The global electric vehicle adhesives market size was valued at USD 1.40 billion in 2022 and is expected to hit around USD 11.51 billion by 2032, poised to grow at a compound annual growth rate (CAGR) of 23.50% during the forecast period 2023 to 2032.
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There shall be a growth in the demand for oh this is used in the electric vehicles due to the adoption of various initiatives taken by the governments in order to increase the production of the electric vehicles in the developing as well as the developed nations across the globe. Increase in the demand for electric vehicles will increase the demand for the electric vehicle adhesives market. In order to combat the issues related to the environment like the global warming several initiatives were initiated by the governments like the electric vehicle's initiative. This initiative focused on increasing the production of electric vehicles and promoting electric vehicles. As the increased use of electric vehicles will help in reducing the carbon footprint the market for the electric vehicle others is expected to grow during the forecast period.
Due to the outbreak of the COVID-19 pandemic the global market for the electric vehicle adhesives was affected to a great extent. As the manufacturing industries had come to a halt the demand for the electric vehicle adhesives had dropped to a great extent. In order to comply with the policies of the government that restrained the movement of raw materials and prohibited the human contact the market had come to a halt. There were major delays in the production of the vehicles as the supply chain logistics were hampered to a great extent.
There are many reasons why the market growth will be hampered during the forecast period. The expense incurred in the manufacturing of the battery is high due to the use of the technology that makes use of expensive material. The use of this technology which makes use of expensive materials may not be efficient in providing different ranges in the electric vehicles which will hamper the growth of the market. The unavailability of a large number of charging stations for the electric vehicles is another barrier which shall hinder the growth of the market.
The demand for electric vehicles has not grown well as there is of fear of getting stuck at a location which has no charging station. It is estimated that the demand for electric vehicles will grow during the forecast period as there has been an increase in the investment which shall provide a large number of charging stations during the forecast period. Another factor that hampers the growth of the market is that of the lack of standardization. Electric vehicles may not always be compatible with no certain type of charging station. In different countries different voltage is used for fast charging. The electric charger used for the electric vehicles manufactured by Tesla makes use of a supercharger which is not compatible with the other electric vehicles. All of these reasons will restrain the growth of the electric vehicle adhesives market during the forecast period.
Report Scope of the Electric Vehicle Adhesives Market
|Market Size in 2023||USD 1.72 Billion
|Market Size by 2032||
USD 11.51 Billion
|Growth Rate from 2023 to 2032||CAGR of 23.50%|
|Forecast Period||2023 to 2032|
|Segments Covered||Vehicle, Application, Resin, Substrate, Form, End User, Geography|
Henkel (Germany), H.B. Fuller (US), Sika AG (Switzerland), Ashland (US), PPG Industries (US), Permabond (UK), 3M (US), Wacker Chemie AG (Germany), Bostik SA – An Arkema company (France), L&L Products (US), Jowat SE (Germany)
There has been a great demand for electric vehicles in the developed nations. The stringent greenhouse gas emission policies in the developed nations will drive the market growth period in the countries like the United States and Europe many new standards for the emissions have been announced that have come into effect in the recent years period these standards have increased the adoption of electric vehicles in the developed nations. The major automobile manufacturers are increasing their amount of investments for the manufacturing of the electric vehicles. Major manufacturers of electric vehicles are also focusing on expanding their product portfolio by offering different types of models which shall be helpful in creating a larger demand for the product during the forecast. Growing demand for light duty vehicles is also expected to drive the market growth.
Increased use of transport vehicles of the electric form will also drive the market growth during the forecast period. In the recent years there has been a great demand for electric vehicles. Across the globe there are about more than 10 million electric vehicles running on the roads across the globe. And it shall grow in the coming years. That has also been a great demand for electric trucks and bus in order to boost the transport segment.
The presence of various regulatory frameworks that are supportive of the electric vehicles will drive the market growth during the forecast period. There are many initiatives offered by the government that help in the adoption of electric vehicles in many developed nations. Incentives are provided for the consumers that purchase electric vehicles. The availability of such schemes in the developing nations has created a greater demand for electric vehicles. Due to continuous research and development there has been or reduction in the cost of the battery used in the manufacturing of the electric vehicles which has created a greater demand for electric vehicles and it is expected to grow during the forecast period.
