Market Trends of Battery Manufacturing Equipment Industry
This section covers the major market trends shaping the Battery Manufacturing Equipment Market according to our research experts:
Automotive Segment to Dominate the Market
- The rising fluctuation in the cost of fuels like gasoline and natural gases and the increasing demand for emission controls in various countries have shifted the focus from conventional vehicles to electric vehicles (EVs). Electric vehicles are more efficient, which, combined with the electricity cost, is charging an electric vehicle cheaper than filling petrol or diesel for your travel requirements. Using renewable energy sources can make the use of electric vehicles more eco-friendly.
- Moreover, as the demand for electric vehicles is increasing, automobile manufacturing companies are designing electric vehicles for all car segments in various types and designs to increase the sales of their vehicles. This customization in the designing of automobiles provides a significant growth opportunity for battery manufacturing to meet the demands of automobile manufacturers.
- Furthermore, the government's supportive rules, regulations, and financial benefits for adapting electric vehicles in their regions have also benefitted the automobile industry.
- For instance, the Federal Ministry for Economic Affairs and Climate Action of Germany announced a purchase grant, known as the environmental bonus, which is paid towards new vehicles - USD 3800 for non-hybrid electric cars and USD 2850 for plug-in hybrids. The grant is paid towards purchases of cars with a list price of up to USD 57,000. This is expected to increase EV demand, consequently benefitting the battery equipment manufacturing industry.
- Hence, the automotive sector is expected to be the fastest-growing segment in the forecast period due to increased demand for electric vehicles and supportive government policies.
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Asia-Pacific to Dominate the Market
- The market for battery manufacturing equipment is on a constant rise in the Asia-pacific region due to the rising awareness in public regarding environmental issues and the techniques to improve the constantly deteriorating condition.
- Due to the region's large population and fast-growing economy, the demand for batteries in the Asia-Pacific region is also expected to grow steadily, with countries such as China, India, and the ASEAN countries driving the market.
- Due to the presence of a significant electric car industry, leading industry players across the supply chain, and a rapidly rising economy, China dominates the battery manufacturing equipment market. The region has the majority of the world's lithium-ion reserves. It can be utilized in various end-use industries such as automotive, consumer electronics, and others.
- In November 2022, BYD announced that they are further expanding its battery production capacities in China with a new plant in Wenzhou in Zhejiang province. The new factory will have an annual capacity of 20 gigawatt-hours and is scheduled to start production in 2024.
- Furthermore, the demand for batteries have increased significanlty in India. India is one of the fastest growing economies of the Asia-Pacific region, with the second largest population in the world, which subsequently translates into a large consumption of electrical equipments that operates through batteries.
- In addition, India boasts a large number of information technology enterprises that are growing yearly. It is also propelling the battery equipment manufacturing industry as these companies have a high demand for battery-operated devices.
- Hence, Asia Pacific is expected to dominate the market in the forecast period due to increased production, technological advancements, and supportive government policies in the battery equipment manufacturing market.
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