Newly published findings by market research provider Fact.MR says the global market for electric vehicle (EV) batteries exhibited robust year-on-year expansion of 14 per cent in 2019, with sales being valued closed to US$91 billion.
According to Fact.MR’s analysis, EV batteries for passenger cars are expected to register maximum sales, accounting for more than 50 per cent revenue in forthcoming years. This majorly due to widening preference for EVs globally.
Demand for stored electricity based EV batteries are expected to gain significant traction, attributed to the fact that electric vehicles for traveling larger distances are acquiring popularity. A compound annual growth rate (CAGR) above 10 per cent 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,” a Fact.MR analyst said.
Related article: Victoria’s EV tax faces High Court challenge
Key points addressed the analysis:
- Market estimates and forecasts (2016-2031)
- Key drivers and restraints shaping market growth
- Segment-wise, country-wise, and region-wise analysis
- Competition mapping and benchmarking
- Brand share and market share analysis
- Key product innovations and regulatory climate
- COVID-19 impact on the EV battery market and how to navigate
- Recommendation on key winning strategies.
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.
Related article: NSW to install 1,000 EV charging bays by 2027
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 over 35 per cent. 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.
Read the report in full here.