LONDON, Sept. 16, 2021 /PRNewswire/ -- The automotive industry has played a prominent role in national industrialisation, but at an unfortunate cost to the environment. Sustainable mobility is no longer a buzzword, but the very essence of long-term survival for carmakers. Vehicle manufacturers are electrifying their line-up with batteries particularly ripe for exploitation. Autonomous driving, powertrain electrification, and shared mobility are anticipated to fuel development in the automotive industry as they disrupt existing supply chains. An ever-increasing amount of power is required for the electronic devices in cars, bolstering demand in the vehicle battery market.
The vehicle battery market is predicted be worth US$43.48 Bn by 2030, registering a CAGR of 4.64% from 2020 to 2030.
Government Push to Adopt Clean and Green Technology Benefits Sales of Vehicle Batteries
Regulatory mandates such as BS6, Euro 6, and the Clean Air Act have hastened the shift from internal combustion engines (ICE) towards electric vehicles (EV). For e.g. – the California Zero Emission Vehicle program compels automakers to sell EV's in the U.S. state, along with others such as Colorado, Maine, and Maryland that have adopted it. Such schemes in addition to fuel-saving technologies are predicted to provide a huge impetus to growth in the vehicle battery market.
Companies Seek to Speed up Vehicle Battery Charging Time to Ease Long-distance Travel
Companies have been focusing their R&D efforts on developing quick-charge technology as this permits vehicle occupants to cover longer distances with only brief pitstops at charging stations. Improved vehicle charging infrastructure and continued evolution in lithium ion technology is projected to be a major driver in the vehicle battery market in the forecast period.
Reduction in Subsidies of EVs Has Negligible Impact on Sales of Vehicle Batteries in China
Approximately 80% of global demand for vehicle batteries comes from Asia with China, Japan, and South Korea being prominent. 45% of manufacturers are based in China, highlighting the importance of the world's largest car market in battery technology. Although China's Ministry of Finance reduced subsidies for EV's by 20% in 2021, sales of hybrids, plug-ins and EVs have been on a tear in the country. European nations are on the backfoot as most do not have robust frameworks in place to attract vehicle battery manufacturers. Thus, several companies have outsourced their manufacturing to Asian nations such as China and this trend is likely to continue.
Brutal Competition Makes Constant Innovation Essential in the Vehicle Battery Market
The vehicle battery market is characterised by cutthroat competition that is set to intensify in the near future as technological innovation continues at an unprecedented pace. Technology companies are entering into partnerships with automotive giants and striving to increase storage capacity to hasten vehicle battery commercialisation in electric and ICE vehicles.
Companies are looking to organic and inorganic growth along with new product development to grab market share from rivals in the vehicle battery market. Profiled players in this report are vehicle battery market are SAMSUNG SDI Co., BYD Company Limited, Panasonic Corporation, Johnson Controls International PLC, LG Chem Ltd., A123 Systems Inc., and Contemporary Amperex Technology Co., Limited.
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