South America Automotive Adhesives Market - Segmented by Technology, and Geography - Growth, Trends and Forecasts (2018 - 2023)
The South American automotive adhesives has been estimated at USD 1213.69 million in 2017. The market is expected to register a CAGR of 3.01% during the forecast period, 2018 to 2023. Water-borne technology dominated the South America automotive adhesives market with nearly 56% share in the region.
Growing Demand for Light Weight and Low-Carbon Emitting Vehicles
Adhesives play a vital role in the bonding of various components of a vehicle. They are employed in the automotive industry at various stages, such as during the manufacture of a new vehicle and also, used by vehicle owners to cover the broken metal, plastic, or any other vehicle component. The automobile overall weight can be decreased by replacing mechanical fasteners with adhesives without change in performance. Adhesives improve stress distribution and expand the choices of composites and dissimilar substrates throughout the vehicle. More than 20% weight reduction in the car body can be achieved by using adhesives, along with lightweight material.
Furthermore, the increasing usage of plastics and ceramics in the automotive, is increasing the usage of adhesives. Currently, adhesives are being used in a wide range in automotive components, such as doors, roof structures, hoods, and trunks, by replacing welding, riveting to a major extent. Additionally, adhesives used on front and rear screens of a car reduce air resistance, thus, directly improving gas/fuel consumption. The initiative by Colombia, for the adoption Low Emission Development Strategy, as part of its National Development Plan, increased the consumption of various electric vehicles, including cars and buses. This in turn, boosts the demand for adhesives in the electric vehicles market.
Brazil Dominates the Market
Brazil has the highest share in the market, accounting for nearly 76% of the market share in 2017. The Brazilian economic downturn from the past three years is negatively impacting the automotive industry in the country. The country witnessed automotive production growth rates of -15.2% (2014), -22.8% (2015), and -11.2% (2016). Prior to the declining production levels of automotive vehicles in Brazil, the country was a major prospect for the international automotive industry. The automotive manufacturers in the country are currently facing an economic sludge. However, investments have been made by Chinese investors for the production of electronic vehicles in São Paulo. Also, Mitsubishi is working on the production of electric buses in Brazil. Such factors are expected to help the industry in the country regain its position during the forecast period.
Key Developments in the market
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