Automotive Adhesives Market

Automotive Adhesives Market Outlook (2023 to 2033)

The global automotive adhesives market is estimated at US$ 4.95 billion in 2023 and is extrapolated to amass a revenue of US$ 8.9 billion by 2033-end. Global demand for automotive adhesives is forecasted to rise at a healthy 6% CAGR from 2023 to 2033.

• The market in Asia Pacific is predicted to grow faster than the global average, at 6.8% CAGR over the next ten years.

The use of adhesives in the automotive industry has increased rapidly in recent years owing to the high demand for lightweight vehicles and the growing popularity of electric vehicles (EVs). Adhesives play a crucial role in improving the aesthetics of a vehicle by eliminating the need for bolts, rivets, and welds, which are seen as ugly and weight-inducing additions to the vehicle.

Implementation of stringent emission mandates for vehicles and the need for low-weight EVs to improve their range are also projected to uplift shipments of automotive adhesives in the long run.

A growing number of high net-worth individuals and evolving consumer preferences are projected to boost demand for cars with lush interiors, which is slated to promulgate sales of products such as car upholstery glue, car trim adhesives, leather glue for car seats, and car fabric glue throughout the forecast period.

Established automotive adhesive producers are focusing on launching new products designed for specific automotive applications to expand their business potential and improve the revenue generation capacity.

• In September 2020, Permatex, a name in chemical technology for automotive applications, announced the launch of its new range of epoxy adhesives that are designed to improve automotive repairs. The products are two-part adhesive and filler solutions that were easier to use as compared to other market alternatives.

Increasing disposable income and growing automotive manufacturing activity in emerging economies are anticipated to open up new windows of opportunity for incoming as well as prime automotive adhesive companies going forward. However, the implementation of strict norms to curb VOC emissions and regulations to control the use of toxic chemicals are expected to create challenges for market development in the long run.

On the contrary, volatility in raw material pricing due to political unrest in raw material supplying countries is estimated to be a major restraint for automotive adhesive shipments over the next ten years. Water-borne adhesives are slated to gain popularity owing to increasing focus on sustainability around the world and this could be the way for automotive adhesive suppliers to overcome the aforementioned constraint through 2033.

Report Attributes	Details
Market Size in 2023	US$ 4.95 Billion
Projected Market Value (2033F)	US$ 8.9 Billion
Global Market Growth Rate (2023 to 2033)	6% CAGR
Asia Pacific Market Growth Rate (2023 to 2033)	6.8% CAGR
Key Companies Profiled	Dow Inc. Henkel AG & Co. KGaA Arkema S.A. Franklin International Jowat SE Ashland Sika AG DuPont 3M Huntsman International LLC H.B. Fuller Company

Why is This an Opportune Space for New Automotive Adhesive Companies?

“Adhesives for EV Batteries - Focal Point for Start-ups”

Surging popularity of electric vehicles and growing EV sales around the world are projected to boost demand for electric vehicle batteries over the coming years. New automotive adhesives suppliers are focusing on investing in the R&D of novel adhesive technologies that can be used for battery manufacturing and other automotive applications that allow automotive companies to reduce the weight of the vehicle to comply with stringent emission standards.

Aspiring automotive adhesive manufacturers can also target the rising focus on sustainability to create new products that have a lower impact on the environment as compared to conventional adhesives that are based on toxic chemicals. Automotive adhesives start-ups can also focus on the development and launch of auto adhesives that have a faster curing and drying time to speed up the automotive manufacturing process.

Low VOC adhesives, removable adhesives, and instant adhesives are some products that new companies should focus on to make a mark in the marketplace. An all-inclusive assessment of market-augmenting aspects such as new developments, product standards, local supply, pricing trends, and safety regulations have been mentioned in this latest automotive adhesives market study by skilled analysts at Fact.MR, a market research and competitive intelligence provider.

Country-wise Insights

Why Should Automotive Adhesive Vendors Invest in Europe?

“Presence of Key Automotive Manufacturers - Ground for Lucrative Business Scope”

Europe is home to some of the most prominent automotive companies such as BMW, Porsche, Volkswagen, Audi, etc., and also has a well-established automotive manufacturing industry. The aforementioned factors are projected to primarily augment shipments of automotive adhesives in European countries across the forecast period. The presence of key adhesive and coatings manufacturers in the European region is also projected to bolster market growth through 2033.

Increasing sales of electric vehicles, growing demand for eco-friendly automotive glue, and implementation of stringent emission standards to reduce carbon footprint are other aspects that could alter sales of car adhesives in countries such as Germany, Italy, France, and the United Kingdom going forward. Products such as car upholstery glue, car trim adhesives, leather glue, and other car adhesives for interior applications are slated to witness high demand in European countries owing to the high demand for luxury cars with comfortable and spacious interiors.

