The market for automotive adhesives is set to grow by more than 48% within the next four to five years. It is currently valued at $3.74 billion globally and is expected to reach the $5.56 billion mark by 2020.
The Compound Annual Growth rate from 2015 to 2020 is estimated at 8.2%. The RoW and the Asia-Pacific region, in particular, are expected to account for much of the growth in the industry. The demand for automotive adhesives has been led by China in recent years, and the developing world including Brazil, India and Mexico is also expected to contribute towards the projected adhesive industry growth.
The ongoing increase in demand for automotive adhesives is driven by the automotive industry’s ongoing efforts to improve fuel efficiency through weight reduction. This has led to the increased use of lightweight materials that are best bonded with adhesives rather than traditional fasteners. The Body in White (BIW) stage of auto manufacture accounts for the largest market segment for adhesives.