Electric Vehicle Adhesives Market

The global Electric Vehicle adhesives Market size is estimated to be USD 1.4 billion in 2022 and is projected to reach USD 7.6 billion by 2027, at a CAGR of 39.4% between 2022 and 2027. The increasing trade war tensions between the US and China and low labor costs in China have forced many many adhesive end users to shift and set up their manufacturing base in the Asian countries. This shifting is projected to increase the adhesives demand in the Asian countries.

Attractive Opportunities in the Electric Vehicle Adhesives Market

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Electric Vehicle Adhesives Market  dynamics

Driver: Automobile manufacturers increasingly investing in EVs due to government regulations and purchase incentives.

As the trend towards more eco friendly transportation gains traction, there are a number of current events related to increased investment in EVs. To make charging EVS easier and more convenient, governments and private companies are heavily investing in EV charging stations. In May 2022, the US Department of Energy (DOE) announced USD 3.1 billion as funding from US President Biden's Bipartisan Infrastructure Law to produce more batteries and components in America, enhance domestic supply chains, generate good-paying jobs, and help lower costs for families as part of its infrastructure plan. The Biden-Harris Administration Released New Standards and Significant Progress Toward a Made-in-America National Network of EV Chargers in February 2023. As per to the White House fact sheet 2023, the Bipartisan Infrastructure Act of US President Biden recently invested USD 7.5 billion in EV charging infrastructure, USD 10 billion in clean transportation infrastructure, and more than USD 7 billion in EV battery components, critical minerals, and materials. Many automakers are making significant investments in the production of electric vehicles in order to meet increasing demands while also meeting emissions regulations. For instance, in 2021 General Motors committed to spending USD 35 billion on electric and autonomous vehicles by 2025, while Ford committed to spending USD 22 billion on EVs by the same year. Many startups are actively developing EVs and technologies and are attracting significant investment from venture capital firms and other investors. For example, in July 2021, Amazon led a USD 2.5 billion funding round for electric truck startup Rivian.

Many governments around the globe are offering incentives such as tax credits, rebates, and subsidies to encourage people to buy EVs. For example, the United Kingdom announced in November 2020 that it would phase out new petrol and diesel cars by 2030 and increase EV subsidies. EVs and related technologies are receiving a lot of investment as the world transitions to a more sustainable future.

Opportunity: Scope for growth of autonomous electric vehicle

Autonomous electric vehicles are those electric vehicles that are self-parking, driverless, or robotic. It is expected that by 2030, autonomous vehicles will be sufficiently reliable and affordable to replace most human driving. Autonomous vehicles compute billions of data points each second from an array of sensors, cameras, and radar systems, which is called Advanced Driver Assistance Systems (ADAS). The current adoption rate of ADAS is 20% and this is expected to grow over the next few years. There are different types of adhesives being used in cameras, radars, and sensors in electric vehicles. With the development and commercialization of autonomous electric vehicles, the consumption of EV adhesives will increase in the near future. This will provide opportunities for EV adhesive manufacturers.

Challenges: Lack of standardization

The variation in charging loads has outlined the importance of standardizing EV charging technology. A particular EV charging station may only be compatible with one specific type of EV. An AC charging station delivers a voltage of 120 V AC via its level 1 charging station and 208/240V AC via its level 2 charging stations. On the other hand, the DC charging station, which operates at 480 V, provides fast charging. The charging standards for fast charging vary between different countries. China employs GB/T, Europe, the United States, and South Korea employ CCS, and Japan employs CHAdeMO. Tesla uses a patented high-performance supercharger that can be used by other EV manufacturers. The infrastructure for charging EVs must be standardized in order to create a supportive EV ecosystem and increase EV sales.

Liquid Adhesives Form Accounted For Largest Share Of Electric Vehicle Adhesives Market

Liquid adhesives accounts for the largest share of 59.1% in 2021, in terms of value. Between two substrates, a liquid adhesive is applied to create a solid material that physically or chemically joins the substrates together. Liquid adhesives are the most commonly used type of adhesive in EVs. They serve a variety of functions in EVS, such as powertrain system, body frame, and electric batteries. The maximum demand for liquid adhesives is for exterior applications, followed by interior applications. Liquid adhesives are used to join the modules in electric batteries. They can be applied as a liquid or as encapsulated beads that are pre-applied to the fasteners; when the fasteners are assembled, the beads break, which results in releasing the adhesive. Hence, increasing consumption of liquid adhesives in exteriors and interiors of EVs is driving the market.

