Global Automotive Adhesives Market to Reach $5.1 Billion by 2026

Automotive adhesives are adhesive materials that find applications in structural bonding of auto components. Automotive adhesives are intended to address various needs of automakers such as conformal coating, thermal management, potting or casting, mechanical bonds, EMI or RFI shielding, electrical connections, impregnation and stress dissipation. These adhesives are commonly used in engine control units, anti-lock brake systems (ABS), displays, climate controls, navigation systems, transmission control units, vehicle stability control, vision system, sensors, connectors, detectors, instrument panel, security devices and battery monitoring systems. On the back of electrification and electronification technologies, vehicle manufacturing and design is dramatically changing. Among the components to gain significance is automotive adhesives. The rising focus on weight reduction of automobiles to meet increasingly stringent fuel economy mandates is expected to fuel demand for advanced automotive adhesives.

Amid the COVID-19 crisis, the global market for Automotive Adhesives estimated at US$4 Billion in the year 2020, is projected to reach a revised size of US$5.1 Billion by 2026, growing at a CAGR of 4% over the analysis period. Bonding, one of the segments analyzed in the report, is projected to grow at a 3.8% CAGR to reach US$2.6 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the NVH segment is readjusted to a revised 5% CAGR for the next 7-year period. This segment currently accounts for a 31.5% share of the global Automotive Adhesives market. Manufacturers are leveraging benefits of adhesives as bonding technology for achieving greater productivity, reducing costs, improving flexibility in manufacturing process and realizing goals of producing vehicles with high fuel efficiency & lower emissions, superior durability and packaging capabilities. Therefore, adhesives are now being used in applied in practically every nook and corner of the car be it for the body, under the hood and exterior trims of vehicles where they offer many benefits over conventional bonding technologies.

The U.S. Market is Estimated at $590.9 Million in 2021, While China is Forecast to Reach $1.5 Billion by 2026

The Automotive Adhesives market in the U.S. is estimated at US$590.9 Million in the year 2021. The country currently accounts for a 14.41% share in the global market. China, the world`s second largest economy, is forecast to reach an estimated market size of US$1.5 Billion in the year 2026 trailing a CAGR of 5.4% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 2.4% and 3.5% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 2.7% CAGR while Rest of European market (as defined in the study) will reach US$1.6 Billion by the end of the analysis period.

Sealing/Protection Segment to Reach $899.1 Million by 2026

Adhesives also have a role to play in combating the thermal runaway issues in electric vehicles which rely on lithium ion batteries. Innovative sealing technologies protect the battery from external fluids. In the global Sealing/Protection segment, USA, Canada, Japan, China and Europe will drive the 2.6% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$597.1 Million in the year 2020 will reach a projected size of US$716.8 Million by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$136.1 Million by the year 2026, while Latin America will expand at a 3.2% CAGR through the analysis period.