The global vehicle battery market is poised for significant growth, with a projected revenue exceeding US$43.4 billion by the end of 2030. The market is expected to maintain a stable CAGR of 4.6% over the forecast period.
Key Findings of the Report:
- The global market is forecasted to surpass the revenue of US$43.48 billion by the end of 2030.
- Vehicle battery market growth is expected to achieve a CAGR of 4.64% during the forecast years.
- The demand for lithium-ion batteries is set to grow by around 15% through 2030.
Market Analysis in Brief
The global vehicle battery market is highly competitive and reliant on raw material supplies and manufacturers. Fairfield Research anticipates a steady growth trajectory for the market, largely driven by the increasing preference for zero-emission electric and hybrid electric vehicles. The consistent decline in battery prices further supports the growth of the vehicle battery industry. As conventional automobiles face scrutiny for their environmental impact and worldwide crude oil reserves deplete, the market is expected to experience continued growth. The expansion of battery production capacities has played a pivotal role in achieving economies of scale in the industry.
Drivers of Market Growth
- Rising Rate of Vehicle Electrification: The automotive industry has been witnessing remarkable growth over the past decade, with a focus on minimizing its environmental impact. The integration of electronic components into vehicles has extended to vehicle batteries, driven by features such as connected devices, autonomous driving, shared mobility, and electrification of powertrains. This increased electronic content in vehicles is expected to drive the demand for auxiliary power sources, particularly electric battery systems, in the near future.
- e-Mobility and Electric Powertrain Technologies: The rising demand for electric vehicles, growing electronic content in modern vehicles, and strict environmental regulations aimed at reducing pollution levels are anticipated to propel the vehicle battery market. Regulations like the Clean Air Act, Euro 6, and BS 6, aligned with global air pollution norms, are expected to shift internal combustion vehicles toward electric vehicles.
- Government Initiatives and Supportive Schemes: Government initiatives aimed at promoting electric vehicles, combined with advancements in fuel-saving technologies supported by battery systems, are likely to drive market growth. Efforts to enhance electric vehicle charging infrastructure also contribute to market confidence and growth.
- Rapid Battery Technology Advancements: Ongoing developments in lithium-ion and similar battery technologies are expected to become mainstream in the near future. Battery manufacturers are working on fast-charging batteries to improve the driving range without concerns of battery depletion.
Challenges Ahead
- The Lasting COVID-19 Impact: The COVID-19 pandemic disrupted global supply chains and production, affecting the capital and research and development investments in the industry. Although the pandemic caused significant production and supply chain disruptions, demand for electric vehicles remained strong in certain regions, bolstering the vehicle battery market.
Overview of Key Segments
Lithium-ion Batteries Spearhead: Among various battery technologies, lithium-ion batteries are prominent in the automotive industry. The integration of hybrid and electric drivetrains is expected to drive demand for lithium-ion batteries further, offering longer lifespan, improved energy density, and safety features.
Growth Opportunities Across Regions
Demand High in Europe as EVs Soar: The vehicle battery markets primary challenge remains cost and safety concerns. However, with rising economies of scale and growing demand for electric vehicles, battery technology is expected to evolve, providing safer, more efficient, and cost-effective options.
Asia Pacific Paces Ahead as China Retains Dominance: Asia Pacific, particularly countries like Japan, China, and Korea, leads the global vehicle battery market. Over 80% of the demand for vehicle batteries in 2018 came from these countries. China hosts over 45% of vehicle battery factories globally, establishing its position as a key player in the industry.
Competitive Landscape – Vehicle Battery Market
The vehicle battery market is expected to witness increased competition as technology evolves. Major players are investing in research and development to innovate high-density vehicle batteries. Strategic partnerships, business expansion, and new product development are some of the strategies adopted by key players to gain market share.
Key Market Players
Leading manufacturers in the global vehicle battery market include BYD Company Limited, Johnson Controls International PLC, SAMSUNG SDI Co., Ltd, Panasonic Corporation, Contemporary Amperex Technology Co., Limited, LG Chem Ltd., and A123 Systems Inc., among others.
Browse Global Vehicle Battery Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2021-2025 – [2023 UPDATE Available – Forecast 2023-2030*] (By Battery Coverage, Vehicle Coverage, Electrification Coverage, Sales Channel, By Geography, Leading Companies): https://www.fairfieldmarketresearch.com/report/vehicle-battery-market
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Contact
Fairfield Market Research
London, UK
UK +44 (0)20 30025888
USA (Toll-free) +1 (844) 3829746
Web: https://www.fairfieldmarketresearch.com/
Email: [email protected]
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COMTEX_440946863/2840/2023-09-26T02:03:25
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Sahyadri Times journalist was involved in the writing and production of this article.
