Electric Vehicle Battery Formation And Testing Market

Industry Overview

Global population today has been facing the challenge of increasing levels of pollution for several years. One of the main contributors to air pollution is the prevalent use of fossil fuel-based vehicles running across the Country’s roads. But, in recent times, the automobile industry has seen a significant shift towards EV cars as a more sustainable, eco-friendly alternative.  As a result, there has been a surge in demand for EVs in India. Due to an increase in battery-powered applications, in particular electric vehicles (EVs), there is rising global demand for batteries. But before a battery can be fitted in an EV, it must be formatted and tested. The battery formation process relies on special battery formation equipment to charge and discharge a battery to a high degree of voltage and current accuracy to ensure the battery lasts for the indicated lifetime,. To ensure the reliability, safety and performance of EV batteries, electric vehicle battery formation and testing are the crucial steps. A battery can be deemed market-ready only after testing.

Global Electric Vehicle Battery Formation and Testing Market was estimated to be USD 1.40 billion in 2023, and it is expected to grow at a CAGR of 16.23% and reach USD 6.12 billion by 2030.

Market Segmentation

Insight by Application Type

Based on application type, the Global Battery Formation And Testing Market is segmented into Manufacturing and Testing. Testing is required after the actual battery formation process, right from a charging infrastructure to the battery of the vehicle and to make sure the battery maintains the industry standards. Electric vehicle batteries require rigorous safety checks for safe installation and integration with systems. Therefore, testing is the largest application within the electric vehicle battery formation and testing market and is anticipated to maintain its dominance during the forecast period 2024-2030.

Insight by Vehicle Type

The Global Battery Formation And Testing Market is segmented into passenger and commercial vehicles. Due to increase in per capita income, passenger vehicles are increasing in numbers in developing countries as well and are the most common mode of conveyance in developed countries. EV manufacturers are frequently launching new passage vehicle models, and increasing disposable income in emerging economies is supporting the adoption of EVs in the passenger vehicle industry.

Insight by Battery Chemistry

On the basis of battery-chemistry, the Global Battery Formation And Testing Market is segregated into Lithium-ion batteries and others.  Lithium-ion batteries dominate the Global Battery Formation And Testing Market due to their superior energy density, which enables longer ranges without significant increases in weight or size. Better performance and charge/discharge efficiency than nickel-metal hydride batteries are being offered. Overall durability and cost-effectiveness of electric vehicles is maintained to a longer lifespan.

Insight by Sourcing Type

Based on sourcing type, the Electric Vehicle Battery Formation and Testing Market is bifurcated into In-house and Outsourcing. In-house segment is likely to dominate the market over the forecast period due to the businesses' experience in carrying out in-house battery testing activities is under total control. Additionally, in-house is cost-effective which guarantees higher levels of customer satisfaction.

Insight by Deployment Type

Based on deployment type, the Electric Vehicle Battery Formation and Testing Market is classified into Cloud based and On premises. Cloud-based segment is poised to lead the market over the on-premises testing due to various key advantages. The flexibility and accessibility of cloud-based solutions enable collaboration among geographically dispersed teams and facilitate real-time data sharing. Based on demand, cloud-based testing offers greater scalability, allowing manufacturers to access and utilize testing resources dynamically, thereby optimizing efficiency and reducing costs. Additionally, cloud platforms provide advanced analytics and machine learning capabilities, enhancing the analysis of complex battery testing data. The agility and innovation offered by cloud-based testing solutions make them more adaptable and responsive to the dynamic needs of battery development and quality assurance processes, the electric vehicle industry continues to evolve rapidly during the forecast period.

Insight by Testing Type

On the basis of testing type, the Global Battery Formation And Testing Market is segregated into Mechanical tests, thermal tests, Electrical tests and others. Mechanical tests dominates the Electric Vehicle Battery Formation and Testing Market due to its crucial factor for ensuring the structural integrity and safety of batteries. Electric vehicle batteries need to withstand various stresses during operation, mechanical testing assesses factors such as vibration, impact, and structural durability. These tests are fundamental for mitigating the risk of physical damage or failure in real-world driving conditions. Mechanical tests serve as a foundational step in guaranteeing the overall robustness and reliability of electric vehicle batteries, while thermal, electrical, chemical, and performance tests are vital for evaluating specific functional aspects and efficiency.

