Reduced Carbon Emissions and Rapid Electrification Propel Vehicle Battery Market at 4.64% CAGR 2021-2030
A recent report by Fairfield Market Research States that the global vehicle battery market is expected to register a CAGR of 4.64% between 2021 and 2030. This steady growth will be attributable to the increasing demand for efficient vehicles to reduce the burden of carbon emissions as the world seeks to better the air quality. The rapid pace of electrification in the automotive industry is also expected to fuel the global vehicle battery market in the coming years. Quick uptake of novel technologies such as autonomous driving, connected devices, electrification of powertrains, and shared mobility are all anticipated to fuel the vehicle battery market in top gear.
Key Highlights for Global Vehicle Battery Market:
- Global vehicle battery market to reach a valuation of US$43.48 Bn by 2030
- Plug-in hybrid (PHEV) and battery electric vehicle (BEV) to collectively register a growth rate of over 18% during the forecast
- Lithium-ion battery segment to outperform with a CAGR of over 16% over the forecast period due to its compact size and better efficiency
- Asia Pacific is envisaged to post significant CAGR with the presence of large battery manufacturers in China that dominate the lithium-ion battery production
- The market is expected to remain consolidated amongst top key players retaining nearly 50% of the market share due to technological skillset advantage and high capital expenditure.
Fuel-saving Technologies Bring Spotlight on Electric and Hybrid Cars Propelling Vehicle Battery Sales
Advancement in battery management systems is expected to be a key growth factor in the rise of the vehicle battery market. Government bodies across the globe are declaring stringent regulations against carbon emission, driving manufacturers to heavily invest in the development of electric motors that will reduce the amount of carbon emissions.
In line with this trend, several automakers are investing in the production of electric vehicles and hybrid cars. As the sale of electric vehicles soars, analysts anticipate that it will directly drive the market for vehicle batteries. Integration of high-end electric components in vehicles is also expected to propel the global market in the coming years. The regulatory frameworks such as the Clean Air Act and Euro 6 that demand strict compliance will prove to be essential to the market growth, predicts Fairfield Market Research.
Underdeveloped Infrastructure to Pose a Threat to Vehicle Battery Market
The global vehicle market is expected to face hindrance as many components of a battery are expensive. This not only makes the cost of batteries expensive but also adds to the selling price of the vehicle. The unaffordability of electric vehicles has been identified as a restraining factor for the global market.
Furthermore, the global vehicle battery market is also likely to be tugged in the opposite direction as infrastructure for charging remains underdeveloped in most parts of the world. In many ways, the inability to ensure adequate charge in vehicles for smooth, long-duration drives is chipping away consumer confidence.
Lithium-Ion Batteries to Disrupt Market with Superior Qualities
Lithium-ion batteries are expected to outperform in the global vehicle battery market. Best known for offering high-energy density and being light in weight, the demand for lithium-ion batteries is projected to skyrocket with increasing interest in electric vehicles. Over the years, the cost of lithium-ion batteries has dropped significantly, which is expected to help the market expand too. The long life of these batteries will push their usage, making the segment emerge as the leading one over the forecast period.
Asia Pacific to Lead as China Remain Key Production Hub
The global vehicle battery market will clearly be led by Asia Pacific as 45% of the battery manufacturers are based in China. Emerging economies such as India and China have a large automotive base, which makes this region an evident leader. According to Fairfield Market Research, about 80% of the demand for vehicle batteries stemmed from Japan, Korea, and China in 2018, while demand across Europe remained low. Favourable government schemes that are supporting manufacturing activities across Asia Pacific are also expected to indirectly boost this market.
Integrating Advanced Battery Management Systems will Keep Key Players Ahead in the Game
Key players in the global vehicle battery market are extensively investing in the research and development of solid-state battery technology, high-density lithium-ion batteries, and others that deliver longer range charge in lesser time. Players are also investing in producing advanced battery management systems to stay ahead of the competition.
For instance, Panasonic, India, launched Nymbus, a charging system that is equipped with artificial intelligence solutions, cloud analytics, telematics, swap stations and charging stations. The company aims to offer a comprehensive solution to the growing mobility market in India that is to rely on EVs in the coming years.
The key players operating in the global vehicle battery market are BYD Company Ltd., Panasonic India, Johnson Controls, SAMSUNG SDI CO., LTD, Contemporary Amperex Technology Co., Limited., LG Chem., and A123 Systems LLC.