The South American automotive adhesives was estimated at USD 1213.69 million in 2017. The market is expected to register a CAGR of 3.01% during the forecast period, 2018 to 2023. Water-borne technology dominated the South America automotive adhesives market, with nearly 56% share in the region.
Adhesives play a vital role in the bonding of various components of a vehicle. They are employed in the automotive industry at various stages, such as during the manufacturing of a new vehicle and also, used by vehicle owners to cover the broken metal, plastic, or any other vehicle component. Replacing mechanical fasteners with adhesives without change in performance can decrease the automobile overall weight. Adhesives improve stress distribution, and expand the choices of composites and dissimilar substrates throughout the vehicle. More than 20% weight reduction in the car body can be achieved by using adhesives, along with lightweight material.
Furthermore, the growing usage of plastics and ceramics in the automotive is increasing the usage of adhesives. Currently, adhesives are being used in a wide range of automotive components, such as doors, roof structures, hoods, and trunks, by replacing welding and riveting to a major extent. Additionally, adhesives used on front and rear screens of a car reduce air resistance, thus, directly improving gas/fuel consumption. The initiative by Colombia, for the adoption of Low Emission Development Strategy, as part of its National Development Plan, increased the consumption of various electric vehicles, including cars and buses. This, in turn, boosts the demand for adhesives in the electric vehicle market.
Brazil has the highest share in the market, accounting for nearly 76% of the market share as of 2017. The Brazilian economic downturn, since past three years, is negatively impacting the automotive industry in the country. The country witnessed automotive production growth rates of -15.2% (2014), -22.8% (2015), and -11.2% (2016). Prior to the declining production levels of automotive vehicles in Brazil, the country was a major prospect for the international automotive industry. The automotive manufacturers in the country are currently facing an economic sludge. However, investments have been made by Chinese investors for the production of electric vehicles in São Paulo. Also, Mitsubishi is working on the production of electric buses in Brazil. Such factors are expected to help the industry in the country to regain its position during the forecast period.
Major Players: Henkel, Arkema, H.B. Fuller, 3M, and Hernon Manufacturing, amongst other players.
1.1 Research Phases
1.2 Study Deliverables
1.3 Scope of the Report
2. Executive Summary
3. Market Insights
3.1 Industry Value-Chain Analysis
3.2 Industry Attractiveness – Porter’s Five Forces Analysis
3.2.1 Bargaining Power of Suppliers
3.2.2 Bargaining Power of Consumers
3.2.3 Threat of New Entrants
3.2.4 Threat of Substitute Products and Services
3.2.5 Degree of Competition
3.3 Regulations & Policies
4. Market Dynamics
4.1.1 Growing Demand for Lightweight and Low-carbon-emitting Vehicles
4.1.2 Environmental Concerns leading to Shift toward Water-based Adhesives
4.2.1 Declining Automotive Production In Brazil and Argentina
4.2.2 Other Restraints
4.3.1 Demand expected to Rise for Bio-based Adhesives
4.3.2 Other Opportunities
5. Market Segmentation and Analysis (Market Size, Growth, and Forecast)
5.1 By Technology
126.96.36.199 Ethylene Vinyl Acetate (EVA) Emulsion
188.8.131.52 Polyurethane Dispersion (PU)
184.108.40.206 Styrene-butadiene Rubber (SBR)
6. Regional Market Analysis (Market Size, Growth, and Forecast)
6.4 Rest of South America
7. Future of the Market
8. Competitive Landscape
8.1 Mergers & Acquisitions, Joint Ventures, Collaborations, and Agreements
8.2 Market Share Analysis**
8.3 Strategies Adopted by Leading Players
9. Company Profiles (Overview, Financials**, Products & Services, and Recent Developments)
9.2 Arkema Group (Bostik)
9.3 Ashland Inc.
9.4 Avery Dennison Corporation
9.6 Beardow Adams do Brasil Adesivos
9.8 Evonik Industries
9.9 H.B. Fuller Company
9.10 Henkel AG & Co. KGaA
9.11 Hernon Manufacturing Inc.
9.12 Jowat AG
9.14 SIKA AG
*List not exhaustive
**Subject to availability on public domain