Structural Adhesives and Sealants for EV Batteries Market Size, Share & Trends Analysis Report By Propulsion Type (Battery Electric Vehicle (BEV), Hybrid Electric Vehicle (HEV), Plug-In Hybrid Electric Vehicle (PHEV)), By Application (Structural, Thermal), By Vehicle Type (Passenger Vehicle, Commercial Vehicle), By Product (Epoxy, Polyurethane, Silicone, Acrylate, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global structural adhesives and sealants for EV batteries market size was valued at USD 76.25 million in 2023. It is expected to reach USD 360.77 million in 2032, growing at a CAGR of 18.85% over the forecast period (2024-32). The global shift towards electric mobility, driven by environmental regulations, government incentives, and consumer preferences for cleaner transportation solutions, accelerates the production and adoption of electric vehicles. Structural adhesives and sealants play a critical role in battery assembly, ensuring secure bonding, sealing, and thermal management.

The utilisation of adhesives and sealants was a huge help in the development of the technology that was required to electrify cars. Batteries for electric vehicles (EVs) benefit from an increase in range as well as protection given by adhesives and sealants, which also contribute to an overall improvement in performance of the batteries. The utilisation of these materials will, within the next few years, result in the creation of battery cells, packs, and modules that are appropriate for use in hybrid electric vehicles (HEVs) and battery electric vehicles (BEVs) (BEVs). A number of factors, such as the widespread adoption of electric vehicles, the growing demand for lightweight vehicles, the growing emphasis on increasing the crashworthiness of electric vehicles, and the enhancement of the thermal management and impact resistance of battery packs, are driving the growth of the market for structural adhesives and sealants for electric vehicle batteries. This market is expected to continue to expand in the coming years.

Market Dynamics

Global Structural Adhesives and Sealants for EV Batteries Market Drivers

Rise In Market Growth as A Result of Environmental Awareness

To help mitigate climate change, the automotive E-Vehicle industry is constantly striving to develop vehicles that are both lightweight and fuel efficient. Around the world, governments are enforcing strict limits on CO2 emissions of all types. CO2 emissions from electric vehicles can be reduced by using adhesives. Structural integrity is provided by the use of these adhesives in automobiles. Because of their versatility, they can adhere to a wide range of surfaces. Adhesives for Electric Vehicles are also more environmentally friendly, quieter, and safer than mechanical fasteners including soldering, bolting, and welding. Structural adhesives are recognized to transmit loads evenly across a surface, leading to improved efficiency than mechanical fastening, which causes local stress in parts linked. At this time, an automobile uses an average of about 15 kg of adhesives each vehicle. Over the next few years, this figure is anticipated to rise. This is a key driver for the market growth of the global Structural Adhesives and Sealants for EV Batteries Market.

Government Initiatives to Promote Electric Vehicles and Environmental Sustainability

The Clean Energy Ministerial founded the Electric Vehicles Initiative (EVI) in 2010 as a multi-government policy forum to promote the global acceptance and deployment of electric vehicles. It is imperative to take preventative measures and act on minimizing carbon footprints through damaging emissions on the planet in light of environmental challenges such as global warming.

Incentives like tax exemptions, government subsidies, and additional benefits are being offered by several governments to encourage the use of electric vehicles. In 2017, the German federal government set aside USD 230 million for research and development into electric mobility. It's predicted that by 2020, about 1 million electric vehicles will be on German roads, with 29 distinct electric car types now on the market. This is expected to increase the need for E-vehicles and Structural Adhesives and Sealants for EV Batteries across the globe.

Global Structural Adhesives and Sealants for EV Batteries Market Restraints

A Low Proportion of Electric Vehicles on The Road Relative to The Number of Charging Points

Approximately 150,000 charging stations may be found in a total of 75,000 different sites across the globe, as stated by the Open Charge Map, which is a global public record of the locations of charging stations for electric vehicles. According to the IEA's Global Electrical Vehicles (EV) Forecast 2018, more than one million electric vehicles were sold in 2017, with China accounting for more than half of all sales on a global scale. As a result, the number of charging stations relative to the number of electric vehicles already on the road is quite low. When compared to the number of charging stations established in developed nations, developing regions including Latin America and the Middle East and Africa have a lower total number of charging stations deployed. Because of this, it is anticipated that the sale of electric vehicles would slow down, which will have a negative impact on the demand in the global structural adhesives and sealants market for electric vehicle batteries.

Global Structural Adhesives and Sealants for EV Batteries Market Key Future Opportunities

Increased Environmental Awareness and Technological Advancement Will Create New Opportunities in the Future

EV Batteries Structural Adhesives and Sealants are widely used in the automotive sector. For electric vehicle batteries, demand for structural adhesions and sealants has risen as automakers have increased their criteria for these adhesives and sealants. To name a few uses: connecting comparable and dissimilar materials; replacing traditional substrate materials with synthetic ones. Electric car adhesives are seeing an uptick in demand due to a growing consciousness about environmental issues. As a result of their high level of vibration resistance, electric vehicle adhesives handle a variety of engineering and design concerns. As a bonus, they are extremely light and disperse stress more evenly. The development of electric vehicle technology relies heavily on the use of adhesives and sealants. In terms of battery cells, modules, packs, and motors, they are expected to remain at the forefront of innovation.

