Automotive Adhesives Market Size Expected to Reach $8.4 Billion by 2030-Allied Market Research

According to a new report published by Allied Market Research, titled, "Automotive adhesives market by resin type, by technology, by application, and by vehicle type: Global Opportunity Analysis and Industry Forecast, 2020-2030,"

The global automotive adhesives market size was valued at $4.7 billion in 2020, and projected to reach $8.4 billion by 2030, with a CAGR of 5.9% from 2021 to 2030.

Adhesives are lightweight components used to bind composites and lightweight materials. The use of adhesives in automotive manufacturing processes offers the designers additional possibilities to exploit new, innovative design, and manufacturing concepts. In addition, adhesive bonding allows combining different types of materials such as aluminum with other metals, plastics, and composites, which otherwise are not reliably joint or would require additional measures to avoid galvanic corrosion effects.

The global automotive adhesives market is presently witnessing significant growth, owing to increase in demand for lightweight and low carbon-emitting vehicles. Moreover, rise in use of aluminum in automobile manufacturing to reduce the weight of automobiles fuels the adoption of automobile adhesives. In addition, increase in use of plastics and composite materials in the process to manufacture smart vehicles based on sustainable adhesives in developing economies is another factor that boosts the market growth. High economic growth rate and the increase in demand from end-use industry further supplement the growth of the market.

The growth of the market is driven by rise in sales of automotive adhesives owing to underlying strength in vehicle sales, technological advancements in the manufacturing of automobiles, and the adoption of smart cars. Increase in adoption of adhesives among the vehicle manufacturers reduces the mass of vehicle; increases front & rear lateral body stiffness; enhances crash performance; and minimizes noise vibration as well as harshness.

The major factor restraining the growth of the automotive adhesive market is the toxicity of conventional automotive adhesives that remains a major concern in terms of environmental impact. In addition to this, issues based on aging, curing, and surface preparation directly restrains speed of bonding, as compared to alternatives like welding, which hamper U.S.ge of automotive adhesives.

The global automotive adhesives market is segmented on the basis of resin type, technology, application, vehicle type, and region. On the basis of resin type, the market is classified into polyurethanes, epoxy, acrylics, silicone, Silyl Modified Polymer, polyamide, and others (rubber and phenolic). By technology, it is categorized into hot melt, solvent based, water based, pressure sensitive, and others (reactive and thermosetting). Depending on application, it is divided into body-in-white, power train, paint shop, and assembly. As per vehicle type, it is fragmented into passenger vehicle, light commercial vehicle, and heavy commercial vehicle. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The major companies profiled in this report include Henkel & Co. KGaA, Bostik S.A., 3M Company, The DOW Chemical Company, Sika AG, H.B. Fuller, PPG Industries, Jowat AG, Illinois Tool Works Corporation, and Solvay S.A.,. Rapid urbanization and development of transportation infrastructure in emerging economies and presence of excess income among the middle class population have led to surge in demand for personal vehicles, which has fueled the demand for automotive adhesives. Increase in awareness among people regarding the electric vehicles and the government policies to support the green energy vehicles are expected to lead to demand for automotive adhesives. Additional growth strategies such as expansion of production capacities, acquisition, and partnership in the development of the innovative products from manufacturers have helped to attain key developments in the global automotive adhesives market trends.

Impact Of Covid-19 On The Global Automotive Adhesives Market

• Emergence of COVID-19 had a negative impact on the growth of the automotive adhesives market during this period.
• This impact is mostly attributed to the significant disruptions in the raw material transportation, presence of low-labor, shutdown of many manufacturing industries hence decrease in the demand for Automotive adhesives market during this period.
• The decrease in demand for many non-essential products and shut down of electrical, automotive, and other manufacturing related industries has created a negative impact on the development of automotive adhesives market
• The increasing demand for environment friendly manufacturing products and increase in awareness among the people towards the environment will hamper the growth of automotive adhesives market.
• Thus, the abovementioned factors are expected to have great impact on the development of automotive adhesives market growth in this forecast period.

Key findings of the study

• Region wise, the Asia-Pacific is projected to witness growth at the highest CAGR in terms of revenue, during the forecast period.
• As per global automotive adhesives market analysis, by resin type, the polyamide segment accounted for the largest share in 2020.
• On the basis of technology, the water based segment was the major share contributor in 2020.
• On the basis of vehicle type, the passenger vehicles segment was the major share contributor in 2020.
• On the basis of application, the body-in-white segment was the major share contributor in 2020.