How Profitable is the Automotive Adhesives Market in the United States?

“Rising Investments in R&D of Novel Adhesive Technologies”

Demand for auto adhesives in the United States is projected to be primarily driven by increasing investments in research and development of adhesive technologies. The presence of key adhesive manufacturers, supportive government initiatives to advance research, growing demand for eco-friendly car adhesives, and increasing automotive production are also predicted to uplift shipments of products such as auto double-sided tapes, car molding adhesives, car windshield glue, headliner adhesives, etc. in the country through 2033.

• In 2019, Henkel Adhesive Technologies, a leading provider of adhesives, announced the opening of its new OEM Application Center in Connecticut, United States. The company had plans to deliver customized adhesive solutions and design innovative solutions to serve its customers more efficiently.

Which Asian Countries are Lucrative Markets for Automotive Adhesive Suppliers?

“China, Japan, Korea, India - High-priority Markets”

Surging automotive manufacturing and the presence of key automotive giants in Asian countries such as China, India, Japan, and Korea are projected to influentially augment demand for automotive adhesives in the future. Growing per capita disposable income, increasing sales of vehicles, changing consumer preferences, and growing focus on weight reduction of vehicles owing to the implementation of strict emission mandates are other factors that alter automotive adhesive shipments across the forecast period.

• In 2019, China’s Ministry of Environment and Ecology (MEE), announced the launch of a new comprehensive 3-year plan to decrease the use of volatile organic compounds (VOCs) in different industry verticals to attain its sustainability goals.

The presence of key chemicals manufacturers and supportive government initiatives to boost manufacturing activity in Asian countries are also expected to create an opportune scenario for auto adhesive manufacturers and distributors over the next ten years. Low raw material costs and low labor costs are also forecasted to benefit established as well as automotive adhesive start-ups going forward.

Category-wise Insights

Where are Auto Adhesives Most Widely Used?

“Passenger Vehicles to Account for Significant Automotive Adhesive Demand”

Based on vehicle, the automotive adhesives market is segmented into passenger vehicles, light commercial vehicles (LCVs), and heavy commercial vehicles (HCVs).

Sales of passenger vehicles have been witnessing an upward trend in the past few years and this can be ascribed to the rising disposable income of the general population and changing living standards around the world. Emerging economies such as China and India are estimated to lead the sales of passenger vehicles and create lucrative opportunities for automotive adhesive companies in the future.

Growing focus on sustainability and swelling sales of electric vehicles are also expected to favor shipments of auto adhesives over the next ten years. The increasing availability of attractive vehicle financing schemes is also expected to contribute to high sales of passenger vehicles in the future and subsequently favor automotive adhesive demand as well.

Which Type of Adhesive is Highly Sought After?

“Structural Adhesives Account for Authoritative Market Share”

Based on adhesive type, the market for automotive adhesives is segmented into structural, tapes & films, threadlocks & retainers, and liquid gaskets.

Rising use of plastics and composite materials in the manufacturing of vehicles to reduce weight and comply with strict emission regulations around the world is estimated to bolster demand for auto adhesives in the future. The growing use of carbon fiber to build the core structural shell of vehicles is also projected to promulgate sales of structural car adhesives and auto body glue across the forecast period and beyond.

Automotive double-sided tapes and sealing films are predicted to witness a hike in demand over the next ten years and contribute to the increasing share of the tapes and films segment.

Competitive Landscape

Leading automotive adhesive manufacturers are focusing on incorporating sustainable practices in their business models to achieve their net zero carbon goals and improve their brand image across the world.

• In September 2022, PPG, a leading supplier of coatings, paints, and specialty materials, revealed that it had signed a 12-year agreement with Constellation Energy to power PPG’s automotive adhesive and sealants manufacturing facility in Michigan with renewable and clean energy. The operations for this are expected to start at the beginning of 2024.

Key Segments of Automotive Adhesives Industry Research

• By Technology :

  • Solvent-borne
  • Water-borne
  • Hot Melt
  • Reactive
  • Others

• By Vehicle :

  • Passenger Vehicles
  • Light Commercial Vehicles (LCVs)
  • Heavy Commercial Vehicles (HCVs)

• By Adhesive Type :

  • Structural
  • Tapes & Films
  • Threadlocks & Retainers
  • Liquid Gaskets

• By Application :

  • BIW
  • Glazing
  • Powertrains
  • Paint Shops
  • Upholstery

• By Sales Channel :

  • OEMs
  • Aftermarket

• By Region :

  • North America
  • Latin America
  • Europe
  • APAC
  • MEA