3 mins Read 
19/08/2024 The e-mobility market has rapidly expanded over the past decade, driven by environmental concerns from consumers and governments, technological advancements, and a growing preference for newer technologies. This shift in buying habits has led OEMs to increasingly electrify their product offerings, with most Tier 1 e-mobility OEMs now offering both fossil-fuelled and electrified products.
E-Mobility Market Outlook
A significant catalyst for this growth was the 2016 Paris Agreement, which marked a major turning point for the global e-mobility sector. The agreement saw 195 United Nations members commit to keeping the rise in global surface temperature well below 2%. Governments worldwide recognized the potential of the e-mobility sector to reduce emissions and achieve net-zero targets, leading to significant investments in infrastructure, including widespread installation of charging points. Additionally, tax incentives for both consumers and businesses have further encouraged the adoption of EVs.
As a result, the market is projected to demonstrate a steady worldwide compound annual growth rate (CAGR) of 9.82% between 2024 and 2028. This steady growth rate is expected to expand the market to an estimated $906.7 billion by 2028, with EV ownership reaching 17.07 million units.
Advancements in Battery Technology
To meet these optimistic forecasts, the battery supply chain must continuously improve, with custom battery packs playing a crucial role in this evolution. Cell manufacturers are focusing on innovations that enhance battery performance, tailoring custom battery packs to meet specific needs, such as extending vehicle range, reducing the weight of battery packs, and lowering overall production costs. Emerging technologies like solid-state batteries, which promise higher energy densities and faster charging times, could be integrated into custom battery solutions, offering OEMs the flexibility to design products that meet precise specifications. Moreover, the emphasis on sustainability is driving efforts to develop custom battery packs with longer lifespans and improved recyclability, ensuring they not only perform optimally but also align with environmental goals.
Implications for OEMs and the Industry
For OEMs, advancements in battery technology and a supportive regulatory environment present both opportunities and challenges. Integrating the latest battery technologies into their products will be crucial for staying competitive. This will require close collaboration with battery manufacturers and significant investment in research and development. Additionally, OEMs must navigate the complexities of the supply chain, ensuring a stable and sustainable supply of the raw materials necessary for battery production.
What does this mean for battery manufacturers?
Battery manufacturers are at the forefront of the expanding e-mobility market, facing both significant opportunities and challenges. As both OEMs and consumers demand continual improvements, battery experts must push the boundaries of technology to drive the market forward. Success in these endeavors will prove lucrative, given the rising demand for EVs. To remain competitive and meet the evolving demands of the e-mobility industry, battery manufacturers must prioritize collaboration with OEMs and invest heavily in research and development.
To discuss your specific needs and explore how our UK-based production facilities and global expertise can help you navigate the evolving battery landscape, contact our battery experts.
