Rising Demand from the High-growth EV Segment Represents Key Growth Opportunities
This study aims to provide a forecast for the automotive adhesives and sealants market. It identifies growth opportunities and challenges pertaining to the consumption of adhesives & sealants by the automotive industry. Adhesives & sealants are being increasingly preferred over mechanical fastening, welding, and other conventional joining methods in various automotive applications as these products offer seamless bonding between surfaces and help reduce manpower and manufacturing costs.
The rising growth of electric vehicles (EVs) also spurs the demand for adhesives and sealants from the automotive industry. The under-the-hood (UTH) and powertrain parts in EVs are simpler than those in internal combustion engine (ICE)-based light passenger vehicles. EVs possess larger battery packs and electric motors and lower tailpipe and mechanical assemblies than ICE-based vehicles. This factor leads to an increased degree of integration of parts in EVs, driving greater market opportunities for adhesives and sealants.
From a regional perspective, Asia-Pacific is expected to dominate the consumption of automotive adhesives and sealants as China emerges as a major consumer and a manufacturing hub for SUVs, passenger vehicles, and EVs. Apart from China, Japan and South Korea dominate passenger car manufacturing in the region. Meanwhile, a greater impetus for EVs across other regions, including Europe, North America, and MEASA is expected to drive the robust growth of automotive adhesives and sealants over the forecast period.
However, the passenger vehicle market has been witnessing headwinds in 2020-21 due to the coronavirus pandemic which has led to a slow down of economies, including automotive sales, across the globe. However, as vaccination drives get underway and economies begin to open up again, the global automotive market is expected to rebound by H2 2021.
