The global automotive adhesives market is expected to reach $6.05 billion by 2021, witnessing a CAGR of 8.5% from 2016 to 2021, according to a recent report from Research and Markets titled “Automotive Adhesives Market by Resin Type (Polyurethane, Epoxy, Acrylic, Silicone, SMP, Polyamide), Application (Body-in-White, Paint Shop, Powertrain, Assembly), Vehicle Type (Buses, Trucks, LCV), and Region – Global Forecast to 2021”.
The trend of making lightweight and fuel-efficient vehicles is now encouraging the use of aluminum and other materials to reduce the weight of vehicles, which is driving the use of adhesives in automobiles. Moreover, the rising average adhesive volume use per vehicle across the Asia-Pacific, South American, and Middle East and African markets is anticipated to propel the overall demand for automotive adhesives during the forecast period. However, volatility in raw material prices and regulations restricting the use of hazardous chemicals are the major restraints to the growth of the market.
Automotive adhesives are used in various applications. Body in white application accounted for the largest volume share of the global automotive adhesives market in 2015. Better toughness, enhanced strength and reduced weight are all achieved using automotive adhesives in body in white. The assembly application segment is expected to grow at the highest CAGR from 2016 to 2021 in all applications considered. The growth in assembly application mainly results from the need for weight reduction and joining different substrates.
Passenger cars segment is the dominant segment among all vehicle types in the global automotive adhesives market, and is projected to grow at the fastest CAGR by 2021. The increasing sales of passenger cars is propelled by the improved spending ability in countries such as India, China and Brazil. The per capita income in these countries has shown significant growth and it is expected to follow the same trend during the forecast period.
Asia-Pacific is the fastest growing market for automotive adhesives, in terms of both value and volume. High economic growth rate, growing purchasing power, developing infrastructure, growing demand from end-use industries, and global shift in production capacity from developed markets to emerging markets are the major drivers for the growth of the automotive adhesives market in this region. China has led the automotive adhesives demand in this region owing to the increased production of vehicles in recent years. China is also the largest consumer of automotive adhesive around the globe.