Market Overview
| Study Period | 2017 - 2028 |
|---|---|
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2028 |
| Market Size (2024) | USD 276.02 Million |
| Market Size (2028) | USD 359.52 Million |
| Growth Rate (2024 - 2028) | 6.83% CAGR |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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Middle East & Africa Automotive Adhesives & Sealants Market Analysis by Mordor Intelligence
The Middle East & Africa Automotive Adhesives & Sealants Market size is estimated at 276.02 million USD in 2024, and is expected to reach 359.52 million USD by 2028, growing at a CAGR of 6.83% during the forecast period (2024-2028).
The Middle East and African automotive adhesives and sealants market is experiencing significant transformation driven by the region's evolving automotive manufacturing landscape. South Africa's automotive sector, accounting for 18.7% of the country's manufacturing industry, exemplifies the region's growing importance in global vehicle production. The South African Automotive Masterplan (SAAM) has set an ambitious target to increase the country's share in global vehicle production to 1% by 2025, signaling strong growth potential for automotive adhesives and sealants manufacturers. This manufacturing expansion is complemented by increasing investments in research and development facilities across the region, particularly in the United Arab Emirates and Saudi Arabia.
The industry is witnessing a fundamental shift towards lightweight vehicle construction, with major automotive manufacturers like Toyota, which holds a 10.2% market share in the regional market, leading the initiative. Automotive companies are increasingly replacing traditional mechanical fasteners with advanced adhesive solutions, such as automotive structural adhesives, to reduce vehicle weight and improve fuel efficiency. This transition is particularly evident in the growing adoption of VAE/EVA-based adhesives, which are experiencing rapid growth due to their superior performance characteristics and compatibility with modern automotive manufacturing processes.
The Middle East region, particularly the Gulf Cooperation Council (GCC) countries, is positioning itself as an emerging hub for luxury vehicle production. Countries like the UAE, Saudi Arabia, and Kuwait are making strategic investments in automotive manufacturing infrastructure to reduce their dependence on imports. This transformation is accompanied by the establishment of new manufacturing facilities and the adoption of advanced adhesive technologies that meet the stringent quality requirements of luxury vehicle production. The trend is particularly notable in the increasing use of reactive car adhesives and sealants, which offer superior bonding capabilities for diverse substrates used in modern vehicle construction.
The market is characterized by significant technological advancements in adhesive formulations, with a growing emphasis on environmentally sustainable solutions. Manufacturers are developing water-based and solvent-free transportation adhesives in response to stringent environmental regulations, particularly in Saudi Arabia and South Africa. The industry is also witnessing increased adoption of smart adhesives that offer enhanced durability and performance characteristics, particularly in electric vehicle manufacturing. This technological evolution is supported by the establishment of research and development centers across the region, with companies like Henkel and 3M expanding their presence through local manufacturing and innovation facilities.
Middle East & Africa Automotive Adhesives & Sealants Market Trends and Insights
Lower interest rates and fuel rates to aid the industry’s growth
- The share of passenger vehicles in a regional automotive market is an indicator of the per capita income in the region. The revenue in the automotive industry declined from 2017 to 2019 owing to a recession in the region. However, post-pandemic, the market recorded tremendous growth potential in 2021. Japanese automobile manufacturer Toyota sold the maximum number of passenger vehicles in the Middle East & Africa, accounting for 10.2% of the market share. The Middle East & African automotive industry is expected to grow in the forecast period 2022-2028 but at a slower pace.
- The crude oil-rich countries in the Middle East, such as UAE, Iran, Saudi Arabia, Kuwait, Qatar, and Bahrain, are trying to become production hubs for luxury cars as currently, they are importing the majority of them from European and Asian automotive manufacturers at significantly higher costs. The sales of automobiles in the Middle East were the highest in Saudi Arabia, amounting to 72,572 thousand units of vehicles in 2019. Car imports dropped by 18.4% in 2018 compared to 2017.
- The COVID-19 pandemic impacted the automotive industry, majorly in the African region. Toyota, the largest market share holder in the region, registered a dip in sales of passenger vehicles from 900 thousand units in 2019 to 620 thousand units in 2020. This led to a decrease in the revenue of the whole automotive market in the region. However, government initiatives such as lower auto interest rates and cheaper fuel rates in the Middle East region are expected to lead to the growth of the automotive sector in the forecast period 2022-2028.
