Automotive Adhesives and Sealants Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Automotive Adhesives and Sealants Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The automotive adhesives and sealants market is projected to register a CAGR of more than 4% during the forecast period. The major growth factor include the stringent environment regulations, which are promoting the use of low volatile organic carbon (VOC) adhesive tapes. However, declining automotive industry is expected to hinder the market’s growth.

Key Highlights

• The polyurethane segment dominated the market, and is likely to witness significant growth during the forecast period. The segment’s growth is primarily due to various innovations in the automotive industry, primarily to reduce the vehicle’s weight.
• The development of lightweight vehicles and high-performance adhesive tapes for advanced applications is likely to provide growth opportunities for the market studied during the forecast period.
• The Asia-Pacific region dominated the global market. In this region, the demand for automotive adhesives and sealants is majorly due to the increasing production of automotive.

Key Market TrendsThe Polyurethanes Segment is expected to Dominate the Market

• Polyurethane is the most widely used resin for producing automotive adhesives and sealants.
• They are thermosetting polymers, which do not melt when heated. Polyurethane polymers are formed by the reaction of isocyanate and polyol.
• Polyurethane adhesives are the most commonly used adhesives, which provide extremely strong bonding.
• Furthermore, they provide good resistance against heat, moisture, and chemicals. They are flexible and durable, as well as provide good impact resistance.
• Adhesives and sealants are witnessing high demand from the automotive industry. Factors, such as ability toward high temperature endurance, exceptional bonding strength, and durability, make adhesives and sealants suitable for automotive applications.
• Therefore, with innovation and R&D in the automotive industry, primarily to reduce the vehicle’s weight, polyurethane resins are expected to witness high demand.
• Hence, the aforementioned factors are expected to drive the demand for polyurethane resins in the automotive adhesives and sealants market.

Asia-Pacific Region is expected to Dominate the Market

• The Asia-Pacific region dominated the global market share. In the region, China is the largest adhesives and sealants market and is expected to remain so in the coming years, irrespective of the economy witnessing slow economic growth.
• Despite being the largest region for automotive industry across the globe, Asia-Pacific is witnessed a decline in the recent past. This decline in turn is impacting the demand for adhesives and sealants in the country.
• Despite decline in the region's automotive industry, Asia-Pacific is still the largest consumer of automobiles and hence automotive adhesives and sealants.
• On a bright side, the Chinese government is majorly focusing on increasing the production and sale of electric vehicles in the country. Thus, the country is planning to increase the production of electric vehicles (EVs) to 2 million a year by 2020, and 7 million a year by 2025. Such trends are expected to drive the Chinese automotive industry’s growth during the forecast period.
• However, the Japanese automotive industry has been witnessing slow growth from the past two years, primarily due to the drastic drop in the sale and production of motor vehicles.
• Such factors are in turn expected to boost the market demand at a steady rate.

Competitive Landscape

The global automotive adhesive and sealant market is partially consolidated, with top two players accounting for a third of the market, and the remaining players trying to increase their market shares. Some of the key players include Henkel, Sika, ITW Performance Polymers, Avery Dennison., and Dow, among others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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