China auto adhesives market to grow by 16% CAGR

According to China Automotive Adhesives Market Forecast & Opportunities, 2018, the automotive adhesives market in the country is expected to grow at the CAGR of more than 16% in terms of volume during 2013-2018. The government of China plans to introduce more than one million electric vehicles by 2020, which is further expected to drive the market for automotive adhesives. The reduction of vehicle weight by hundred kilograms is expected to reduce the fuel consumption by 0.35 litres per 100 kilometres, as a result of improved fuel economy, improved vehicle balance and handling.

As a result, several OEM manufacturers are introducing hybrid body structures that incorporate plastic and composite materials in combination with traditional steel and light alloy components. The deployment of these components is expected to drive the demand for automotive adhesives, due to their capability to join difficult to-bond substrates. The report also forebodes that Henkel (China) Co. Ltd. is set to account for majority of the sales of automotive adhesives by 2018.

China has the world’s largest automotive market in terms of production and population. However, the increasing vehicle sales pose a threat to the country’s environment as a result of increasing emissions. Vehicle emissions are considered as a major source of air pollution in China as a result the government of China has put forth stringent regulations to reduce the carbon emissions from the automotive industry.

The Planning for the Development of the Energy Saving and New Energy Automobile Industry (2012-2020) has increased the target for reduction of fuel consumption and production of electric vehicles and has also released incentive policies to accelerate the development of energy saving electric vehicles. This is encouraging the OEM manufacturers to incorporate lightweight materials in automotive manufacturing, in order to reduce overall weight of the vehicle which would help in reducing CO2 emission. Since composite or plastic materials can only be bonded with adhesives, the market for automotive adhesives is expected to grow during the forecasted period.