Grand View Research anticipates the global automotive adhesive tapes market size is expected to reach USD 4.73 billion by 2028, registering a CAGR of 7.3% over the forecast period. Growing usage of advanced functional materials to improve aesthetics, reduce weight, and enhance the performance of vehicles is expected to drive the market growth.
Lightweight Vehicles to Augment Product Demand
Technological developments and performance enhancements in vehicles have led to the installation of specialized components, which is expected to have a positive impact on the product demand. In addition, the increasing focus of manufacturers on the development of lightweight vehicles will augment the product demand.
The global automotive market is witnessing switching trends with growing popularity and demand for Electric Vehicles (EVs). Prominent vehicle manufacturers are aiming to comply with environmental standards and emission norms by reducing vehicle pollutants at a significant level. Thus, battery-operated vehicles including cars, mini trucks, and others are gaining popularity across the globe, which, in turn, is expected to drive the product demand.
Interior Attachment Application: Largest Revenue Share
The interior attachment application segment accounted for the largest revenue share in 2020 owing to the high demand for vehicles with improved aesthetics.
Emulsion-based adhesive tapes are expected to witness the fastest CAGR on account of the wide usage of these products in permanent application in car exteriors.
The powertrain application segment is expected to witness the fastest growth on account of the rising product penetration in electric and hybrid vehicle powertrains.
Europe dominated the global market, in terms of revenue share, in 2020 owing to the high per vehicle content of tapes in the European automotive car models.
Key market players focus on improving the product application scope in niche areas, such as powertrains and battery compartments, which is expected to drive the industry growth.
Source: Grand View Research