Regional Analysis

The Global Structural Adhesives and Sealants for EV Batteries Market is segmented by geography into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

Asia-Pacific is the Dominant market among all other regions. With 52.2% of total volume, the Asia-Pacific region led the global Structural Adhesives and Sealants for EV Batteries Market in 2019. Rapid development and a surge in automotive industry demand for adhesives are expected to keep this area highly lucrative during this projection period. A major reason for this is that China is the world's largest manufacturer of electric automobiles.

China, South Korea, and Japan are all experiencing strong growth in the Asia Pacific electric vehicle adhesives market, thanks to the expansion of several industries like as construction, automobiles, and electronic appliances. Among the countries that produced the most lightweight automobiles in 2017 were China, South Korea, and Japan.

Chinese manufacturers account for a significant portion of the Asia-Pacific market for global Structural Adhesives and Sealants for EV Batteries. It is projected that the market in the country would grow significantly in the near future. India and China have seen an increase in the demand for electric car adhesives due to the rapid expansion of their infrastructure and construction industries. India is expected to invest heavily in infrastructure development in the foreseeable future. Foreign investors are showing a strong interest in the Indian automotive sector, which is growing rapidly.

An increase in EV manufacturing investment is predicted to make North America the fastest-growing area. According to LG Chem, a subsidiary of LG Electronics, the company plans to develop a second battery manufacturing plant in the United States in 2019. Major corporations like GM and Volkswagen rely on LG Chem, one of the industry's leading battery makers, for their battery needs. The facility is scheduled to commence production in 2022. The region's increasing battery and electric vehicle production is likely to propel the market's expansion.

In Europe also, adhesives are projected to be in high demand in the coming years as electric car production and promotion continues to rise. For example, the Arrival, an EV manufacturing firm in the United Kingdom, has a goal of making electric vehicles as affordable as gasoline-powered vehicles.

Segmental Analysis

The Global Structural Adhesives and Sealants for EV Batteries Market is divided into different segments according to the type, applications and end-user.

By Propulsion Type, Structural Adhesives and Sealants for EV Batteries Market is divided into Battery Electric Vehicle (BEV), Hybrid Electric Vehicle (HEV), and Plug-In Hybrid Electric Vehicle (PHEV). BEV sales are predicted to eclipse the sales of HEVs and PHEVs because of the lower cost of pure electric vehicles, along with the development of EV infrastructure in many countries. Because of the growing popularity of BEVs, automakers must ensure that adhesives and sealants they use are thermally efficient and don't interfere with the performance of electric vehicles.

By Application, Thermal and Structural Adhesives for EV Battery Market are sub-segmented. Reliable and long-lasting bonding and sealing are the primary functions of adhesives and sealants in electric vehicle batteries. These adhesives and sealants are designed to seal and bond, as well as protect against vibration and shock. In addition, they protect the battery from damage caused by outside sources. The increasing use of electric vehicles around the world will lead to an increase in product use for structural applications in the coming years.

By Vehicle Type, Structural Adhesives and Sealants for EV Batteries Market is classified as Passenger Vehicle and Commercial Vehicle. Most of the global structural adhesives and sealants market share for EV batteries is expected to be held by passenger vehicles in 2030. People in both emerging and established nations are increasingly buying and using electric vehicles as personal transportation. More than 3 million electric passenger cars will be registered globally by 2020, with Europe and China leading the way. Passenger EV demand has been encouraged by stricter pollution standards and supportive government programs and subsidies in recent years, and this trend is expected to continue in the coming years.

By product, for EV battery structures, the global market is divided into Epoxy, Polyurethane, Silicone, Acrylate, and Others structural adhesive and sealants. A wide range of materials, including metal, wood, and plastic, can be bonded with polyurethane adhesives and sealants. They can withstand a wide range of chemicals, as well as humidity and other environmental conditions.

By regions or Geographies, APAC, North America, Europe, Latin America, and the Middle East and Africa are the five regions that make up the global market for structural adhesives and sealants for EV batteries (MEA). The structural adhesives and sealants market for EV batteries in Asia-Pacific is expected to be the largest and fastest expanding over the projected period, with China, Japan, South Korea, and India being the prominent nations with promising growth possibilities. The global market for electric vehicle adhesives was dominated in 2019 by Asia-Pacific. All the major battery manufacturers in this region contribute significantly to this region's overall contribution to electric car sales. During the projection period, North America and Europe are expected to provide major growth prospects.

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 - ENNOVI, a partner in mobility electricity solutions, developed a new way to laminate cells called the cell contacting system (CCS). ENNOVI has approved polyethylene terephthalate (PET) insulation foils and adhesives from several sources by testing them to see how well they stick together, how long they last, and how they affect the environment.