Freedonia Market Research Analyzes Automotive Coatings, Adhesives and Sealants Industry

US demand for automotive coatings, adhesives and sealants is expected to increase 2.6 percent annually to $5.3 billion in 2012, with volume reaching 1.6 billion pounds.  Coatings will continue to dominate the market, accounting for nearly 80 percent of market value.  Slow gains in this segment will offset the more rapid advances seen in the smaller volume adhesive and sealant markets.  An improving outlook for motor vehicle production will support volume gains, as will the increasing importance of structural adhesives in vehicle assembly. These and other trends, including market share and company profiles, are presented in Automotive Coatings, Adhesives & Sealants, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.

The original equipment manufacturer (OEM) market for coatings, adhesives and sealants is heavily dependent on motor vehicle production patterns.  Through 2012, motor vehicle production is expected to rebound from the poor performance experienced during the 2002-2007 period, spurring demand in the OEM market. 

Aftermarket demand will benefit from continued growth in the motor vehicle park, as well as the popularity of light trucks, vans and sport utility vehicles over the past decade.  Despite below average gains in the production of these larger light vehicles due to high fuel prices and market saturation, these vehicles -- which consume higher volumes of coatings, adhesives and sealants in their repair than do smaller light vehicles -- will maintain a significant share of the motor vehicle park.  Providing further aftermarket support will be above average increases in the number of medium and heavy vehicles in use.

Demand for coatings will be limited to some extent, as competing alternatives such as paint film and in-molded color, which are used with plastic substrates, can offer cost advantages, reduced production time, and improved wear-resistance.  Adhesives, on the other hand, will benefit from the shift toward plastics, as they are lower in cost and better-suited for use with plastics than mechanical fasteners. 

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.