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Segment Analysis: Resin
Epoxy Segment in Middle East & Africa Automotive Adhesives & Sealants Market
The epoxy resin segment dominates the Middle East & Africa automotive adhesives and sealants market, holding approximately 18% of the market share in 2024. This significant market position is attributed to epoxy's extensive use in automotive electronic and electrical components, where technological advancements have led to increased electronic integration in vehicles. The automotive electronics industry's expected annual growth of 8% has further strengthened epoxy's market dominance. Epoxy resin-based adhesives are particularly valued for their versatility in bonding different substrates and their superior structural integrity in automobile assembly. Their widespread adoption in the region's automotive sector is also driven by their compatibility with emerging lightweight materials and their crucial role in electric vehicle manufacturing, particularly in automotive structural adhesives applications.
VAE/EVA Segment in Middle East & Africa Automotive Adhesives & Sealants Market
The VAE/EVA segment is emerging as the fastest-growing segment in the market, demonstrating robust growth potential through 2024-2029. This growth is primarily driven by the increasing adoption of hot melt adhesives in automotive applications, particularly in carpets, seating, interiors, and headlamps. The segment's expansion is further supported by VAE/EVA's superior thermal resistance properties and its ability to effectively bond dissimilar materials such as painted surfaces, metals, plastics, and fibers. The rising demand for these adhesives in the automotive sector is also attributed to their high-temperature resistance capacity, making them ideal for modern automotive manufacturing processes that require reliable bonding solutions for diverse material combinations, including automotive composite bonding.
Remaining Segments in Resin
The market's diversity is further demonstrated through several other significant resin segments, including polyurethane, acrylic, silicone, cyanoacrylate, and other specialty resins. Polyurethane resins are particularly notable for their versatility in both interior and exterior applications, while acrylic resins are valued for their excellent adhesion to various substrates. Silicone resins have carved out a crucial niche in sealing applications for complex electronics and powertrains, especially in electric vehicles. Cyanoacrylate resins serve specific rapid-bonding applications, while specialty resins cater to unique automotive manufacturing requirements. Each of these segments contributes to the market's comprehensive solution portfolio, addressing diverse automotive assembly and manufacturing needs, including automotive panel bonding and automotive exterior adhesives.
Segment Analysis: Technology
Water-borne Segment in Middle East & Africa Automotive Adhesives & Sealants Market
The water-borne segment dominates the Middle East & Africa automotive adhesives and sealants market, holding approximately 16% market share in 2024. Water-borne adhesives have gained significant traction in the automotive industry due to their numerous advantages, including non-moisture sensitivity and ease of application without requiring atomization before use. These adhesives have proven particularly valuable in automobile manufacturing processes, especially in assembly and joinery applications. The segment's leadership position is further strengthened by stringent environmental regulations in key markets like Saudi Arabia and other Middle Eastern countries that restrict the use of volatile organic compounds (VOCs) in adhesive products. Additionally, water-borne adhesives show excellent compatibility with acrylic resins, making them ideal for adhesion to various substrates, including glass, ceramic, plastic, composites, and stainless steel components used in automotive manufacturing.
Hot Melt Segment in Middle East & Africa Automotive Adhesives & Sealants Market
The hot melt segment is experiencing the fastest growth in the Middle East & Africa automotive adhesives and sealants market, with an expected growth rate of approximately 8% during 2024-2029. This remarkable growth is driven by the increasing adoption of hot melt adhesives in automotive applications such as seats, interiors, headlamps, and carpets. The segment's growth is particularly notable due to hot melt adhesives' superior capability to bond dissimilar materials a crucial requirement in modern automotive manufacturing where different substrates like fabric, metal, and plastic need to be joined together. The expansion is further supported by the automotive industry's shift towards lightweight materials and improved interior designs, where hot melt adhesives offer significant advantages in terms of both performance and efficiency, particularly in automotive interior adhesives applications.
Remaining Segments in Technology
The other significant segments in the Middle East & Africa automotive adhesives and sealants market include reactive adhesives, sealants, solvent-borne adhesives, and UV-cured adhesives. Reactive adhesives are particularly valued for their wide-ranging applicability across different substrates and their use in structural applications. Sealants play a crucial role in replacing traditional mechanical fasteners, contributing to vehicle weight reduction and improved fuel efficiency. Solvent-borne adhesives, despite facing regulatory challenges due to VOC content, maintain their position in specific applications where their fast-curing properties are advantageous. UV-cured adhesives represent a growing niche, particularly in electronics assembly and automotive repair applications, offering the benefit of on-demand curing and precise application control.
