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Automotive Adhesive Market By Resin Type (Polyurethane, Epoxy, Acrylic, Silicone, Silyl Modified Polymer (SMP), Polyamide), By Technology (Holt Melt, Solvent Based, Water Based, Pressure Sensitive), By Vehicle Type (Passenger Cars, Light Commercial Vehicle, Heavy Commercial Vehicle), By Application (Body In White, Power Train, Paint Shop, Assembly) - Growth, Future Prospects & Competitive Analysis, 2017 – 2025

Adhesives have resistance to humidity, salt, solvents, oil, and gasoline. Therefore, these are widely deployed in the automotive industry. Adhesives are used to join composites and plastic materials, which form the major part of a vehicle's body. Moreover, these adhesives are also used to replace fasteners. Adhesives improve stress distribution and, in turn, lead to the easy joining of dissimilar substrates throughout the vehicle. On the basis of resin type, the global automotive adhesive market is segmented into polyurethane, epoxy, acrylic, silicone, silyl-modified polymer, polyamide, and others (phenol and others).

The growth of the market is significantly driven due to underlying strength in vehicle sales, advancements in the manufacturing technologies of automobiles, as well as the rising adoption of smart cars. Metallic components of a vehicle are being increasingly substituted with composite materials to achieve lightweight and improve overall vehicle efficiency. These composite materials require adhesives, which is further driving the market growth. Additionally, adhesives significantly reduce the noise, vibration, and harshness in vehicles, thus spurring market growth. Miniaturization and weight reduction are expected to be the key factors affecting the changing technology trends in the market. Automotive adhesives play a vital role in commercial vehicles as they are used in multiple operations such as trash collection, emergency services, etc. In heavy commercial vehicles, these adhesives are being used to avoid water intrusions and leaks. These are used to bond the trailer bed and interior bracket to the frame. Apart from this, automotive adhesives aid in achieving consistency and integrity throughout the body parts, assembly process, paint line, and trim. Thus, automotive adhesives are witnessing rapid adoption owing to their excellent durability coupled with high bond strength, which makes them ideal under adverse environmental conditions. However, fluctuating prices of raw materials are expected to deter the market to some extent.

In 2016, the polyurethane segment accounted for the largest share, more than 35% of the total automotive adhesive market by volume. Growth in industrialization and the growing automotive industry, coupled with the need to assemble rubber, glass, metal, and plastics together, are supplementing the market growth. Furthermore, rising demand for lightweight, low-carbon-emitting vehicles is expected to boost adhesives demand in the automotive industry.

The global automotive adhesive market is segmented by geography into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. Asia-Pacific was identified as the largest market for automotive adhesives in 2016. During 2016, it accounted for more than 40% of the total demand for automotive adhesives. The automotive adhesives market in Asia Pacific is expected to account for the highest growth rate during the forecast period. This growth is due in large part to the rapid expansion of the manufacturing base in these regions, particularly in economies such as Japan, China, and India.

A few key manufacturers in the automotive adhesive market include Bostik S.A., Henkel & Co. KGaA, 3M Company, H.B. Fuller, Sika AG, PPG Industries, Illinois Tool Works Corporation, Solvay S.A., Jowat AG, Evonik Industries AG, 3M Inc., Avery Dennison, and DSM.

On the basis of its resin type, the global automotive adhesive market is categorized into the following segments:

  • Polyurethane
  • Epoxy
  • Acrylic
  • Silicone
  • Silyl Modified Polymer (SMP)
  • Polyamide
  • Other materials (Phenolic, Rubber)

Polyurethane is expected to account for the majority of the market in 2017. Polyurethane-based adhesives are widely accepted in end-use applications owing to their flexibility and excellent adhesion. In addition, these adhesives are preferred over their counterparts as they act as fast moisture-curing adhesives, which lead to a reduction in the weight of vehicles as well as sound and vibration deadening. In 2016, the SMP adhesives segment accounted for a significant share of the total automotive adhesive market by volume. Rapid growth in the manufacturing industry, combined with increased consumer demand for lightweight vehicles, will drive market growth in the coming years. In addition, adhesives have efficiently removed the need for welding and mechanical rivets in order to bond the different substrates of metal. This has further supplemented the market's growth. In addition, certain superior properties of SMP adhesives, such as UV and thermal stability, have further enhanced the safety standards for automobile manufacturers, which in turn is expected to fuel the market in the near future.

On the basis of its technology, the global automotive adhesive market is categorized into the following segments:

  • Holt Melt
  • Solvent Based
  • Water Based
  • Pressure Sensitive
  • Others (reactive and thermosetting)

Hot melt adhesives are widely used in the automotive industry because they provide strong bonding and flexibility of vehicle parts in extreme temperature conditions and repeated abrasive motion. Hot-melt-based adhesives possess superior strength and extreme durability, which makes them ideal for use in engines, transmissions, batteries, and radiators. Since the body of the car is made up of multiple panels, the manufacturers use high-performance hot melt adhesive in order to attach the panels in a safe, flexible, and durable fashion, which in turn helps to retain the beauty and curves of the vehicle. Therefore, the hot melt adhesive segment is expected to grow at a rapid pace, approximately at a CAGR of 5.3% over the forecast period, and is also expected to lead the market till 2025 owing to its property of providing excellent adhesion with little or no emissions of VOCs. Therefore, the aforementioned factors are expected to augment the overall market growth during the forecast years.

