Electric Vehicle Adhesive Market Size, Share & Trends Analysis Report By Vehicle Type (Battery electric vehicle, Plug-in hybrid electric vehicle), By Application (Pack & module bonding, Thermal interface bonding, Battery cell encapsulation, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global electric vehicle adhesive market size was valued at USD 122.59 million in 2024. It is expected to reach USD 790.26 million in 2032, growing at a CAGR of 26.23% over the forecast period (2024-32). The global shift towards electric vehicles, driven by environmental regulations, government incentives, and consumer preferences for cleaner transportation solutions, increases demand for adhesives in EV manufacturing. Adhesives are used in battery assembly, structural bonding, and interior applications.

Electric vehicle adhesives are one sort of adhering substance that provides adherence between two pieces without affecting their functionality. In addition to allowing for the components' efficient operation, it creates a solid optical link between the battery's elements. Because of their strength and flexibility, adhesives are able to provide a flexible solution, which has a positive impact on the size of the market. The industry landscape is speeding up as a result of the additional vibration reduction and impact absorption it provides without passing the energy on to the component elements.

Market Dynamics

Market Drivers

Rapid Growth Of The EV Segment Is Driving The Market

The market for electric vehicles is expanding quickly, as seen by the recent spike in sales. Due to a decade of explosive growth, there will be more than 10 million electric vehicles on the road worldwide by the year 2020. Despite the pandemic-related global decline in auto sales, which saw a 16% dip in sales worldwide, the number of electric car registrations rose by 41% in 2020. For the first time, Europe surpassed China as the world's largest market for electric vehicles (EVs), with sales of almost 3 million electric vehicles worldwide (a 4.6% sales share). Major markets saw a rise in the number of electric bus and truck registrations, which eventually reached global inventories of 600,000 and 31,000, respectively.

Supportive Regulations Are Driving The Market

There are Regulatory frameworks that are supportive of the growth of the market even before the pandemic; many nations were tightening important regulations, including CO2 emissions standards and zero-emission vehicle (ZEV) mandates. By the end of 2020, more than 20 nations would have declared sales of conventional cars to be banned or would have required ZEVs to be the only new vehicles sold. Additional incentives to protect EV sales from the economic slump include increases in purchasing incentives by several European nations and a postponement of the phase-out of China's subsidy program. There have been more EV models introduced, and battery prices have decreased.

Market Restraints

High Cost And Limited Charging Stations Restrict The Market

The high upfront cost of the battery technology employed is the main factor impeding the expansion of the electric car sector. The cost of battery technology is high because batteries are made from expensive, hard-to-find materials. If they do not have enough range, many drivers will find it impractical to use electric vehicles.

Another obstacle to the expansion of the market for electric vehicles is the scarcity of charging facilities. Although the number of electric vehicles is growing, consumers are hesitant to rely on them because they are concerned about becoming stuck in an area without a charging station. This worry will go away as more charging stations are installed as the market for electric vehicles expands. Between 2020 and 2030, there will be a significant increase in the overall energy demand for all-electric vehicles. By 2030, it is anticipated that the world's total energy consumption will be 280 billion kilowatt-hours.

Market Opportunities

Robotic, Driverless And Self-Parking Segments Will Bring In Opportunities

Self-parking, driverless, or robotic electric vehicles are referred to as autonomous electric vehicles. Autonomous vehicles are anticipated to be dependable and cost-effective enough to replace the majority of human drivers by 2030. Advanced Driver Assistance Systems (ADAS) are used in autonomous vehicles to process billions of data points every second from a variety of sensors, cameras, and radar systems (ADAS). The adoption rate of ADAS is currently 20%, and it is anticipated that this will increase over the coming years. Different adhesives are employed in the cameras, radars, and sensors found in electric vehicles. The demand for EV adhesives will rise in the near future as autonomous electric vehicles evolve and become more widely available. Manufacturers of EV adhesive will have chances as a result of this.

Regional Analysis

On account of expanding investments in EV manufacturing, North America is anticipated to be the fastest growing regional market, with a volume-based CAGR of 27.1% throughout the projection period. For instance, LG Chem declared its intention to construct a second factory for the manufacture of EV batteries in the United States in July 2019. One of the top battery producers is LG Chem, which sells its goods to well-known corporations like Volkswagen and General Motors. 2022 is the anticipated year when the factory will start producing. It's anticipated that the region's rising EV and battery output would drive market expansion.

