Automotive Adhesive Tapes Market Size, Share & Trends Analysis Report By Application (Powertrain, Interior Attachment), By Adhesive Chemistry (Solvent, Emulsion), By Region (North America, Europe), And Segment Forecasts, 2020 - 2028

Report Overview

The global automotive adhesive tapes market size was valued at USD 2.69 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 7.3% from 2020 to 2028. Growing replacement of nut bolt fasteners to reduce the vehicle weight and improve aesthetics is expected to drive the market over the forecast period. The ongoing COVID-19 pandemic across the globe has significantly impacted supply chains as major economies across the globe suspended trade operations. Moreover, the production operations have witnessed a pullback in 2020 owing to a suspension of manufacturing operations and reduced demand from the end-user segment, thus impacting the market. China witnessed a halt in vehicle manufacturing, primarily from February to March 2020 owing to the COVID-19 outburst that restricted industrial operations.

The overall automobile industry in the country declined by over 10% in 2020, wherein vehicle shipments from China declined slightly from January to December. The decline in automotive production translated into a reduction in sales of automotive adhesive tapes in 2020. The global automotive market is witnessing switching trends with growing popularity and demand for electric vehicles. Prominent vehicle manufacturers are aiming to comply with environmental standards and emission norms by reducing vehicle pollutants at a significant level.

Thus, battery-operated vehicles including cars, mini trucks, and others are gaining popularity across the globe which in turn are expected to positively impact the market growth. There has been a positive outlook in the automotive sector across developed markets such as the U.S., to developing markets such as India. Technological developments and performance enhancements in vehicles have led to the installation of specialized components, which is expected to have a positive impact on the automotive tapes market.

The global automotive industry is growing at a rapid pace on account of the accelerating technological transformations such as the introduction of no-petroleum-based fuel or hybrid vehicles, autonomous driving, and new mobility services. The industry is expected to witness significant growth owing to the increasing sales and demand in the emerging economies of India, China, and Brazil, thus exhibiting positive growth potential for the tapes industry.

Application Insights

The interior attachment application segment led the market in 2020, accounting for a revenue share of over 30%. This is attributed to the increasing demand for premium cars with an aesthetically improved environment and enhanced drive performance, which, in turn, is expected to increase the number of components to be fastened in the car interiors. The demand for adhesive tapes in interior applications is expected to be fueled by the high adhesive strength of the tape, coupled with a superior attachment of different materials. Adhesive tapes are used in seat heating elements, attachment of foam & fabric on the instrument panel, airbag wrapping & securing, steering wheel wrapping, mounting rubber, and plastic profiles in the vehicle interior.

The electronics application segment is also expected to witness notable growth over the forecast years on account of rising product demand in automotive electronics, such as light assemblies, air conditioning systems, electronic components, interior & exterior lights, battery connectors & wires, sensors, and several other electronic devices. The introduction of advanced features in car interiors, such as the provision of attachments for mobile devices, electronic chargers, air purifiers, connection for portable refrigerators, and other components, requires adhesive tapes for fixing and bonding, which is expected to support the market growth.

Adhesive Chemistry Insights

The solvent application segment led the market in 2020 with a revenue share of over 44%. Superior adhesion properties of solvent materials and wide adoption by the automotive OEMs support product penetration in automotive applications. Solvent-based adhesive technology can be characterized in rubber-based solvents and acrylic solvents. These tapes use high-performance solvent-based adhesives that offer superior bonding. Solvent acrylic tapes are used for high durability and long-term applications in the automotive sector. Moreover, improved performance, such as better resistance to chemicals, heat, and water, has supported the demand for adhesive technology in automotive tapes.

The emulsion-based product segment is expected to witness the fastest CAGR of 9.7% during the forecast years on account of wide usage of these products due to high chemical & heat resistance and performance profile at low cost. These are water-based adhesives that are made of EVA or acrylic synthetic resin polymers, vinyl acetate in water, thus have low VOC contents. Emulsion adhesives share similar characteristics to solvent acrylics but are produced without the use of solvents. This technology is used in adhesive tapes owing to the chemical and heat resistant properties of the emulsion. The rising concerns pertaining to VOC emissions are also expected to play a major role in driving the demand for emulsion-based products.

Regional Insights

Europe dominated the market with a revenue share of about 27% in 2020 and is expected to accelerate at a steady CAGR over the forecast period. This trend is attributed to the high per vehicle tape content in European brand automotive, coupled with the rising production of Electric Vehicles (EV)/Hybrid Electric Vehicles (HEV) segment vehicles, which exhibits a higher penetration of adhesive tapes.

In addition, several prominent players are operating in the region. More than 300 manufacturing facilities are operating in the region producing cars and trucks. These players are investing heavily in R&D for the development of EVs and HEVs. Moreover, the growing usage of lightweight components for reducing fuel consumption in vehicles is expected to increase product penetration.

The market in North America is expected to witness a notable CAGR of 6.6% from 2020 to 2028, owing to the presence of a robust manufacturing base in the U.S., coupled with the rapid growth of the automotive industry in Mexico. The rising popularity of EVs with advanced features and technologies is also expected to augment the market. Investments by Tesla, Inc. in the U.S. to increase the production of EVs and associated modern components for cars are further expected to boost the product demand.

Key Companies & Market Share Insights

The global market is dominated by a few key players exhibiting long terms supply contracts with major automotive OEMs in the world. These players focus on expanding their product offering through the launch of specialized tapes for each of the sub-segment applications in the automotive sector. The key players are also investing in understanding the emerging sub-segment applications in automotive. Companies are also trying to understand the key specifiers and selection criteria for tapes for the new applications to gauge the expected market potential and employ their growth strategies accordingly. Some prominent players in the global automotive adhesive tapes market include:

• L&L Products, Inc.

• Sika Automotive AG

• The 3M Company

• Nitto Denko Corp.

• Lida Industry Co, Ltd.

• ThreeBond Co., Ltd.

• PPG Industries

• ABI Tape Products

• Adchem Corporation

• Avery Dennison Corp.

• Saint Gobain

• Berry Plastics

• Tesa SE

• Lintec Corp.

Automotive Adhesive Tapes Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global automotive adhesive tapes market report on the basis of application, adhesive chemistry, and region:

• Application Outlook (Volume, Million Square Meters; Revenue, USD Million, 2017 - 2028)

  • Wire Harnessing

  • Powertrain

  • Acoustic Insulation

  • Interior Attachment

  • Exterior Attachment

  • Electronics

  • Chassis & Wheels

• Adhesive Chemistry Outlook (Volume, Million Square Meters; Revenue, USD Million, 2017 - 2028)

  • Solvent-based Adhesives

  • Emulsion-based Adhesives

  • Hot Melt Adhesives

  • Radiation Adhesives

• Regional Outlook (Volume, Million Square Meters; Revenue, USD Million, 2017 - 2028)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • U.K.

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Rest of the World