Automotive Adhesives Market is projected to be worth USD 8.42 Billion by 2030, registering a CAGR of 5.90% during the forecast period (2022-2030).
Automotive Adhesives Market Overview
Automotive Adhesives Market is projected to be worth USD 8.42 Billion by 2030, registering a CAGR of 5.90% during the forecast period (2022-2030).The adhesive is a compact weight component that is used as a binding element for many materials. Adhesives have high use in the automotive market. For closures and structural modules, the use of adhesives is crucial. The weight of the vehicle is significantly reduced through the use of this component. Lateral, front and rear body stiffness increases and enhancing crash performance is possible. Other benefits of these adhesives are reducing noise, harshness and vibration in the vehicle. Today, the production of lightweight vehicles is high in many regions. Due to this, the need for these adhesives in these vehicles is high.
Resistance to dust is another exceptional features of automotive adhesives. The use of polyethene sealants is prevalent in much automotive industry. Poluyutherane segment of the adhesives market is gaining more demand in recent years. The widespread awareness of these adhesives is leading to more expansion of the product.
Even under high heat, these polyethene adhesives do not melt. It is a crucial quality of the polyethene adhesives that boosts demand in the automotive market. Exceptional endurance, bonding and strength of these adhesives ease the work of automotive manufacturers. Due to these causes, the automotive adhesives market value will rise immensely.
The outbreak of covid 19 has a significant impact on both economic and industrial sectors. Form travel, tourism, aviation and Automotives all these sectors are facing daunting challenges. The number of lockdowns on global markets is affecting daily market operations. The increased economic crisis is affecting the profits of various markets.
The automotive adhesives market witnesses a weak demand; the automotive sector is greatly disturbed in this period. The automobile purchases have significantly reduced. Production of the market is impacted in this period. Due to less manufacture of automobiles, the demand is low. A declining trend in the market is affecting the overall adoption of automotive adhesives. Since 2020, low demand is witnessed in the market. However, in upcoming years, the market is expected to witness immense growth. The adoption rate of automotive adhesives will rise. Surging awareness about its features plays a major role in high market growth.
The automotive adhesives market has escalating demand from developing nations. The Asia Pacific plays a crucial role in the rising demand of the market. The demand from the Asia Pacific region is a crucial driver of this market. According to the china adhesives association, it is a leading market leader of this product. In terms of demand and production, this country stands high among its competitors.
Demand from this key region is expanding overall automotive adhesives market demand. The need and spending on adhesives are high. It is favouring the overall growth of automotive adhesives in China. Further, demand from Japan is another crucial driver of the market. The need for eco-friendly automotive adhesives is higher in this region. In this region, the government has imposed VOC restrictions.
It means that the use of harmful additives is reduced. Due to this, automotive adhesives take over the demand in many regions. As it is eco friendly and less harmful it is proffered more among the end-users. In India, the investments for automotive adhesives are building. The rising investment drives the overall demand of this market in the forecast period. Due to increased funds, new launches and innovations in the market will rise. All these crucial drivers will contribute to the exceptional automotive adhesives market growth.
The rising scope for autonomous EVs is brought promising market growth opportunities. Autonomous electric vehicles are driverless and robotic. They come with self-driving features that are beneficial in smart cities. Many countries are localising the use of autonomous vehicles. By the year 2030, most of the vehicles are expected to be autonomous.
These vehicles are known as the most reliable and affordable transports. The high-end driver assistance system of these vehicles contains many features. Advanced radar, camera and sensors are some of the crucial parts of this vehicle. Today, the adoption rate of these vehicles is 20%. However, in the next few years, the adoption rate is massive. Autonomous vehicles require various types of adhesives.
For cameras, sensors and radars the need for adhesives is high. The commercialisation of EVs will grow overall automotive adhesives. The rise in the manufactures of EVs will create new developments in the market. Supply rates of the automotive adhesive will reach a peak. Further, revenue rates will reach the highest with these developments. Also, technological advancements will enhance the quality of automotive adhesives.
