As the global push for sustainability gains momentum and more countries aim for zero-emission transportation in the near future, there is a growing demand for vehicle batteries. Favourable regulatory frameworks are providing a strong boost to electric vehicle (EV) sales in developed regions such as Europe and North America. Developing economies are also witnessing the establishment of policy structures that promote EV sales, contributing to the constantly growing trajectory of the global vehicle battery market. According to a new market intelligence report by Fairfield Market Research, the vehicle battery market is expected to reach a valuation of more than US$43 billion, with a promising Compound Annual Growth Rate (CAGR) of 4.6% during 2021-2030.
The report states that advancing battery technology offers a major thrust to vehicle battery market growth. With the rate at which electronic features are becoming desirable among vehicle owners, automotive electrification is expected to outpace the growth of the automotive industry itself. As the world moves towards a 100% sustainable model for mobility, the global vehicle battery market is set to demonstrate impressive growth in the long run. 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 the vehicle battery market.
Although the cost of vehicle batteries and associated safety risks have been long-term barriers that limit the wider adoption of EVs, advancing battery technology promises better performance, longer lifespan, and enhanced safety, which complements soaring EV sales. This scenario creates a strong platform for companies to present vehicle batteries as a relatively affordable option for vehicle owners.
The report suggests that fast-developing economies in Asia Pacific, such as China, Korea, and Japan, hold the lion’s share in the global vehicle battery market, with lithium-ion batteries slated for staggering sales growth at 15% CAGR through 2030. Despite being a prime EV market, battery demand in Europe prevails on the lower side, says research.
Despite the challenges posed by the Covid-19 pandemic and lockdowns, EV sales grew steadily in some European markets, which sustained the demand for vehicle batteries. However, the manufacturing scenes are still recovering from the massive losses encountered due to sudden production shutdowns and supply chain interruptions. Battery making companies are joining forces with researchers over technology R&D, with several companies also collaborating with top universities to develop high-density vehicle batteries.
In addition to developing consumer confidence, key companies in the vehicle battery landscape should consider the constantly heightened consumer sentiment. R&D investments in fast-charging battery technologies are underway, with key players focusing on battery models with amplified storage capacity. The report has thoroughly profiled some of the most prominent players in the 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.