Vehicle Battery Manufacturers Aim to Improve Durability, Safety, and Efficiency
The automotive sector is shifting gears and moving toward a greener future. The push for adoption and development of electric vehicles from local government authorities continues to play a key role in the development and adoption of hybrid and electric vehicles. Due to this, vehicle electrification technologies continue to evolve at a rapid pace. Sealants and electric vehicle adhesives are likely to remain at the forefront in terms of development of these technologies due to which, the electric vehicle adhesives market is starting at a bright future. In addition, electric vehicle adhesives are expected to play an integral role in the production of battery electric vehicle (BEV) and hybrid electric vehicle (HEV) battery cells, motors, and packs, among others.
In the current scenario, the battery technology in the automotive sector is following the footsteps of the consumer electronics industry due to the advent of stringent regulatory requirements. Battery manufacturers are currently finding solutions to improve the durability of batteries that are required to operate at extreme temperatures. Electric vehicle adhesives have emerged as an excellent solution to address these challenges in multiple applications the BEV and HEV powertrain. Thus, the global electric vehicle adhesives market is expected to reach a market value of ~US$ 3 Bn by 2027.
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High Adoption of Electric Vehicle Adhesives to Improve Design Aspects of Electric Vehicles
With an undeniable surge in the number of electric vehicles worldwide, automakers are continually finding different ways to reduce vehicular weight and simultaneously improve the design aspects of their vehicles. Companies operating in the current electric vehicle adhesives market are expected to use their expertise to bring about these changes. Electric vehicle adhesives have emerged as an ideal solution to address these issues. In the current scenario, electric vehicle adhesives have come to light as an excellent replacement for heavy mechanical fasteners as far as the design of electric vehicle batteries is concerned. As electric vehicle adhesives play an imperative role in improving the range of electric vehicles, the demand for the same is expected to move in an upward trajectory in the upcoming years.
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Companies such as 3M, DuPont, and Henkel Corp, among others, are increasingly focusing on the development of electric vehicle adhesives to enhance gap control and bond components such as battery module side panels, cooling plates, and battery cells among others. Furthermore, as structural adhesives assist in the overall assembly of battery modules and cells, the demand for electric vehicle adhesives is expected to witness significant growth in the upcoming years. Moreover, adhesive sticks also aid automotive manufacturers to attain their key objectives, including faster charging, cost-efficiency, and durability. Electric vehicle adhesives will play a key role in the development of cutting-edge high-voltage vehicle batteries. While automakers continue to prioritize improving the performance of their vehicles, innovations, and adoption of lightweight materials are expected to gain significant momentum during the assessment period.
Market Participants Develop New Thermal Conductive Interface Materials
The sustainability, safety, and durability of battery packs are expected to gain a huge amount of traction in the coming years. Companies operating in the current electric vehicle adhesives market are currently expected to focus on the development of new thermal-conductive interface materials for efficient assembly of EV/HEV batteries. For instance, in May 2019, DuPont unveiled new solutions for EV/HEV battery assembly. In addition, companies are also rolling out adhesive solutions for both – large-volume assemblies as well as smaller requirements. In addition, anticipating the surge in demand for electric and hybrid vehicles, electric vehicle adhesives market participants are increasingly investing resources on the development of innovative battery assembly solutions. In April 2019, Henkel announced the launch of new technologies that align with the requirements of modern-day battery architectures. The company is expected to use its existing technologies as the foundation to develop and introduce innovations that will play a pivotal role in accelerating the assembly speed.
The lack of standardization as far as design and production of batteries continue to raise alarm bells. Thus, the electric vehicle adhesives market is expected to witness innovations, development of new battery assembly solutions, and sustainability of next-generation vehicles.
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The global electric vehicle adhesives market is expected to grow at a staggering CAGR of ~32% during the forecast period. The market growth can be primarily attributed to a range of factors of which, the significant rise in demand for electric and hybrid vehicles remains the most prominent factor. Moreover, advancements in technology, favorable government policies, and efforts to minimize the weight of vehicles are some of the other factors that will drive the growth of the electric vehicle adhesives market in the coming years. Opportunities are ripe in the Asia Pacific region and thus, participants in the electric vehicle adhesives market should align their operations to tap into the market in countries such as China and India wherein the demand for electric vehicles is on the rise at an impressive pace.
Electric Vehicle Adhesives Market: Overview
- Adhesives can help make an electric vehicle lightweight. Electric vehicle adhesives are ideal replacements for mechanical fasteners in electric vehicle batteries. Electric vehicle adhesives offer several benefits such as even distribution of stress and load across bonded joints; improvement of strength; and efficient and flexible part design.
- Adhesives reduce or sometimes replace heavy mechanical fasteners in electric vehicle battery design. This enables to improve the efficiency of electric vehicles.
Key Growth Drivers of Electric Vehicle Adhesives Market
- The automotive industry is continually working toward designing lightweight and fuel-efficient vehicles, which can reduce CO2 emissions significantly. Stringent regulations regarding CO2 emissions are being implemented across the globe. Electric vehicle adhesives play an important role in reducing CO2 emissions. These adhesives provide vehicles with structural strength. They possess the ability to bond various surfaces together.
