Electric Vehicle (EV) Battery Housing Market

Electric Vehicle (EV) Battery Housing Market Size:

The global electric vehicle (EV) battery housing market size reached US$ 1.9 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 18.9 Billion by 2032, exhibiting a growth rate (CAGR) of 28.32% during 2024-2032. The market is propelled by the supportive government policies and incentives, increasing number of electric vehicle (EVs) sales, and the growing investment in electric vehicles (EVs) infrastructure.

Electric Vehicle (EV) Battery Housing Market Analysis:

• Major Market Drivers: The increasing adoption of electric vehicles globally due to environmental regulations and consumer demand for sustainable transportation solutions represents the major growth-inducing factor. Moreover, the technological advancements in battery materials and designs, and government incentives and subsidies promoting electric vehicle adoption are escalating the demand for EV battery housings.
• Key Market Trends: The shift toward lightweight materials like aluminum and composites for battery housings to enhance vehicle range and efficiency is influencing the market growth. Besides, the integration of advanced cooling systems within battery housings to manage thermal stability improves overall performance. Along with this, a growing focus on modular and scalable battery designs to accommodate different vehicle types and consumer preferences.
• Geographical Trends: The increasing production capacity and investments in EV battery manufacturing facilities across Europe are contributing to the market growth. Besides this, North America is further witnessing significant investments in battery technology and manufacturing capabilities to support the growing EV market.
• Competitive Landscape: Some of the EV battery housing industry include Constellium SE, Gestamp Automoción, S.A., GF Casting Solutions, Minth Group Ltd., Nemak S.A.B. de C.V., Norsk Hydro ASA, Novelis Inc. (Hindalco Industries Limited), Proterial, Ltd., Teijin Automotive Technologies, thyssenkrupp AG, TRB Lightweight, UACJ Corporation, etc. among many others.
• Challenges and Opportunities: The high initial costs of EVs due to expensive battery technologies, and supply chain pose constraints for critical materials and concerns over recycling and disposal of battery components. On the other hand, the expansion of charging infrastructure globally presents opportunities for battery housing manufacturers. Innovation in battery recycling technologies and materials recovery offers avenues for sustainable growth.
   

Electric Vehicle (EV) Battery Housing Market Trends:

Government Incentives and Policies

The market for EV battery housings is impacted by the numerous incentives that governments across the globe are implementing in place to encourage individuals to switch to electric cars (EVs). The main goal of these incentives is to lower the cost barrier for prospective EV purchasers. They consist of subsidies, tax cuts, and refunds. The tax credit of up to $7,500 in the US effectively lowers the entry price for customers, making electric cars (EVs) financially competitive with vehicles powered by internal combustion engines. According to the Internal Revenue Service (IRS), a new qualifying plug-in electric vehicle (EV) purchased before 2023 may be eligible for a clean car tax credit of up to $7,500 under Section 30D of the Internal Revenue Code. Besides this, such regulations increase customer demand for electric vehicles, which increases manufacturing levels. There is an increasing need for essential parts such as battery housings as more electric vehicles are produced. Furthermore, by providing financial incentives supported by the government, automakers are incentivized to expand their electric vehicle lineup. This, in turn, stimulates advancements in battery technology and housing solutions, which are critical to the efficiency and safety of vehicles, thus contributing to the electric vehicle (EV) battery housing market growth.

Increasing Number of Electric Vehicle (EV) Sales

According to the International Energy Agency (IEA), the international market for new electric cars is expected to develop exponentially, surpassing 14 million units sold by 2023, with the majority of these cars being sold in China, Europe, and the US. There were 40 million electric vehicles on the road overall, following estimates from the 2023 global EV outlook (GEVO-2023) with this increase. Additionally, sales of electric cars increased significantly in the year, accounting for 3.5 million more than in 2022. This is a 35% year-over-year increase and more than a six-fold increase since 2018. In 2023, there were more new registrations per week than there were in 2013, a decade earlier. In 2023, the percentage of cars sold that were electric increased to almost 18% from 14% in 2022. These patterns highlight the industry's sustained strong development, with battery-electric vehicles accounting for 70% of all-electric vehicles by 2023. Hence, this increase is a reflection of consumers' growing preference for cutting-edge, environmentally friendly transportation solutions. Hence, the need for strong, long-lasting EV battery housings is increasing along with EV sales as battery housings are essential for shielding the battery cells from environmental, mechanical, and thermal influences, thus creating a positive electric vehicle (EV) battery market outlook.