Volatility in the price of raw materials is a restraining factor of this market. The raw material price of adhesives is fluctuating in many regions. This pandemic is a major cause of the price fluctuations in the market. There are different are materials used in adhesives. Resins, plastics and organic substances are highly prone to price changes.
As most of the raw materials are petroleum-based the automotive adhesives market is facing challenges. The volatility of the price is affecting the final cost of this product. The Middle East is a region that is a key manufacturer of oil. The changes in the crude oil prices are declining the growth of this market.
Stringent governmental rules are a challenge in the market. Automotive adhesives have various regulatory norms. In many regions, the use of VOC emissions is restricted. Due to these stringent regulations production of the market is slowing down.
These regulations add to the overall cost of automotive adhesives. Today, the concerns of formaldehyde have restricted the use of harmful adhesives. There are several health conditions that can occur due to harmful adhesives. The growing concerns about these adhesives can restrict the usage of automotive adhesives with high VOC emissions.
The automotive adhesives market trends is stable in the forecast period. There are plenty of factors that contribute to the growth of this market. Methyl based adhesives are witnessing high demand in recent years. MMA has high usage in the automotive and transportation industry. Excellent performance and features of the product attracts many end users.
Furthermore, the driving factors of the market are rising demand from developing nations. The nations such as India, Japan and china contribute the highest for the market. In recent years, the use of automotive adhesives is surging. However, the volatility of the price is a restraining factor of the market. Stringent governmental rules are another significant market challenge. However, the overall growth of this market is substantial with promising growth opportunities.
North America is a leading region with a high automotive adhesives market share. Growing demand for adhesives in top automobile industries is rising demand. Regions such as Mexico, US and Canada are key contributors to the market.
They are top investors with high demand. Population growth is contributing to more investments in automotive. Awareness about adhesives is higher in this region. Rising population and lifestyle improvements are causes for high investments in an automobile. Also, North America is an early adopter of automotive adhesives.
By resin type
By vehicle type
The competition in the automotive adhesives market is constantly surging. There are plenty of new developments in the competitive landscape.
The launch of advanced adhesives will happen in upcoming years. Market expansion, acquisitions, mergers and partnerships will happen in the competitive landscape.
Global Automotive Adhesives Market Share, by Application 2018 (%)
Source: MRFR Analysis
The automotive adhesives market is fragmented into Asia Pacific, Europe, and North America. The leading region in this market in North America. It is a region with top investors and a key market player. North America is a region with the highest automotive adhesive market shares.
Awareness about automotive adhesive is high in this region. The launch of EVs will create more growth opportunities in the market. Further, Asia pacific is another regional player with high growth. There are plenty of factors that drive demand in Asia pacific. Key countries such as India, chain and Japan will boost the revenue. Europe is another region with automotive giants. The top automobile leaders will increase the supply rates of this market.
The key players of the automotive adhesives market re
|Market Size||2030: USD 8.42 Billion|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Resin Type, Technology and Vehicle Type|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||3M (US), Henkel & Co. KGaA (Germany), H.B. Fuller Company (US), BASF SE (Germany), Bostik (US), Illinois Tool Works Inc. (US) DowDuPont (US) Sika AG (Switzerland), PPG Industries (US), Solvay S.A (Belgium), Jowat AG (Germany), and Akzo Nobel N.V. (the Netherlands)|
|Key Market Opportunities||to prevent and reduce the death rate due to accidents|
|Key Market Drivers||growing trend of customization of vehicles|
The global automotive adhesives market is driven by the burgeoning automotive industry and the need for adherents to join discrete automotive components together.
The global automotive adhesives market is expected to thrive at a CAGR of 5.90% over the period between 2022-2030.
Bostik, Henkel & Co. KGaA, Solvay S.A, 3M, Akzo Nobel N.V., PPG Industries, Illinois Tool Works Inc., BASF SE, Sika AG, H.B. Fuller Company, Jowat AG, DowDuPont, and others are notable players of the global automotive adhesives market.
Stringent regulations concerning volatile organic compounds (VOCs) and fluctuating raw material prices can pose a challenge to the market.
Asia Pacific held the largest share of the global automotive adhesives market in 2018 due to the burgeoning automotive sector in South Korea, Japan, India, and China