Abstract
US demand to exceed $5 billion in 2012
US demand for automotive coatings, adhesives and sealants is forecast to
surpass $5 billion by 2012. Motor vehicle production will rebound from the
declines experienced during the 2002- 2007 period, spurring demand in the OEM
market. Rapid growth in the production rates of medium and heavy vehicles --
particularly medium-duty trucks, which will climb 7.0 percent per year through
2012 -- will positively impact the market. However, while passenger cars will
achieve the greatest turnaround in terms of production, the impact will be
muted as these vehicles consume less coatings, adhesives and sealants on a per
vehicle basis than larger vehicles. A continued rise in the number of vehicles
in use will promote demand growth in the automotive aftermarket.
Consumer desire for larger vehicles to benefit demand
Having overtaken automobiles in 1998, light trucks and sport utility vehicles
(SUVs) are the leading type of motor vehicle produced in the US. This shift in
the product mix toward larger vehicles, which are more intensive users of
coatings, adhesives and sealants, will continue to impact growth in demand for
these products in the aftermarket going forward. Despite below average gains
in the production of these vehicles due to high fuel prices and market
saturation, the number of such large light vehicles will continue to increase
as a percentage of total light vehicles in use. The consequent shift in
composition of the vehicle park will favor the aftermarket for coatings,
adhesives and sealants, as larger light vehicles require more materials on a
per vehicle basis than conventional automobiles.
Study coverage
A new Freedonia industry study, Automotive Coatings, Adhesives & Sealants,
assesses the US market for these products used in the automotive industry. It
also examines the market environment, evaluates company market share and
profiles 39 leading suppliers.
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