Europe is one of the market's main regions, and it is anticipated that over the forecast period, it will grow at a revenue-based CAGR of 21.1%. The need for adhesives is anticipated to continue to grow in the upcoming years as the production and promotion of electric vehicles gain momentum. For instance, an EV manufacturing business called Arrival in the UK has created a vision of making electric vehicles as accessible as fuel-driven vehicles in order to increase the sales of EVs.

By adopting composite materials, which are predicted to be recyclable, corrosion- and UV-resistant, and extend the life of the vehicle by 15-20 years, the company is engaged in the construction of commercial vans. Greater demand for adhesives is anticipated as a result of these manufacturer activities to increase the manufacturing of electric vehicles.

Segmental Analysis

This electric vehicle adhesive market can be segmented on the basis of Vehicle Type, Applications. 

Battery electric vehicles (BEV) and plug-in hybrid electric vehicles (PHEV) are the two market segments that have been established based on the kind of vehicle. 

As of 2021, PHEVs held the biggest volume share (51.3%); however, by 2027, when BEVs are predicted to overtake PHEVs as the dominant vehicle type, this trend is predicted to reverse. The amount of glue consumed by BEVs is greater than that of PHEVs. By 2030, the IEA projects that there will be a significant increase in the number of BEVs available, particularly in the market for light-duty passenger cars. By increasing investments in BEV manufacturing, the growth in output can be identified.

As per application, the market is divided into pack and module bonding, thermal interface bonding, battery cell encapsulation, and others. In 2019, the pack and module bonding segment accounted for a volume share of 41.6%, making it the largest segment. Adhesives are used in the manufacturing of the battery packs that are used in electric powertrains, which have a number of advantages, including improved crashworthiness and integrity of the battery pack, lightweight, bonding of numerous substrates, and bonding of uncoated metal.

Over the projected period, battery cell encapsulation is anticipated to increase the fastest. The tiniest form of a battery is a battery cell. To maintain mechanical integrity, cells use structural adhesives to bond together. Adhesives are used to bind cells firmly in place and align them properly in order to stop any movement caused by vibrations, acceleration, or deceleration. With a volume share of 52.2% in 2019, the Asia Pacific region had the highest share. China is the world's greatest producer of electric vehicles; hence the area is the region's biggest buyer. In contrast, Electric Vehicle Adhesive market growth is anticipated to be subpar in 2020–21 due to the global Covid-19 epidemic, which has been suspected of having originated in China. As of March 2020, the production of electric vehicles has been hampered by the lack of personnel and raw materials, which has also affected the need for adhesives.

Impact of covid-19

Covid-19 had some profound adverse impacts on the global advanced ceramics market.

COVID-19 spread across the world from China, making the whole world stand still and to a complete lockdown situation. Covid-19 is an infectious disease that was caused by a newly discovered coronavirus. During the time, the fatality rate among the population above 40 was also high globally. The disease causes severe illness for people suffering from medical conditions like diabetes, cardiovascular disease, chronic respiratory disease, etc.

Considering the situation during that time, it was declared a pandemic which led to numerous countries, including the major economies like China, the United States, India, and others, implementing lockdowns which adversely affected the global economy.

In the first two quarters of 2020, the economic and industrial operations temporarily halted. Almost every manufacturing unit where advanced ceramics is used, such as electrical and electronics, transportation, industrial, chemical, and other End-user Industries (except medical), reduced their manufacturing capacities due to the lack of workers. The lockdown implemented put a halt to global supply chains. This resulted in repercussions in terms of both production and demand for advanced ceramics.

Market Recovery Timeline and Challenges

With time the lockdowns were uplifted, and relaxation was made to the public. Gradually, the economy picked up the pace and started its operations, bringing the demand in the global advanced ceramics market and increasing among various industries. As the situation improved during the initial months of 2021, the economies also strengthened their fiscal policies and initiated their development process; the end-user industries began their activities, bringing the overall ceramics market back on track.

Recent Developments

• May 2024 - Bodo Möller Chemie announced that they are extending their product and service sales with new branches in Thailand and Vietnam, marking their third Asian expansion after China and India. Thus, goods like adhesives, sealants, and potting and encapsulation resins are currently supplied to automotive, battery, electrical, and aerospace users by well-known manufacturers, including DuPont, Huntsman, Henkel, medmix, and Pactan.
• May 2024 - Ahlen, Germany-based Polyurethanes Systems House of Dow (NYSE: DOW) announced the mechanical completion of its new VORATRONTM Polyurethanes Systems adhesive and gap filler production line. With this move, Dow will double the capacity of its VORATRONTM Polyurethane Systems product family, enabling it to fulfill the growing demand for these materials in battery assembly solutions catering to the e-mobility market.