The Global Electric Vehicle Adhesives Market was valued at USD 315.8 Mn in 2020 and is expected to reach USD 2,468.5 Mn by 2027, with a growing CAGR of 34.1% during the forecast period.
Electric vehicle adhesives are adhering substance which facilitates adhesion between the two parts of the vehicle without influencing their core function. It helps in providing a strong light bond among battery parts and also offers smooth functioning of the vehicle components. These adhesives possess the ability to offer flexibility and own strong adhesion characteristics, thereby driving the electric vehicle industry size.
The electric vehicle adhesives market is accounted to boost at a significant pace in the forecast period. The market is majorly experiencing traction owing to the increasing preference of consumers for adopting environment-friendly vehicles to curb the carbon footprints of the earth. In addition, the growing stringent policies by the government for maintaining the average fuel consumption per vehicle by several economies is also expected to drive the demand for the electric vehicle adhesives industry. For instance, The Corporate Average Fuel Economy (CAFE), a governing body in the U.S. that is responsible for regulating the average fuel economy of new vehicles sold in the United States has mandated that all passenger vehicles should achieve an average mileage of 54.5 miles per gallon by 2025. The use of adhesives in the automotive industry helps in reducing the weight of several finished parts. Vehicles with lighter weight help in reducing fuel consumption and overall operating costs. The reduced fuel consumption thus results in fewer emissions in the environment. Therefore, growing concerns for fuel-efficient vehicles are thereby driving the demand for the electric vehicle adhesives industry.
Moreover, adhesives not only help to reduce the weight of electric vehicles but also play a crucial role in improving their overall vehicle efficiency. Adhesives are used for several applications in EVs, such as sealing, potting of relays and sensors, cell fixing, and for the sealing of fuel cell batteries. Specially designed compounds help in protecting batteries from water, dust, and also helps to regulate noise, dampen vibration, and heat. All of these properties are propelling the consumption of adhesives in the EV market. Hence, increasing production of EVs is expected to propel the electric vehicle adhesives industry demand.
Despite such growth factors, limited availability of charging stations and the increased upfront cost of EVs are few factors posing challenges in the growth of electric vehicles adhesives market in the forecast period mentioned above. However, the rising production of electric vehicles along with growing modernization in automotive industry is providing lucrative growth opportunities in the electric vehicle adhesives market.
By Resin Type
By Vehicle Type
The unique insights provided by this report also include the following:
Based on resin type, polyurethane resin type accounted for the largest share in the electric vehicle adhesives market owing to various advantages offered by polyurethane over other resins type
Based on resin type, the electric vehicle adhesives market is segmented as epoxy, silicones, polyurethane, acrylics, and others. Among these, polyurethane resin type accounted for the largest share in the electric vehicle adhesives market. This high share is mainly due to the fast-curing and cost-efficient nature of polyurethane. Polyurethane EV adhesives are known for their excellent adhesion to porous and smooth surfaces. Apart from this, urethane systems provide several properties such as abrasion resistance, high flexibility, gap-filling, and superior physical strength capabilities. They also offer strong bonding to larger areas, which provides them a competitive advantage in comparison to other types of resins. Owing to their ability to bind to metals and high strength, polyurethanes are commonly used in a wide range of applications in electric vehicles. These benefits offered by polyurethane are contributing to increasing the electric vehicle adhesives industry size.
Based on vehicle type, the electric car segment has shown the most lucrative growth in the electric vehicle adhesives market due to the rising demand for electric vehicles across the globe
Based on vehicle type, the electric vehicle adhesives industry is fragmented as an electric bus, electric car, electric bike, and electric truck. Among these, the electric car segment has shown the most lucrative growth in the electric vehicle adhesives market. This growth is prominently attributed to the rising demand for electric vehicles across the globe. Factors such as growing environmental concerns, increasing demand for low emission commuting along with favourable governments support for zero-emission, long-range cars through subsidies & tax rebates have forced the manufacturers to provide electric vehicles around the world. Due to this, many tops and luxurious vehicle manufacturers have announced their electrification plans to widen their portfolio of models and to rapidly scale up the production of light-duty electric vehicles. For instance, in October 2021, Rolls-Royce Motor Cars announced to launch of its first electric car “SPECTRE” in 2023. The on-road testing of its first fully electric car is expected to begin shortly. As adhesives are an indispensable material in manufacturing electric vehicles, the growing production and demand of these vehicles are expected to positively affect the market growth.
Based on regions, the Asia-Pacific region has dominated the electric vehicle market across the globe owing to favourable government policies and increasing investments that are driving the growing automotive industry in the region
Based on region, the electric vehicle adhesives market is segmented as North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Among these, the Asia-Pacific region has dominated the electric vehicle adhesives industry across the globe. The growth in this region is mainly attributed to the rapidly growing automotive industry in emerging economies such as India, China, and South Korea. Favourable government policies and increasing investments are driving the automotive industry and thereby the growth of electric vehicle adhesives in this region. Policies such as “Made in China 2025” and the “Automobile Industry Mid and Long-Term Development Plan” are focusing on manufacturing light-weighting and new energy vehicles that will focus on reduction of fuel consumption. Moreover, low labour costs in China and the increasing trade war tensions between China and the US and have forced several end-users of adhesives manufacturers to establish and relocate their manufacturing base in the ASEAN countries. This relocation is projected to rise the demand for EV adhesives in the Asia-Pacific region.
The report also provides in-depth analysis of Electric Vehicle Adhesives market dynamics such as drivers, restraints opportunities and challenges
Note: Challenges along with in-depth market dynamics analysis is mentioned in the report. .
The Covid-19 pandemic has majorly affected the growth of the electric vehicle adhesives market across the globe. The pandemic has put immense pressure on the economies around the world including the India, U.S., China, and U.K. among others, and has pushed these economies into a severe recession. This has resulted in incessant pay cuts and numerous employment losses leading to the reduced disposable income of consumers, and a shift in their focus towards essential products. This has severely impacted the demand for electric vehicles and in turn the electric vehicle adhesive market. Apart from this, the pandemic also brought a halt in vehicle production due to lockdowns, production suspensions, and supply shortages in the early months of 2020. According to the European Automobile Manufacturers Association (ACEA), 2020 recorded the biggest yearly drop in car demand since 1990 in all 27 EU markets.
The report also provides an in-depth analysis of key trends in electric vehicle adhesives market
Favorable government policies and initiatives for adopting and increasing the production of electric vehicles by several countries are positively impacting the market. For instance, India released The National Electric Mobility Mission Plan (NEMMP) 2020 which is a National Mission document that provides the roadmap and vision for the faster adoption of electric vehicles and their manufacturing in the country.
The report also provides in-depth analysis of recent news developments and investments
Company Profiles and Competitive Intelligence
The key players operating in the electric vehicle adhesives industry are:
Priyanka has been writing chemicals & material market research reports for the last 12 years. A post-graduate, her specialization is in the chemicals sector. Preparing end-to-end reports covering minute details for market insights, competitive intelligence and trend analysis in the CMFE sector.