Growth of the Automotive Adhesives and Sealants Market in Asia-Pacific

Automotive adhesives and sealants refer to the substances that are used for several bonding and sealing applications in the automobile industry. These substances are chemically similar but functionally different. Such adhesives and sealants help in enhancing performance, driving experience, reliability, and vehicle safety. These substances are being used in large quantities in Indonesia, Thailand, Vietnam, the Philippines, Japan, and China, due to the implementation of automotive fuel economy policies in such Asia-Pacific (APAC) countries. As adhesives and sealants improve the fuel economy of light trucks and cars, automakers have started using them in large quantities.

Moreover, the surging preference for lightweight vehicles, for optimizing the speed and power of automobiles, will also help the APAC automotive adhesives and sealants market advance at a CAGR of 6.5% during 2018–2023. The market was valued at $3,403.6 million in 2017 and it is expected to reach $4,938.0 million revenue by 2023. In recent years, the automotive industry has been replacing steel with lightweight materials such as aluminum, composites, and plastic, to improve the fuel efficiency of vehicles.

At present, the aforementioned companies are largely involved in the production of epoxy, due to their increasing adoption in the automotive industry, owing to their high-temperature stability, excellent dimensional stability, exceptional heat-resistance, surface hardness, fire-resistance, cost-effectiveness, and very low flammability properties. Additionally, these companies are also producing hot melts, rubber, acrylics, silicones, polyurethanes, and polyvinyl chloride (PVC), as they are required in the automobile industry. Currently, automotive adhesives and sealants producing companies are largely focusing on developing technologically improved products to improve the fuel economy of vehicles.

According to P&S Intelligence, China dominated the APAC automotive adhesives and sealants market in the recent past, due to the presence of a strong automotive manufacturing base in the country. Moreover, the high purchasing power parity and high nominal gross domestic product (GDP) of the country also fuels the consumption of adhesives and sealants in the automobile industry. China is one of the largest exporters of such substances in the world. 

Therefore, the increasing implementation of government policies aimed at promoting automotive fuel economy and the growing shift toward lightweight vehicles will fuel the need for automotive adhesives and sealants in APAC in the foreseeable future.

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