Automotive Adhesive Tapes Market

Market Overview

The global automotive adhesive tapes market size was valued at USD 8645.6 million in 2022. It is projected to reach USD 13778.8 million by 2031, growing at a CAGR of 6.45% during the forecast period (2023–2031).

Automotive adhesive tapes are heavy-duty adhesive tapes made up of different adhesive chemistry, primarily used for binding and wrapping, and act as a protective layer for the interior and exterior of any automotive product. The automotive industry was facing various problems in cutting down the weight of their vehicles, reducing the noise, increase rigidity and longevity of the bonds to improve fuel efficiency and user experience, due to which the significance of automotive adhesive tapes has increased.

The automotive adhesive tapes help reduce the vehicle's weight, eliminate noise, and reduce maintenance requirements compared to the traditional nut, bolts, and screws used in manufacturing. Manufacturers worldwide are concentrating on creating more effective adhesive solutions to improve usability and boost the adoption of automotive tapes to expand their more comprehensive application. Moreover, the industry's demand to reduce the vehicle weight, improve its overall looks, and eliminate unwanted noise and vibrations will drive the market over the forecast period.

Market Dynamics

Global Automotive Adhesive Tapes Market Drivers

Increasing Demand for Light Weight Vehicles and Improved Fuel Efficiency

There is an increasing demand by customers to improve the fuel efficiency of their vehicles because of the high gas prices all over the world. The automotive industry manufacturers have also acknowledged this and replaced the nuts, bolts, and screws with adhesive tapes wherever required. A study by the US Department of Energy has also concluded that a 10% decrease in the weight of automobiles can improve fuel efficiency by 6-8%. Replacing the traditional mechanical fasteners with automobile adhesive tapes reduces the weight and saves a significant amount of fuel and maintenance costs.

Demand for Cost Cutting and Improved Product Longevity

Due to the necessary certifications, training, and frequent inspections, welded metal-to-metal bonding have substantially greater labor costs than automotive tapes. The use of adhesive tapes requires little training and produces better-quality output at a reduced cost. It helps reduce the cost of the end product, which benefits the end user and the manufacturer due to increased sales. Furthermore, adhesives distribute the holding power along the entire bond line, as opposed to fasteners, which only distribute the holding power where they are installed. In addition, adhesives produce a stronger connection and hold things together considerably better than fasteners.

Compared to conventional techniques like mechanical fasteners, automotive adhesive tapes offer a wide range of advantages. It helps in saving time by employing adhesives than by welding or using fasteners because the manufacturing process gets done quickly. The polyurethanes used in the adhesive tapes provide a stronger bond and require less maintenance, increasing longevity.

Global Automotive Adhesive Tapes Market Restraints

Environmental Hazards of Solvent-Based Adhesives

The solvent-based adhesives cause several environmental hazards if specific regulations and guidelines are not followed. The solvents can cause pollution of air, water, and soil. Solvents can degrade the air quality, which can cause respiratory inflammation, asthma, and lung illness by breathing solvent-based adhesives. The brain's fatty tissue can store solvents, potentially impacting the brain. Water pollution is also a significant problem caused by emulsion adhesives, which are very difficult to biodegrade. If the solvents get mixed with water, it can lead to various illnesses in humans and animals.

Moreover, it can also cause soil pollution, degrade the soil quality, decrease the yield capacity, and contaminate the crops, fruits, and vegetables grown on that soil. Liquid adhesive residues may contaminate the soil and, eventually, the groundwater if they are not properly disposed of using a hazardous waste collection system. Solvent-based adhesives pose serious health dangers to anyone who comes into contact with it. The rising adoption of environmentally friendly products worldwide can lead to restraining the market growth owing to several hazardous reasons related to the production of adhesives. Hot melt adhesives are solvent-free, producing minimal waste and minimal environmental effects. Increasing R&D in hot melt adhesive and worldwide adoption of it can eliminate this restrain for the growth of the automotive adhesive tape market.

Global Automotive Adhesive Tapes Market Opportunities

Development of Environmentally Friendly Solvent-based Adhesives

As many consumers have changed their buying patterns to be more environmentally conscious, brands have prioritized sustainable products and manufacturing techniques across industries. Due to the apparent link between gas-powered cars and climate change, it is now crucial for automakers to show their dedication to sustainability in the automotive industry concerning automotive adhesives as well. Manufacturers are primarily concentrating on substituting solvents with environmentally friendly alternatives. In contrast to mechanical fasteners, green adhesives are rust-free and less likely to be penetrated by water and snow, creating a stronger and more durable bond for automobiles.

For instance, Ingevity, a US-based supplier of adhesives, introduced its eco-friendly Altatac ECO 100 resin at the FEICA European Adhesive and Sealant Conference in September 2019. A high-performance tackifier called Altatac ECO 100 improves stability in thermoplastic hot melt adhesives. It assists manufacturers and brand owners reduce their environmental impact, differentiate their product offers, and meet customer demand for more environmentally friendly products. These innovations and rapid advancements can increase the penetration of automotive adhesive tapes replacing the traditional fasteners entirely without leaving any environmental impact.

Regional Analysis

The global automotive adhesive tapes market is divided into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.

Europe Dominates the Global Market

Europe is the most significant shareholder in the global automotive adhesive tapes market and is expected to grow at a CAGR of 5.20% during the forecast period. The larger share is linked to manufacturers' high penetration of automotive adhesive tapes and the increasing production of electric and hybrid electric vehicles. The presence of luxury car manufacturers in the region is also driving the growth of the market, as the automotive adhesive tapes are also used to improve the look of the vehicle from interior and exterior view and eliminate the use of traditional fasteners that does not help in smooth finishing of the automotive products. As a result, there is a surge in R&D in the area to meet the growing need for more affordable and long-lasting automotive tapes. Furthermore, the adoption of electric vehicles and the growing sales of luxury cars in developed countries will increase the use of automotive tapes and contribute heavily to the growth of the automotive adhesive tapes market in the region.

