North America Automotive Adhesives & Sealants - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2017 - 2028

Adoption of sustainability in the automotive industry to create upswings for the market growth

• In the North American automotive adhesives and sealants market, polyurethane resins cover the largest share. The usage of polyurethane adhesive in North America is higher than other resins. The main reason behind this factor is that the region includes production facilities to a large extent. From 2017 to 2019, the consumption growth rate reduced steadily and recorded about -3%, and this is due to the reduction in automotive production. After the pandemic, consumption leads to a growth of 3%. Polyurethane adhesives are registering a CAGR of 3.1% between 2022 to 2028.
• On the other hand, epoxy and acrylic adhesives also show their great presence in the automotive adhesives market. However, for epoxy, the upcoming year could be a great challenge as the raw materials used to produce epoxy adhesives are hazardous in nature and, thus, are getting regulated by the US government. Epoxy adhesive is the second largest consumed material, with a CAGR of about 3.14% from 2022 to 2028. Epoxy adhesives are followed by acrylic adhesives, which register a CAGR of about 3.01% between 2022 to 2028.
• Adhesives, such as cyanoacrylate and silicone sealants, are on a booming trend. The adoption of sustainability in the automotive industry is getting increased widely, and EV production is increasing to a large extent. Owing to this, the usage of these adhesives for electronic component assembly is increasing, which, as a result, may lead to increased demand in the coming years. Cyanoacrylate and silicone adhesives recorded a CAGR of above 2.5% in terms of volume during the forecast period (2022-2028).

Growing trend of 'bonding instead of welding' to significantly contribute to the demand for automotive adhesives

• The North American automotive adhesives and sealants market is dominated by the United States due to the huge automotive production capacity of the country. The United States ranks 2nd globally in automotive production, with 9.17 million produced in 2021, whereas Mexico produced 3.1 million units and Canada produced 1.1 million units.
• The growing trend of 'bonding instead of welding' has significantly contributed to the demand generated for automotive adhesives and sealants in the region. As automakers are always innovating to make vehicles lighter to save fuel and reduce CO2 emissions, usage of adhesives for plastic roofs, bumpers, or crash-relevant parts - bonded joints became an effective alternative to traditional joining procedures, such as screws, rivets, or welding.
• Polyurethane-based adhesives and sealants are most commonly used in the automotive industry in the North American region occupying a share of 26.3% in 2021 due to their flexibility, like wide operating temperature range, heat cured and moisture cured, and paintability. Epoxy adhesives and sealants are the second most commonly used among other resin types, with a share of 21.5% in 2021 because of the stronger metal-to-metal bonding property.
• In 2028, the share of acrylic adhesives in the North American region is expected to grow up to 20% from 16% in 2021 due to their ability to bind to plastic and composite materials to lighten the weight of vehicles and applicability in battery assembly operations.

North America Automotive Adhesives & Sealants Market Trends

Government initiatives for electric vehicles to support the automotive production

• North American automotive is one of the prominent sectors which helps to generate above 3% of its economy. Among all the 3 countries, the United States is the largest automotive producer, covering more than 65% of shares, followed by Mexico with 23% of shares and Canada with 8% of shares.
• Vehicle sales in the region have majorly declined its overall production, owing to which the utilization of adhesives is impacted. In 2017-18 and 2018-19, the variation change has been recorded from -0.2% to -3.7%. Moreover, in 2019-20, due to the COVID-19 pandemic, regional production has been largely impacted. The shutdown of manufacturing facilities and the shortage of vehicle components due to disruption in the supply chain tend to constrain the production level. In terms of variation, the region has recorded about a 20% decline. However, in 2021, the demand for automotive is rising, which, on the other hand, may increase the utilization of adhesives across the region.
• The EV market in North America is another opportunity for adhesives to grow. The rising production and adoption of EVs and Hybrid vehicles tend to raise the usage of adhesives for electronic component assembly in the vehicles. The United States is one of the largest producers of EVs globally as well as across the region. The federal government's goal in the United States is for EVs to account for 50% of new passenger vehicles and light truck sales by 2030. Simultaneously, a number of particular states have announced more aggressive targets. These factors tend to increase the demand for adhesives and will result in better growth in the forecast period.

North America Automotive Adhesives & Sealants Industry Overview

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support