Rising Lightweight Vehicle Adoption Fueling Window and Sealing Systems Demand
The increasing adoption of passenger and commercial vehicles in India, Indonesia, and China, primarily on account of rapid urbanization, will amplify the need for automotive window and sealing systems in coming years. For instance, according to the Society of Indian Automobile Manufacturers (SIAM), 2.7 million passenger vehicles and 568,559 commercial vehicles were purchased in India during the financial year 2020–2021. Moreover, the surging disposable income of people in developing as well as developed countries will also boost the production of such systems, owing to the enhancement in living standards.
Moreover, the rising preference for lightweight materials in the automobile industry will support the automotive window and sealing systems market to advance at a 7.6% CAGR during 2018–2025. The market was valued at $21.7 billion in 2017 and it is projected to exceed $38.7 billion by 2025. As lightweight vehicles have higher fuel efficiency, automotive original equipment manufacturers (OEMs) are increasingly using lightweight sealants. Besides, advancements in sealing technology have also resulted in the production of high-performance solutions for automotive, aerospace, and industrial sealing applications.
According to P&S Intelligence, Asia-Pacific (APAC) will dominate the automotive window and sealing systems market in the coming years, due to the surging automobile production in developing economies of the region. As China is the largest automobile manufacturing hub, it is the largest consumer of such systems. Moreover, the region is also expected to exhibit the fastest growth in the foreseeable future, on account of the rising gross domestic product (GDP) and surging disposable income of people in developing countries such as India and China.
Thus, the escalating number of passenger and commercial vehicles in emerging economies and the rising shift toward lightweight materials in the automobile sector will augment the sales of automotive window and sealing systems in the coming years.
Source: P&S Intelligence