Global Electric Vehicle Battery Formation And Testing Market Report Coverage

Report Metric	Details
Historical Period	2018 - 2023
Base Year Considered	2024
Forecast Period	2025 - 2030
Market Size in 2023	U.S.D.  1.40 Billion
Revenue Forecast in 2030	U.S.D.  6.12 Billion
Growth Rate	16.23%
Segments Covered in the Report	By Application, By Vehicle, by battery chemistry, by sourcing, by deployment and by testing
Report Scope	Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling
Regions Covered in the Report	North America, Europe, Asia-Pacific and Rest of the World

Industry Dynamics

Growth Drivers

The growth in The Electric Vehicle Battery Formation And Testing Market is expected to be driven by growing demand for EVs and the need to ensure the safety, reliability, and performance of EV batteries. Global market also shall experience robust growth because of revolutionizing operations with AI and cloud-based Solutions. Government is imposing stringent safety and performance standards on EV batteries. Due to which battery manufacturers are under pressure to produce high-quality batteries that meet stringent safety standards of the government. EVs are an appealing choice for lower operational costs linked as the prices of petrol and diesel are rising continuously. Hence, EVs provide a more cost-effective alternative for buyers. Also rigorous battery resting procedures are essential in establishing the robustness and effectiveness of batteries across a wide array of applications and scenarios.

Restraints

One of the major obstacles that setbacks the widespread EV adoption is the lack of charging infrastructure. Government has been taking several measures to tackle this problem by taking several measures to encourage the installation of electric car charging stations. Another challenge is the lack of uniformity in charging infrastructure. The charging stations available, employ different connectors and protocols, making it challenging for EV drivers to find compatible charging stations. This inconsistency can cause anxiety and people may avoid purchasing EVs due to concerns about being stranded without a charging station. Hence the major concern for battery formation and testing. Another primary area of focus for companies in this market is cost reduction. High manufacturing costs have been a major obstacle to widespread electric vehicle adoption, and ongoing research aims to develop more cost-effective battery chemistries and production processes.

Geographic Overview

• North America
• Europe and Rest of Europe
• Asia Pacific (APAC)
• Rest of the World

China leads the Electric Vehicle Battery Formation And Testing Market for several reasons. Fostering an environment conducive to innovation and production, the country has strategically positioned itself as a global leader in electric mobility. The growth of the electric vehicle market in China has accelerated due to government policies and incentives, including subsidies and regulations promoting electric vehicle adoption. Furthermore, robust investment in research and development, together with significant advancements in battery technology, has allowed regional companies to stay ahead in the development of electric vehicle batteries. The presence of a well-established manufacturing infrastructure and a large domestic market for electric vehicles are the major reasons to China's leadership in the electric vehicle battery formation and testing market.

Key Players Covered in the Report

Key players of The Global Electric Vehicle Battery Formation And Testing are ABB, Siemens AG, Dassault Systems, SAP SE, Rockwell Automation, Inc. , AVEVA Group Limited, Infineon Technologies AG , Tulip Batteries, General Electric, TUV SUD, Emerson Electric Co., HORIBA, Ltd., Cognex Coporation, Analog Devices, Inc.

Latest News Updates

In recent times, Siemens and FREYR Battery (“FREYR”) to cooperate on large-scale and sustainable battery production as part of Siemens Xcelerator open digital business platform. FREYR will use the Siemens Xcelerator portfolio, including Siemens Industrial Operations X software and hardware to design and operate the planned gigafactories in Norway and the U.S.,

Rockwell Automation indicates it is at the forefront of innovation in the electric vehicle (EV) manufacturing, motor, and battery industries. The company operates an 8,000 square-foot Electric Vehicle Innovation Center in San Jose, California, where automotive startups and established manufacturers go to participate in an interactive learning environment which, since 2019, showcases an evolution of the latest EV manufacturing technologies, including AR/VR modeling, state-of-the-art battery pack assembly machines, cutting-edge robot technologies, and rigorous functional testing.

The Global Electric Vehicle Battery Formation And Testing Market report offers a comprehensive market segmentation analysis along with estimation for the forecast period 2025–2030.

Segments Covered in the Report

By Application type

• Manufacturing
• Testing

By Vehicle type

• Passenger
• Commercial

By Battery Chemistry type

• Lithium-Ion Batteries
• Others

By Sourcing type

• In-house
• Out-source

By Deployment type

• Cloud-based
• On-premises

By Testing type

• Mechanical tests
• Thermal tests
• Electrical tests
• Others

Region Covered in the Report

North America

• U.S.
• Canada
• Mexico

Europe

• Germany
• U.K.
• France
• Italy
• Spain
• Russia
• Rest of Europe

Asia-Pacific (APAC)

• China
• Japan
• India

Rest of the World

• Brazil
• Saudi Arabia
• South Africa
•  U.A.E
• Other Countries