Rise in the stringency of vehicle safety standards in response to the high rate of road crashes propels the usage of adhesives and sealants on the bonnet to provide integrity to these parts and enhance their ability to withstand head-on collisions. These phenomena, among others, drive the automotive adhesives and sealants market size to grow at 6.1% by 2030.
According to the recent market research report published by P&S Intelligence, the automotive adhesives and sealants market will grow from $ 6.41 billion in 2020 to $ 11.64 billion by 2030.
Epoxy-based adhesives and sealants have been the most popular among automotive original equipment manufacturers (OEM) till now. This is credited to epoxy products' rigid bonding ability, which improves the structural integrity of vehicles, thus making them stronger and impact resistant. Hence, with the rising demand for automobiles, coupled with the strict vehicle and passenger safety regulations in place, the consumption of epoxy adhesives and sealants continues to grow.
Some of the key companies in the automotive adhesives and sealants market are Henkel, KGaA, Sika, The Dow Chemical Company, PPG Industries, H.B. Fuller, 3M, Permatex, Illinois Tool Works, Bostik, and EFTEC AG.
The report finds that the automotive adhesives and sealants market will grow the fastest in body-in-white (BIW) applications as the usage of these materials for BIW purposes makes vehicles lighter and fuel-efficient.
Passenger car production accounted for the higher consumption of these materials as it outnumbers commercial vehicle production. Automakers are augmenting their passenger car output with people's rising disposable income.
The burgeoning electric vehicle (EV) production is also boosting the usage of these materials. With the rising environmental awareness and numerous supporting government schemes in place, electric car sales hit the 3million mark in 2020. As a result, adhesives and sealants are widely used to enhance EVs' structural integrity, eventually driving the industry.
The COVID-19 pandemic has mostly negatively impacted automotive adhesive and sealant producers by shutting down auto production and decreasing the demand for vehicles due to worldwide financial instability.
According to the market research and consulting services provider, another key driver for the automotive adhesives and sealants market is the rising sale of lightweight automobiles due to the increasing vehicular emissions. To make lightweight vehicles, plastics, aluminium, and carbon fibre are used instead of iron and steel, which leads to the usage of adhesives and sealants over nuts, bolts, and welding.
As per the report, Asia-Pacific is the biggest consumer of automotive adhesives and sealants as it is the world's largest producer of automobiles. Moreover, many European and North American companies are setting up plants to manufacture automotive adhesives and sealants, thereby leading to their easy availability, the market research and consulting services provider said.
Courtesy: P&S Intelligence. NB: Photo is representational; courtesy: Henkel.