Growing Electric Vehicle Production Boosting Demand for Automotive Batteries

With the growing number of people on earth, automotive production and sales continue to surge. Due to this, among their various components, the demand for batteries is booming too. Every vehicle, whether it runs on electricity or diesel or petrol (gasoline), requires a battery. Thus, the automotive battery market will have a rather prosperous future, says market research firm P&S Intelligence. Presently, since electric vehicles (EVs) are all the rage, the integration rate of batteries in them will shoot up.

Automotive Battery Market Report 2021

Compared to an internal combustion engine (ICE)-based vehicle, an EV requires a much-larger and -powerful battery because this component is its main power plant (in case of battery electric vehicles [BEVs]). Moreover, apart from powering the motor, the battery supplies electricity to all the auxiliary components and systems, including lights, heating, ventilation, and air conditioning (HVAC) systems, advanced driver assistance systems (ADAS), navigation and entertainment units, and digital dashboards.

Automotive batteries are generally available in two broad chemistries: lithium-ion (Li-ion) and sealed lead–acid (SLA). Of these, SLA batteries have been more popular till now because they have been available for ages and are cheap. But, their energy density isn’t as high, which becomes a problem for EVs, while their disposal also has environmental issues. Thus, with the growing demand for sustainable mobility, Li-ion batteries have begun gaining preference. 

Explore Full Report Description At: https://www.psmarketresearch.com/market-analysis/automotive-battery-market

With such advancements taking place in the electric mobility ecosystem, Asia-Pacific (APAC) has been the largest automotive battery market till now, and the situation will remain unchanged in the coming years. Driven by strong environmental concerns, strict emissions regulations, and supportive regulations, China has been the world’s largest EV and automotive battery manufacturer for ages, and it is also the one that buys them in the largest numbers. Similarly, India is home to the largest electric rickshaw fleet, which again creates a high demand for SLA and Li-ion batteries.

Hence, with the booming EV sales, the demand for automotive batteries will keep rising.

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Automotive Lithium-Ion Battery Market Business Revenue Forecast, Size, Leading Competitors and Growth Trends

Rising global temperatures have become a major cause of concern, which is being seen as a consequence of burning of fossil fuels for meeting energy needs from time immemorial. Fossil fuels are made of organic matter and their burning releases a huge amount of carbon dioxide and other gases in the atmosphere. These gases are termed as greenhouse gases, as they get trapped into the atmosphere and gradually increase the temperature. This temperature change has not only caused the melting of glaciers and rising of sea levels, it has disturbed the climatic pattern as well, with frequent floods and droughts occurring at the same time in the same country/climatic zone.

Further, the increasing prices of crude oil across the globe, has also motivated governments to find alternatives to conventional energy sources. In the transportation sector, efforts are being made to popularize electric and hybrid vehicles among users. The International Energy Agency reported that the global car fleet grew to approximately 5.1 million in 2018, registering a 2 million increase in sales from 2017. Governments of many countries are actively providing their residents with an efficient and sustainable transport system.

Electric and hybrid vehicles use lithium-ion (Li-ion) batteries for storing electrical energy. These batteries are rechargeable and are made of many cells. They are light weight and have a high energy density. Lithium batteries have different structural designs, such as pouch, prismatic, and cylindrical. During 2014–2018, Li-ion batteries with the cylindrical structural design sold, accounted for the maximum cumulative energy storage capacity. In fact, in the coming years as well, they would continue to amount for the highest installed energy storage capacity among all Li-on batteries of different structural designs. The automotive lithium-ion battery market is predicted to register a 15.9% CAGR during the forecast period (2019–2024).

Electric vehicle manufacturers are now increasingly using lithium-nickel-manganese-cobalt (NMC) batteries, gradually shifting from lithium-iron-phosphate (LFP) batteries. The latter were heavier and occupied more space in the vehicle; these shortcomings have been addressed by NMC batteries. Besides being lighter in weight and compact, NMC batteries are capable of providing higher ranges in passenger cars in a single charge. This is due to the greater energy density of these batteries that facilitate a higher vehicle range. Furthermore, the prices of these batteries have reduced significantly, which is further contributing to their acceptance among manufacturers.

Many developed countries have already included electric vehicles in their transportation system and this is yet to be done in emerging economies. With growing environmental concerns, many countries across the world have announced the adoption of electric vehicles in the coming future. For instance, a Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME-II) program, was launched by the Indian government in 2019; this is an ambitious plan of the country to popularize and adopt electric vehicles in the near future. Further, in the ASEAN region, Thailand is one of the largest consumers of electric vehicles. In an initiative to popularize these vehicles, the Thailand Board of Investment announced their plans of reducing the excise duty from 8% to 2% on electric vehicles, thereby boosting the automotive lithium-ion battery market, as storage batteries are an essential component of electric vehicles.

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