The global EV Adhesives Market size is estimated to be USD 0.4 billion in 2021 and is projected to reach USD 1.8 billion by 2026, at a CAGR of 44.7% between 2021 and 2026. The rising trade war tensions between the US and China and low labor costs in China have forced various end-users of adhesives to relocate and establish their manufacturing base in the ASEAN countries. This relocation is expected to increase the demand for adhesives in the ASEAN countries. India offers low-cost labor, which can provide significant investment opportunities for companies. Government initiatives such as “Make in India” and the proposed scheme on entrepreneurship development by the government may open up additional opportunities in the industrial and infrastructure construction segments. All these factors are expected to drive the market in APAC.
EV adhesives on the basis of substrates are segmented into polymer, composite, metal, and others. Automakers are continuously innovating and using various substrates to make EVs lightweight. The use of dissimilar materials creates the demand for EV adhesives as bonding of dissimilar materials is one of its key functions. The increasing use of different substrates such as polymer, composite, and metal in EVs will drive the growth of the EV adhesives market.
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The EV Adhesives Market is segmented on the basis of vehicle type as electric cars, electric buses, electric bikes, and electric trucks. The demand for EVs is increasing at a rapid pace due to growing environmental concerns, even as the sale of ICE vehicles is seeing a slump. The implementation of favorable policies for EVs and technological advancements in the value chain will drive the EV market in the next five years. The growth of electric cars and buses is expected to drive the growth of EV adhesives during the forecast period.
Vehicle manufacturers announced increasingly ambitious electrification plans. Out of the world’s top 20 vehicle manufacturers, which represented around 90% of new car registrations in 2020, 18 have stated plans to widen their portfolio of models and to rapidly scale up the production of light-duty electric vehicles. The growth of electric cars is driven by critical policy changes adopted by leading countries in electric mobility. These countries have introduced stricter emission standards in addition to incentives for electric cars and are promoting investments in the EVs industry value chain to bring price parity between EV and ICE vehicles. In an EV, adhesive technology plays a critical part in making the EV lightweight as it is used in a number of applications. The growing EV markets such as Europe, APAC, and North America will provide growth opportunities for EV adhesive manufacturers during the forecast period.
The growth of the electric bus segment is driven by the growing concerns about air quality, carbon emissions, and high operational cost in major cities of the world. In an electric bus, adhesives are used in front & rear shell bonding, roof bonding, door panel bonding, side panel bonding, luggage door, side glass bonding, roof hatch, air conditioning cover, interior parts, front dash & panel, front bumper & grill, and lithium-ion battery. The large application of adhesives in electric buses and the increasing electric bus fleet across the world will ensure the growth of the EV adhesives market.
On the basis of applications, the EV adhesives market is divided into powertrain systems, exterior, and interior. The rising production and sale of electric cars have increased the demand for batteries, electric motors, doors, instrument cluster, infotainment system, seats, various panels, and charging sockets. Batteries are the most important components of electric cars as they provide power to the car. The battery of the car is heavier than the other parts. In order to counter the weight of batteries and reduce the overall weight of electric cars, lightweight materials are used in electric car applications. In the electric vehicle industry, adhesives are used in place of welds, screws, rivets, gaskets, and fasteners, which allows automakers to make the vehicle lightweight. One of the concerns in electric vehicles is range. Automakers are addressing this issue by increasing the battery capacity of the vehicle.
The leading companies in the EV adhesive market are Henkel (Germany), H.B. Fuller (US), Sika AG (Switzerland), 3M (US), Wacker Chemie AG (Germany), Bostik SA – An Arkema company (France), L&L Products (US), Jowat SE (Germany), Ashland (US), PPG Industries, Inc. (U.S.) and Permabond LLC. (UK). These players adopted acquisitions, new product launch, and agreements as key growth strategies in between 2018 to 2021 which helped them to increase their capacities and cater to the widening customer base.
Henkel (Germany) is a company that manufactures and sells its products under three segments namely, adhesive technologies, laundry & home care and beauty care. The adhesive technologies business segment offers a wide range of products in adhesives, sealants, and coatings. Some of the top brands of Henkel in adhesive technologies are Loctite, Technomelt, and Teroson. The company manufactures adhesives for electric vehicle which caters to end-use applications such as overall electric vehicle battery, automotive camera & radars, exterior, and interior. In November 2018, Henkel has done strategic alliance with RLE International to design new e-mobility concepts and lightweight innovations. Both companies have developed a new approach to the production of electric battery units. The approach involves the use of hybrid structural inserts and adhesives replacing light metals and materials, which helps to reduce the weight of battery.
H.B. Fuller (US) manufactures and supplies adhesives ranging from thermoplastic, thermoset, reactive, water-based and solvent-based products and it caters to the demand arising from various end-use industries such as transportation, medical, clean energy, aerospace & defense and heavy machinery. The company manufactures and sells adhesives for electric vehicles. In February 2020, H.B Fuller acquired certain assets of DHM. Adhesives, Inc. DHM, headquartered in Calhoun, Georgia, is a provider of hotmelt adhesives.
The demand for EV adhesives has been severely affected by the outbreak of COVID-19 owing to the halting of various industries across the globe. Vehicle production had been affected in major countries due to supply shortages, lockdowns, and production suspensions in the early months of 2020. The demand for new vehicles in pandemic-affected countries was low due to lockdowns and restrictions to curb the spread of the virus. According to the European Automobile Manufacturers Association (ACEA), the total loss due to COVID-19 in 2020 for the European automobile market was approximately 3.6 million vehicles worth approximately USD 120 billion.
The companies have initiated the following developments:
Electric Vehicle Adhesives Market by Application (Powertrain, Exterior, Interior), Resin Type, Substrate, Form (Liquid, Film & Tape), Vehicle Type (Electric Car, Electric Bus, Electric Bike, Electric Truck), and Region - Global Forecast to 2026
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