On the basis of vehicle type, the global automotive adhesive market is categorized into the following segments:

  • Passenger Vehicle
  • Light Commercial Vehicle (LCV)
  • Heavy Commercial Vehicle (HCV)

Automotive manufacturers' bid to build lighter vehicles with more fuel-efficient engines to reduce fleet consumption in accordance with legal requirements has led to the utilization of adhesives such as polyurethane and epoxy-based adhesives. These adhesives improve the crash performance and long-term durability of light and heavy commercial vehicles. Passenger cars are expected to grow at a CAGR of 4.2%, owing to the rising sales of passenger cars coupled with the development of per capita income in developing countries such as India, China, and Brazil. Furthermore, medium and heavy-duty trucks are used for freight movement, towing, and off-road purposes, necessitating the use of at least 1.2 billion gallons of adhesives to bond lightweight composites in place of aluminum. This rate of adoption of adhesives is expected to grow rapidly owing to the increase in fuel economy regulation, which has led to the use of more composite and mixed-material assemblies, thereby driving the consumption of adhesive per unit of the vehicle body.

On the basis of its application, the global automotive adhesive market is categorized into the following segments:

  • body in white
  • Power Train
  • Paint shop
  • Assembly

Automotive adhesives exhibit ideal bonding strength along with reliability, primarily for light vehicles that utilize composites. Demand for adhesives has surged as these are being used to join steel to aluminum, steel to fiber panels, and sheet molding compound to aluminum. The automotive body contains 40 percent of the weight of the vehicle. The recent trend of deploying adhesives to bond plastics to metal in vehicles has subsequently optimized the corrosion resistance, adhesion properties, and vibration-dampening properties of vehicles. Therefore, automotive adhesives find enhanced usage in body-in-white (BIW) applications as it is the initial stage in vehicle manufacturing in which the main frame of the body is developed. Moreover, the fuel economy standards set by OEMs have further led to the demand for lightweight components such as aluminum and carbon fiber-reinforced polymer in body-in-white instead of steel elements, owing to which the use of automotive adhesives is gaining traction. The body-in-white segment is therefore expected to account for approximately half of the market and to maintain its dominance during the forecast period. Furthermore, multiple efforts by industry players to deter the risk of corrosion in the underbody of vehicles in an attempt to provide a soundless drive by mixing these adhesives with automotive paints and coatings are further boosting the automotive adhesives market's growth.

Based on geographical distribution, the global automotive adhesive market is segmented into the following regions:

  • North America
  • U.S.
  • Canada
  • Europe
  • Germany
  • Spain
  • France
  • UK
  • Rest of Europe
  • Asia Pacific
  • Japan
  • China
  • India
  • Rest of Asia Pacific
  • Latin America
  • Brazil
  • Mexico
  • rest of Latin America
  • Middle East and Africa
  • GCC
  • Rest of the Middle East and Africa

In 2016, Asia-Pacific was the largest market owing to rapid industrialization, growth in automobile production, rising disposable income, and a high population. During 2016, it accounted for more than 45% of the total demand for automotive adhesives. It is also projected to be the fastest-growing region. The global shift in production capacity from developed markets to this region stimulates market growth. Furthermore, rising purchasing power and economic growth rates in countries such as China and India have supplemented sales of automotive products in this region, driving the growth of the automotive adhesives market. As per OICA, industry players have adopted a recent trend of selling vehicles at lower prices to grab a larger pool of customers. This has motivated manufacturers such as Toyota Motor Corporation and Honda Motors to shift their production facilities to countries such as China for cheap labor and easy availability of raw materials in order to reduce their production costs. This is further driving the demand for automotive adhesives in this region. Latin America and the Middle East and Africa regions are projected to witness below-average growth rates during the forecast period of 2017 to 2025.

North America and Europe are expected to witness a decent growth rate from 2017 to 2025. The cost of bio-based adhesives has risen as a result of the economic downturn and increased use of these adhesives, primarily in North America and Europe. Therefore, fluctuations in prices are expected to deter market growth to some extent. Also, strict regulations in North America and Europe pertaining to the utilization of hazardous chemicals in the manufacturing of adhesives are hampering overall market growth to some extent.

Frequently Asked Questions:

The market for Automotive Adhesive is expected to reach XX Bn in 2025.

The Automotive Adhesive market is expected to see significant CAGR growth over the coming years,at 4.7%.

The report is forecasted from 2017-2025.

The base year of this report is 2016.

Bostik S.A.,Henkel & Co. KGaA,3M Company,H.B. Fuller,Sika AG are some of the major players in the global market

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Published Date:  Dec 2017
Category:  Chemicals
Report ID:   58899
Report Format:   PDF
Pages:   120
Rating:    4.8 (80)
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