Market Trends of North America Electric Vehicle Battery Industry
This section covers the major market trends shaping the North America Electric Vehicle Battery Market according to our research experts:
Battery Electric Vehicle Segment Likely to Hold Significant Share in the Market
Battery Electric Vehicles Segment of the market studied likely to play key role over the forecast period in wake of growing adoption of BEVs by the consumers and active launches by major electric vehicle manufacturers in this regard. For example,
- In the first quarter of 2022, 173,600 units of battery electric vehicles had been sold in the United States registering a year-over-year increase of around 76 percent compared to the sales recorded in the first quarter of 2021. In addition, there are several battery-electric vehicle models available in the North American region including model variants. While Tesla , Hyundai , and Audi are the only manufacturers with more than one BEV available in United States, Nissan and Tesla have multiple battery pack options for the LEAF and Model S, X, 3, and Y.
Furthermore, increasing efforts by major automotive OEMs to reduce greenhouse gas emissions and transform their products line-ups into green and clean, environment-friendly vehicles are anticipated to propel growth of market during the forecast period. For instance,
- Hyundai has committed to becoming carbon-neutral by 2045. The company has committed to all its new vehicles being purely electric starting from 2025 with fuel-cell EVs and battery EVs, with the goal of being a 100 percent zero-emission vehicle brand by 2030 and carbon-neutral by 2035.
Investments by battery OEMs in the R&D of new battery technologies to reduce the battery size of vehicles to offer new opportunities for players in the market. Honda has teamed with General Motors to make use of GM's upcoming Ultium batteries. The first model co-developed with GM is the Prologue SUV, on target for sales in 2024. The aformentioned factors, likely to contribute significantly for growth of Battery electric Vehicles segment of the market studied during the forecast period.
United States is Expected to Dominate the Market During the Forecast Period
The United States is a prominent market for electric vehicles and the country is experiencing a shift toward the adoption of electric mobility. A part of this can be attributed to the numerous technological and electric vehicle manufacturing companies and startups present in the country like Tesla, Rivian, Lucid, General Motors, etc.
Rising innovations and development of advanced battery systems for longrun and durability likely to encourage players in the market over the forecast period. Further, supportive policies and incentives provided by government to rise adoption of electric vehicles and manufacturing of associated parts and components like batteries expected to drive demand in the country significantly during the forecast period. For instance,
- In May 2022, the United States government has announced that a USD 3.1 billion plan will be formulated to give a fillip to the manufacturing of domestic electric vehicles batteries to expedite the transition of the USA from gas powered vehicles to electric vehicles. Grants will also be made for battery recycling facilities.
- The funds said to be granted from President Joe Biden's bipartisan infrastructure law signed in 2021 which had a total fund allocated of USD 1.2 trillion. The law includes over USD 7 billion for enhancing the US's battery supply chain for electric vehicles production.
As the demand of electric vehicles is increasing in the country companies are developing new product for the market. For instance,
- In October 2020, Bollinger Motors announced it has filed a patent with the United States Patent and Trademark Office (USPTO) for its battery pack design. The Bollinger Motors battery pack is composed of modules in 35 kWh strings that can be connected in series or parallel to form a variety of pack sizes and configurations.
Such investments likely to continue over the forecast period and hence United States projected to hold significant share in the market during the forecast period.
