As the world is leaning towards a clean technology, adoption of Electric vehicles (EV) and its battery market is rowing at an exponential rate.
Fact.MR has recently published a report stating that the global market for electric vehicle batteries exhibited robust Y-o-Y expansion of 14% in 2019, with sales being valued close to US$ 91 Bn.
According to Fact.MR’s analysis, EV batteries for passenger cars are expected to register maximum sales, accounting for more than 50% revenue in forthcoming years. This is majorly due to the widening preference for EVs globally.
Demand for stored electricity-based EV batteries is expected to gain significant traction, attributed to the fact that electric vehicles for traveling larger distances are acquiring popularity. A CAGR above 10% is projected for this segment.
“As vehicular emission regulations tighten, automobile owners are shifting towards hybrid and electric vehicles usage, prompting manufacturers to deploy batteries equipped with greater load-carrying capacity,” says a Fact.MR analyst.
In forthcoming years, manufacturers in the electric vehicle battery industry will primarily focus on strategic acquisitions, collaborations, and product introductions.
- In May 2019, Panasonic Corporation announced the launch of ‘Nymbus’ – the first of its kind smart EV charging service in India. The new service combines various physical components such as charging stations, telematics systems, and others with virtual components including AI, cloud service, and analytics to deliver a one-stop solution.
- As more people switch to electric vehicles, Hitachi High-Tech predicts a rise in demand for used lithium-ion batteries. According to the business, the annual global market for testing batteries is expected to reach between 500 billion ($4.8 billion) and 1 trillion yen by 2030.
Some of the other factors influencing automobile manufacturers to enter the EV market include:
- a functioning supply chain and dealers’ network capable of handling volumes larger than the current EV market
- existing major players in conventional vehicles having sufficient experience in other aspects of vehicles, like aesthetics and comfort, that might otherwise be overlooked
Major automakers/OEMs entering the EV market are partnering with major EV battery companies to take advantage of the rapidly growing market.
With increased sales of electric vehicles, the e-mobility trend is likely to gain traction over the projection period. The continuing implementation of integrated charging stations, as well as the construction of green power-generation capabilities, would add to the market’s growth potential.
In 2021, Europe is expected to account for over 30% of the global EV market by volume, registering a staggering CAGR of over 35%. Because electric vehicles are currently relatively expensive, the growth of the EV battery business in the region is heavily reliant on government incentives and funds.
Germany is anticipated to remain at the forefront of the European EV battery industry. The presence of OEMs such as the VDL Groep (Netherlands) and AB Volvo (Sweden) in the region provides the potential for the EV battery market to flourish.
Key Benefits for Electric Vehicle Battery Market:
- This study comprises an analytical depiction of the global electric vehicle battery market with current trends and future estimations to depict the imminent investment pockets.
- The overall market potential is determined to understand the lucrative trends to gain a stronger foothold in the electric vehicle battery industry.
- The report includes information related to key drivers, restraints, and opportunities with detailed impact analysis.
- The current market is quantitatively analyzed from 2017 to 2025 to highlight the financial competency of the global electric vehicle battery market.
- Porter’s Five Forces analysis illustrates the potency of the buyers and suppliers in this global market.
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