Vehicle battery market awaits upbeat growth prospects, battery technology to remain instrumental: New Study
On the other hand, developing economies are also witnessing establishment of a policy structure that provides a strong impetus to EV sales. The global market for vehicle battery is thus on a constantly growing trajectory. A new market intelligence report of Fairfield Market Research forecasts a promising CAGR of 4.6% CAGR for vehicle battery market during 2021-2030, reaching the valuation of more than US$43 Bn.
As the global drive for sustainability accelerates and more countries aim for zero-emission transportation in the near future, the demand for vehicle battery continues to see an upward trend. Favourable regulatory framework is already offering a phenomenal push to electric vehicle (EV) sales in developed regions such as Europe and North America.
electrification will soon outpace the growth of automotive industry itself, says the report. With mobility on the world’s target to become a 100% sustainable model, global vehicle battery market is set to demonstrate an impressive growth outlook in long run.
Moreover, governments and non-government entities are investing substantial efforts in promoting EVs, pushing various battery technologies and establishing better, reliable EV and hybrid EV charging infrastructure. Such initiatives will contribute towards improved consumer confidence and create a fertile ground for the build-up of vehicle battery market.
Cost of vehicle battery has been a prime challenge to its wider adoption, coupled with the associated safety risk. These factors have been long-term barriers that still continue to limit applicability of vehicle batteries. However, advancing battery technology is promising better performance, longer life span and enhance safety, which is complementing soaring EV sales. This scenario creates a strong platform for companies to present vehicle battery as a relatively affordable option for vehicle owners.
Fast Developing Asian Countries Provide a Hotbed of Opportunities to Vehicle Battery Manufacturers
Lithium-ion battery, slated for staggering sales growth at 15% CAGR through 2030, will remain the most sought-after for its superior energy density, higher safety quotient and better life span. The report further suggests that fast developing economies in Asia Pacific such as China, Korea and Japan hold the lion’s share in global vehicle battery market. Around 4/5th of overall demand is accounted by these markets and more than 45% of global vehicle battery manufacturing plants are based in China alone. Despite being a prime market for EVs, battery demand in Europe prevails on a lower side, says research.
Despite the heat of Covid-19 pandemic and lockdowns, EV sales grew steady in some of the European markets, which sustained vehicle battery demand for vehicle battery. However, the manufacturing scenes are still recovering from the massive losses that they encountered due to sudden production shutdowns and supply chain interruptions. The global hub for battery manufacturing brands, China, was impacted worse due to plummeting automotive sales.
Battery Making Companies Join Forces with Researchers over Technology R&D
There have been clear predictions about EVs soon outnumbering vehicles with internal combustion engines (ICE). Though holding up some portion of the European and the US fleet currently, EVs and hybrid EVs are most likely to see a crossover point where ICE vehicles will be negligible in number.
However, these are expert predictions and there is a lot in the pipeline before it actually happens. Technology giants as well as start-ups are preferring strategic collaborations for R&D. Several companies are also joining hands with top universities with an aim to develop a high-density vehicle battery.
In addition to develop consumer confidence, key companies in vehicle battery landscape ought to take into consideration the constantly heightening consumer sentiment. R&D investments in fast-charging battery technologies are thus underway over the recent past. With innovation at the core of R&D, key players in vehicle battery market are also focusing on battery models with amplified storage capacity.
The research presented in report has thoroughly profiled some of the most prominent players in vehicle battery market, including Panasonic Corporation, BYD Company Limited, LG Chem Ltd., Johnson Controls International PLC, Contemporary Amperex Technology Co., Limited, and SAMSUNG SDI Co., Ltd.