Electric Vehicle Adhesives Market Share, By Vehicle, 2022 (%)
|Vehicle||Revenue Share in 2022 (%)|
|Battery Electric Vehicle||49%|
|Plug in Hybrid Electric Vehicle||51%|
By vehicle type, the electric vehicle battery segment is expected to dominate the market in the coming years. The plug in hybrid electric vehicles has dominated the market in the past in terms of the market share which accounted for 53%. The demand for battery electric vehicles is expected to grow during the forecast. We shall create a greater demand for additives in this segment.
There is a growing demand for passenger vehicles after battery electric vehicle type. There is been an increase in the investments we shall be helpful in producing large number of light duty vehicles during the forecast period. China is expected to have a great amount of production of battery electric vehicles during the forecast period. There shall be an increase in the demand for the adhesives used in the battery electric vehicles in this region. The global market for the electric vehicles adhesives is expected to have a larger demand through this region.
On the basis of application, the exterior application segment is expected to have a dominant position during the forecast period. There has been a growth in the demand for the infotainment systems, batteries, doors, seats and different charging sockets in the electric vehicles. In order to attach all of these there shall be an increased use of adhesives which shall be an alternative to the gaskets, screws as well as the welds which shall be helpful in reducing the weight of the electric vehicles.
As the use of batteries in the electric vehicles increases the weight of the vehicles, adhesives are used to compensate and reduce the weight of the cars. There is an increased use of structural adhesives in the manufacturing of these cars will increase due to constant research and development. The increased use of adhesives in the electric vehicles for the exterior parts will create a greater demand during the forecast period.
By resins type, the polyurethane segment is anticipated to have a dominant position during the forecast period. There are different properties of the due to the type of resins used in its manufacturing. Depending upon the properties of these adhesives they are used in different industries. There shall be a growth in the demand for polyurethane adhesives during the forecast. As it provides and elasticity of about 600% which is an extraordinary quality. This adhesive is extremely strong where it comes to flexibility. There are three different types of the polyurethane adhesive which are used for different applications.
Electric Vehicle Adhesives Market Share, By Region, 2022 (%)
|Regions||Revenue Share in 2022 (%)|
On the basis of geography, the Asia Pacific region is expected to dominate the market during the forecast period. In the recent years there has been an increased sales of electric vehicles in the Asia Pacific region. China is a major manufacturer of these cars. The electric vehicles market was affected to a great extent during the pandemic. As China had taken the worst hit during the COVID-19 pandemic the manufacturing activities had come to a standstill. Restraint in the movement and unavailability of raw material do tourist reigned in the transport affected the market to a great extent. The market for electric vehicles is expected to grow during the forecast and there shall be an increase in the demand for the adhesives in the coming years.
Apart from the Asia Pacific region the North American region is also expected to grow well. It is expected to grow at the highest compound annual growth rate during the forecast period. As there has been an increase in the amount of investments made in the manufacturing of the electric vehicles the market is expected to grow well during the forecast period. Major manufacturing companies are setting up factories that shell increase the production of batteries required for the electric vehicles. The market for the electric vehicle adhesives is expected to grow during the forecast period due to an increase in the number of but by the fracturing of electric vehicles.
The European region will also have a steady growth and shall have an increase in the amount of revenue generated through the sales of electric vehicles during the forecast period. It shall be an increase in the demand for adhesives in the European region as there has been an increased adoption of policies that support the manufacturing of electric vehicles and the purchase of electric vehicles. Constant research and development activities are focusing on providing cost effective electric vehicles. Major manufacturing companies are focusing on reducing the price of electric vehicles and bring them down to the fuel based vehicles. All of these factors are expected to create a great demand for electric vehicle or diesels during the forecast period. Many major manufacturers of electric vehicles are also concentrating on improving their technologies for the production of electric vehicles and they're also focusing on coming up with composite materials which shall be helpful in preventing the corrosion.
Key market developments in the electric vehicles adhesive's market
The launch of the new range of electric two-Wheeler and electric three wheelers through the TVS Motor Company will play an extremely important role in expanding the market during the forecast period.
Key market players
Segments covered in the report
By End User
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