Middle East & Africa Automotive Adhesives & Sealants Market Geography Segment Analysis
Middle East & Africa Automotive Adhesives & Sealants Market in South Africa
South Africa dominates the individual country markets in the Middle East & Africa region, commanding approximately 21% of the total market value in 2024. The country's automotive adhesives and sealants market benefits significantly from its position as the largest automotive manufacturing hub in the region. The South African Automotive Masterplan (SAAM) initiative continues to drive growth in the automotive sector, with ambitious goals for expanding domestic vehicle production. The country's focus on transitioning from an export-oriented market to a local consumption market has created substantial opportunities for adhesive manufacturers. The increasing adoption of electric vehicles and hybrid technologies in South African automotive manufacturing has particularly driven demand for specialized adhesive solutions, including automotive interior adhesives. The market is further strengthened by the presence of major international automotive manufacturers who have established production facilities in the country, contributing to the steady demand for high-performance automotive adhesives and sealants. The growing emphasis on lightweight vehicle construction and improved fuel efficiency has also spurred innovation in automotive structural adhesives technologies within the South African market.
Middle East & Africa Automotive Adhesives & Sealants Market in Saudi Arabia
Saudi Arabia is projected to experience a robust growth trajectory in the automotive adhesives and sealants market, with an expected CAGR of approximately 6% from 2024 to 2029. The kingdom's automotive sector is undergoing significant transformation as part of its broader economic diversification initiatives. The country's strategic focus on developing a domestic automotive manufacturing base has created new opportunities for adhesive and sealant manufacturers. Recent government policies supporting the transportation industry, including import tariff adjustments, have stimulated market growth. The increasing adoption of advanced manufacturing technologies in Saudi Arabia's automotive sector has driven demand for specialized adhesive solutions, such as automotive panel bonding. The market is particularly benefiting from the growing trend toward electric vehicle production, which requires specific adhesive applications for battery assembly and lightweight construction. Local manufacturers are increasingly focusing on environmentally compliant adhesive solutions to meet the kingdom's stringent regulations regarding volatile organic compounds. The market is further supported by the growing automotive aftermarket sector and increasing domestic vehicle assembly operations.
Middle East & Africa Automotive Adhesives & Sealants Market in Other Countries
The automotive adhesives and sealants market across other countries in the Middle East and Africa region presents a diverse landscape of opportunities and challenges. Countries like the United Arab Emirates, Morocco, and Egypt are emerging as significant markets, driven by their growing automotive manufacturing and assembly operations. The UAE, in particular, has positioned itself as a hub for luxury vehicle customization and maintenance, creating specialized demand for high-performance adhesives. Morocco's automotive sector has attracted significant international investment, leading to increased demand for advanced adhesive solutions, including automotive interior adhesives. Other Gulf Cooperation Council (GCC) countries are also showing promising growth potential, supported by their strong automotive retail and service sectors. The market in these regions is characterized by increasing awareness of environmental regulations and a shift toward water-based and low-VOC adhesive solutions. The growing focus on vehicle lightweighting and fuel efficiency across these markets has led to increased adoption of car adhesives over traditional mechanical fastening methods. The automotive aftermarket sector in these countries continues to drive demand for repair and maintenance adhesive solutions.
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Competitive Landscape
Top Companies in Middle East & Africa Automotive Adhesives & Sealants Market
Leading companies in the market are focusing on developing innovative automotive adhesives and sealants solutions specifically designed for emerging automotive applications, particularly in electric vehicles and lightweight materials. There is a strong emphasis on expanding manufacturing capabilities and research centers across key Middle Eastern countries like the UAE and Saudi Arabia to strengthen regional presence. Companies are actively pursuing strategic partnerships and distribution agreements to enhance their market reach, while also investing in developing environmentally friendly products with lower VOC emissions. The focus has shifted towards creating advanced formulations that can handle the increasing complexity of modern vehicle assembly processes, including solutions for multi-material automotive bonding and high-performance structural applications. Product development strategies are increasingly aligned with the automotive industry's shift towards sustainable and energy-efficient manufacturing processes.
Consolidated Market Led By Global Players
The Middle East & Africa automotive adhesives and sealants market exhibits a partly consolidated structure, with the top five companies commanding more than half of the market share. Global chemical conglomerates dominate the landscape, leveraging their extensive research capabilities and established relationships with automotive manufacturers. These major players have built strong distribution networks across the region, particularly in key markets like South Africa, the UAE, and Saudi Arabia, while also maintaining significant manufacturing presence through local production facilities and technology centers.
