Automotive Coatings, Sealants & Adhesives

June 14, 2007 - PRLog -- Automotive Coatings, Sealants & Adhesives

US demand to grow 4.3% per annum through 2010

Demand for automotive coatings, sealants and adhesives in the United States is forecast to rise 4.3 percent per year to $7.3 billion in 2010. In the OEM segment, gains in demand will be supported by expansion in US motor vehicle production, a slight rebound from declines posted during the 2000-2005 period. However, this rebound will be mostly linked to passenger cars, which consume less coatings, sealants and adhesives on a per vehicle basis than larger light vehicles. Aftermarket demand will benefit from solid gains in the number of vehicles in use through 2010.

Additional Information

Automotive design trends to benefit sealants, adhesives

In addition to gains in vehicle production and vehicles in use, demand for coatings, sealants and adhesives will benefit from other factors that will increase utilization rates of these materials. For example, although consumer tastes have tended to favor larger, heavier vehicles over the last decade, automotive designers continue to stress weight reduction and improved fuel efficiency, while focusing on safety, aesthetics and durability. Taken together, these efforts are promoting greater use of structural adhesives such as epoxies and polyurethanes at the expense of mechanical fasteners, both to reduce weight and to eliminate potential corrosion. Similarly, sealant demand has directly benefitted from efforts to make car cabins quieter and better insulated.

Trucks, vans, SUVs to consume more materials per vehicle

Aftermarket demand will continue to benefit from a change in the product mix over the last decade favoring larger light vehicles, particularly sport utility vehicles (SUVs). Although demand for light trucks and vans (including SUVs) is slowing compared to recent years because of high fuel prices and market saturation, the number of such large light vehicles will continue to rise as a percentage of the total light vehicles in use. Because of the relatively recent emergence of light trucks, vans and SUVs, fewer of them are being retired from the light vehicle park relative to conventional automobiles. The resultant shift in composition of the vehicle park will favor the aftermarket for coatings, sealants and adhesives, as larger light vehicles require more materials on a per vehicle basis than conventional automobiles.

Reformulation laws to continue shifting product mix

Environmental regulations have prompted a move away from low-solids solvent-based adhesives, sealants and coatings. Replacement materials include high-solids solvent-based products (including a shift away from hydrocarbon solvents) and water-based emulsions. Powder and radiation-cured coatings are also seeing strong gains, while in the adhesive and sealant segments steady gains are forecast for hot melts and radiationcurable materials. The automotive refinish coatings market was one of the last bastions of low-solids solvent-based coatings, but relatively recent federal regulations in this sector significantly tightened emission allowances from repair shops. Suppliers initially responded with higher-solids versions of solvent-based paints, but new generations of water-based automotive refinish paints are also expected to emerge as major product lines.

Study coverage

This industry study, "Automotive Coatings, Sealants & Adhesives" presents historical US demand data (1995, 2000, 2005) and forecasts to 2010 and 2015 by product, application and market. The study also considers market environment indicators, evaluates market share and profiles major producers.

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