Automotive Adhesive and Sealant Market

Automotive Adhesive and Sealant Market Outlook (2024 to 2034)

Leading companies in the automotive sector are continuously working on manufacturing innovative and lightweight vehicles to increase fuel efficiency and reduce costs. Adhesives and sealants play a crucial role in the production of lightweight vehicles. Worldwide revenue from the sales of automotive adhesives and sealants is estimated to reach US$ 8.11 billion in 2024. The market is projected to expand at 5.7% CAGR and increase to a value of US$ 14.12 billion by 2034-end.

Adhesives are fluids that are used to temporarily or permanently bond two components. Sealants can be solid, liquid, or flexible materials that help plug leaks. Automakers’ focus on developing solutions that provide superior thermal stability and endurance is driving demand for high-quality adhesives and sealants.

Polyurethane, epoxy, acrylic, PVA, EVA, styrenic blocks resin-based adhesives and sealants are widely used in automobiles due to their broad applicability to a variety of substrates, including glass, plastic, ceramics, metals, and composites, all of which are major construction materials in the automobile industry. Adhesives and sealants are also becoming essential components of automotive production for all the abovementioned reasons.

Key Market Growth Drivers :

• The automotive sector is evolving with technological advancements to meet growing customer demands, driving an increased need for adhesives and sealants.
• PVA and EVA resin-based automotive sealants and adhesives are widely used for various applications in automobile manufacturing, including seats, interiors, and electronic component fixation.
• Hot melt adhesives exhibit excellent adherence to various surfaces like leather, cloth, glass, and polymers.
• With advancements in structural design and stringent safety regulations, demand for adhesives and sealants is on the rise. These components play a crucial role in noise reduction, structural strength, and component integration in automobiles.
• One of the key automotive adhesive and sealant market trends is the rising preference for bonding over welding.

Report Attributes	Details
Automotive Adhesive and Sealant Market Size (2024E)	US$ 8.11 Billion
Forecasted Market Value (2034F)	US$ 14.12 Billion
Global Market Growth Rate (2024 to 2034)	5.7% CAGR
North America Market Growth Rate (2024 to 2034)	5.9% CAGR
East Asia Market Value (2024E)	US$ 2.96 Billion
Body-in-White Segment Market Value (2034F)	US$ 4.63 Billion
Key Companies Profiled	BASF SE Jowat SE H.B. Fuller Company Illinois Tool Works Inc. 3M TESA SE Avery Dennison Corp. Arkema Group Huntsman International Delo Bostik Henkel AG & Co. KGaA The Dow Chemical Company Sika AG Solvay S.A. PPG Industries, Inc. Evonik Industries AG ITW Performance Polymers Akzo Nobel N.V Hernon Manufacturing Inc.

Which Market Trends are Driving Sales of Adhesives and Sealants?

“Growing Demand for Sports Cars and Superbikes among Younger Generation”

The present generation is demanding high-performance vehicles such as sports cars and superbikes. These high-speed vehicles make a lot of noise while in operation. However, with the use of noise-reduction technologies created by automotive adhesives and sealant producers, demand for such cars is projected to rise. Thus, the demand for automotive adhesives and sealants is driven by increasing sales of automobiles.

“Role of Adhesives and Sealants in Decreasing Weight and Improving Fuel Efficiency of Vehicles”

Adhesives come with high tensile and shear strength, whereas sealants are flexible. These attributes make adhesives and sealants a preferred choice for bonding and holding applications. Adhesives and sealants are mainly used in the automotive sector for sealing, bonding, reducing vehicle weight, and providing heat resistance.

Automotive adhesives and sealants are used in a wide range of applications, from microscopic sensors to large components such as automobile chassis. Manufacturers in the automotive sector prefer adhesives and sealants to welding because they decrease vehicle weight and improve fuel efficiency. These factors are contributing to automotive adhesive and sealant market growth.

What’s Negatively Impacting Automotive Adhesive and Sealant Sales?

“Fluctuations in Availability and Prices of Raw Materials”

Unpredictability of the availability of raw materials and price fluctuations are factors that are becoming major hurdles in the expansion of the automotive adhesive and sealant market size. Concerns about the availability of essential production materials not only impact the whole production process but also increase the cost of manufacturing.

Manufacturers either increase the price of the products or decrease their profit margins. Also, governments across the world are making strict rules and regulations to control issues related to emissions, safety, and environmental impact. These are becoming major challenges for automotive adhesive and sealant manufacturers.

Country-wise Insights

East Asia is expected to hold 36.5% of the global automotive adhesive and sealant market share in 2024. In North America, the application of adhesives and sealants is rising because of increasing sales of vehicles.

Why is China as a Key Automotive Adhesive and Sealant Producer in East Asia?

“Market Benefitting from Easy Raw Material Availability and Substantial Vehicle Production”

Attribute	China
Market Value (2024E)	US$ 1.68 Billion
Growth Rate (2024 to 2034)	6.3% CAGR
Projected Value (2034F)	US$ 3.11 Billion

China leads the automotive adhesive and sealant market in East Asia due to the presence of major vehicle manufacturers. Given the country’s vast population, the demand for vehicles is increasing consistently, which is contributing to the sales of adhesives and sealants used in automotive manufacturing. Also, the country’s strong manufacturing base, low labor cost, and easy availability of raw materials are making China a key player in the East Asia market.

