TAGS: Sealants Waterborne Adhesives Hot-melt Adhesives
The global market for automotive adhesives is projected to reach a valuation of USD 7 billion by the end of 2030 at a CAGR rate of 5 percent, during the forecast period. The sector has been adversely affected by the ongoing COVID-19 outbreak, owing to lockdowns and restrictions on automotive production and raw material supply chains, which has hurt the production and delivery of automotive adhesives.
However, the industry is expected to reflect steady growth soon, supported by investments towards product development aimed at longer durability and eco-friendliness, and transition by the automotive industry towards sustainability through hybrid and electric vehicles.
COVID-19 Impact on Automotive Adhesive Market
Players in the automotive adhesive market are expected to be adversely impacted by the coronavirus pandemic. Lockdowns and restrictions on the manufacturing and automotive sectors of multiple countries have been key issues holding back revenue and market developments in the short term.
Automotive OEMs have been largely impacted owing to operational costs and capital issues, due to delays in delivery of raw materials, which, in turn, is also impacting the automotive adhesive market. With continuing restrictions on supply chains and the current health threat for workers, manufacturers are projected to push for work-from-home operations for employees not running production lines.
Also, manufacturing facilities are subject to strict social distancing and other regulatory guidelines, which will create short-term operational challenges for the duration of the crisis. The automotive adhesive market is likely to recover in 2021, following relaxation of industry restrictions.
Increased Demand for Structural Adhesives
Automotive adhesives are used in sealing, holding and structural applications for automotive production and aftermarket uses. In addition, growing demand for characteristics such as corrosion resistance and weight reduction is creating increased scope of applications in different automobile formats.
Structural adhesives, in particular, are anticipated to account for significant share in the automotive adhesive market, surpassing alternatives such as tapes and films and liquid gaskets, which attributes towards extensive use in holding and sealing vehicle panels for interior and exterior settings. Also, water-based and hot melt variants of automotive adhesives are anticipated to reflect faster growth rates from 2020 to 2030, on the back of longer durability and eco-friendly characteristics, respectively.
Increased Use of Automotive Adhesive in EVs
Automotive adhesives find use in body in white, glazing, powertrain, paint shop, and upholstery applications, among others. BIW is a fairly prominent use of automotive adhesives. This can be attributed to the transition towards automotive adhesives from conventional welding, which, in turn, provides benefits of reduced structural fatigue.
On the other hand, powertrain and upholstery end uses are projected to reflect faster growth in the automotive adhesive market over the coming years. Increasing popularity and integration of electric and hybrid variants is expected to boost the use of automotive adhesives.
Further, growing adoption of premium cars, demand for aesthetic improvements and passenger comfort, coupled with value addition such as interior sound reduction features are expected to prove beneficial to the automotive adhesive market.
Highest Growth in Asia Pacific Region
Asia Pacific is expected to account for a leading automotive adhesive market share, led by China, owing to large-scale vehicle production for international markets in the region. Other countries, including those under ASEAN and India, are also expected to witness fast growth on account of reduced labor and materials costs, and the consequent cost benefits to potential vehicle owners. Also, countries in the Asia Pacific region are benefiting from efforts by market players towards regional and capacity expansion.
Developed regions in North America and Europe are also prominent markets for automotive adhesives, and are projected to reflect steady growth throughout the assessment period. The transition towards electric vehicles is likely to revive consumption of automotive adhesives in these matured markets.
Source: Fact.MR