Investment in Electric Vehicle (EV) Infrastructure

The development of EV infrastructure with the increasing use of electric vehicles is influencing the market growth. For instance, by 2030, President Biden intends to have a national network of at least 500,000 public chargers in place. Additionally, to accomplish this goal the Bipartisan Infrastructure Law allots $7.5 billion for EV charging infrastructure. Hence, this sum, of $5 Billion will support the National Electric Vehicle Infrastructure (NEVI) program, which will build a foundational network of high-speed chargers spaced no more than every 50 miles along major American roads, highways, and interstates. Apart from this, the other $2.5 Billion will be allocated through the charging and fueling program to competitive grants that will close gaps along charging routes and provide easy, accessible charging alternatives in residential, commercial, and retail locations. This investment makes owning an EV more feasible and lets manufacturers and customers know that the federal government is on board with the move to electric vehicles. Hence, there is a greater need for EVs and for durable, creative battery housings, which are essential to the general operation and durability of electric cars, thus generating a positive electric vehicle (EV) battery housing market revenue.

Electric Vehicle (EV) Battery Housing Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on cell format type, material, and vehicle type.

Breakup by Cell Format Type:

• Pouch Cell
• Cylindrical Cell
• Prismatic Cell
   

Cylindrical cells account for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the cell format type. This includes pouch, cylindrical, and prismatic cells. According to the report, cylindrical cells represented the largest segment.

The cylindrical cells dominate as the largest segment due to their compact shape and ease of packing into dense modules, which optimizes space within the battery housing. Additionally, cylindrical cells also offer superior cooling efficiency, essential for maintaining battery performance and longevity, which is influencing the market growth. Besides this, the cell type significantly influences the design and materials used in EV battery housings, reflecting varying market needs and technological advancements, thus contributing to the market growth.

Breakup by Material:

• Steel
• Aluminum
• Glass Fiber Reinforced Plastic
• Carbon Fiber Reinforced Plastic
   

Aluminum holds the largest share of the industry

A detailed breakup and analysis of the market based on the material have also been provided in the report. This includes steel, aluminum, glass fiber-reinforced plastic, and carbon fiber-reinforced plastic. According to the report, aluminum accounted for the largest market share.

Aluminum represents the leading market segment. This preference for aluminum stems from its favorable properties, such as its lightweight nature, excellent thermal conductivity, and high recyclability, which enhance the overall efficiency and sustainability of EVs. Moreover, manufacturers opt for aluminum to reduce vehicle weight, thereby extending the driving range per charge. Additionally, aluminum's robustness and resistance to corrosion ensure durability and lower maintenance costs. It is further propelled by innovations in aluminum alloy compositions and manufacturing techniques, aligning with the automotive industry's evolving demands for higher performance and environmentally friendly solutions, thus increasing the electric vehicle (EV) battery housing demand. Moreover, SGL Carbon now supplies these innovative battery enclosures, which provide enhanced thermal insulation, thereby improving battery efficiency and reducing overall energy consumption. Hence, the adoption of these highly durable battery casings represents a significant step forward for e-works mobility, delivering advantages in energy efficiency, raw material utilization, and safety features.

Breakup by Vehicle Type:

• Passenger Cars
• Commercial Vehicles
• Two Wheelers and Three Wheelers
   

Passenger cars represent the leading market segment 

The report has provided a detailed breakup and analysis of the market based on the vehicle type. This includes passenger cars, commercial vehicles, and two-wheelers and three-wheelers. According to the report, passenger cars represented the largest segment.

Passenger cars constitute the largest segment due to the escalating global demand for personal electric vehicles, as consumers increasingly favor eco-friendly and energy-efficient transportation options. This segment benefits from significant investments in EV technology and infrastructure, which facilitate advancements in battery performance and vehicle design. Hence key players are introducing advanced product variants to meet the numerous needs of individuals. For instance, on 14^th September 2023, Toyota Motor Corporation (Toyota) unveiled its advanced battery technology roadmap, highlighting three new liquid electrolyte battery innovations aimed at enhancing power output, extending range, speeding up charging times, and reducing costs. A significant breakthrough in solid-state batteries has accelerated efforts toward mass production. Toyota also emphasized the importance of battery height reduction technology in improving driving range. At the launch of its BEV Factory, Toyota announced that its next-generation battery electric vehicles (BEVs) will commence production in 2026. These BEVs are designed to set new standards in performance and are tailored to meet diverse customer preferences.

Breakup by Region:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Europe leads the market, accounting for the largest electric vehicle (EV) battery housing market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Europe was the largest regional market for electric vehicle (EV) battery housing.

