According to a new market report published by Lucintel, the future of sealants in the global automotive industry looks attractive with increasing penetration of lightweight materials and rising vehicle production. Sealants in the global automotive industry are forecast to grow at a CAGR of 7.1% from 2015 to 2020. The major growth drivers for this market are an increase in the usage of lightweight materials in vehicle manufacturing and replacement of mechanical gaskets to make vehicles lighter and to meet higher fuel economy. Corrosion and chemical resistance properties of sealantsand their ability to reduce noise and vibration while providing significant cost savings are additional factors contributing to accelerated growth of the market.
In this market, polyurethane, plastisols, butyl, silicone, and other sealants are used for automotive applications. Lucintel predicts that the demand for polyurethane-based sealantswill remain the largest segment due to its high compatibility with plastic and rubber. On the basis of its comprehensive research, Lucintel forecasts that polyurethane based sealantswillwitnessthe highest growth during the forecast period, supported by increasing penetration of light materials. Polyurethane sealants are high-performance sealants, noted for their elasticity and excellent abrasion resistance.
In terms ofsealants in theautomotive industry, the passenger car segment is expected to remain the largest segment by value and volume consumption. Development of sealing and bonding technologies for applications in the automotive industry is expected to spur growth for this segment over the forecast period.
Asia Pacific is expected to remain the largest market due to an increase in production of cars and light commercial vehicles in China and India.Europe and North America are expected towitness significant growth over the forecast period due to increasingpenetration of sealants andincreasing in automotive production.
For market expansion, the report suggests innovation and new product development, so that the unique characteristics of sealantscan be capitalized. The report further suggests the development of partnerships with customers and the development of low-cost solutions for end users.
The emerging trends, which have a direct impact on the dynamics of the industry, include increasing use of composites and lightweight materials in the automotive industry; also, the demand for better insulated cabins in passenger cars is generating opportunities for the use of sealants. Henkel AG & Co KGaA, 3M Company, The Dow Chemical Company, and Sika AGare among the major suppliers of automotive sealants. There are some companies that are opting for M&A as a strategic initiative for driving growth.
Read full report via Lucintel
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