Asia-Pacific is expected to generate USD 2420.8 million during the forecast period. The high growth rate is linked to the presence of mass production facilities in China. The majority of electric vehicles are manufactured in China, resulting in the highest consumption of automotive adhesive tapes in the region. Many automotive adhesive tape manufacturers are moving their manufacturing to develop nations like China, India, Indonesia, Taiwan, and the Philippines, due to economic factors like easy access to raw materials, affordable transportation, and manpower. The expansion of the automotive sector and the rising popularity of lightweight vehicles will both favorably affect and significantly assist the automotive adhesive tape market's development. The emergence of China and India as global manufacturing powerhouses for automotive will drive market growth in the region.

North America is also witnessing significant growth in the region due to the established automobile manufacturers, who are focused on delivering the best quality vehicles with lesser weight and improved longevity. The rapid growth of major electric vehicle manufacturers like Tesla has also contributed to the higher CAGR of the region. Moreover, Tesla's increase in value and production of electric vehicles and its rapid expansion in the region, along with its penetration in the market, will likely push the market of automotive adhesive tapes forward over the forecast period. To compete with the global manufacturing hub China, the U.S.A. focuses on using automotive adhesive tape to achieve faster production, lowering labor and material costs, supporting automated assembly lines, improving longevity by reducing corrosion risk, and lowering fuel consumption. Due to the surge in automotive tapes, the North American region is expected to grow at a higher CAGR over the forecast period.

LAMEA region is anticipated to grow constantly, along with increased electric vehicle demand in Middle Eastern countries like U.A.E. and Saudi Arabia. Due to the presence of significant vital players and the expanding automotive sectors in this region, U.A.E., Saudi Arabia, and South Africa in the Middle East and Africa are expected to dominate the automotive adhesive tapes market during the forecast period of 2022–2030. American electric vehicle manufacturer Lucid Group has announced that it will open its first overseas factory in Saudi Arabia. The factory can produce 155,000 vehicles annually and initially cater to the local market. This will increase the use of automotive adhesive tapes and contribute to the market's growth in the region.

Segmental Analysis

The global automotive adhesive tapes market is segmented by type, function, adhesive chemistry, and application.

Based on type, the global automotive adhesive tapes market is bifurcated into acrylic foam tape, double-sided tape, silicone rubber tape, polyurethane foam tape, and pressure-sensitive adhesive tape.

The acrylic foam tape segment is the highest contributor to the market. The larger share is linked with the enormous benefits of this tape, offering strong bonding between various distinct materials such as plastic, glass, and other metals. It is manufactured from polyester fabric with pressure-sensitive adhesive. They offer good moisture resistance for automotive applications and have a longer lifespan.

Based on function, the global automotive adhesive tapes market is bifurcated into bonding and joining, harness wrap, protective masking, and acoustic and thermal management.

The masking segment is the highest contributor to the market, as all coating and repair processes require masking. It is a crucial component of the car refinishing process because it protects unattended car parts from damage, scuffing, and paint overspray before any repairs are made or painted. Complete masking from the beginning minimizes and eliminates any subsequent cleanup or correction. Additionally, masking tapes have a higher initial tack and are more affordable, making them a better choice for automotive tapes. All parties involved in the value chain, including the manufacturers of masking tapes, have a profitable business potential because used cars need to be painted, fixed, and maintained before being sold again.

Based on adhesive chemistry, the global automotive adhesive tapes market is bifurcated into solvent, emulsion, hot melt, and radiation.

The solvent adhesive segment is the highest contributor to the market and is expected to grow at a CAGR of 4.8% during the forecast period. The larger market share is linked to the widespread adoption by several automotive manufacturers. The solvent adhesive is categorized into rubber-based and acrylic solvents. High-performance solvent-based adhesives with superior bonding are typically used in these tapes. Solvent acrylic tapes provide automotive applications that require longevity and durability. Moreover, the demand for adhesive technology in automotive tapes has been supported by improved performance, such as better resistance to chemicals, heat, and water.

The faster adoption of emulsion-based adhesive tapes is linked to its tremendous benefits, such as better water, heat, and chemical resistance at an economical cost. Emulsion-based adhesive tapes are also called water-based adhesives, which are environmentally friendly, unlike solvent tapes. Due to the environment-friendly quality of emulsion-based adhesive tapes, their demand is growing exponentially.

Based on application, the global automotive adhesive tape market is bifurcated into interior attachments, exterior, wire harnessing, and electric vehicles.

The interior attachment segment is the highest contributor to the market and is expected to grow at a CAGR of 3.4% during the forecast period. The larger share is linked to the rise in demand for appealing interiors with smooth finishing in the interiors of vehicles. The use of automotive adhesives improves the durability of the bond and provides smooth finishing that gives a premium feel to entry-level vehicles as well. They are majorly used to provide insulation, airbag and seat covers, and other interior wrappings. The growing demand for premium-looking cars and enhancing the vehicle's look will push the adoption of automotive adhesive tapes.

Recent Developments

• September 2022- TESA SE developed a new packaging tape using recycled post-consumer PET as a backing material. This includes 70% recycled PCR and a water-based acrylic adhesive system for its manufacture. It is stronger, wear and tear-resistant, and eliminates noise.
• August 2022- LINTEC developed a new environmentally friendly, plastic-alternative label stock product that can be used with direct thermal printers.