New results from the report show that demand for electric vehicle batteries is expected to grow above an annual average growth rate (CAGR) of 25% from 2021 to 2031.
The report released by market research and competitive intelligence provider Fact.MR found that the global electric vehicle (EV) battery market had robust year-over-year growth of 14% in 2019, with sales valued at just under $ 91 billion became . According to the report, EV batteries for passenger cars are expected to see maximum sales in the coming years, accounting for more than 50% of sales. This is mainly due to the growing global preference for electric vehicles.
The demand for power storage-based EV batteries is expected to grow significantly, due to the growing popularity of electric vehicles for longer distances. A CAGR of over 10% is forecast for this segment.
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“As vehicle emissions regulations tighten, car owners are shifting to hybrid and electric vehicle use, prompting manufacturers to use higher-capacity batteries,” said a Fact.MR analyst.
In May 2019, Panasonic Corporation announced the launch of Nymbus, the first intelligent charging service for electric vehicles in India. The new service combined various physical components such as charging stations, telematics systems and others with virtual components such as AI, cloud service and analytics to provide a one-stop solution. In line with this move, the report noted that manufacturers in the electric vehicle battery industry will focus primarily on strategic acquisitions, collaborations and product launches.
As more people switch to electric vehicles, Hitachi High-Tech predicts increasing demand for used lithium-ion batteries. According to the company, the annual global battery testing market is expected to reach between 500 billion and 1 trillion yen by 2030.
Some of the other factors that are driving automakers to enter the EV market are:
- a functioning supply chain and dealer network capable of handling volumes larger than the current market for electric vehicles;
- existing key players in conventional vehicles with sufficient experience in other vehicle aspects such as aesthetics and comfort that might otherwise be overlooked.
The report shows that large automakers / OEMs entering the EV market are partnering with large EV battery companies to capitalize on the rapidly growing market. With increasing sales of electric vehicles, the trend towards e-mobility is likely to gain momentum in the projection period. The continuous implementation of integrated charging stations as well as the construction of green electricity generation capacities would increase the growth potential of the market. With electric vehicles being relatively expensive right now, the growth of the EV battery business in a given region is heavily reliant on government incentives and funding.
Regional results showed that Europe is projected to account for more than 30% of the global electric vehicle market in 2021, with a staggering CAGR of over 35%. Germany is expected to remain at the forefront of the European EV battery industry. The presence of OEMs such as VDL Groep (Netherlands) and AB Volvo (Sweden) in the region offers the potential for the EV battery market to thrive.
You can access the Electric Vehicle Battery Market report online.