The market shows limited merger and acquisition activity, with companies instead focusing on organic growth through capacity expansion and technology development. Local players maintain a presence in specific geographic markets or specialized product segments, though their influence remains limited compared to multinational corporations. The competitive dynamics are characterized by high barriers to entry due to the technical expertise required and the importance of established relationships with automotive manufacturers, making it challenging for new entrants to gain significant market share.
Innovation and Regional Presence Drive Success
Success in this market increasingly depends on companies' ability to develop specialized solutions for emerging automotive technologies, particularly in electric vehicle applications and lightweight material bonding. Incumbent players are strengthening their position by expanding their research and development capabilities in the region, focusing on creating customized solutions for local automotive manufacturers. The ability to provide comprehensive technical support and maintain close relationships with automotive OEMs has become crucial for maintaining market share, while also adapting products to meet specific regional requirements and environmental regulations.
For contenders looking to gain ground, the focus needs to be on developing niche products for specific applications or regional markets, while building strong local distribution networks. Companies must invest in understanding and addressing the unique challenges of the Middle Eastern and African automotive sector, including climate conditions and local manufacturing practices. Success also depends on the ability to navigate regulatory requirements, particularly regarding environmental standards and safety certifications, while maintaining cost competitiveness in a market where price sensitivity varies significantly across different regions and customer segments. Companies are also exploring the use of transportation adhesives to enhance the performance and durability of vehicles under diverse conditions.
Middle East & Africa Automotive Adhesives & Sealants Industry Leaders
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Dow
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H.B. Fuller Company
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Henkel AG & Co. KGaA
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Huntsman International LLC
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Sika AG
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- March 2022: Bostik signed an agreement with DGE for distribution throughout Europe, Middle East & Africa. The agreement includes Born2BondTM engineering adhesives developed for 'by-the-dot' bonding applications in specific industries, such as automotive, electronics, luxury packaging, medical devices, and MRO.
- April 2021: DELO Industries launched an adhesive with high-temperature resistance. The product was developed primarily for the automotive industry and mechanical engineering.
- January 2021: DELO launched a structural adhesive for batteries in hybrid vehicles. It is particularly suitable for low-voltage batteries, such as those found in mild hybrids.
Middle East & Africa Automotive Adhesives & Sealants Market Report Scope
Acrylic, Cyanoacrylate, Epoxy, Polyurethane, Silicone, VAE/EVA are covered as segments by Resin. Hot Melt, Reactive, Sealants, Solvent-borne, UV Cured Adhesives, Water-borne are covered as segments by Technology. Saudi Arabia, South Africa are covered as segments by Country.
Resin
| Acrylic |
| Cyanoacrylate |
| Epoxy |
| Polyurethane |
| Silicone |
| VAE/EVA |
| Other Resins |
Technology
| Hot Melt |
| Reactive |
| Sealants |
| Solvent-borne |
| UV Cured Adhesives |
| Water-borne |
Country
| Saudi Arabia |
| South Africa |
| Rest of Middle East & Africa |
| Resin | Acrylic |
| Cyanoacrylate | |
| Epoxy | |
| Polyurethane | |
| Silicone | |
| VAE/EVA | |
| Other Resins | |
| Technology | Hot Melt |
| Reactive | |
| Sealants | |
| Solvent-borne | |
| UV Cured Adhesives | |
| Water-borne | |
| Country | Saudi Arabia |
| South Africa | |
| Rest of Middle East & Africa |
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Market Definition
- End-user Industry - In the automotive industry, both the OEM and after market adhesive and sealants applications are considered under the scope.
- Product - All adhesive and sealant products used in automotive industry are considered in the market studied
- Resin - Under the scope of the study, resins like Polyurethane, Epoxy, Acrylic, Cyanoacrylate, VAE/EVA, and Silicone are considered
- Technology - For the purpose of this study, Water-borne, Solvent-borne, Reactive, Hot Melt, UV Cured Adhesives, and Sealants technologies are taken into consideration.
