Automotive Adhesives Global Market Report 2024

The automotive adhesives market size has grown strongly in recent years. It will grow from $5.36 billion in 2023 to $5.72 billion in 2024 at a compound annual growth rate (CAGR) of 6.7%. During the historical period, growth can be attributed to several factors, including robust economic expansion in emerging markets, a rising global population, governmental backing for the automobile industry, a growing inclination towards improved user comfort, safety, and convenience, as well as an increased emphasis on light weighting strategies aimed at reducing vehicle weight.

The automotive adhesives market size is expected to see strong growth in the next few years. It will grow to $7.49 billion in 2028 at a compound annual growth rate (CAGR) of 7.0%. Forecasted growth is driven by global population surge, urbanization, booming e-commerce, government support for electric vehicles. Anticipated trends include eco-friendly and water-based automotive adhesives, aluminum adhesive tech, 3D vision systems, and advanced dispensing technologies.

The automotive adhesives market is poised for growth due to the increasing demand for lightweight and low-carbon-emitting vehicles. Stricter emissions regulations have prompted automobile manufacturers to focus on producing lighter vehicles to reduce CO2 emissions. Automotive adhesives play a crucial role in this shift, replacing traditional methods such as nuts, bolts, rivets, and welding, thereby making vehicles both lighter and more robust. This not only enhances fuel economy but also contributes to emissions reduction. For example, in November 2021, approximately 12.8 million autos and light trucks were sold in the USA, reflecting the significant demand for vehicles. The surge in the preference for lightweight and low-carbon-emitting vehicles is expected to be a key driver for the automotive adhesives market.

The growing demand from e-commerce companies for logistics services to meet the rising expectations of end customers is anticipated to boost the demand for commercial vehicles, subsequently driving the automotive adhesives market. The e-commerce sector heavily relies on logistics providers for efficient delivery services. According to the US Department of Commerce Retail Indicator Division, e-commerce sales in the US reached $870 billion in 2021, marking a 14.2% increase from the previous year. The quest for reduced delivery times and streamlined supply chains is expected to fuel the demand for last-mile delivery vehicles in the e-commerce sector. Notably, commercial vehicle sales in India experienced a significant 25% increase in February 2022 compared to the previous year. This surge in the e-commerce market is poised to be a driving force behind the increased demand for commercial vehicles and, consequently, automotive adhesives.

The introduction of new adhesives stands out as a prominent trend in the automotive adhesives market. This trend involves manufacturers launching innovative products to expand their product portfolios and enhance their market share. An illustrative example is Arkema, which, in October 2021, unveiled a new range of high-performance anaerobic adhesives. These adhesives offer engineers cost-effective and convenient alternatives to traditional mechanical fastening solutions, including washers, gaskets, pins, hemp, and tapes. The launch of this anaerobic adhesive addresses the evolving challenges faced by engineers in the automotive industry, encompassing increasingly stringent environmental and safety regulations, smaller and more intricate designs, and the need for more adaptable and expedited processes in areas such as general assembly. The introduction of such new and advanced adhesives is instrumental in meeting the dynamic demands of the automotive sector while providing manufacturers with opportunities to strengthen their market positions.

In November 2021, Germany's Polytec PT GmbH merged with CollTech R&D Center GmbH, aiming to innovate in adhesive development, combining expertise and broadening their specialty adhesive portfolio. Polytec PT specializes in adhesives and thermal interface materials for electronics, electrical, and automotive sectors, while CollTech R&D manufactures fast-curing specialty adhesives.

In May 2021, Switzerland's Sika AG agreed to acquire Hematite, the adhesive business of The Yokohama Rubber Co., Ltd. This undisclosed acquisition enhances Sika's market presence in Japan, providing access to OEMs and the construction industry. Hematite is a prominent brand in Japan, offering polyurethanes, hot melts, modified silicones, and various technologies, notably preferred by regional OEMs for glass bonding and hot melt applications in automotive and construction sectors.

Major companies operating in the automotive adhesives market report are Henkel & Co. KGaA, 3M Company, Arkema, Sika AG, H.B. Fuller, Illinois Tool Works Inc., PPG Industries, Dow Inc., Avery Dennison, Huntsman, Benson Polymers Limited, Acme Corp, Chadha Corporation Pvt. Ltd., Adfast Polymers, Proten Exim Private Limited, Hunan Magpow Adhesive Group Co. Ltd., Wuhan Boli Chemical Ltd., Zibo Chico International Co. Ltd., Tengxin Chuzhou New Material Co. Ltd., Megabond (Huangshan) Adhesive Co. Ltd., Shanghai Hansi Industrial Co. Ltd., Beijing Comens New Materials Co. Ltd., Japan Sika Corporation, Henkel Japan Ltd., Dow Chemical Japan Ltd., Afinitica, ITAC Adhesives, Bostik UK, Antala Ltd., tesa SE, NPT SRL, Permabond, Grupa Azoty Zaklady Chemiczne Police S.A, MD Poland, RUSTA LLC, Russian Coatings JSC, LIKK, Alloy Products, Amazing Goop, AssureCure, Bondmaster, Camie, Chem-Calk, Chemseal, Chipbonder, ConProTec, Conap, Conapoxy, Cytec, Devcon, Double/Bubble, Dow Corning, Dymax, Dynaloy, E-Max, Eccobond, Eclectic, EconoDot, Elastoplastic, Ellsworth, Emerson & Cuming, Epoxi-Patch, FISHMAN, Oasn Me Ltd., Amazonas Industria E Comercio Ltd., Hotmelt Adhesives, Fixa Tudo, Jowat SE.

Asia-Pacific was the largest region in the automotive adhesives market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the automotive adhesives market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the automotive adhesives market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

They come in various types based on resin composition, including polyurethane, epoxy, acrylics, silicone, SMP (silane modified polymer), MMA (Methyl Methacrylate Adhesives), among others. Each type possesses unique characteristics and applications, such as polyurethane being thermoplastic, epoxy forming a durable layer after curing, acrylics made of resin-based compounds, silicone appearing as a gel-such as liquid, SMP sealants forming permanent elastic bonds, and MMA adhesives widely used in automotive and transportation industries. The market segments include structural adhesives, tapes and films, thread-locks and retainers, and liquid gaskets. Automotive adhesives find application across various vehicle types such as passenger cars, light commercial vehicles, trucks, buses, and in aftermarket services. Their major uses encompass body in white (BIW), glazing, powertrain, paint shops, and upholstery in automotive applications.

The automotive adhesives market research report is one of a series of new reports that provides automotive adhesives market statistics, including automotive adhesives industry global market size, regional shares, competitors with an automotive adhesives market share, detailed automotive adhesives market segments, market trends and opportunities, and any further data you may need to thrive in the automotive adhesives industry. This automotive adhesives market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The automotive adhesives market consists of sales of polyamides and phenolic automotive adhesives. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.