TAGS: Sealants Epoxy Adhesives
Research and Markets (RM) anticipates that the automotive adhesives and sealants market size which was valued at USD 6,414.1 million in 2020, will witness a 6.1% CAGR between 2020 and 2030, to reach USD 11,643.5 million by 2030.
This will be because of the rise in the stringency of vehicle safety standards in response to the high rate of road crashes. This is propelling the usage of adhesives and sealants on the bonnet, in order to provide integrity to these parts and enhance their ability to withstand head-on collisions.
Epoxy-based Adhesives: Popular Among Automotive OEM
Epoxy-based adhesives and sealants have been the most popular among automotive original equipment manufacturers (OEM) till now. This is credited to epoxy products’ rigid bonding ability, which improves the structural integrity of vehicles, thus making them stronger and impact resistant. Hence, with the rising demand for automobiles, coupled with the strict vehicle and passenger safety regulations in place, the consumption of epoxy adhesives and sealants continues to grow.
The automotive adhesives and sealants market will grow the fastest in body-in-white (BIW) applications as the usage of these materials for BIW purposes makes vehicles lighter and fuel-efficient.
Passenger car production accounted for the higher consumption of these materials as it outnumbers commercial vehicle production. With people’s rising disposable income, automakers are augmenting their passenger car output.
Increase in EV Production
The burgeoning electric vehicle (EV) production is also boosting the usage of these materials. With the rising environmental awareness and numerous supporting government schemes in place, electric car sales hit the 3 million mark in 2020. Adhesives and sealants are being widely used to enhance EVs’ structural integrity, thereby driving the industry.
The COVID-19 pandemic has had a mostly negative impact on automotive adhesive and sealant producers by shutting down auto production and decreasing the demand for vehicles due to worldwide financial instability.
Another key driver for the automotive adhesives and sealants market is the rising sale of lightweight automobiles due to the increasing vehicular emissions. To make lightweight vehicles, plastics, aluminum, and carbon fiber are used instead of iron and steel, which leads to the usage of adhesives and sealants over nuts, bolts, and welding.
Highest Growth in APAC Region
Asia-Pacific (APAC) is the biggest consumer of automotive adhesives and sealants as it is the world’s largest producer of automobiles. Moreover, many European and North American companies are setting up plants here to manufacture automotive adhesives and sealants, thereby leading to their easy availability.
Key companies in the automotive adhesives and sealants market are Henkel AG & Co. KGaA, Sika AG, The Dow Chemical Company, PPG Industries Inc., H.B. Fuller Company, 3M Company, Permatex Inc., Illinois Tool Works Inc., Bostik S.A., and EFTEC AG. To dominate the intense competition, they are engaging in mergers and acquisitions and facility expansions.
Source: Research and Markets