How is Rising Environmental Consciousness Benefitting Manufacturers in the United States?

“Growing Emphasis on Production of Lightweight Vehicles to Improve Fuel Efficiency”

Attribute	United States
Market Value (2024E)	US$ 1.66 Billion
Growth Rate (2024 to 2034)	6.1% CAGR
Projected Value (2034F)	US$ 3.02 Billion

In the North American region, the United States holds a significant market share in terms of revenue. The increasing vehicle production in the United States is augmenting the sales of automotive adhesives and sealants as they play an important role in repairing, assembling, bonding, sealing, and securing components. Also, manufacturers in the United States are focusing on producing vehicles that are lightweight to improve fuel efficiency and reduce emissions in which adhesives and sealants are better options than welding.

Category-wise Insights

Why is Use of Automotive Adhesives and Sealants in Body-in-White Stage Rising?

“Focus on Weight Reduction Driving Use of Adhesives and Sealants in Body-in-White Stage”

Attribute	Body-in-White
Segment Value (2024E)	US$ 2.55 Billion
Growth Rate (2024 to 2034)	5.9% CAGR
Projected Value (2034F)	US$ 4.63 Billion

Increased production of electric vehicles is augmenting the application of adhesives and sealants in the body-in-white stage in automotive manufacturing. Electric vehicles need lightweight solutions to enhance the vehicle’s mileage, which is not possible with welding. Hence, manufacturers are using automotive adhesives and sealants to bond components. Market players continuously introduce lightweight solutions to satisfy consumer needs and meet regulatory standards.

What are the Advantages of Using Automotive Adhesives and Sealants in Assembly Lines?

“Role of Adhesives and Sealants in Reducing Weight and Improving Corrosion Resistance”

Attribute	Assembly
Segment Value (2024E)	US$ 1.97 Billion
Growth Rate (2024 to 2034)	5.4% CAGR
Projected Value (2034F)	US$ 3.19 Billion

Use of adhesives and sealants in automotive manufacturing is replacing traditional methods like drilling or fastening with bonded parts. This reduces the need for torque measurement and fastening checks. Automotive adhesives and sealants have many advantages over mechanical fasteners. These include seamless joints, weight reduction, enhanced noise and vibration damping, and improved corrosion resistance. The use of adhesives and sealants enhances the efficiency of the assembly process, thus improving vehicle performance.

Competitive Landscape

Key players in the automotive adhesive and sealant market are focusing on launching innovative solutions, new market opportunities, mergers, and acquisitions. Manufacturers involved in the industry are heavily investing in research and development to gain top positions in the market. Start-ups are coming up with innovative solutions and products.

Top companies in the market include BASF SE, Jowat SE, H.B. Fuller Company, Illinois Tool Works Inc., 3M, TESA SE, Avery Dennison Corp., Arkema Group, Huntsman International, Delo, Bostik, Henkel AG & CO. KGaA, The Dow Chemical Company, Sika AG, Solvay S.A, PPG Industries, Inc., Evonik Industries AG, and ITW Performance Polymers.

• In August 2023, Dow announced a US$ 40 million investment in China to enhance its automotive adhesives and sealants production capacity. The expansion is planned to be finished in 2024, increasing Dow's capacity in China by 20%.
• In August 2023, Henkel announced the availability of its new LOCTITE SI 5950 silicone sealant, which is particularly intended for electric cars. The sealant is heat, chemical, and vibration resistant, with great adhesion to a wide range of substrates such as aluminum, steel, and glass.
• In May 2022, ITW Performance Polymers formed a distribution collaboration with PREMA SA in Poland for its Devcon brand.
• In March 2022, Bostik formed an arrangement with DGE for the distribution of its products throughout Europe, the Middle East, and Africa. The deal covers Born2Bond engineering adhesives designed for “by-the-dot” bonding applications in specialized industries such as automotive, electronics, luxury packaging, medical devices, and MRO.
• In May 2021, Sika agreed to purchase Hamatite, Yokohama Rubber's adhesives division. Hamatite is a market leader in Japan, providing adhesives and sealants to the automotive and construction sectors.
• In October 2019, PPG Industries Inc. presented its new advanced automotive adhesives and sealants laboratory with a ribbon cutting and an open house in Cleveland.
• In September 2018, LG Chem announced the acquisition of Uniseal, a manufacturer of automotive adhesive and sealing products located in the United States, to expand its presence in the automobile sector.

Segmentation of Automotive Adhesive and Sealant Market Research

• By Product Type :

  • Polyurethane
  • Epoxy
  • Acrylic
  • PVA
  • EVA
  • Styrenic Blocks

• By Application :

  • Paint Shops
  • Body-in-White
  • Assembly
  • UTH & Power Trains

• By Vehicle Type :

  • Passenger Cars
  • HCVs
  • LCVs

• By Region :

  • North America
  • Europe
  • Latin America
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa