COVID-19 Impact analysis

Even though, the all in all production and sales of new vehicles came to a stop across the globe due to the outbreak of COVID-19, while the impact on electric vehicles was positive. The number of EVs sold in 2020 was more than the total EVs sold in 2019. However, component manufacturing was affected negatively, and small Tier II & Tier III manufacturers faced liquidity issues. Due to the pandemic, many countries imposed a complete lockdown of more than two months, which, inversely, impacted the production of electric vehicles and battery components. Manufacturing units around the world were shut down, and electric vehicle sales took a crucial hit initially.

However, the majority of the automakers recommenced vehicle production with finite production and necessary measures.

Top Impacting Factors

The global hybrid electric vehicle battery market is projected to expand in the coming years, owing to factors such as shrink crude oil reserves and issues concerning distress of the environment. The governments of numerous major countries have made positive adoption of hybrid vehicles that use the electric battery. Several national organizations have issued directives and offer attractive discounts on the purchase of hybrid cars. Major environmental regulations and policies in the EU (European Union) countries have encouraged broad acceptance of the battery-powered vehicle. The erratic crude oil prices are an added incentive that is expected to reinforce customers to adapt such cells during the forecast period.

Today, with the rising concerns raised over the environmental impact of conventional vehicles, governments around the world are encouraging the adoption of vehicles using alternative sources of fuel. EVs are zero-emission vehicles and are securing significance for clean public transport across countries. Several national governments offer financial incentives, such as tax exemptions and rebates, subsidies, reduced parking/toll fees for EVs, and free charging, to encourage the adoption of EVs. Thus, globally the requirement of EV battery is attaining fast pace.

Market Trends

• Electric vehicles hold a significant advantage over the conventional internal combustion engine vehicles attributed to the lack of transit related emissions and the potential to utilize and develop renewable energy resources
• Companies are coming up with business models like battery swapping and battery-as-a-service (BaaS) that permits users to change/swap EV batteries once discharged. 
• This saves users the time required on recharging the batteries, thereby refining customer satisfaction and addressing one of the prime reason’s consumers abstain from opting for EVs.
• Various Chinese EV battery manufacturers, such as NIO, follow the BaaS model that de-couples the battery from the EV. The BaaS model allows EV owners to rent battery services monthly instead of purchasing a battery with the EV. The model has two vital advantages: consumers can save money on battery cost, and they have to worry least about battery depreciation. Such models make most of the both, consumers and manufacturers, as manufacturers can accurately forecast the market size and potential by tying up with companies providing battery-as-a-service models.
• Major EV batteries are considered safe as they undergo numerous tests before being put into use. 
• However, there have been incidents—such as the recall of 68,000 Chevy EV Bolts after five fire incidents related to batteries—that have raised doubts on the safety of these batteries. EV batteries consist of several inflammable materials such as lithium, manganese, and plastics. 
• Lithium is also highly sensitive when exposed to water. Therefore, there are apprehensions over the performance and safety of these batteries in hot or waterlogged environments.
• Furthermore, the recycling of Li-ion batteries is expected to secure the supply of raw materials, such as lithium and cobalt, and reduce the reliance on extracting and refining materials from mineral resources. Recycling of lithium-ion batteries that are currently being used in electric vehicles offers an excellent opportunity for companies to utilize the refined constituent materials for manufacturing lithium-ion batteries that are to be used for energy storage systems (ESS).

  Key Benefits of the Report

• This study presents the analytical depiction of the hybrid electric vehicle battery industry along with the current trends and future estimations to determine the imminent investment pockets.
• The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the hybrid electric vehicle battery market share.
• The current market is quantitatively analyzed from 2020 to 2030 to highlight the hybrid electric vehicle battery market growth scenario.
• Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
• The report provides a detailed XYZ market analysis based on competitive intensity and how the competition will take shape in coming years