Automotive Adhesives Market - Forecast(2020 - 2025)

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Automotive Adhesives Market Overview

Automotive Adhesives Market size is forecast to reach $4.5 billion by 2025, after growing at a CAGR of 6.1% during 2020-2025. The potential of adhesives to decrease vehicle weight, raise fuel efficiency and reduce carbon emissions is expected to accelerate demand growth over the next seven years. This has contributed to greater component adoption in the automotive industry and thus to the substitution of welding and metal joints with adhesives. Lightweight cars are fuel efficient and have low carbon dioxide emissions. According to Henkel, the use of modern adhesives will decrease the weight of the vehicle by as much as 15.0 per cent. Increased development of lightweight vehicles is expected to fuel the use of adhesives in the automotive industry over the projected period. 

Automotive Adhesives Market Report Coverage

The “Automotive Adhesives Market report – Forecast (2020-2025)”, by IndustryARC, covers an in-depth analysis of the following segments of the Automotive Adhesives Industry.
By Polymer: Polyurethane, Epoxy, Polyvinyl Acetate, Acrylics, Phenolic, Synthetic rubbers, Polyester, Cyanoacrylates, Polyamide, Silicone, and others.
By Formulation: Water based, Solvent based, UV Cured Adhesives, Hot melt, and others.
By Substrate: Polymer, Composite, Metals, Glass, and others.
By Component: One-Component and Two-Component.
By Vehicle Type: Diesel and Petrol Vehicle and Electric Vehicles.
By Application: Body in White, Powertrain, Automotive Electronics, Interiors, and Others.
By Geography: North America, South America, Europe, APAC, and RoW.  

Key Takeaways

  • The rise in toxic emissions has led to the implementation of strict rules to reduce the environmental impact of cars. For example, in April 2019, the European Commission unveiled new carbon dioxide emission regulations, which reported that CO2 emissions from new cars and vans will be lowered by 37.5 percent and 31.0 percent, respectively, by 2030, compared to 2021.
  • While adhesives help to minimize harmful vehicle emissions, they add to VOC emissions. As a result, a range of regulatory bodies such as the United States Environmental Protection Agency (EPA), the California Air Resources Board (CARB) and the Licensing, Assessment, Permit and Restriction of Chemicals (REACH) have laid out certain requirements and criteria for their use to mitigate environmental and health hazards. Manufacturers are now transitioning to environmentally friendly adhesives to comply with these regulations.
  • Due to the Covid-19 outbreak, the automotive industry expects a loss of about 750,000 units in production and a $2 billion in revenue in 2020-2021.

Automotive Adhesives Market Segment Analysis - By Polymer

Polyurethane type segment is the fastest-growing technology segments in 2019 in terms of revenue, due to its increased use in the automotive industry, its adhesive bonding improves vehicle longevity, scratch resistance and corrosion resistance. In addition, its UV and heat stabilization properties make it suitable for use in the automotive industry. In addition, growth in demand from end-user industries is expected to complement market growth in automotive adhesives. Polyurethane adhesives have excellent heat tolerance and a fast curing operation. These properties make it easy to use them widely in headlamps, tailgates, fascia, roof modules, assembled parts and spoilers. They are preferably due to their good structural properties and are ideally suited for cross bonding of metals to composites.

Automotive Adhesives Market Segment Analysis - By Substrate

Composite type segment is the fastest-growing technology segments in 2019 in terms of revenue. Metallic materials are replaced by composite adhesive bonding agents, which result in decreased vehicle weight and increased fuel economy. In addition, the deployment of adhesives has led to a reduction in noise, vibration and durability of vehicles that fuel the growth of the composite. Moreover, increase in demand for automotive adhesives in Asia-Pacific is projected to fuel industry growth.