| Keyword | Definition |
|---|---|
| Hot-melt Adhesive | Hot melt adhesives are generally 100% solid formulations, based on thermoplastic polymers. They are solid at room temperature and are activated upon heating above their softening point, at which stage they are liquid, and hence, can be processed. |
| Reactive Adhesive | A reactive adhesive is made up of monomers that react in the adhesive curing process and do not evaporate from the film during use. Instead, these volatile components become chemically incorporated into the adhesive. |
| Solvent-borne Adhesive | Solvent-borne adhesives are mixtures of solvents and thermoplastic, or slightly cross-linked polymers, such as polychloroprene, polyurethane, acrylic, silicone, and natural and synthetic rubbers (elastomers). |
| Water-borne Adhesive | Water-borne adhesives use water as a carrier or diluting medium to disperse a resin. They are set by allowing the water to evaporate or be absorbed by the substrate. These adhesives are compounded with water as a diluent, rather than a volatile organic solvent. |
| UV Cured Adhesive | UV curing adhesives induce curing and create a permanent bond without heating by using ultraviolet (UV) light or other radiation sources. An aggregation of monomers and oligomers is cured or polymerized by ultraviolet (UV) or visible light in a UV adhesive. Because UV is a radiating energy source, UV adhesives are often referred to as radiation curing or rad-cure adhesives. |
| Heat-resistant Adhesive | Heat-resistant Adhesives refer to those that do not break down under high temperatures. One aspect of a complicated system of circumstances is the adhesive's capacity to withstand disintegration brought on by high temperatures. As the temperature rises, adhesives may liquefy. They can withstand stresses resulting from differing coefficients of expansion and contraction, which might be an additional advantage. |
| Reshoring | Reshoring is the practice of moving commodity production and manufacturing back to the nation where the business was founded. Onshoring, inshoring, and back shoring are further terms used. Offshoring, the practice of producing items abroad to lower labor and manufacturing costs, is the opposite of this. |
| Oleochemicals | Oleochemicals are compounds produced from biological oils or fats. They resemble petrochemicals, which are substances made from petroleum. The oleochemical business is built on the hydrolysis of oils or fats. |
| Nonporous Materials | Nonporous materials are substances that do not permit the passage of liquid or air. Nonporous materials are those that are not porous, such as glass, plastic, metal, and varnished wood. Since no air can get through, less airflow is required to raise these materials, negating the requirement for high airflow. |
| EU-Vietnam Free Trade Agreement | A trade agreement and an investment protection agreement were concluded between the European Union and Vietnam on June 30, 2019. |
| VOC content | Compounds with limited solubility in water and high vapor pressure are known as Volatile Organic Compounds (VOCs). Many VOCs are human-made chemicals that are used and produced in the manufacture of paints, pharmaceuticals, and refrigerants. |
| Emulsion Polymerization | Emulsion polymerization is a method of producing polymers or connected groups of smaller chemical chains known as monomers, in a water solution. The method is often used to make water-based paints, adhesives, and varnishes, in which the water stays with the polymer and is marketed as a liquid product. |
| 2025 National Packaging Targets | In 2018, the Australian Environment Ministry set the following 2025 National Packaging Targets: 100% of the packaging must be reusable, recyclable, or compostable by 2025, 70% of plastic packaging must be recycled or composted by 2025, 50% of average recycled content must be included in packaging by 2025, and problematic and unnecessary single-use plastic packaging must be phased out by 2025. |
| Russian Government’s Import Substitution Policy | The Western sanctions suspended the distribution of several high-tech items to Russia, including those required by the raw material export sectors and the military-industrial complex. In response, the government launched an "import substitution" scheme, appointing a special commission to oversee its implementation in early 2015. |
| Paper Substrate | Paper substrates are paper sheets, reels, or boards with a base weight of up to 400 g/m2 that has not been converted, printed or otherwise altered. |
| Insulation Material | A material that inhibits or blocks heat, sound, or electrical transmission is known as Insulation Material. The variety of insulation materials includes thick fibers like fiberglass, rock and slag wool, cellulose, and natural fibers as well as stiff foam boards and sleek foils. |
| Thermal Shock | A temperature change known as thermal shock generates stress in a material. It commonly results in material breakdown and is especially prevalent in brittle materials like ceramics. When there is a quick temperature change, either from hot to cold or vice versa, this process occurs abruptly. It occurs more frequently in materials with poor heat conductivity and insufficient structural integrity. |
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Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: The quantifiable key variables (industry and extraneous) pertaining to the specific product segment and country are selected from a group of relevant variables & factors based on desk research & literature review; along with primary expert inputs. These variables are further confirmed through regression modeling (wherever required).
- Step-2: Build a Market Model: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
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