Electric Vehicles Adhesives Market To Witness Steady Growth through 2031

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Impact of COVID 19 on Global Electric Vehicles Adhesives Market

• The COVID-19 pandemic has impacted many countries across the globe. Various measures introduced to deal with the pandemic such as lockdowns, decrease in trade activities, and closure of various factories and workplaces in several countries could save lives; however, these measures carry wide-ranging economic effects, which can induce an economic contagion.
• Several governments and private sector businesses are operating at a limited capacity or have ceased operations completely due to recent events surrounding the COVID-19 pandemic.
• The emergence of COVID-19 has had a significant impact on the demand for EV adhesives due to the shutdown of different industries throughout the world. In the early months of 2020, supply shortages, lockdowns, and production suspensions hampered vehicle manufacturing in key nations. Because of the pandemic's lockdowns and restrictions, there was little demand for new automobiles in pandemic-affected nations.

Key Drivers and Restraints of EV Adhesives Market:

• Increase in production of electric vehicles and shift in trend from welding and metal fasteners to EV adhesives are key factors boosting the EV adhesives market. Use of adhesives contributes significantly to weight savings and lower carbon emissions. The replacement of heavy mechanical fasteners with adhesives in EV batteries offers a thinner and lighter bond, which improves the range of electric vehicles. Increasing vehicle production and government initiatives to promote the production and adoption of electric vehicles (EV), growing investment across the automotive industry and R&D activities to enhance adhesion capabilities are also propelling the EV adhesives market.
• The high cost of battery technology is a major factor hampering the electric vehicle industry. Battery technology is expensive, as the battery is built using expensive materials that are difficult to procure. The limited number of charging stations is also a key restraint to the electric vehicle market. The number of electric vehicles is increasing; however, consumers are reluctant to rely on electric vehicles due to the fear of getting stranded at a place with no charging station. However, this concern is estimated to disappear as the number of charging stations increase owing to rising adoption of electric vehicles.

Electric Vehicle Adhesives Market: by Resin Type

• Based on resin type, the global EV adhesives market can be segmented into epoxy, polyurethane, silicones, cyanoacrylate, acrylics, and others
• Usage of adhesives in electric vehicles is expected to increase during the forecast period. The various applications of adhesives in electric vehicles require different types of adhesives derived from resins such as epoxy, polyurethane, silicone, and acrylic. Adhesives made of various resins have different properties and are used according to the specific application.
• The polyurethane segment accounted for a prominent share of the market due to its increasing use in electric vehicles. Engineers utilize thermoset polyurethane adhesives to connect different materials to the car's structure in some electric cars. They eliminate the need for heavy, bulky rivets, and bolts, as the adhesives are considerably strong. They help reduce the overall vehicle weight, resulting in automobiles that are light, quick, and have a long charge range.

Electric Vehicle Adhesives Market: by Vehicle Type

• In terms of vehicle type, the EV adhesives market can be bifurcated into battery electric vehicles and plug-in hybrid electric vehicles
• The plug-in hybrid electric vehicles segment accounted for a notable share, which is expected to reverse during the forecast period when battery electric vehicles emerge as the prominent vehicle type
• The amount of adhesives consumed by battery electric vehicles is higher than that consumed by plug-in hybrid electric vehicles. The stock of battery electric vehicles is anticipated to increase at a rapid pace in the near future, especially in the passenger light-duty vehicle segment. High consumption of adhesives in battery electric vehicles is expected to fuel the global market during the forecast period.

Electric Vehicle Adhesives Market: by Application

• Based on application, the global EV adhesives market can be classified into pack and module bonding, thermal interface bonding, battery cell encapsulation, and others
• Pack and module bonding was a prominent application segment of the global EV adhesives market. The battery packs in electric powertrains utilize adhesives in their production, which leads to various benefits, such as improvement in the crashworthiness and integrity of battery pack, reduction in weight, and bonding of uncoated metal.
• In terms of volume, thermal interface bonding was the second-largest application segment. Reduction in the size of batteries increases the heat being generated that should be dissipated, which requires proper thermal interface materials that are capable of combining low viscosity and high thermal conductivity, along with insulation. Therefore, adhesives are required, which can provide mechanical rigidity and thermal connection, along with flexibility in design by eliminating the use of fasteners. Increasing R&D activities leading to the launch of new types of adhesives for electric vehicles is anticipated to boost the market during the forecast period.
• The battery cell encapsulation segment is estimated to expand at a rapid pace during the forecast period. A battery cell is the smallest packed form of a battery. Cells make use of structural adhesives between them to provide mechanical integrity.

Asia Pacific to Dominate Electric Vehicles Adhesives Market

• In terms of region, the EV adhesives market can be divided into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
• Asia Pacific is expected to hold a major share of the global EV adhesives market, followed by Europe and North America, during the forecast period
• The region is the major consumer, as China is the largest manufacturer of electric vehicles in the world. However, amidst the COVID-19 pandemic across the world, which has been reported to originate in China, the market is expected to remain inactive in 2020-21. Unavailability of workers and raw materials has impacted the manufacturing of electric vehicles as of March 2020, which has impacted the demand for adhesives.