United States Automotive Adhesives Market, By Resin Type (PU, Epoxy, Acrylic, Silicone, SMP, MMA), By Vehicle Type (Passenger Cars, LCVS, Trucks, Buses, Others), By Region, Competition, Forecast & Opportunities, 2018-2028

Market Overview

United States Automotive Adhesives Market has valued at USD 1109.25 Million in 2022 and is anticipated to grow at a CAGR of 5.34% through 2028. The United States automotive industry is a dynamic and thriving sector that continuously seeks innovations to enhance vehicle performance, safety, and durability. Automotive adhesives play a crucial role in this quest, providing secure bonding solutions for various components and materials used in vehicle manufacturing. The United States automotive adhesives market has experienced significant growth in recent years, driven by advancements in adhesive technology, stringent safety regulations, and the growing demand for lightweight and fuel-efficient vehicles. One of the primary drivers behind the increasing use of automotive adhesives is the industry-wide focus on light weighting and improving fuel efficiency. Automotive adhesives are extensively used in the assembly of the vehicle's body structure. They bond various components, including panels, pillars, roofs, and doors, ensuring structural integrity and enhancing crash performance. Adhesives also contribute to noise reduction and improved vibration damping. Moreover, Adhesives are employed in attaching interior trim components, such as dashboard panels, center consoles, and door panels.

Key Market Drivers

Growing Use of Water-Based Automotive Adhesives is Driving the Overall Market

Water-based adhesives are adaptable and offer high-tech bonding to satisfy the demands of challenging applications in the automobile industry. Also, Automotive interior assembly applications are a good choice for water-based adhesives. Water, polymers, and additives are combined to create water-based adhesives. Both porous and non-porous substrates work well with them. These adhesives can be created as solutions, and they become active as the water evaporates or the substrate absorbs it. Manufacturers receive many of the advantages of solvent-based adhesives as well as a few additional benefits when employing high-quality water-based adhesives. They include decreased prices and VOC levels. Moreover, water-based adhesives are safer to use and more environmentally friendly than solvent-based alternatives. Furthermore, compared to their solvent-based predecessors, water-based adhesives are much more environmentally friendly. Conventional solvent-based adhesives cause air pollution and health dangers by releasing dangerous volatile organic compounds (VOCs) into the atmosphere while they cure. In contrast, water-based adhesives emit less volatile organic compounds (VOC), which has a positive impact on end users and production facilities' air quality. Water-based adhesives produce a better and healthier working environment for automobile assembly line workers by reducing the discharge of harmful gases and VOCs. These adhesives help to improve indoor air quality, lowering the possibility that workers will experience respiratory problems and other related health issues.

Rising Demand for Methyl Methacrylate Adhesives (MMAs) is Propelling the Market

Methyl methacrylate adhesives (MMAs) have gained appeal for use in the automobile industry even though they combine the strength of a structural adhesive with a unique cure profile that allows them to be applied across vast areas and varied materials. The most appealing feature of MMAs for the automobile sector is their snap-cure property; unlike epoxies or other adhesives, which gradually gain strength during the curing process, MMAs remain workable and quickly harden to a fixed strength. By modifying formulas and mixing proportions, this open workable time and curing time can be customized to the precise application. This gives ample time to apply glue to big panels of heavy trucks or other equipment, reinforce them, and finally fasten them into place. By enabling quicker adhesion and reducing waiting for a cure, the use of MMAs in this fashion can drastically save production time. All these factors are spurring demand in the overall market.

Increase in the use of Environmentally Automotive Adhesives

Green adhesives are mostly those created by excluding all chemicals other than organic substances. To fulfill the highest levels of environmental legislation and safety, there is an increasing demand in the United States for environmentally friendly automobile adhesives.  Companies are primarily concentrating on substituting ecologically friendly alternatives for solvents. Green adhesives provide a stronger and more durable bond for automobiles than mechanical fasteners since they are rust-free and reduce the chance of water and snow penetration. Besides that, to avoid health problems brought on by exposure to recognized harmful components in traditional materials, low-VOC adhesives have been developed. Since consumers seek cleaner air quality, the most recent trend has been to eliminate volatile organic compound emissions from the cabin of new vehicles. To meet both specialized automotive bonding requirements and low VOC performance, the top manufacturers of automotive adhesives are primarily concentrating on UV-cured and emulsion acrylic adhesives.