According to the electric vehicle (EV) battery housing market forecast, Europe is emerging as the dominant segment. This prominence is attributed to the region's strong push towards electrification, stringent environmental regulations, and significant investments in EV infrastructure. Additionally, several European countries like Germany, France, and Norway are leading in EV adoption due to increasing government incentives and an increasing consumer shift toward sustainable transportation options. Besides this, the presence of major automotive manufacturers who are transitioning to electric models is further escalating the demand for sophisticated EV battery housings. This market benefits from advanced manufacturing capabilities and a robust supply chain, poised to meet the growing demands of the EV industry. For instance, on 4^th May 2023 in Aachen, Germany, FEV and Impression Technologies (ITL), a specialist in aluminum hot sheet forming, unveiled a new battery housing concept for electric vehicles. This concept utilizes HFQ technology to maximize energy storage space effectively. The design addresses the complex structural demands of the component by placing structurally significant elements externally, thereby integrating the battery housing seamlessly into the vehicle's overall structure. This approach creates room for additional battery cells and extends the vehicle's range or reduces the space needed for installation while maintaining the same range. The concept, developed through collaboration between FEV and ITL, will be manufactured and showcased as a prototype in the upcoming months.

Competitive Landscape:

• The electric vehicle (EV) battery housing market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the electric vehicle (EV) battery housing industry include Constellium SE, Gestamp Automoción, S.A., GF Casting Solutions, Minth Group Ltd., Nemak S.A.B. de C.V., Norsk Hydro ASA, Novelis Inc. (Hindalco Industries Limited), Proterial, Ltd., Teijin Automotive Technologies, thyssenkrupp AG, TRB Lightweight, UACJ Corporation, etc.
  
  (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
   
• At present, key players in the electric vehicle (EV) battery housing market are employing strategic initiatives to bolster their growth. They focus on innovation in lightweight and thermally efficient materials to enhance battery performance and vehicle range. Additionally, partnerships with automotive manufacturers and investments in advanced manufacturing technologies are influencing the market growth. These companies are expanding their global presence through mergers and acquisitions and increasing their production capacities to meet the surging demand for EVs. Hence key players are introducing advanced product variants to meet these needs. For instance, in July 2023, Magna invested over $790 Million in constructing the first two supplier facilities at Ford’s BlueOval City supplier park in Stanton, Additionally, Magna established a stamping and assembly facility in Lawrenceburg, Tennessee. Ford’s on-site supplier park at BlueOval City will facilitate vertical integration to streamline production, supporting the assembly of up to 500,000 electric trucks annually at full capacity. Magna’s contributions to BlueOval City will include supplying battery enclosures, truck frames, and seats for Ford’s next-generation electric trucks. Along with this, the battery enclosures facility is anticipated to employ approximately 750 workers, with an additional 300 employees at the seating plant scheduled to commence in 2025.

Electric Vehicle (EV) Battery Housing Market News:

• 13 February 2023: AURORA, Ontario, Magna revealed that it has been awarded a new contract by General Motors (GM) to supply battery enclosures for the 2024 Chevrolet Silverado EV. These enclosures will be manufactured at Magna's electric vehicle structures facility located in St. Clair, Michigan, which currently produces enclosures for the GMC HUMMER EV. Magna has recently outlined substantial investment initiatives for the St. Clair facility to bolster its capabilities in response to the rapidly expanding electric vehicle sector, and the production is slated to commence later in 2023.
• 20 November 2023: SGL Carbon achieved second place in the Products and Applications category at the AVK Innovation Awards 2023. It was held during the JEC DACH Forum in Salzburg, Austria. Additionally, their entry, titled Electric car battery housing components based on innovative continuous fiber-reinforced phenolic resin composites”, demonstrated their expertise in fiber composites and surpassed numerous other cutting-edge technologies in the competition.

Electric Vehicle (EV) Battery Housing Market Report Scope:

Key Questions Answered in This Report:

• How has the global electric vehicle (EV) battery housing market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global electric vehicle (EV) battery housing market?
• What is the impact of each driver, restraint, and opportunity on the global electric vehicle (EV) battery housing market?
• What are the key regional markets?
• Which countries represent the most attractive electric vehicle (EV) battery housing market?
• What is the breakup of the market based on the cell format type?
• Which is the most attractive cell format type in the electric vehicle (EV) battery housing market?
• What is the breakup of the market based on the material?
• Which is the most attractive material in the electric vehicle (EV) battery housing market?
• What is the breakup of the market based on the vehicle type?
• Which is the most attractive vehicle type in the electric vehicle (EV) battery housing market?
• What is the competitive structure of the market?
• Who are the key players/companies in the global electric vehicle (EV) battery housing market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the electric vehicle (EV) battery housing market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global electric vehicle (EV) battery housing market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the electric vehicle (EV) battery housing industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.