Automotive Adhesives & Sealants Market size was over USD 9.2 billion in 2024 and is poised to reach USD 17.1 billion by the end of 2037, expanding at a CAGR of 5.3% during the forecast timeline, i.e., 2025-2037. In 2025, the industry size of automotive adhesives & sealants is estimated at USD 9.7 billion.
The emphasized production of vehicles is impacting the industry with significant growth. Rising demand for lightweight and high-performing vehicles is escalating the scope of product development. Innovations and Strategic partnerships are fueling the researchers to introduce sustainable and efficient adhesive solutions. The consistent requirement for quality additives from repairing and servicing in the automotive sector is securing steady market growth.
Enhanced bonding technologies including UV-curable and thermoset adhesives are bringing versatility in application for the autonomous sector. Further, the enhanced performance is encouraging manufacturers to incorporate these techniques for production. In April 2024, Panacol launched Vitralit, a series of stress-releasing and fast-curing adhesives. The verse application in automotive electronics and e-mobility is intended to produce a high volume of commutators in a short time. Various bonding composites are now being introduced for battery cell sealing, PCB component attachment, optical alignment, and sensor potting. Innovative sealants can offer improved performance and better adhesion for next-generation transportation such as electric vehicles, promoting the automotive adhesives & sealants market.
Growth Drivers
Challenges
Base Year |
2024 |
Forecast Year |
2025-2037 |
CAGR |
5.3% |
Base Year Market Size (2024) |
USD 9.2 billion |
Forecast Year Market Size (2037) |
USD 17.1 billion |
Regional Scope |
|
Resin type (Polyurethane, Epoxy, Acrylic, PVA, EVA, Styrenic Block)
Considering the resin type, the polyurethane segment is expected to dominate the automotive adhesives & sealants market with a share of 35.7% by 2037. The segment is expected to hold USD 3.4 billion by the end of 2025. The significant growth is driven by its adhesion capability with a wide range of substrates. Its cure time and potting lifespan can be extended by using customized formulations. Additionally, the transferred flexibility to the used product makes it suitable for all new vehicles. Its diverse application includes dashboards, chassis components, cable sheathing, headrests, steering wheels, gear knobs, seats, bumpers, and door trims.
The polyurethane adhesives are designated to withstand harsh weather and temperature fluctuations. Such multi-functional features make this segment attractive for automotive adhesives & sealants market companies to invest in. In September 2024, Covestro launched its new range of polyurethane adhesives for automobile interiors. DispercollU can adhere to the lamination of the vehicle interior while making it heat-resistant. Polyurethane additives are now further being formulated from recycled contents to align with sustainability. In February 2024, KRAIBURG TPE launched its new collection of thermoplastic elastomers. This class of polyurethane plastics contains 73% recycled elements and is applicable for various technical aspects.
Our in-depth analysis of the automotive adhesives & sealants market includes the following segments:
Resin type |
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Technology |
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Application |
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APAC Market Statistics
The Asia Pacific automotive adhesives & sealants market is expected to capture the largest share of 35.1% during the forecast period, 2025-2037. The regional market size is predicted to be USD 3.3 billion by 2025 due to the increasing demand for advanced automotive solutions. The rapid growth of the vehicle industry in countries such as India, China, Japan, and South Korea has propelled the sector. The transition toward electrification promoted new opportunities, especially in battery assembly and lightweight fabrication. Sustainability initiatives taken by governing authorities are also pushing manufacturers to adopt proficient alternatives. Global leaders are now expanding their footprint by investing in this region. In October 2024, Celanese established ATC (Asia Technology Center) in Shanghai, China. This research facility is equipped with unmatched technical capabilities to accelerate the process of innovation in this region. The ATC will work on material design and development to support the market business.
India is opening its doorways for investors to grab greater opportunities in the automated adhesives & sealants market. With the rising demand for cost-effective bonding solutions, the country has gained the focus of international players. The economy of local manufacturers in the automotive adhesives & sealants market is growing through government campaigns such as Made in India. Such initiatives have reduced its dependence on external resources, utilizing the domestic reservoir of raw materials. Companies from this country, including Pidilite Industries Ltd and Asian Paints are partnering with global leaders to expand their portfolio in the market. In September 2024, Pidilite collaborated with CollTech to acquire their distribution line in India. This collaboration will solidify both parties' position in this country's adhesives market.
China is also showcasing its growth in the automotive adhesives & sealants market. Increasing demand for passenger and commercial vehicles is influencing the additives market. Its massive production facility and raw material resources are bolstering domestic manufacturers. The implementation of electric and hybrid cars in transportation is demanding better insulators for battery assembly. Companies are now expanding their portfolio in this country through strategic moves. In March 2024, Jowat launched its new manufacturing unit in China. This expansion will enhance its innovation capabilities and will consolidate its leadership in China market.
North America Market Analysis
The automotive adhesives & sealants market in North America is booming due to increasing demand for lightweight vehicles. Technological advancements are evolving additives into more durable and temperature-resistant solutions. They are also developing production methods to meet the demand for personalized bonding solutions. Modern automotive applications are showing a broader range of required fields for adhesives. Water-based and solvent-free compositions are serving to align with regulatory standards. Automotive adhesives & sealants market leaders such as 3M are investing heavily in research and development in this sector. The shift of federal energy regulations is increasing the cost of operation for automotive coatings manufacturers. Such change in economic infrastructure may become a burden for companies, refraining them from future investments.
The U.S. is poised to hold a leading position as one of the major consumer bases of the market. The companies are focusing on developing new technologies to introduce more convenient solutions. In March 2024, Adhesive Research launched a series of ARclad, which works as easy-to-apply foam tapes. These PSA tapes are designed to support reliable and cost-effective solutions for automotive structures. More improved bonding strength and durability are driving a surge in innovation in the automotive adhesives & sealants market. Growing demand for custom formulation is also propelling the diversity of applications. Adhesives and other bonding solutions are now playing a major role in vehicle assembly, repair, and maintenance.
Canada is predicted to witness a boom in the market due to continued investment in research and development of products. These advancements offer enhanced alignment with industry trends. Focus on sustainability is also driving the demand for premium quality additive solvents. The country’s established parts supply chain has facilitated an efficient distribution channel for the automotive adhesives & sealants market. The aftermarket growth is contributing to the demand for diverse applications in vehicle manufacturing and repair. The push for fuel efficiency is building a surge for lightweight materials and advanced additive solvents. Additionally, numerous OEMs and suppliers are raising the market size of adhesives.
In this highly competitive industry, market leaders are associating with frequent innovation to stand out. They are investing in research facilities to introduce advanced products. In October 2024, Covestro invested USD 0.1 billion in innovation in the global automotive adhesives & sealants market. Such initiatives are introducing more effective solutions such as silicon-based adhesives and conductive additive solutions. Moreover, the trend towards automated manufacturing processes is enhancing the efficiency of adhesive applications. Some of the key players in the automotive adhesives & sealants market include:
Author Credits: Saima Khursheed
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