The Automotive Adhesives Market size was valued at USD 4.8 Billion in 2023 and is expected to reach USD 7.9 Billion by 2032 and grow at a CAGR of 5.8% over the forecast period of 2024-2032.
Increasing Stringent Environmental Regulations Drive the Market Growth.
Increasing Stringent Environmental Regulations are driving the demand for innovative and sustainable solutions. Parameters to check pollution levels are becoming increasingly demanding, and governments are mandating that the automotive sector produce less pollution to combat rising levels of pollution. For example, the European Union has issued a new directive on carbon emissions to become effective starting in 2023. According to this directive, there must be a “reduction in vehicle emissions by 2030, requiring automakers to use lighter materials and advanced adhesives”. The European Environment Agency reports that in 2023, the transport sector was responsible for 25% of the total greenhouse gas emissions in the European Union and has hence served as the most important target of environment policy. Automotive adhesives are becoming indispensable as they reduce the total weight of vehicles and hence improve overall fuel efficiency. Automotive adhesives have started replacing the traditional use of mechanical fasteners. These adhesives have also facilitated the lightening of the vehicle, and an overall lighter vehicle is delivered to customers. This is essential as only so much
Advancements in Electric Vehicle (EV) Manufacturing Drives the Market Growth.
A major driver that causes a substantial increase in the demand for automotive adhesives is the progress in electric vehicle manufacturing. Governments support the development of electric vehicles, and there is an investment in new means of transportation in many countries all over the world. For instance, in 2023, the U.S. government announced an investment of USD 174 billion to support the EV market, covering incentives for manufacturers and updating infrastructure. Regarding this tendency, adhesives have become innovative for EVs because they need to provide high-performance bonding, be lightweight, and be durable for proper battery assembly, temperature management, and reducing the overall vehicle weight. These adhesives quickly bond surfaces, regardless of how dissimilar they are, and provide a high level of safety in high temperatures. In the future, the trend of reduction and final stop of in ternal combustion engine car production and the transfer to EVs predominance will persist, which will encourage the use of these adhesives as an important aspect of the automotive industry.
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Recent Developments
· August 2024: Henkel AG announced the expansion of its automotive adhesives production facility in China, aiming to meet the growing demand in the Asia-Pacific region. The expansion is expected to increase the facility’s output by 20%, aligning with the rising production of electric vehicles in the region.
· June 2024: 3M launched a new range of high-performance automotive adhesives designed specifically for electric vehicles. The product line was developed in response to the growing EV market in Europe and Asia, offering superior bonding solutions that enhance vehicle safety and performance.
Segment Analysis
By Resin Type
Polyurethanes held the largest market share in 2023. Polyurethanes are the most effective types of auto adhesives used to provide a good structural bond between various car components. The PUs is regulated manually, with the aid of hand-held guns, as well as mechanically by specially created machines with automated adhesive application cycles. By the quality of such coatings, it is possible to judge how the factory wishes to approach the assembly of the car. For instance, if poorly glued rear gaskets are used, the rest of the car will be manufactured according to a similar principle. In all these cases, the need for equipment, work surfaces, etc., is brought to naught. The control is facilitated by the fumes and the workers being drowned out on-site. This is why this method is used for plastic bumpers, windows, and car glass.
By Application
The body in white segment held the largest market share around 40.5% in 2023. Adhesives contribute to total weight reduction when compared to bulky welds. Consider it as losing weight without compromising structural integrity, which is important for increasing fuel economy and possibly even the performance of the vehicle. Moreover, with the global push towards lightweight vehicles, especially in the context of electric vehicles (EVs), BIW adhesives have become indispensable. These adhesives allow for the bonding of dissimilar materials, such as aluminum and high-strength steel, which are essential for reducing the overall weight of vehicles.
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Regional Insights
The Asia-Pacific region has been dominating the automotive adhesives market, primarily due to its robust automotive manufacturing industry. Countries such as China, Japan, and South Korea are at the forefront, with China being the largest producer of automobiles globally. The region's dominance is further bolstered by government initiatives promoting electric vehicles (EVs). For example, China's 2023 policy to extend subsidies for electric vehicles until 2025 has significantly increased the production and adoption of EVs. This has, in turn, driven the demand for advanced automotive adhesives that are critical in EV manufacturing. The Asia-Pacific region's extensive automotive supply chain, combined with supportive government policies and investments in innovation, positions it as the leading market for automotive adhesives.
Top of FormKey Takeaways
· Electric vehicle growth and lightweight vehicle production are key drivers of the automotive adhesives market.
· Data Companies lead the market through advanced R&D and strategic acquisitions.
· Asia-Pacific is the dominant region, driven by its robust automotive manufacturing industry
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