyamide, among others, affects the market's growth in hot melt adhesives manufacturing.

Market Segmentation:

The bulk hot melt segment is predicted to hold a prominent share in the global market of automotive hot melt adhesives.

The automotive hot melt adhesives market, by product type, has been segmented into glue sticks, spray adhesives, and bulk hot melt. By product type, the market is estimated to be dominated by the bulk hot melt segment in 2020 and is projected to grow at a higher CAGR of XX%. Bulk hot melt includes hot melt adhesives in pebbles, pillows, bags, and others filled into the gun. Bulk hot melt adhesives are a popular adhesive category used in applications ranging from packaging to product assembly.  Bulk hot melt adhesives provide an easy-to-dispense and versatile solution for bonding and sealing. Since bulk hot melt is typically melted inside bulk hot melt equipment before being dispensed, it’s more universal than stick hot melt, which comes in exact sizes to work with specific dispensers. The biggest advantage of bulk hot melt over traditional hot melt glue sticks is cost. Because it undergoes less manufacturing, packaging, and distribution, the cost per pound of bulk hot melt is typically a lot less than the cost of a pound of the same product in individual stick form.

Geographical Penetration:

The Asia Pacific is expected to be the fastest-growing market for the forecast period.

In the Asia Pacific region, the automotive hot melt adhesives market is estimated to witness exponential growth due to the high demand for automobiles. The high demand for automobiles in the Asia-pacific region also increased the production and consumption of hot-melt adhesive in the region, especially in India, China, and Indonesia. As per OICA (International Organization of Motor Vehicle Manufacturers), China alone contributed over 28% production of passenger cars globally, followed by U.S. 11.85%, Japan 10.55%, Germany 5.08%, and India 4.92%. Out of the top 5 manufacturers, 3 are in the Asia-pacific region only. Moreover, the easy availability of raw materials in the Asia Pacific, such as thermoplastic rubber, is expected to drive this region's market.

 

Competitive Landscape:

The global automotive hot melt adhesives market is highly competitive with existing players in the market. 3M, Sika AG, H.B. Fuller, Avery Dennison Corporation are the leading market players with the prominent market size. Companies use different strategies such as portfolio expansion, product diversification, and new product launch to increase their market penetration. The companies enter into collaborations, mergers, strategic partnerships, and acquisitions to increase the demand for automotive hot melt adhesives and their expansion. For instance, In June 2019, Jowat SE, a high-performance adhesive manufacturer, introduced PUR technology to manufacture hot melt adhesives. The process helps achieve HMA’s with effective long-term resistance, superior bond strength, and high heat resistance.

COVID-19 Impact: COVID-19 harms the global automotive hot melt adhesives market

The global COVID-19 pandemic has led to a sudden pause in manufacturing activities across the globe, affecting the demand for hot melt adhesives and their production. The most critically impacted end-use segments of the hot melt adhesives include automotive & transportation. It is estimated that global automobile sales will decline by about 23% in 2020. Initially, the disruption in supply and manufacturing hampered the industry significantly, and now with the multifold decline in demand has led to uncertainty regarding the recovery. The automotive industry struggles with an abrupt and widespread stoppage of economic activity, as workers are told to stay at home, supply chains grind to a halt, and factories closed. Lockdown prohibiting people's movement and sudden economic activity closure caused a severe contraction in sectoral output and gross domestic product (GDP).

Recent Developments:

  • In September 2019, Sika acquired Crevo-Hengxin, a Chinese manufacturer of silicone sealants and adhesives used in both industry and construction applications.
  • In April 2018, Pidilite Industries entered into a collaboration with Jowat SE, a German family-owned enterprise and one of the leading suppliers of industrial adhesives worldwide. As part of the collaboration, Pidilite will handle the sales and distribution of Jowat adhesives in India and other neighbouring countries, including Sri Lanka, Bangladesh, and Nepal.

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