The Global Automotive Encapsulants Market was valued at USD 1.85 Billion in 2024 and is projected to reach USD 3.42 Billion by 2032, growing at a Compound Annual Growth Rate (CAGR) of 7.8% during the forecast period (2024–2032). This robust growth is being driven by the accelerating transition to electric vehicles, the proliferation of advanced driver-assistance systems (ADAS), and the critical need to protect sensitive electronic components from harsh automotive environments.
As modern vehicles evolve into sophisticated electronic platforms on wheels, the role of high-performance encapsulants has become indispensable. These materials ensure the reliability and longevity of everything from power modules and sensors to battery systems and control units. In this blog, we profile the Top 10 Companies in the Automotive Encapsulants Industry—a mix of chemical giants, adhesive specialists, and material innovators shaping the future of vehicle electronics protection.
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🔟 1. Henkel AG & Co. KGaA
Headquarters: Düsseldorf, Germany
Key Offering: Loctite® encapsulants, thermally conductive gels, epoxy and silicone formulations
Henkel stands as a global leader in adhesive technologies, with its automotive division providing a comprehensive portfolio of encapsulants for electronic component protection. The company serves all major automotive OEMs and Tier-1 suppliers, offering solutions for battery systems, power electronics, and ADAS sensors. Henkel’s recent innovations include next-generation thermally conductive materials designed for 800V EV architectures.
Innovation and Sustainability Initiatives:
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Development of low-density encapsulants for weight reduction
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Bio-based polyurethane formulations with reduced carbon footprint
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Strategic partnerships with semiconductor manufacturers for SiC power module protection
9️⃣ 2. Sika Automotive
Headquarters: Baar, Switzerland
Key Offering: SikaForce® encapsulants, polyurethane systems, acoustic damping materials
Sika Automotive has established itself as a key supplier of encapsulation solutions, particularly for electric vehicle battery packs and power control units. The company’s expertise in polyurethane chemistry enables it to offer materials that provide excellent moisture resistance and mechanical protection while meeting stringent automotive durability requirements.
Innovation and Sustainability Initiatives:
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Expansion of production capacity in Asia and North America
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Development of flame-retardant encapsulants meeting latest safety standards
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Integration of recycled content in selected product lines
8️⃣ 3. Wacker Chemie AG
Headquarters: Munich, Germany
Key Offering: ELASTOSIL® silicone encapsulants, thermally conductive gels, potting compounds
Wacker is a leading silicone chemistry specialist whose high-performance encapsulants are specified for the most demanding automotive applications. The company’s silicone-based solutions offer exceptional thermal stability, maintaining performance across temperature ranges from -50°C to +200°C, making them ideal for under-hood electronics and power modules.
Innovation and Sustainability Initiatives:
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Joint development agreements with European automakers for battery encapsulation systems
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Investment in production automation to ensure consistent quality
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R&D focus on environmentally friendly crosslinking technologies
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Automotive Encapsulants Market – View in Detailed Research Report
7️⃣ 4. SHOWA DENKO K.K.
Headquarters: Tokyo, Japan
Key Offering: Semiconductor encapsulants, epoxy molding compounds, thermal interface materials
SHOWA DENKO brings decades of materials science expertise to the automotive encapsulants market, particularly in the realm of semiconductor protection. The company’s products are critical for protecting microchips and sensors in advanced automotive electronics, with formulations tailored for high-reliability applications in safety-critical systems.
Innovation and Sustainability Initiatives:
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Recent expansion of Malaysian production facility for automotive-grade materials
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Development of low-thermal-stress encapsulants for sensitive components
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Implementation of green chemistry principles in manufacturing processes
6️⃣ 5. Shin-Etsu Chemical Co., Ltd.
Headquarters: Tokyo, Japan
Key Offering: Silicone encapsulants, gel systems, adhesive sealants
As one of the world’s largest silicone manufacturers, Shin-Etsu offers a broad range of encapsulant solutions tailored for automotive electronics. The company’s products are renowned for their purity and consistency, making them preferred choices for applications where material reliability is paramount, such as in autonomous driving systems and vehicle control units.