Automotive Adhesives Market Segment Analysis - By Formulation

Hot melt adhesive is one of the fastest-growing formulation segments on the automotive adhesives market in 2019, in terms of revenue. Hot melt adhesive based on reactive polyurethane is gaining prominence in the automotive industry due to its ability to offer superior bonding and high resistance to heat, moisture and chemicals. The use of hot melt adhesives in the automobile industry often accelerates the manufacturing process relative to others. 

Automotive Adhesives Market Segment Analysis - By Vehicle Type

Diesel and Petrol Vehicle segment held the largest share in 2019. The demand for commercial vehicles is growing due to the collision, adhesives, combined with structural bonding, act as reinforcement and crash-resistant material. Commercial vehicles are predicted to register the highest growth rate during the projected period due to their improved demand. According to the OICA, the production of heavy vehicles rose by 17.3 per cent in NAFTA and 27.1 per cent in South America from 2017 to 2018. Similarly, heavy bus production rose by 5.8% in Europe, 38.2% in South America and 4.2% in Africa. Global production of light commercial vehicles rose by 5.9% during the same period. In the heavy and medium commercial vehicle market, the use of adhesives has increased dramatically in recent years due to growing knowledge of the advantages of adhesives over rivets. As a result, increase in the production of heavy commercial vehicles is a promising sign for the industry. According to the Adhesive and Sealant Committee, the volume of adhesives consumed in North American medium / heavy trucks and buses was 2.4 gallons per vehicle in 2015.

Automotive Adhesives Market Segment Analysis - By Application

Body in white application segment held the largest share in 2019 by growing at a CAGR of 5.9% during the forecast period 2020 – 2025. Adhesives are increasingly replacing spot welding for bonding the raw vehicle frame. Their deployment results in weight loss, improved collision resilience and decreased metal fatigue. Epoxy and polyurethane are the most widely used products body in white applications. Adhesives help prevent salt, soil and water from penetrating the car body shell. Adhesives help increase body stiffness and toughness and increase crash performance. Each stage of the development of an automobile, whether for non-loading body components or structural parts, uses adhesives of one way or another. Adhesives are used in the manufacturing of engines, body parts, gearboxes and installed parts such as wing mirrors, seats and steering wheels.  
     

Automotive Adhesives Market Segment Analysis - By Geography

APAC dominated the Automotive Adhesives Market share with more than 45.9%, followed by North America and Europe. APAC is the largest and estimated to be the fastest growing market for automotive adhesives. The area comprises a complex variety of economies with differing levels of economic growth and numerous industrial innovations. With economic recession and saturation in Europe and North America, adhesive producers are moving their manufacturing base to APAC. China is one of the leading manufacturers and users of automotive adhesives in the country. Strengthening the economies of countries such as China and India is drawing new investment in APAC. Key market players are expanding their production of automotive adhesives in APAC, especially in China and India. According to the International Trade Administration, China is the largest vehicle market in the world, with the Chinese government predicting 30 million vehicles to be made by 2020 and 35 million by 2025. Also, according to India Brand Equity Base, India became the fourth largest automotive market in 2018, with sales growing 8.3 percent year-on-year to 3.99 million units. He was also the seventh biggest producer of commercial vehicles in 2018.

Automotive Adhesives Market Drivers

Strong application usage

Adhesives are gradually replacing spot welding for connecting the raw vehicle structure. Their deployment results in weight loss, improved collision resilience and decreased metal fatigue. Adhesives are used in a range of interior uses, such as dashboards, chairs, speakers, door panels and trunk trim. They play a major role in ensuring sound reduction in order to give travelers a relaxing journey. Adhesives have excellent heat tolerance and a fast-curing operation. These properties make it easy to use them widely in headlamps, tailgates, fascia, roof modules, assembled parts and spoilers. They are preferably due to their good structural properties and are best suited for cross bonding of metals to composites. 