- Electric vehicle adhesives make vehicles lighter, quieter, and safer compared to mechanical fastening methods such as welding, bolting, and soldering. Structural adhesives are known to distribute load evenly across a surface, resulting in better efficiency compared to mechanical fastening, which generates local stress in parts joined. Currently, around 15 kg of adhesives are used in a car on an average. This amount is likely to increase in the next few years.
- Electric vehicle adhesives are also employed in interiors, exteriors, and engine compartments of aircraft, due to their advantages over other types of adhesives. These adhesives carry higher weight loads and improve uniform distribution of the stress and strain across the joints. Electric vehicle adhesives also maintain integrity and strength of materials, as there is no hole, rivet, or fastening element to weaken the structure. These factors are anticipated to boost the demand for electric vehicle adhesives across the globe during the forecast period.
- Adhesives and sealants also play a significant role in body construction, paint, and vehicle assembly of hybrid and battery electric vehicles. Decreasing the weight of electric vehicles helps extend their range. Therefore, OEMs put significant effort into lowering the weight of components of the body, interior, and powertrain.
Major Challenges for Electric Vehicle Adhesives Market
- According to the Open Charge Map, a global public registry of electric vehicle charging location, about 150,000 charging stations are present across 75,000 locations around the world. Furthermore, more than 1 million electric cars were sold in 2017, according to the IEA Global Electric Vehicle (EV) Outlook 2018; China accounting for more than 50% of global sales. Thus, the ratio of on-road electric vehicles to that of charging stations is low. The number of charging stations installed in developing regions such as Latin America and Middle East & Africa is less compared to that in developed regions. This is expected to hamper the sale of electric vehicles, thereby adversely affecting the demand for electric vehicle adhesives.
Lucrative Opportunities for Electric Vehicle Adhesives Market
- The automotive industry is a key end user of electric vehicle adhesives. Demand for electric vehicle adhesives has been increasing due to the rise in requirements by automakers. For instance, these adhesives are employed in bonding similar and dissimilar materials; and substitution of traditional substrate materials by synthetic substrates. Increase in focus on environmental concerns is also boosting the demand for electric vehicle adhesives. Electric vehicle adhesives also address issues regarding engineering and design, as they are valued for their ability to resist vibration. They are also lightweight and help distribute stress over a wide area.
- Adhesives and sealants play a vital role in the advancement of vehicle electrification technology. They are estimated to remain at the forefront of the development of hybrid (HEV) and battery electric (BEV) vehicle battery cells, modules, packs, and motors.
Asia Pacific to Dominate Electric Vehicle Adhesives Market
- In terms of value and volume, Asia Pacific dominated the global electric vehicle adhesives market with 58.9% share in 2018. The region is likely to remain highly lucrative during the forecast period, due to rapid industrialization and rise in demand for these adhesives in the automotive industry.
- The electric vehicle adhesives market in China, South Korea, and Japan is expanding at a rapid pace in Asia Pacific, owing to growth of industries such as construction, automobile, and electronic appliances in these countries. For instance, China, South Korea, and Japan produced nearly 37 million units of lightweight vehicles in 2017.
- China constitutes key share of the electric vehicle adhesives market in Asia Pacific. The market in the country is expected to expand at a significant pace in the near future. Demand for electric vehicle adhesives has been increasing in India and China, owing to significant expansion of infrastructure and construction sectors in these countries. India is estimated to invest substantially in the development of infrastructure in the near future. Countries across the globe are exhibiting considerable interest in investing in India, especially in the automotive sector in the country.
Polyurethane Resins to Witness High Demand
- In terms of resin, the polyurethane segment held major share of the global electric vehicle adhesives market in 2018. The segment is anticipated to continue its dominance during the forecast period, due to cost-efficient and fast-curing nature of urethanes. Furthermore, they provide strong bonding to larger areas, which offers them competitive advantage over other types of resins such as epoxy, silicone, and acrylics.
- Polyurethane electric vehicle adhesives are characterized by excellent adhesion to smooth and porous surfaces. As a result, they effectively bind various materials such as wood, paper, cardboard, and sandwich panels. Polyurethane electric vehicle adhesives form strong and durable bonds with several types of substrates. Some of the notable properties of urethane systems are high flexibility, abrasion resistance, superior physical strength, and gap-filling capabilities. The cost of these adhesives is also low. They are preferable in applications such as automotive and construction due to their elastic bonding.
Leading Players Actively Engage in Joint Ventures and R&D Activities
- Key players operating in the global electric vehicle adhesives market include
- Henkel AG & Company
- H.B. Fuller
- DuPont de Nemours, Inc.
- Arkema S.A.
- Permabond LLC
- Ashland Inc.
- LORD Corporation
- PPG Industries, Inc.
- Avery Dennison Corporation
- Evonik Industries AG
- Illinois Tool Works Inc.
- Dymax Corporation
- Wacker Chemie AG
- Sika AG.
- These companies actively engage in expansions, mergers & acquisitions, and joint ventures in order to maintain their share in the global electric vehicle adhesives market
- In January 2018, Henkel AG & Co. KGaA opened a new innovation center in Bintaro Jaya, Indonesia, under its adhesive technologies segment. It is the first adhesive innovation center in Asia Pacific. The center aims to deliver innovations and high-impact solutions to adhesives, sealants, and functional coatings industries in Indonesia and across Southeast Asia. In line with this, the center is expected to partner with customers to develop new products and improve productivity and reliability of their production facilities.