Global Automotive Adhesive and Sealant Market to Witness 9% CAGR During 2015 – 2020

automotive adhesive

The global automotive adhesive and sealant market was valued at $4,879.3 million in 2014, and it is expected to grow with a CAGR of 8.8% during 2015 – 2020. The factors driving the growth of the global market include increasing focus on the usage of lightweight materials, vehicles safety and regulations, and fuel economy regulations. The vehicles safety standards and regulations are becoming stringent across the globe.

The increasing awareness of consumers regarding safety aspects of vehicles are resulting in increasing usage of various types of safety equipment. EURO NCAP is one of the organizations composed of seven governments, which provides an independent assessment of the car safety level for the cars sold in Europe. The increasing vigilance by such organization is another factor, which is forcing the automotive manufacturers to focus on car safety. The use of adhesive and sealants in a vehicle provides integrity to the bonnet and boot. These factors are anticipated to increase the demand of adhesive and sealants in the coming years.

Geographically, the Asia-Pacific market held the largest share in the global automotive adhesive & sealant market in 2014. Asia-Pacific is anticipated to be the fastest growing market for automotive industry. The production volume for passenger car and LCV segment in Asia-Pacific accounted for more than 50% of the global production. The increasing production in Asia-Pacific is complimented by intensifying demand for passenger cars and LCV in the region. The increasing economy and improving standards of living in countries, such as China and India, are the factors resulting in increased sale volumes. The use of adhesive and sealants in cars manufactured in Asia-Pacific is less, as compared to North America and Europe. However, the high production volume in Asia-Pacific has made it an attractive market for adhesive and sealants. The stringent regulations in Asia-Pacific are anticipated to increase the use of adhesive and sealants within the automotive industry to improve fuel economy and safety. Owing to this factor, the demand for adhesives and sealants in the region is expected to grow with an attractive rate.

PVC, epoxy, and polyurethanes are the three major types of automotive adhesives and sealants used within the automotive industry, in terms of volume. The usage of silicones in the automotive market is gradually increasing with the invention of silane based adhesives and sealants by companies, such as Henkel (Germany).

In 2014, the hot melts type segment is expected to achieve the fastest growth (10.5% CAGR) during 2015 – 2020 in the global automotive adhesive & sealant market in terms of value. Assembly Application Segment is expected to achieve the fastest growth (9.8% CAGR) during 2015 – 2020, in the global automotive adhesive & sealant market in terms of value.

However, volatility in the oil prices and low awareness levels regarding the benefits of adhesive and sealants are hampering the growth of the global market. The volatility in oil prices remain a key concern for the industries linked to it, whether directly or indirectly.

The key companies operating in the global automotive adhesive & sealants market include Dow Chemical Co., Henkel AG & Co. KGaA, 3M Company, Kommerling, PPG Industries, Inc., Permatex, Krayden Inc., and Sika AG

News Courtesy: P&S Market Research

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