Shifting Automotive Sensor Applications from Epoxy-Based to New Silicone-Based Electrically Conductive Adhesives

Automotive electronic specialists require very rugged adhesives that can survive harsh environments. Automotive sensor applications in the past used electrically conductive adhesives of an older generation based on epoxy. These electrically conductive epoxy-based adhesives showed greater vibrational energy but less resilience to high temperatures. In addition to offering electrical resistance, stickiness, and flexibility, new silicone-based electrically conductive adhesives are being developed that can tolerate operation temperatures as high as 200 degrees Celsius.

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Key Market Challenges

Increasing Cost of Raw Materials

The United States automotive industry has been a powerhouse of innovation and technology, with a strong focus on sustainability and safety. However, the industry faces a significant challenge in the form of the increasing cost of raw materials. Fluctuations in oil prices, geopolitical tensions, and supply chain disruptions have all contributed to rising material expenses. Key components like resins, solvents, and additives, which form the foundation of automotive adhesives, have seen unprecedented cost hikes, exerting pressure on manufacturers and end-users alike. The increasing cost of raw materials tends to have a more profound impact on smaller adhesive manufacturers and Small and Medium-Sized Enterprises (SMEs) (SMEs). These companies may lack the economies of scale enjoyed by larger enterprises, making it more challenging for them to absorb or offset higher material costs. As a result, some SMEs may face increased financial pressure or even be pushed out of the market entirely, leading to reduced competition and innovation in the industry.

Design and Manufacturing Complexities

As the automotive industry aims to reduce vehicle weight and enhance fuel efficiency, it increasingly incorporates diverse materials, such as aluminum, composites, high-strength steels, and plastics, into vehicle designs. While these materials offer various advantages, they also present unique challenges when it comes to joining them. Traditional welding and fastening methods may not be suitable for all these materials, making adhesives a preferred choice. Even slight deviations in adhesive thickness or distribution can significantly impact the performance and integrity of the bond. Automotive manufacturers need to invest in specialized equipment and skilled personnel to ensure accurate and repeatable application techniques throughout the production process. Adhesives typically require a curing process during which they reach their full strength and bonding capabilities. The curing time varies depending on the adhesive type and the environmental conditions. Longer cure times can slow down the production process, reducing manufacturing efficiency and increasing overall costs.

Key Market Trends

Advancements in Bonding Composites

The United States automotive industry has been undergoing a remarkable transformation, driven by a shift towards lightweight materials and the increasing adoption of electric and hybrid vehicles. Composites have gained immense popularity in the automotive industry due to their exceptional strength-to-weight ratio. CFRPs, in particular, are renowned for their high tensile strength, stiffness, and corrosion resistance. By incorporating composites into vehicle structures and components, automakers can reduce weight significantly, resulting in improved fuel efficiency and better overall performance. To meet the demands of modern vehicle design, adhesive manufacturers are investing heavily in research and development to create specialized bonding solutions tailored for composites. One of the key requirements for bonding composites is the ability to evenly distribute stress across the joint. Adhesives provide a flexible and uniform bond line, effectively distributing mechanical loads and reducing the risk of localized failure. This even stress distribution is essential for maintaining the structural integrity of the composite components and ensuring long-term durability. Another notable advancement in bonding composites is the development of hybrid bonding solutions. Hybrid bonding involves combining adhesive bonding with other joining techniques, such as mechanical fastening or welding. This approach takes advantage of the strengths of each method while compensating for their respective weaknesses. The combination of techniques allows automakers to design structures that are both lightweight and mechanically robust, addressing the challenges posed by composites' unique properties.