Polyurethane resin type accounted for the largest share in Electric Vehicle Adhesives Market

The increased use of EVs is expected to boost polymer demand. Polymers in EVs are becoming increasingly popular due to the desire to make EVS lighter. EVs are made of polypropylene (PP), polyethylene (PE), acrylonitrile butadiene styrene (ABS), polyvinyl chloride (PVC), polyamide (PA), polycarbonate, and other engineering polymers. Polymers are employed in the interior, exterior, lighting, and electrical wires, as well as under the bonnet of electric vehicles.  In terms of volume, the Asia Pacific polymer substrate market is expected to grow the fastest during the forecast period, at a CAGR of 45.4%.

Increased battery capacity increases EV range. Increasing the capacity of the battery tends to increase its overall weight. To compensate for the increased battery weight, metals are replaced with polymers. Lightweight polymer structures require higher load distribution to improve EV safety and crashworthiness, and adhesives can be used to achieve this.  The growing EV market will drive the use of EV adhesives in the polymer substrate segment.

APAC is estimated to be the largest market for EV Adhesives.

APAC accounted for the largest market share of the Electric Vehicle adhesives Market in 2021, followed by Europe and North America.

Rising trade tensions between the US and China, as well as low labor costs in China, have pushed a number of adhesive end-users to transfer and develop manufacturing bases in Asian countries. This transfer is anticipated to boost adhesive demand in Asian countries. India provides low-cost labour, which can lead to significant investment potential for companies. Additional opportunities in the industrial and infrastructure construction sectors may be made available by government initiatives like "Make in India" and the proposed scheme on entrepreneurship development. All of these factors are expected to drive the APAC market.

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Key Market Players

The leading players in the Electric Vehicle adhesives Market are Henkel AG & Co. KGaA (Germany), H.B. Fuller (US), Sika AG (Switzerland), 3M (US), Wacker Chemie AG (Germany), Arkema S.A. (France), Ashland Inc. (US), PPG Industries (US), Parker Hannifin Corporation (US), and Illinois Tool Works Inc. (US).

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Scope of the Report

:

This research report categorizes the global Electric Vehicle Adhesives Industry on the basis of Application, Resin Type, Vehicle Type, Substrate, Form, and Region

On the basis of Application

• Powertrain System
• Optical Element
• Sensors & Communication
• Body Frame

On the basis of Resin Type:

• Epoxy
• Polyurethane
• Silicone
• Acrylic
• Others

On the basis of Vehicle Type:

• Electric Cars
• Electric Buses
• Electric Bikes
• Electric Trucks

On the basis of Substrate:

• Plastic
• Composite
• Metals
• Others

On the basis of Form:

• Liquid
• Film & Tape
• Others

On the basis of region:

• North America
• Asia Pacific
• Europe
• Rest of the World

The market has been further analyzed for the key countries in each of these regions.

Recent Developments

• In September 2022, Henkel AG & Co. KGaA has completed the acquisition of Nanoramic Laboratories' Thermal Management Materials business. Henkel used this acquisition to strengthen its Adhesive Technologies business unit's position in the growing markets for Thermal Interface Materials (TIM) by expanding its capabilities in high-performance segments.
• In January 2022, H.B. Fuller Company announced that it completed the acquisition of Apollo, the largest independent manufacturer of liquid adhesives, coatings, and primers for the roofing, industrial, and construction markets in the UK.
• In April 2021, Sika AG acquired Hamatite, the adhesives business of The Yokohama Rubber Co., Ltd. Hamatite is a market leader in Japan, offering adhesives & sealants to the automotive and construction industries. The acquisition helped company to strengthen its market position in Japan and increase market access to all major Japanese OEMs.
• In September 2019, Sika AG acquired Crevo-Hengxin, a Chinese manufacturer of silicone sealants and adhesives used in both industry and construction applications. With this takeover, Sika AG expanded its Target Markets Industry and Sealing & Bonding presence in China and the other Asia Pacific countries.
• In October 2021, Wacker Chemie AG has acquired a 60% stake in Jining-based specialty silane manufacturer SICO Performance Material Co., Ltd. (China). A corresponding agreement was signed by WACKER and SICO. After regulatory and antitrust approvals are obtained, the transaction closed in the first half of 2022.

Key Questions addressed by the report

• What was the market size of EV adhesives and the estimated share of each region in 2021, in terms of volume and value?
• What will be the CAGR of the Electric Vehicle Adhesives Market in all the key regions during the forecast period?
• What is the estimated demand for EV Adhesives in the various applications?
• Who are the major players in the market region-wise?

Frequently Asked Questions (FAQ):

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