Automotive Adhesives Sealants Market Size

Automotive Adhesives Sealants Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The market for automotive adhesives and sealants is expected to reach a value of $ 11,645,800,000 by the end of 2023, and will continue to grow at the same rate through 2030. With a CAGR of 6.11 percent from 2022 to 2030, the demand for these products in the automobile industry will remain steady, driven by the evolution of the manufacturing process and the increase in vehicle production. The growth trend reflects the growth of the automobile industry, where the need for lightweight materials and improved vehicle performance is paramount. The market is also influenced by the development of new products and the development of high-performance, environmentally friendly and regulatory-compliant adhesives. The emergence of electric vehicles and the integration of smart technology in car design will also open up new opportunities for the use of sealants. The major players in the market, including Henkel, 3M and Sika, are constantly investing in research and development, and establishing strategic alliances to introduce new products. The recent launches of high-strength e-mobility-related products, for example, demonstrate the industry's commitment to meeting the changing needs of automobile manufacturers.

Regional Market Size

Regional Deep Dive

The global Automotive Adhesives and Sealants Market is growing at a substantial CAGR due to the increasing vehicle production, technological advancements, and growing emphasis on lightweight materials for fuel economy. The regional markets have unique market characteristics, which are influenced by local manufacturing capabilities, regulations, and consumer preferences. Moreover, as the demand for electric vehicles increases, the demand for specialized sealants and adhesives for new materials and designs is also growing, which is creating a large opportunity for growth in the market.

North America

• Electric cars are increasingly taking hold in the North American market, and this has led companies like 3M and Henkel to develop new adhesives for the assembly of batteries and lightweight components.
• Regulations, such as those in the USA and Canada, which make it necessary to reduce emissions, are pushing manufacturers to use more and more advanced adhesives, which can both improve the efficiency of the vehicle and reduce its weight.
• Ford and General Motors are present in the region, and they are working with the suppliers of the adhesives to find a solution that meets the new standards.

Europe

• In Europe, as in the United States, the green economy is the order of the day, and companies such as BASF and Sika are a great force in the field of bio-based and other sustainable products.
• The European car industry is increasingly focusing on the circular economy, and is therefore developing new adhesive formulations that make it easier to disassemble and recycle cars.
• Regulations like REACH are influencing the choice of raw materials used in the manufacture of glues and are driving manufacturers to use safer and more sustainable raw materials.

Asia-Pacific

• The booming economies of Asia-Pacific have led to a boom in vehicle ownership, resulting in a corresponding increase in demand for adhesives and sealants.
• China, as a major centre of the automobile industry, is the object of large investments from Dow and H.B. Fuller. The former has built a factory to supply the booming domestic market, and the latter has built a plant to supply the local market.
• Government support for the introduction of electric vehicles and the development of the necessary support systems are driving the need for special adhesives that can accommodate the new materials and new technologies.

MEA

• The Middle East and Africa region is slowly moving towards a more manufacturing-oriented economy, with countries such as South Africa and the United Arab Emirates (UAE) investing in the local production of vehicles, which has led to an increased demand for adhesives and sealants.
• Consequently, with the development of the automobile industry in the region, the international groups of glues, such as Arkema and Momentive, have set up their own branches and supply chains in order to meet the needs of the local industry.
• Culture and a growing preference for luxury cars are driving the demand for high-performance, durable adhesives that can improve the appearance and quality of a car.

Latin America

• In Latin America, a resurgence of automobile production is under way, particularly in Brazil and Mexico. This is resulting in increased demand for glues that meet local manufacturing standards and the preferences of consumers.
• In the region, local manufacturers and international adhesive suppliers such as Huntsman and Lord have teamed up to develop a range of tailored solutions.
• The monetary fluctuations and the trade agreements are affecting the prices and availability of raw materials for the production of glues, thereby requiring new ways of obtaining them.

Did You Know?

“The market for automobile sealants is expected to grow significantly, owing to the increasing use of lightweight materials, which can reduce the weight of a car by up to 20 percent and thus improve its fuel economy.” — Market Research Future

Segmental Market Size

The segment of Automotive Adhesives and Sealants plays a crucial role in the performance, safety and aesthetics of vehicles and is currently experiencing stable growth. The main drivers of demand are the increasing use of lightweight construction to reduce fuel consumption and the growing demand for durable, weather-resistant solutions in vehicle construction. The reducing of emissions is also pushing the development of advanced adhesives and sealants, which support the use of alternative materials.

At the moment, the market is in a state of exploitation, with companies like Henkel and 3M as the leaders in the field of new adhesives. The main applications are for bonding components in electric vehicles, sealing the windscreens, and strengthening the joints in the car body. The growth is driven by the trends of sustainable development and the switch to electric vehicles, which are both pushing manufacturers to look for more sustainable glues. Polyurethane and silicone-based glues are the most important new developments. These offer better performance and compliance with stricter regulations.

Future Outlook

The consolidated CAGR for the global market for the adhesives and sealants in the automobile industry is estimated to be 6.1% between 2023 and 2030. The market size is expected to remain stable at around $11,645,800,000. This will be a result of the growing complexity of automobile designs and the growing demand for lightweight materials to improve fuel economy. The penetration of adhesives and sealants in the assembly of automobiles will continue to increase, and the use of these products will rise significantly. By 2030, it is expected that the penetration of these products in the production of new automobiles will exceed 70%, up from the current 55%. This is mainly due to the transition to electric and hybrid vehicles, which require the use of new materials to meet strict performance and safety requirements.

The market is growing, and the growth is being accelerated by technological developments, such as the development of high-performance adhesives which are resistant to extreme temperatures and conditions. In addition, stricter regulations regarding the reduction of harmful emissions and the improvement of vehicle safety are pushing manufacturers to find ever more effective bonding solutions. Moreover, the development of smart materials and the increasing use of bio-based adhesives are likely to reshape the market. The demand for sustainable and high-performance bonding solutions will continue to grow as the automobile industry continues to evolve.