EV Adhesives Market

Increasing Investments in EV by Automobile Manufacturers Fuel Growth of EV Adhesives Market

EV adhesives are used in a variety of applications such as body-in-white, paint shops, powertrain, and assembly. The types of electric vehicles considered are electric cars, electric buses, electric bicycles (two-wheelers), and electric trucks. Polymers, composites, and metals have been known as the primary substrates for EV adhesives. The application of adhesives for EVs is increasing due to several requirements from manufacturers, such as bonding of similar and dissimilar materials, synthetic substrates replacing conventional substrate materials, as well as increasing concerns about environmental issues. The capabilities of EV adhesives to solve a variety of engineering and design problems because of their vibration resistance, lightweight, and ability to distribute stress over a wide range are expected to drive the growth of EV adhesives market.

Automakers have announced increasingly ambitious electrification plans. Of the top 20 global automakers, which account for about 90 percent of new car registrations in 2020, 18 said they plan to expand their model portfolios and rapidly scale up production of light-duty electric vehicles. Model availability of electric heavy-duty vehicles is also expanding, with four major truck makers signalling an all-electric future. In addition to this, Hero Electric (India) also plans to increase the production capacity of its existing plant from 75,000 to 300,000 electric vehicles (2-wheelers). It also plans to open a new production facility with a production capacity of 1 million vehicles (2-wheelers) in the next few years.

Sales of internal combustion engine vehicles have declined in many developed markets due to increasingly stringent emissions standards. Countries such as Europe, China, and the United States have introduced new emission standards, in India. In Europe, automakers have been struggling to adapt to new emissions standards under the Worldwide Harmonized Light Vehicle Test Procedure (WLTP), which came into effect in September 2018. As the decrease in sales of ICE vehicles has made automakers spend more on .

The growth of the market can be attributed to the increasing initiatives by governments to promote the EV production, and adoption. The rapid growth of the electric vehicle market is evident from the growing sales in recent years. After a decade of rapid growth, there were more than 10 million electric vehicles on the streets of the world by the end of 2020. Electric vehicle registrations rose by 41% in 2020, despite a 16% drop in global car sales due to a pandemic-related decline in global car sales. Global electric vehicle sales were around 3 million units (4.6% of sales), with Europe surpassing China for the first time as the world’s largest EV market. Registrations of electric buses and trucks also expanded in key markets, with global inventories reaching 600,000 and 31,000 units, respectively.

The Plug-in Hybrid Electric Vehicles Segment is likely to Dominate the Market during the Forecast Period

Based on vehicle type, the target market has been segmented into battery electric vehicles (BEV), and plug-in hybrid electric vehicles (PHEV). The PHEVs account for the largest volume share, which is expected to reverse by 2027 when BEVs emerge as the prominent vehicle model. BEVs consume more adhesive than plug-in hybrids. According to the IEA, inventories of pure electric vehicles are expected to accelerate through 2030, especially in the light-duty passenger vehicle segment. Growth in production can be indicated by increased investment in BEV manufacturing.

For example, according to a May 2019 release, Volkswagen's joint venture with OEM Anhui Jianghuai Automobile received permission to start building a BEV plant. Volkswagen said the joint venture aims to produce 22 million electric vehicles over the next decade, with 50 percent of the production taking place in China. High consumption of adhesives in BEVs, coupled with increasing production of the latter is expected to yield fruitful results for the global EV adhesives market over the forecast period.

Asia Pacific to be the Largest and Fastest Growing EV Adhesives Market

Asia Pacific accounts for the largest share of EV adhesives market, followed by Europe and North America. The increasingly tense China-US trade war and low labour costs in China have forced various end-users of adhesives to relocate to ASEAN countries and establish production bases there. The relocation is anticipated to increase the demand for adhesives in ASEAN countries. India offers low-cost labour that can provide imperative investment opportunities for businesses. Government initiatives such as "Make in India" and entrepreneurial development programs proposed by the government may open more opportunities in the industrial sector. All these factors are expected to drive the market in Asia Pacific. However, the growth of EV adhesives market remained moderate in 2020-21 amid the global COVID-19 pandemic that reportedly originated in China. As of 2023, an increase in sales and manufacturing of electric vehicles will have a positive impact on the demand for adhesives.

Global EV Adhesives Market: Competitive Landscape

The key companies in EV adhesives market are introducing new products alongside initiation collaborations, alliances, and partnership agreements. For instance, in 2020, H. B. Fuller has acquired certain assets of DHM Adhesives Inc. DHM headquartered in Calhoun, Georgia, is a provider of hotmelt adhesives. On the other hand, in 2021, Sika AG acquired Hamatite, the adhesives business of The Yokohama Rubber Co., Ltd. Additionally, Sika AG also acquired Bexel Internacional S.A., a leading manufacturer of tile adhesives and stuccos in Mexico.

A few of the major players in EV Adhesives market include 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. (US) and Permabond (UK).

Regional Classification of the Global EV Adhesives Market is Listed Below:

North America

• U.S.
• Canada

Europe

• Germany
• France
• Spain
• U.K.
• Italy
• Russia
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Southeast Asia
• Rest of Asia Pacific

 Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East and Africa

• GCC
• South Africa
• Rest of Middle East & Africa

*Regions and countries are subject to change based on data availability.

Key Elements Included In The Study: Global EV Adhesives Market

• EV Adhesives Market by Product/Technology/Grade, Application/End-user, and Region
• Executive Summary (Opportunity Analysis and Key Trends)
• Historical Market Size and Estimates, Value and Volume, 2018 - 2022
• Volume Consumption at Regional and Country Level, 2023 - 2030
• Market Dynamics and Economic Overview
• Market Size in Value and Volume, Growth Rates, and Forecast Figures, 2023 - 2030
• Competitive Intelligence with Financials, Key Developments, and Portfolio of Leading Companies 
• Regional and Product/Grade/Application/End-user Price Trends Analysis
• Production Output Analysis (Major Producing Regions)
• Value Chain and Five Force’s Analysis
• Regional/Sub-region/Country Market Size and Trend Analysis
• Company Market Share Analysis and Key Player Profiles

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