New report findings show that the demand for electric vehicle batteries is expected to register a surge exceeding a compound annual growth rate (CAGR) of 25% from 2021 to 2031.
The report, published by market research and competitive intelligence provider, Fact.MR, found that the global market for electric vehicle (EV) batteries exhibited robust year-on-year expansion of 14% in 2019, with sales being valued closed to $91 billion. According to the report, EV batteries for passenger cars are expected to register maximum sales, accounting for more than 50% revenue in forthcoming years. This is mostly 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 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,” said a Fact.MR analyst.
In May 2019, the Panasonic Corporation announced the launch of Nymbus, the first smart EV charging service in India. The new service combined 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. In line with this move forward, the report found that manufacturers in the electric vehicle battery industry will primarily focus on strategic acquisitions, collaborations and product introductions.
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 and 1 trillion yen by 2030.
Some of the other factors encoring 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, such as aesthetics and comfort, that might otherwise be overlooked.
The report shows 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. Because electric vehicles are currently relatively expensive, the growth of the EV battery business in any given region is heavily reliant on government incentives and funds.
Regional findings showed that in 2021, Europe is expected to account for over 30% of the global EV market by volume, registering a staggering CAGR over 35%. 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.
You can access the Electric Vehicle Battery Market report online.