Electric Vehicle Adhesives Market Size To Surpass USD 3.4 Bn By 2030
The global electric vehicle adhesives market size is projected to surpass around USD 3.4 billion by 2030 from valued at USD 0.5 billion in 2021 and growing at a CAGR of 23.74% from 2022 to 2030.
The global electric vehicle adhesives market size was reached at USD 0.62 billion in 2022. The Asia Pacific region is expected to have the largest market share during the forecast period. China is the major consumer and manufacturer of the electric auto motives. This is expected to drive the market growth during the forecast period in the Asia Pacific region. During the pandemic the manufacturing of electric vehicles in China had been affected to a great extent. Restrictions on the movement of row material and disrupted supply chain logistics had affected the market to a great extent. during the pandemic the restricted movement and social distancing norms also affected the productivity due to the lack of workforce.
Apart from the Asia Pacific region the North American region will also grow well during the forecast period. This region will have or growth with the highest compound annual growth rate which is expected to be about 27%. As there has been an increase in the investment for producing more electric vehicles in the North American region the demand for adhesives is expected to grow. As key market players are focusing on increasing the production of batteries the demand for adhesives is expected to grow well in this region. In the future the production of electric vehicles and the electric vehicle batteries is expected you grow in the North American region. Companies like Volkswagen and General Motors are increasing their productivity. The government in the European region is emphasizing on promoting the adoption as well as the production of the electric vehicles. Manufacturers in the European region are also making use of technology in order to reduce the cost of electric vehicles in order to make them affordable. This region is expected to have a compound annual growth rate of 21% in terms of revenue.
On the basis of application, the exterior application segment will dominate the market. There shall be an increase in the demand for adhesives in order to replace the screws cover gaskets and welds. In order to reduce the weight of the electric vehicles which increase is due to the presence of the battery the use of adhesives in the exterior of the electric vehicles is expected to grow during the forecast period. It will be helpful in making these vehicles lightweight.
On the basis of the type of the resin used, the polyurethane segment will dominate the market as it provides better elasticity as compared to the other types. They provide 600% more elasticity as compared to the other products.
On the basis of the vehicle type, the battery due to a growing demand. Growing awareness regarding the benefits of these electric vehicles will drive the market growth. As these cars help in reducing the emission of the greenhouse gases and most of these cars will be beneficial for the environment the market is expected to grow during the forecast period. The developed as well as the developing nations are adopting various policies that are creating a favorable environment for the adoption of battery electric vehicles in comparison to the amount of the adhesive used in the plug-in hybrid electric vehicles the quantity used for battery electric vehicles is far more therefore this segment will dominate the market.
As there has been an increase in the investments to increase the manufacturing of electric vehicles the market for adhesives is expected to grow well during the forecast period. In the countries like China Europe and the United States there is a presence of stringent policies which will drive the market growth period the introduction of the standards of emission which have been in place since the year 2020 will also drive the market growth in the coming years. As the major manufacturing companies are focusing in providing a larger product portfolio the market is expected to grow. In order to provide different models in the light duty and the heavy duty heckles there shall be a growth in the market. In the recent years the sales of the electric vehicles have increased due to an awareness regarding the benefits of these vehicles and the various incentives provided by the government.
The technology used in the manufacturing the battery which is extremely important in the electric vehicles is expensive. It increases the cost of the electric vehicles. The use of the raw materials deeds and alternative in order to bring down the prices. The cost of acquiring these materials is also high which leads to an increase in the cost of the product. Electric vehicles are not affordable to many and this shall be a major restrained in the growth of the market. apart from the high cost associated with these vehicles turn availability of charging stations at frequent intervals is another restraint. There is an increase in the fear of being stuck at a particular place. During the forecast. The number of the charging stations required for the electric vehicles will increase. But they shall also be an increase in the requirement of the energy.
During the forecast period advancements in technology will lead to an increased automation in the vehicles. The use of advanced driver assistance systems in the electric vehicles will also provide better opportunities for the growth of the market. In order to make the electric vehicles autonomous they shall be a growth in the demand for cameras, sensors which will increase the demand for adhesives. The consumption of the adhesives will increase due to the commercialization of these electric vehicles of the autonomous type.
What are the major challenges in the growth of the market is the lack of standardization. There are different types of charging stations better helpful in charging the electric vehicles. The voltage of these charging stations is different and it may not be compatible with all the electric vehicles. As the charger of different electric vehicles which are manufactured by different companies but not be compatible with the installed infrastructure of the charging stations the market growth will be hampered to a great extent. Standardization will play and extremely important role for the favorable growth of the market.
In order to increase the production of the electric vehicle batteries LG chem had planned for the construction of another factory in the year 2019 in the United States.
An amount of U.S. dollar 45 million was invested by Henkel in the year 2019 for the upgrade of the already existing plant in the United States located in North Carolina.