The global automotive adhesives market is projected to reach around $4.95 billion by 2023, and it is projected to further grow to around $8.9 billion toward the end of 2033. Demand for automotive adhesives worldwide is likely to rise at a healthy CAGR of 6% from 2023 to 2033.

The role of the automotive adhesives market has been highly imperative in the production and assembly process of the world's automobiles. Modern automotive design makes these specialized adhesives an integral part of a large portion of applications, replacing traditional mechanical fasteners. Adhesives allow for lightweighting, enhance appearance, and increase structural integrity. Among the components covered by automotive adhesives are body panels, interior trims, glass bonding, electronic modules, and others. To the extent that automotive manufacturers strive for efficiency, durability, and sustainability, their requirements for advanced adhesives increase accordingly.

Market Insights

The automobile adhesives market is heading toward rapid growth due to technology innovations and changing industry standards. Major insights indicate a trend toward the usage of high-performance adhesives that offer excellent bonding strength, improved corrosion resistance, and thermal stability. Adhesive adoption is increasing to solve some of the main challenges, such as vehicle weight reduction for fuel efficiency and stringent safety regulations among manufacturers. Besides, innovative adhesive formulations that can bear wide temperature ranges and diverse environmental conditions encountered in automotive applications characterize the market.

Dynamics and Growth Factors

Some of the dynamics and growth factors driving the adhesives market in the automotive industry include: Firstly, stringent laws related to emissions and consumer demand for fuel-efficient vehicles are forcing auto-manufacturers to adopt lightweight materials wherein adhesives can play a vital role. Second, advances in adhesives technologies—such as improving bonding performance and faster curing—make them more attractive for use in automotive manufacturing. Furthermore, this increased adoption of EVs and autonomous driving technologies has created demand for electrically conductive adhesives that are compatible with new types of materials, including composites and plastics.

List of Key Companies Profiled in The Report

Dow Inc.
Henkel AG & Co. KGaA
Arkema S.A.
Franklin International
Jowat SE
Ashland
Sika AG
DuPont
3M
Huntsman International LLC
B. Fuller Company
Others

Notable Developments

New developments that should be taken note of in the market concerned are innovative adhesive bonding technologies that further improve durability and crash performance. Improvements in adhesive curing methods, for instance, UV-curable adhesives for fastening processes in vehicle production, demonstrate that innovation is far from over. Smart adhesives with integrated sensors and self-healing capabilities will transform vehicle maintenance and performance monitoring. Representative of how proactive the industry is in meeting evolving market demands and achieving sustainability goals is the collaborative effort of adhesive suppliers and automotive manufacturers in terms of optimizing bonding solutions for next-generation vehicle architectures.

Competitive Landscape

Leading manufacturers of automotive adhesives emphasize sustainable business practices in order to fulfill their net zero carbon goals and to boost their global brand image.

For instance, in September 2022, PPG—a foremost coatings, paints, and specialty materials supplier—announced a 12-year agreement with Constellation Energy for the latter to make its Michigan-based automotive adhesive and sealants manufacturing facility powered by renewable and clean energy. This process is likely to begin at the start of 2024.

How big will the adhesives market?

The valuation of the automotive adhesives market stands at US$ 4.95 billion in 2023 and is expected to reach US$ 8.9 billion by 2033.

What has been the outlook for adhesive industry?

The automotive adhesives market is likely to rise from 2023 to 2033, showing a CAGR of around 6%. In the Asia Pacific, the market is likely to grow above the global average to about 6.8% CAGR for the next decade, impelled by the growing demand for lightweight and electric vehicles, stringent emission mandates, and changing consumer preference for luxury interiors.

What is the largest market segment of adhesive sales?

The largest market share of adhesives is held authoritatively by the structural adhesives segment. This is attributed to the increasing use of plastics and composite materials in vehicle manufacturing, which aids in the reduction of vehicle weight under the strict emission regulatory environment.