The Hybrid and Electric Vehicle Battery Market Will Reach USD 436,112.7 Million By 2030
The global hybrid and electric vehicle battery market is witnessing growth and is projected to reach USD 436,112.7 million by 2030. This development can be credited to the rise in popularity and placement of electric vehicles and hybrid vehicles, and the improvement in tech of lithium-ion batteries, which are utilized in electric vehicles.
The EV segment is booming, and businesses are emerging business models to fulfill customer demands, like battery swapping, which permits customers to swap electric vehicle batteries after they have been drained. This reduces customers' time in charging batteries and advances purchaser requirements.
In response to a profitable sector, many automobile makers have accepted the battery-as-a-service (BaaS) model, which splits batteries from cars. In place of buying a battery with an electric vehicle, the BaaS model permits owners of electric vehicles to rent batteries on a subscription basis. Customers might save the upfront expanse of battery by opting for this model and not worry about battery degeneration.
In recent years, the APAC region dominated the hybrid and electric vehicle battery market by generating USD 19,480.7 million, because of the increasing usage of battery-propelled vehicles in the region. Electric vehicle sales are estimated to grow significantly during the projection period, as a result of the increasing ecological contamination concerns, increasing requirement for fuel-alternative vehicles, and lessening cost of batteries.
The key factor for lower battery costs in APAC than in other continents is that there are numerous battery makers in Japan, China, and South Korea. Moreover, the region's abundant supply of raw materials, such as cobalt and lithium, eases the fabrication of batteries in huge quantities.
The industry in North America is projected to advance mainly because of the augmented government aid for the R&D of lithium-ion batteries, high concentration on HVs and EVs, many tax breaks provided by governments, and the affordability of electric passenger vehicles in the continent. Additionally, the surge in demand for power security and the fast reduction of fossil fuels are projected to create many opportunities for the regional industry for H&E batteries during the projection period.
Furthermore, the acceptance of Lithium-ion batteries has augmented, as a result of the rising utilization of EVs and plug-in hybrid electric vehicles (PHEVs), and it is estimated that this trend will last in the coming years as well.