Automotive Tapes Market Trends

Growth Drivers

• Rising Incorporation of Advanced Driver Assistance Systems (ADAS) Technology - Cars with ADAS technology improve road safety. ADAS is a modern safety technology that assists drivers in driving and parking functions by coordinating the operation of cameras, sensors, and radars to scan the area and then feed that information to the driver. Road safety is becoming of utmost importance with increasing vehicle crashes and fatalities. For instance, about 1.3 million people lose their lives each year as a result of road traffic crashes. This can be curbed with safety technology such as ADAS, which was earlier limited to high-end luxury cars only. However, it is now found in mass-market segment vehicles as well and is expected to be incorporated in all future vehicles with innovative mounting solutions. With rising automotive digitization and environmentally friendly electrification, automotive tapes are specially designed to fulfill demanding automotive requirements and perform an increasing number of important functions in addition to various mounting applications.
• Increased Production Rate of Vehicles - As per the Organization of Motor Vehicle Manufacturers, the global production of vehicles was 80 million units in 2021, depicting a rise, from 77 million units in 2020.
• High Demand for Sports Cars – As per estimations, sports car sales are anticipated to augment to 920,000 vehicles in 2026. This is an increase from 840000 vehicles in 2022.
• Increasing Preference for Electric Cars – With the rising compliance with environmental standards and emission norms to reduce vehicle pollutants at a significant level there is a surge in the demand for electric vehicles (EVs). As per a report by International Energy Agency, there were 16.5 million electric cars on the road in 2021.

Challenges

• Increasing Government Policies Promoting the Use of Eco-Friendly Solutions- The use of solvent-based adhesive tapes is responsible for adversely affecting the environment and human health. This is why there is a demand to develop either more environmentally friendly solvent-based solutions or switch to water-based solutions in the upcoming years, which is posing a major challenge for the manufacturers.

• Low Adoption Rate in Developing Countries
• Extra Expenses Incurred in Production Cycles