Innovation and Sustainability Initiatives:
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Capacity increases of 15-20% in 2024 to meet growing EV demand
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Development of fast-curing systems for high-volume manufacturing
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Collaboration with Japanese automakers on next-generation encapsulation technologies
5️⃣ 6. Momentive Performance Materials
Headquarters: Waterford, New York, USA
Key Offering: Silicone encapsulants, potting gels, thermal management materials
Momentive specializes in high-performance silicones for demanding applications, with its automotive division focusing on solutions that protect electronics from thermal cycling, vibration, and chemical exposure. The company’s materials are specified by North American and European automakers for their reliability in extreme operating conditions.
Innovation and Sustainability Initiatives:
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Acquisition of specialty chemicals firm in Q1 2024 to enhance product portfolio
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Development of low-volatility formulations for clean room compatibility
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Investment in sustainable manufacturing processes
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Automotive Encapsulants Market – View in Detailed Research Report
4️⃣ 7. CHT Group
Headquarters: Tübingen, Germany
Key Offering: Polyurethane encapsulants, epoxy systems, specialty additives
CHT Group brings innovative chemical solutions to the automotive encapsulants market, with a particular focus on polyurethane chemistry. The company’s products are engineered to provide optimal protection while addressing automotive manufacturers’ needs for process efficiency and environmental compliance.
Innovation and Sustainability Initiatives:
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Launch of first bio-based polyurethane encapsulant line in early 2024
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Development of low-VOC formulations meeting indoor air quality standards
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Customized solutions for specific automotive OEM requirements
3️⃣ 8. Dymax Corporation
Headquarters: Torrington, Connecticut, USA
Key Offering: Light-curable encapsulants, fast-cure systems, dispensing equipment
Dymax specializes in rapid-cure technologies that enable automotive manufacturers to achieve high throughput in electronics assembly. The company’s light-curable encapsulants cure in seconds when exposed to UV or visible light, making them ideal for automated production lines where cycle time is critical.
Innovation and Sustainability Initiatives:
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Development of dual-cure systems for shadowed areas
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Integration of dispensing equipment with material formulations
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Focus on low-energy curing technologies
2️⃣ 9. Sumitomo Bakelite Co., Ltd.
Headquarters: Tokyo, Japan
Key Offering: Epoxy encapsulants, molding compounds, semiconductor packaging materials
With deep roots in phenolic and epoxy chemistry, Sumitomo Bakelite offers advanced encapsulant solutions for automotive power semiconductors and sensors. The company’s materials are engineered to provide excellent electrical insulation and thermal performance, which are critical for next-generation electric vehicle powertrains.
Innovation and Sustainability Initiatives:
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Development of high-thermal-conductivity epoxy systems
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Expansion of global technical support network
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Focus on materials supporting automotive functional safety standards
1️⃣ 10. Epic Resins
Headquarters: Green Bay, Wisconsin, USA
Key Offering: Epoxy and polyurethane encapsulants, potting compounds, casting resins
Epic Resins serves the North American automotive market with a diverse portfolio of encapsulation materials, focusing on customizable solutions for specific application requirements. The company’s strength lies in its ability to develop tailored formulations that address unique challenges in vehicle electronics protection.
Innovation and Sustainability Initiatives:
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Flexible manufacturing for small-to-medium batch sizes
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Development of halogen-free flame-retardant systems
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Customer-focused technical service and support
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Automotive Encapsulants Market – View in Detailed Research Report
🔬 Outlook: The Future of Automotive Encapsulants Is Smarter and More Sustainable
The automotive encapsulants market is undergoing a significant transformation as vehicle electrification accelerates and electronic content continues to grow exponentially. While traditional materials still dominate in volume, the industry is investing heavily in advanced formulations that offer superior performance, enhanced sustainability, and improved processing characteristics.
📈 Key Trends Shaping the Market:
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R&D focus on materials for silicon carbide power electronics requiring higher temperature stability
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Development of bio-based and recyclable encapsulant chemistries
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Integration of smart manufacturing technologies for precise application and quality control
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Automaker-material supplier collaborations to develop application-specific solutions
The companies listed above are not only protecting vehicle electronics—they’re enabling the technological advancement of the automotive industry.
Read Full Report:
Automotive Encapsulants Market – View in Detailed Research Report
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