Automotive Adhesives Market Challenges

Fluctuations in the price of raw materials, serving as constraints on the demand for automotive adhesives

Raw materials used in the production of automobile adhesives constitute a small but important portion of the global chemical industry. Raw materials comprise the bulk of the cost of goods sold (COGS) for automotive adhesives. Material building blocks used to manufacture vehicle adhesives can also be used to create a wide variety of other chemical compounds. Trends in use, price volatility and supply of raw materials all have significant consequences for the formulators of automotive adhesives and the industry as a whole. Not surprisingly, key markets compete for some raw materials and their precursors, especially during times of tight supply. Indeed, the uncertainty of raw material prices or scarcity of supply has resulted in technological capital moving from engineering ventures to the evaluation of new suppliers or alternative products during short supply times.
 

Automotive Adhesives Market Landscape

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Automotive Adhesives Market. In 2019, the market of Automotive Adhesives has been consolidated by the top five players accounting for xx% of the share. Major players in the Automotive Adhesives Market are Sika AG, The Dow Chemical Company, Bayer, Henkel, BASF, 3M Company, Ashland Specialty Chemical Company, H.B. Fuller Company, Hindustan Adhesives Limited, ExxonMobil Chemical Company, Dynea International Oy, Forbo Adhesives Switzerland, Hexion Specialty Chemicals, Covalence Adhesives, and among others.

Acquisitions/Product launches

  • In March 2018, Sika has introduced a new line of expandable cavity sealers-Sika Baffle 400 series for moisture sealing and acoustic damping. The launch of this series was an attempt by the company to align itself with its strategy of delivering technology with the latest trends in the automotive sector.
  • In February 2019, Huntsman launched the newest breakthrough in high-performance adhesives with the introduction of a new fast-curing, two-part acrylate adhesive range; ARALDITE 2050 and ARALDITE 2051. These adhesives are designed to maintain extreme conditions. These adhesives are designed to accelerate the vehicle bonding of thermoplastics, composites and metals and have high strength and resistance to vibration, effect and dynamic loading at high temperatures.
  • In September 2017, H.B. Fuller Company has announced that, by acquiring Royal Adhesives and Sealants, this transaction will facilitate the achievement of our 2020 strategic goal of concentrating and expanding on engineering adhesives and other highly defined business segments.

