Global automotive adhesives market size is anticipated to grow commendably over 2021-2027, driven by the escalating adoption of crash-resistant automotive adhesives, including urethane, in windshields. Furthermore, the ability of automotive metal bonding adhesives to prevent galvanic corrosion and maintain aesthetic appeal will also fuel industry demand over the estimated timeline. Adhesives refer to any substance that can hold materials together in a functional manner through surface attachment that resists separation. Increasing use of adhesives for automotive applications is mainly due to their high elasticity and the capability to withstand major temperature fluctuations. This substance is widely used for bonding automotive electronics, as sensitive components like fine contact wires and pressure sensors in drive and control systems need permanent, reliable bonding.
Shifting preference towards electric vehicles to reduce air pollution from exhaust emissions is one of the key factors stimulating the overall automotive adhesives market trends over 2021-2027. According to Power Technology’s data, the sales of EVs witnessed a 160% hike in the first half of 2021 as compared to a year earlier, with growth in all top three auto markets, which are Europe, the U.S., and China. This factor will contribute to automotive adhesives market expansion, as adhesives and sealants play a significant role in the body construction and assembly of hybrid and battery EVs. In addition, the high rate of passenger vehicle dispatch to dealerships, following the gradual ease of COVID-19 lockdown restrictions, is further expected to impel industry share in the years ahead.
Based on resin type, the epoxy segment is set to account for an appreciable automotive adhesives market share by 2027. This is considering the rapid development of novel epoxy adhesive formulations to prevent contact corrosion in metal-carbon connection and the mounting substance launches to improve the bonding performances in varied automotive applications. For example, in February 2021, Kisling introduced its ergo® 7440 epoxy adhesive, which allowed Ferrari to solve existing adhesive issues, by delivering a fast buildup of handling strength and temperature resistance, among other benefits.
The MEA (Middle East & Africa) is poised to emerge as a prominent regional segment in the automotive adhesives industry by 2027, given the rising investment interest towards electric cars in the UAE. According to an Audi Abu Dhabi survey, over 29% of UAE residents are likely to consider purchasing an EV to narrow emission levels. Furthermore, the escalating sales of automobiles and auto parts in Saudi Arabia, which accounts for nearly 40% of all vehicles sold in the GCC, will propel the automotive adhesives demand in the region.
Key players in the global automotive adhesives industry include Solvay S.A., Jowat AG, PPG Industries, Illinois Tool Works Corporation, H.B. Fuller, Sika AG, Bostik S.A. (Arkema), The DOW Chemical Company, Henkel & Co. KGaA, and 3M Company, among others. These firms are focusing on strategies such as new substance launches and business expansions to reinforce their footprint across the global market.
For instance, in August 2021, PPG announced the startup of a new facility in Morocco, developed to produce automotive adhesives and sealants for local vehicle production in Tangier. In December 2020, Sika announced the development of a new polyurethane technology, which was designed for use as an adhesive and bonding component in the automotive and construction industries.
In the wake of the coronavirus pandemic, the automotive industry has been hard hit, primarily due to the sprawling consumer electronics sector and the subsequent rise in chip shortage issues across the automobile sector. Various car makers also planned to halt production at their facilities, considering the significant threat posed by the pandemic to their overall operations. Situations such as these may create an indirect negative impact on the automotive adhesives industry over the foreseeable future. However, the steady increase in sales of EVs during the crisis, backed by the existing decarbonization policies, may lead to a surge in the adoption of automotive adhesives worldwide, thereby aiding in gradual recovery of the industry.