Electric Vehicle Battery Formation and Testing Market Expected to Reach $6.46 Billion by 2032 – BIS Research

The formation and testing of batteries for electric vehicles are essential stages in guaranteeing the safety, dependability, and efficiency of EV battery systems. These procedures encompass a sequence of meticulously managed charging and discharging cycles, which activate the battery’s chemical properties and detect any possible defects.

The electric vehicle battery formation and testing market was valued at $1.42 billion in 2022, and it is expected to grow at a CAGR of 16.59% and reach $6.46 billion by 2032.

The expansion of the market for electric vehicle battery formation and testing is anticipated to be fueled by the increasing demand for electric vehicles and the imperative to ensure the safety, dependability, and efficiency of EV batteries.

Market Analysis: Trends, Data, and Growth Projections

BIS Research, a leading market research firm, has released a report titled the electric vehicle battery formation and testing market which discusses the challenges, growth factors, and future opportunities driving the remarkable growth of the EV battery formation and testing market.

The electric vehicle battery formation and testing market report focuses on several segments such as, application, vehicle type, battery chemistry, sourcing type, deployment method, testing type, region etc.

As electric vehicle adoption and battery technology evolve, the battery formation and testing market is in a growth phase. However, with market maturation, there’s anticipated intensification of competition among testing service providers and increased pricing pressure.

Key Players and Market Shares

China dominates the electric vehicle battery formation and testing market due to its strategic positioning as a global leader in electric mobility. Moreover, Cloud-Based Segment to Garner the Highest Growth in the Electric Vehicle Battery Formation and Testing Market (by Deployment Method).

Some major companies operating in the global report title are:

Siemens AG
ABB
SAP SE
Dassault Systèmes
Rockwell Automation, Inc.
General Electric
AVEVA Group Limited
Tulip Batteries
TÜV SÜD
Cognex Coporation
Emerson Electric Co.
Infineon Technologies AG
Analog Devices, Inc.
HORIBA, Ltd.
Element Materials Technology

Market Drivers, Challenges, and Opportunities

Regulatory advancements, ongoing research, and collaboration between industry leaders are contributing factors in the growth of the EV battery testing and formation market.

Market Demand Drivers: Improving Electric Vehicle Performance through Accurate Battery Testing

Accurate battery testing improves electric vehicle performance by assessing battery capacity, cycle life, and temperature performance, ensuring optimal driving range and power output.
Battery testing plays a crucial role in addressing issues that may impact safety, reducing safety concerns related to electric vehicle batteries.
Rigorous testing establishes the robustness and effectiveness of batteries, ensuring their reliability and durability across various applications and scenarios.

Market Challenges: Supply Chain Uncertainties and Lack of Charging Infrastructure

The concentration of lithium and battery materials production in a few countries poses a risk due to disruptions caused by political instability, natural disasters, and unforeseen events.
Global supply chains are affected by geopolitical tensions, such as trade wars, leading to tariffs and increased costs for battery manufacturers.
Increasing demand for lithium-ion batteries results in longer lead times and higher prices for battery materials, straining the existing supply chain.
The lack of charging infrastructure hinders electric vehicle adoption, creating a barrier that, if addressed, could boost demand for electric vehicle battery testing and formation.

Market Opportunities: Growing Usage of Emerging Technologies for Battery Testing

EV manufacturers are adopting emerging technologies, including artificial intelligence (AI) and machine learning (ML), to meet regulatory testing requirements, enhancing collaboration across the supply chain.
The integration of IoT and advanced driver assistance systems (ADAS) in electric vehicles contributes to the industry’s transformation, creating opportunities for specialized features in battery testing.
The adoption of AI-based testing models, such as those developed by companies like Monolith, presents an opportunity to cut testing time by up to 70%, addressing the bottleneck in the timely launch and commercialization of electric vehicles.

Analyst Note

BIS principal analyst suggests: “The electric vehicle (EV) battery formation and testing market is driven by a relentless pursuit of battery technology advancements to address the challenges and opportunities presented by electric mobility. Lithium-ion batteries, the current market standard, have undergone numerous refinements to enhance energy density, reduce weight, and improve overall performance. Researchers and manufacturers are also exploring alternative technologies, such as solid-state batteries, which hold the potential for higher energy density, faster charging times, and improved safety features compared to traditional lithium-ion batteries.”

About BIS Research

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