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Title	Why Is Automotive Adhesive and Sealant Demand Surging in Germany?
Category	Business --> Business Services
Meta Keywords	Germany Automotive Adhesives and Sealants Market
Owner	industrytrends
The International Organization of Motor Vehicle Manufacturers (OICA) estimated that a total of 3,742,454 vehicles were manufactured in Germany in 2020. Further, the German Association of the Automotive Industry stated that the production volume of passenger cars in Germany increased from 123,504 units in August 2021 to 208,700 units in September 2021. Thus, the increasing vehicle production in the country, owing to the presence of automobile giants, will propel the adoption of automotive adhesives and sealants in the country, as they help in improving reliability, performance, driving comfort, and safety of vehicles. In recent years, automobile companies in Germany have been consuming a significant volume of epoxy-based adhesives and sealants to produce several automobile components, due to their strong bonding capability, ease of application, and higher moisture resistance. Besides, the high durability, exceptional flexibility, and excellent impact resistance properties exhibited by such products make them ideal for the production of headlights and signal lights and bonding of bumpers in vehicles. Furthermore, automobile original equipment manufacturers (OEMs) of Germany are also using acrylics, hot melts, rubber, silicones, polyvinylchloride (PVC), and polyurethanes in several vehicle components. Additionally, automakers have also been focusing on the usage of eco-friendly adhesives and sealants, such as water-based acrylic adhesives, to reduce the environmental degradation caused due to vehicle production. The automotive sector is shifting from conventional adhesives and sealants to environment-friendly variants that contain a limited quantity of volatile organic compounds (VOCs) and display exceptional initial adhesion properties. Water-based acrylic adhesives, which serve as an excellent alternative to solvent-based adhesives, are being increasingly used in the production of instrument panel dashboards and interior trim parts of automobiles. This transformation in the German automotive adhesives and sealants market is being brought about by H.B. Fuller Company, Henkel AG & Co. KGaA, tesa SE, Sika AG, DowDuPont Inc., and H.B. Fuller Company. Conventional and eco-friendly adhesives produced by these companies are used in the assembly, body in white (BIW), paint shop, and under-the-hood (UTH) and power train applications. In the preceding years, automakers utilized the highest volume of adhesives and sealants in assembly applications. The mushrooming usage of adhesives and sealants in the German automotive industry is the major factor responsible for their booming sales in the country. These adhesives and sealants are being increasingly used in the manufacturing of several automotive parts and components in the country, primarily because of their higher resistance to moisture and strong bonding capability. In addition, they also offer higher flexibility, good impact resistance, and durability than the conventionally used adhesives and sealants. Moreover, epoxy adhesives and sealants are being extensively used in the manufacturing of headlights and signal lights and also in the bonding of automobile bumpers. As Germany is one of the largest exporters and manufacturers of automobiles, the sales of adhesives and sealants are shooting up in the country. Besides, the surging deployment of electric vehicles, on account of the implementation of various vehicle electrification policies by the government and the increasing environmental concerns, is also creating lucrative growth opportunities for adhesive and sealant producers in the country. For instance, the German government provided various tax and financial incentives to automobile manufacturers to reduce the price of electric vehicles, which helped it achieve its objective of electrifying 1 million cars in the country by 2020. This subsequently caused the expansion of the German automotive adhesives and sealants market. Thus, the surging vehicle production and sales and the burgeoning demand for EVs are expected to accelerate the consumption of automotive adhesives and sealants in Germany.