The silane modified polymer (SMP) automotive adhesives market size is projected to grow from USD 8.1 billion in 2019 to USD 10.7 billion by 2024, at a CAGR of 5.7%, during the forecast period. The market is witnessing a moderate growth due to the present slowdown in the demand in the automotive industry and growing use of automotive adhesives.
SMP - The Fastest-growing Resin Type
Silane modified polymer adhesives have a smaller market share compared to other types. However, the market for this segment is projected to grow at the highest rate due to stringent environmental regulations on other adhesives in the market. These regulations prohibit the use of highly toxic solvents which have VOC emissions. As SMP adhesives are odorless, free of isocyanates and solvents, and emit no VOCs, their demand is expected to increase. The automotive and transportation industry continuously demands more advanced and improved bonding adhesives which offer excellent adhesion, superior durability, chemical and temperature resistance, and low shrinkage.
Increased Demand of Adhesives for Automobile Assembly
With the increasing advancements in the automobiles, such as higher usage of sensors, infotainment systems, and body panels, the amount of adhesive usage has increased in the automotive industry. There is a vast demand arising from the APAC region after the maturity of the European and North American market. APAC is the largest market for passenger cars and is expected to account for 60 percent of the global production by 2025.
South America region follows APAC is also expecting a growth due to countries such as Brazil and Argentina. These countries are witnessing growth in automotive manufacturing plants in the region.
Highest Growth in APAC Region
APAC is the largest and projected to be the fastest-growing automotive adhesives market. The region encompasses a diverse range of economies with different levels of economic development and multiple industrial developments. With economic contraction and saturation in Europe and North America, adhesive manufacturers are shifting their production base to APAC.
China is one of the leading producers and consumers of automotive adhesives in the region. The strengthening economy of countries such as China and India are attracting new investments in APAC. The key market players are expanding their automotive adhesives production in APAC, especially in China and India.
Source: Markets and Markets