Digitalization and Industrialization

Digital tools such as computer-aided design (CAD) and simulation software allow adhesive manufacturers to virtually design and analyze adhesive formulations and their behavior in various applications. This streamlines the product development process, reducing the time required for experimentation and prototyping. Automotive manufacturers can leverage digitalization to monitor adhesive application equipment and predict maintenance needs. Smart sensors and monitoring systems can collect real-time data, helping manufacturers anticipate equipment failures or deterioration, reducing downtime and improving production efficiency. Robotic systems equipped with precision adhesive dispensing capabilities are becoming more prevalent in automotive assembly lines. These robots ensure consistent adhesive application, reducing human errors and improving production efficiency. Moreover, industrialization enables adhesive manufacturers to implement in-line quality control processes during production. Automated inspection systems can assess adhesive bead dimensions, distribution, and cure time, ensuring adherence to strict quality standards. Digitalization and industrialization also play a crucial role in improving environmental sustainability within the automotive adhesives market. Data-driven research and development processes enable the formulation of eco-friendly adhesives with reduced VOC emissions and improved recyclability. Additionally, industrialization facilitates optimized adhesive application, reducing waste and minimizing environmental impact.

Segmental Insights

Resin Type Insights

In 2022, the automotive adhesives market was dominated by the MMA segment and is predicted to continue expanding over the coming years. MMA adhesives offer excellent adhesion to various substrates, including metals, composites, and plastics. They provide high bond strength, ensuring durable and reliable bonds in automotive applications. MMA adhesives exhibit excellent resistance to impact, vibration, and environmental factors such as temperature changes and moisture. This makes them suitable for automotive applications exposed to challenging conditions.

Vehicle Type Insights

In 2022, the automotive adhesives market was dominated by the passenger cars segment and is predicted to continue expanding over the coming years. Cars are the most popular way to get around in developed nations and their popularity is growing in developing nations too, thanks to rising incomes. The growing availability of vehicle financing has been driving the car industry, as customers can now get loans to buy their own car. Owning a car is also seen as a symbol of social status in many developing nations. These trends, along with the expected future growth of car ownership in developing nations, have created a demand for automotive adhesive in the market.

Regional Insights

The Midwest region has established itself as the leader in the United States Automotive Adhesives Market. The Midwest is home to several major automobile manufacturers and assembly plants, providing a large customer base for adhesive manufacturers in the region. Regions with well-established research and development centers focusing on automotive technologies and materials, including adhesives, foster innovation and attract key players in the industry. Such centers influence the development of advanced adhesive solutions tailored to automotive applications. The Midwest's central location in the United States also provide logistical advantages for companies operating in the region.

Recent Developments

• On 10 May 2023, US adhesive specialists H.B. Fuller announced its acquisition of UK-based adhesive company Beardow Adams. H.B. Fuller is anticipating the acquisition will provide access to Beardow Adams sales presence in more than 70 countries and 20,000 end-user applications. Moreover, Beardow Adams has manufacturing capabilities across Europe and the United States and is known for the excellent quality of its products.
• In 2021, Sika Ag launched a polyurethane hot metal adhesive for the automotive industry that has less than 0.1% monomeric isocyanate content. Reactive polyurethane hot melt adhesives offer a flexible method of interior bonding that is economical in terms of space, financial outlay, and product handling. Contrarily, traditional reactive PUR hot melt adhesives include some restrictions on the amount of free monomer isocyanate, which results in dangerous labeling with usage limitations.

Key Market Players

• H.B. Fuller
• Permabond LLC
• 3M Company
• Henkel AG & Co. KGaA
• Huntsman Corporation
• Sika AG
• Arkema S.A.
• DuPont de Nemours, Inc.
• Uniseal, Inc.
• Dow Inc.

Report Scope:

In this report, the United States Automotive Adhesives Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• United States Automotive Adhesives Market, By Resin Type:
• PU
• Epoxy
• Acrylic
• Silicone
• SMP
• MMA
• United States Automobile Adhesives Market, By Vehicle Type:
• Passenger Cars
• LCVS
• Trucks
• Buses
• Others
• United States Automobile Adhesives Market, By Region:
• North-East
• Mid-West
• West
• East

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the United States Automotive Adhesives Market.

Available Customizations:

United States Automotive Adhesives Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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