How are Stringent Fuel Policies Boosting the Growth of Asia-Pacific (APAC) Automotive Adhesives and Sealants Market?
Due
to the surging adoption of lightweight materials in the manufacturing of
vehicles by various automobile manufacturing companies, the demand for
adhesives and sealants is expected to observe significant growth in
Asia-Pacific (APAC) in the coming years. Since the last few years, automobile
manufacturers have been increasingly adopting lightweight materials, such as aluminum
and plastic composites, in place of steel, in order to enhance the speed and
power of the vehicle and reduce its weight. This is predicated to push the
demand for adhesives and sealants, as these materials are required for
maintaining the integrity of the vehicles.
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The
other major factor responsible for the surge in the demand for adhesives and
sealants in the APAC region is the booming automobile manufacturing sector in
various countries, such as India and China, which are among the top five
automobile producers on earth. Due to these factors, the APAC automotive
adhesives and sealants market is expected to progress at a CAGR of 6.5%
during the forecast period (2018–2023), at which it would ultimately grow from $3,403.6
million in 2017 to $4,938.0 million by 2023.
Automotive
adhesives and sealants refer to substances used in various bonding and sealing
processes in the automotive industry, primarily due to their ability to provide
enhanced driving comfort, safety, and performance to vehicles. Although adhesives
and sealants are chemically similar substances, their functions are quite
different. These substances are used in various vehicle production processes,
such as under-the-hood (UTH) and power train manufacturing, body-in-white
(BIW), assembly, and painting. Amongst these, the assembly stage is expected to
record the fastest growth in the consumption of these materials in the near
future.
The
APAC automotive adhesives and sealants market is currently subject to
the automotive fuel economy policies being implemented in various countries.
For instance, various fuel economy standards are being adopted in several
countries, such as the light-duty vehicles (LDV) standards in Thailand,
Philippines, Vietnam, and Indonesia and high-duty vehicles (HDV) standards in
China and Japan. Due to the ability of the adhesives and sealants to improve
the fuel economy of vehicles, these materials are being increasingly adopted by
the manufacturers for meeting these strict regulatory standards.
In
APAC, the Chinese automotive sector recorded the highest demand for adhesives
and sealants in 2017. This is primarily attributed to the fact that China is an
emerging economy and has the largest purchasing power parity in the region. In
addition to this, nearly all the major automotive adhesive and sealant
companies have their manufacturing plants in China, which significantly
increases the adoption these materials in the country. However, the single
biggest reason behind this is that China is the global leader in automobile
production, which naturally creates a heavy demand for different materials that
go into vehicle production.
Therefore,
due to the rising need for lighter materials in the automobile manufacturing process,
in order to produce fuel-efficient and faster vehicles, and the presence of
major adhesive and sealant manufacturing factories, the demand for these
products is expected to register huge growth in APAC in future.
