The North American EV Batteries Market is expected to reach $22.79 billion by 2028, at a CAGR of 30.2% during the forecast period, 2021-2028.
The growth of this market is mainly attributed to factors such as increasing investments by leading automotive OEMs to set up battery manufacturing facilities in the region, increasing adoption of EVs, and decreasing battery prices. Increasing investments in alternative batter technology provide significant growth opportunities for market players.
The solid-state battery segment is expected to grow at the fastest rate once it gets commercialized. As per Meticulous Research analysis, we expect the commercialization of solid-state batteries would happen from 2025. A solid-state battery can effectively increase the energy density per unit area as compared to lithium-ion batteries. Due to such properties, a solid-state battery pack will have a higher capacity than a lithium-ion battery of the same size.
The 101kWh to 300kWh segment is expected to grow at the highest CAGR during the forecast period. This capacity segment has a high growth rate during the forecast period mainly because 101kWh to 300kWh power capacity batteries are widely used in light commercial vehicles and utility vehicles. The adoption of such EVs is increasing due to the rise in fuel prices and government initiatives for lowering fleet emissions of logistics and public transportation.
Also, the increasing launch of new EVs by automotive OEMs for electrification of logistics and public transport fleets and increasing adoption of electric vehicles by e-commerce companies, such as Amazon and UPS, support the market’s growth during the forecast period.
The laser bonding segment is expected to grow at the highest CAGR during the forecast period. This segment is expected to have high growth during the forecast period mainly because laser-welded bonds can withstand higher currents, offers the advantages of narrow welds, high welding speed, and low heat level, which is important for battery tab welding chemicals within the batteries are heat sensitive.
The pouch segment is expected to grow at the highest CAGR during the forecast period. The high growth of this segment is attributed to higher energy density compared with the same weight of prismatic cells, more safety performance, and lower internal resistance. A pouch cell’s energy storage capacity is much greater in a given physical space than cylindrical cells. Leading automotive and battery OEMs are investing in pouch cell formats for powering the upcoming EVs.
The light commercial vehicles segment is expected to grow at the highest CAGR during the forecast period. The high growth of this segment during the forecast period is attributed to the increasing shift of retail MNCs and transport fleet operators to electric light commercial vehicles, growing awareness regarding the role of electric vehicles in reducing emissions, increase in demand for electric vehicles to reduce fleet emissions, and stringent government rules and regulations towards vehicle emissions.
The mass production of batteries and government tax incentives have further brought down vehicle costs, making electric light commercial vehicles much more cost-effective.
The battery swapping stations segment is expected to grow at the highest CAGR during the forecast period. This segment is expected to have high growth during the forecast period mainly because battery swapping service helps reduce EV acquisition costs, increase the battery lifespan, and increase the launch of battery swapping services by various automotive start-up companies. Also, other mobility stakeholders such as oil refining companies are partnering with e-mobility start-ups to set up battery swapping stations, which will support the market growth of this segment.
The U.S. is expected to account for the largest share of the North American EV batteries market. The increasing adoption of electric vehicles, the presence of raw material resources for cobalt and lithium, and increasing investment in EV battery development are some of the major factors driving the country’s market growth.
The key players operating in the North American EV batteries market are
- NOHMs Technologies Inc. (U.S.)
- QuantumScape Corporation (U.S.)
- American Battery Solutions Inc. (U.S.)
- Clarios (U.S.)
- Romeo Power Inc. (U.S.)
- Electrovaya Inc. (Canada).