Automotive Sealants Market size is expected to foresee considerable expansion from 2023 to 2032 owing to the growing production of high-performance cars and the optimum demand for lightweight composite materials.
Automotive sealants are widely utilized for protecting the exterior and paint of vehicles from the adverse effects of environmental elements, such as excessive heat, UV rays, and acid rain. These sealants are mainly made of synthetic polymers that create a tight protective web when linked together. Increasing adoption to help create nice glossy finishes to the car will also drive the preference for car sealants.
With the emerging trend of sustainability in the automotive sealants market landscape, numerous sealant and adhesive manufacturers are rapidly adopting more sustainable raw materials as well as production processes for the generation of more environment-friendly sealant formulations to cater to different requirements across the automotive sector. For instance, Total Cray Valley, in June 2021, ramped up the production of its hydroxyl-terminated diene resin range by launching sustainably sourced Krasol F3100 and Krasol F3000 farnesene-based resins used in epoxy, UV-cured, and urethane adhesive and sealant formulations. The increasing government intervention for the rollout of severe environmental mandates for mitigating carbon emissions will also outline the industry expansion.
The influx of the COVID-19 pandemic negatively influenced the automotive sealants market dynamics as it led to massive disruptions across multiple industry verticals, including automotive production. However, in the current scenario, the automotive industry, driven by the increased acceleration in EV adoption is observing a gradual turnaround. The growing rate of electric vehicles production ascribing to the rollout of favorable regulatory actions and the recovery in retail sales in the post-pandemic era will also foster the business development.
Based on type, the demand for polyurethane automotive sealants is slated to record massive gains through 2032 due to their higher application scope in high-performance automotive applications for the sealing of metal structures, including truck as well as car parts, and auto glass repair. Polyurethane sealants boast of high surface adhesion properties and exceptional stress recovery. Considering their capabilities of retaining shape after pulling or bending, adherence to non-primed concrete surfaces, and faster rate of curing, polyurethane adhesives are favored for use in challenging environments and tricky locations, further adding to the product application outlook.
Latin America automotive sealants market is anticipated to record lucrative expansion from 2023-2032 owing to the rising number of OEM plants and the strong presence of prominent vehicle manufacturers, including Audi, BMW, Volkswagen, Stellantis, and General Motors. For instance, Mexico makes around 3 million vehicles per year, emerging as the sixth-largest manufacturer of passenger vehicles across the world. This increasing rate of automotive production will open new industry avenues.
Leading companies operating in the industry’s competitive landscape comprise 3M Company, H.B. Fuller Company, PPG Industries, Henkel AG & Co., and EFTEC AG (EFTEC Europe Holding AG). These industry players are coming up with new products to meet the rising end-user demands. For instance, Sika, in December 2020, launched a novel polyurethane technology under the PURFORM® brand, to cater to sealant and adhesive uses across multiple automotive applications, including bonding of body components and battery systems in EVs.
These firms are also ramping up their production capacities to reinforce their foothold in the global automotive sealants market. To illustrate, PPG Industries, in August 2021, established a new manufacturing unit in Tangier, Morocco, in an attempt to develop automotive sealants for local vehicle manufacturing. The advent of various cutting-edge automotive sealant technologies and the increasing production of electric vehicles are other factors likely to drive the industry growth in the forecasted timeline. The growing regulatory support for the introduction of new adhesives and sealants specifically designed for providing improved energy efficiency will also influence the product adoption.