Automotive Adhesives Market - Size, Share, Industry Trends, and Forecasts (2024 - 2031)

By Type:

Based on type, the market is categorized into silicon adhesive, polyurethane adhesive, acrylic adhesive, epoxy adhesive, and others.

Trends in the Type:

• Ongoing research and development are leading to the development of polyurethane adhesives with enhanced properties, such as improved heat resistance, chemical resistance, and impact strength.
• New curing technologies, such as UV curing and microwave curing, are enabling faster curing times and improved performance for epoxy adhesives.

The polyurethane adhesive segment accounted for the largest market share of 31.66% in 2023.

• Polyurethane adhesives are a type of polymer-based adhesive that offers a wide range of properties, making them versatile for various applications.
• Polyurethane adhesives are a versatile class of adhesives known for their excellent adhesion to a wide range of substrates, including metals, plastics, wood, and rubber.
• They offer a combination of properties such as high strength, flexibility, durability, and resistance to environmental factors.
• Polyurethane adhesives are widely used in various industries, including automotive.
• They are particularly popular in automotive applications due to their ability to bond different materials and withstand harsh environmental conditions.
• Manufacturers are introducing novel polyurethane adhesives to balance thermal conductivity with high mechanical strength in electronic vehicles.
• For instance, in 2023, Bostik and Polytec PT introduced their new range of Thermal Conductive Adhesives (TCAs). XPU TCA 202 is a dual-component, polyurethane-based adhesive engineered for efficient heat dissipation in battery pack assemblies
• Thus, based on the analysis, the use of polyurethane adhesives in electric vehicle applications is driving the share of the market.

The epoxy adhesives segment is expected to grow at the fastest CAGR over the forecast period.

• Epoxy adhesives have become necessary in the automotive sector due to their exceptional properties.
• They offer excellent adhesion to a wide range of substrates, including metals, plastics, and composites.
• Epoxy adhesives are known for their high strength, durability, and resistance to environmental factors such as temperature extremes, moisture, and chemicals.
• They are widely used in various automotive applications, including structural bonding, sealing, and encapsulation.
• In particular, epoxy adhesives are crucial in electric vehicle (EV) manufacturing, where they are used to bond battery cells, modules, and enclosures, ensuring optimal performance and safety.
• As per the analysis, their ability to withstand high temperatures and vibrations makes them ideal for automotive environments, thus driving the automotive adhesives market demand.

By Technology:

Based on technology, the market is categorized into hot-melt, solvent-borne, water-borne, and others.

Trends in Technology:

• The focus on sustainability is driving the development of even more eco-friendly water-borne adhesives with reduced environmental impact.
• Manufacturers are developing low-VOC solvent-borne adhesives to meet stringent environmental regulations.

The water-borne segment accounted for the largest automotive adhesives market share in 2023 and is expected to grow at the fastest CAGR over the forecast period.

• Water-borne adhesives have gained significant development in the automotive sector due to their environmental friendliness and performance benefits.
• These adhesives, formulated with water as the primary component, offer several advantages over traditional solvent-based adhesives.
• They are less volatile, reducing harmful emissions and improving indoor air quality.
• Water-borne adhesives also offer excellent adhesion to a variety of substrates, including plastics, metals, and textiles.
• They are widely used in automotive interior applications such as bonding headliners, door panels, and seat covers.
• Additionally, they are employed in exterior applications like bonding exterior trim components.
• Water-borne adhesives contribute to lighter-weight vehicles, improved fuel efficiency, and reduced environmental impact, making them a sustainable choice for the automotive sector.
• Additionally, by offering a balance of performance, safety, and environmental friendliness, water-borne adhesives are utilized for more sustainable automotive landscapes in the coming years.
• Various manufacturers are introducing water-borne adhesives for enhanced automotive applications.
• For instance, in 2023, DuPont introduced MEGUM W-Series adhesives, which is a line of water-borne adhesives that offers enhanced performance, safety, and sustainability. They contribute to the development of more efficient, durable, and environmentally friendly automotive products.
• Thus, based on the analysis, the utilization of water-borne adhesives is driving the automotive adhesives market trends.

By Vehicle Type:

Based on vehicle type, the market is categorized into passenger cars and commercial vehicles.

Trends in the vehicle type:

• The growing trends of EVs have increased the requirement for adhesives in battery assembly, where they are used to bond battery cells, modules, and enclosures.
• The development of autonomous vehicles requires advanced bonding solutions for sensors, lidar systems, and other components, thus driving the automotive adhesives market trend.

The commercial vehicle segment accounted for the largest automotive adhesives market share in the year 2023.

The commercial vehicle segment is further bifurcated into light commercial vehicles and light commercial vehicles.

• Commercial vehicles are motor vehicles used for transporting goods or people for commercial purposes. The dominance of adhesives for automotive in commercial vehicles is driven by their ability to address the unique structural requirements of these large-scale vehicles.
• Commercial vehicles, such as trucks and buses, often require robust bonding solutions to withstand heavy loads, vibrations, and extreme weather conditions.
• Adhesives offer a superior solution by providing strong, durable, and lightweight bonds. By replacing traditional mechanical fasteners like rivets and welds, adhesives contribute to weight reduction, improved fuel efficiency, and enhanced vehicle performance.
• Heavy commercial vehicles are larger commercial vehicles designed for transporting heavy loads over longer distances.
• Light commercial vehicles are smaller commercial vehicles designed for transporting goods over shorter distances. The rise in the use of adhesives in these vehicles offers enhanced features, thus leading to a rise in production.
• For instance, according to the data provided by TD Economics in April 2024, the U.S. light vehicle market, saw a 12.7% increase in sales.
• Thus, as per the analysis, the rise in the utilization of adhesives in automotive is influencing the automotive adhesives market expansion.

The passenger vehicle segment is expected to grow at the fastest CAGR over the forecast period.

• Passenger vehicles are motor vehicles primarily designed for transporting people and their belongings. They are typically designed to seat a limited number of passengers.
• Automotive adhesives play a critical role in modern vehicle manufacturing, offering significant advantages over traditional mechanical fasteners.
• They are employed to bond a diverse range of components, including interior trim, exterior panels, and structural elements.
• By providing strong, durable, and lightweight bonds, adhesives contribute to improved vehicle performance, fuel efficiency, and safety.
• Additionally, they enable innovative designs, reduce manufacturing costs, and enhance the overall aesthetics of vehicles.
• As the automotive sector continues to evolve, the requirement for advanced adhesive solutions is expected to grow, driving further innovation and sustainability trends.