1. Automotive Adhesives Market- Market Overview
    1.1 Definitions and Scope
2. Automotive Adhesives Market- Executive Summary
    2.1 Market Revenue, Market Size and Key Trends by Company
    2.2 Key Trends by Polymer
    2.3 Key Trends by Formulation
    2.4 Key Trends by Substrate
    2.5 Key Trends by Component
    2.6 Key Trends by Vehicle Type
    2.7 Key Trends by Application
    2.8 Key Trends by Geography
3. Automotive Adhesives Market- Landscape
    3.1 Comparative analysis
        3.1.1 Market Share Analysis- Top Companies
        3.1.2 Product Benchmarking- Top Companies
        3.1.3 Top 5 Financials Analysis
        3.1.4 Patent Analysis- Top Companies
        3.1.5 Pricing Analysis
4. Automotive Adhesives Market- Startup companies Scenario Premium Premium 
    4.1 Top startup company Analysis by
        4.1.1 Investment
        4.1.2 Revenue
        4.1.3 Market Shares
        4.1.4 Market Size and Application Analysis
        4.1.5 Venture Capital and Funding Scenario
5. Automotive Adhesives Market– Industry Market Entry Scenario Premium Premium 
    5.1 Regulatory Framework Overview
    5.2 New Business and Ease of Doing business index
    5.3 Case studies of successful ventures
    5.4 Customer Analysis - Top companies
6. Automotive Adhesives Market- Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Market Opportunities
    6.4 Porters five force model
        6.4.1 Bargaining power of suppliers
        6.4.2 Bargaining powers of customers
        6.4.3 Threat of new entrants
        6.4.4 Rivalry among existing players
        6.4.5 Threat of substitutes 
7. Automotive Adhesives Market-Strategic analysis
    7.1 Value chain analysis
    7.2 Opportunities analysis
    7.3 Market life cycle
    7.4 Suppliers and distributors Analysis
8. Automotive Adhesives Market– By Polymer (Market Size -$Million)
    8.1 Polyurethane
    8.2 Epoxy
    8.3 Polyvinyl Acetate
    8.4 Acrylics
    8.5 Phenolic
    8.6 Synthetic rubbers
    8.7 Polyester
    8.8 Cyanoacrylates
    8.9 Polyamide
    8.10 Silicone
    8.11 Others
9. Automotive Adhesives Market– By Formulation (Market Size -$Million)
    9.1 Water based
    9.2 Solvent based
    9.3 UV Cured Adhesives
    9.4 Hot melt
    9.5 Others
10. Automotive Adhesives Market– By Substrate (Market Size -$Million)
    10.1 Polymer
    10.2 Composite
    10.3 Metals
    10.4 Glass
    10.5 Others
11. Automotive Adhesives Market– By Component (Market Size -$Million)
    11.1 One-Component
    11.2 Two-Component
12. Automotive Adhesives Market- By Vehicle Type (Market Size -$Million)
    12.1 Diesel and Petrol Vehicle
        12.1.1 Passenger Vehicles
        12.1.2 Light Commercial Vehicles
        12.1.3 Heavy Commercial Vehicles
    12.2 Electric Vehicles
        12.2.1 Hybrid Electric Vehicles (HEVs)
        12.2.2 Plug-in Hybrid Electric Vehicles (PHEVs)
        12.2.3 Battery Electric Vehicles (BEVs)
13. Automotive Adhesives Market- By Geography (Market Size -$Million)
    13.1 Body in White
    13.2 Powertrain
    13.3 Automotive Electronics
    13.4 Interiors
    13.5 Others
14. Automotive Adhesives Market- By Geography (Market Size -$Million)
    14.1 North America
    14.1.1 U.S.
    14.1.2 Canada
    14.1.3 Mexico
    14.2 South America
        14.2.1 Brazil
        14.2.2 Argentina
        14.2.3 Colombia
        14.2.4 Chile
        14.2.5 Rest OF South America
    14.3 Europe
        14.3.1 U.K
        14.3.2 Germany
        14.3.3 Italy
        14.3.4 France
        14.3.5 Spain
        14.3.6 Netherlands
        14.3.7 Russia
        14.3.8 Belgium
        14.3.9 Rest of Europe
    14.4 Asia Pacific
        14.4.1 China
        14.4.2 India
        14.4.3 ANZ
        14.4.4 Japan
        14.4.5 South Korea
        14.4.6 Rest of Asia Pacific
    14.5 ROW
        14.5.1 Middle East
            14.5.1.1 Saudi Arabia
            14.5.1.2 UAE
            14.5.1.3 Israel
            14.5.1.4 Rest of Middle East
        14.5.2Africa
            14.1.1.1 South Africa
            14.1.1.2 Nigeria
            14.1.1.3 Rest of South Africa
15. Automotive Adhesives Market- Entropy
    15.1 New Product Launches
    15.2 M&A’s, Collaborations, JVs and Partnerships
16. Market Share Analysis Premium
    16.1 Market Share by Country- Top companies
    16.2 Market Share by Region- Top companies
    16.3 Market Share by type of Product / Product category- Top companies
    16.4 Market Share at global level- Top companies
    16.5 Best Practices for companies
17. Automotive Adhesives Market- List of Key Companies by Country Premium 
18. Automotive Adhesives Market- Company Analysis
    18.1 Market Share, Company Revenue, Products, M&A, Developments
    18.2 Company 1
    18.3 Company 2
    18.4 Company 3
    18.5 Company 4
    18.6 Company 5
    18.7 Company 6
    18.8 Company 7
    18.9 Company 8
    18.10 Company 9
    18.11 Company 10 and more
"*Financials would be provided on a best efforts basis for private companies"