Electric Vehicle Battery Heating System Market Size, Share, and COVID-19 Impact Analysis, By Propulsion Type (Battery Electric Vehicles and Hybrid Electric Vehicles) By Vehicle Type (Electric Passenger Vehicles and Electric Commercial vehicles) and Regional Forecast, 2024-2032

A battery heating system is an essential component in an electric vehicle as it helps to enhance the range of the vehicle by heating the battery at an optimum temperature. Range anxiety is one of the most significant restraints for the consumer not opting for EVs, and the range issues worsen with battery temperature falling below a threshold.

Lithium-ion batteries used in most electric vehicles suffer reduced charging efficiency and increased battery aging in low temperatures, resulting in a deteriorating vehicle range. Heating the battery to an optimum temperature helps it to charge faster as batteries are chemical in nature, and heating them up accelerates the chemical reaction involved in charging. The battery heating system keeps batteries functioning properly despite any environmental changes.

The increasing demand for the advanced technology-based vehicle, which is efficient and lighter, will drive the battery heating system market. The automotive industry prefers lithium-ion batteries owing to their high energy density, longer life cycles, lighter weight, and better resilience. The introduction of high-end commercial EV trucks and buses, which require a more robust battery thermal management system, is also anticipated to grow the EV battery heating system market.

The growing awareness of environmental concerns is a driving factor making consumers shift toward electric vehicles. As the overall automobile industry is moving more toward electrification and automation, countries are continuously trying to be self-reliant to meet their lithium-ion battery needs and aiming to reduce dependency on China for li-ion batteries. Supporting government regulations and infrastructure development will further aid the expansion of the EV battery heating system market.

Impact of COVID-19 on the Electric Vehicle Battery Heating System Market

The pandemic introduced a temporary worldwide shutdown in many sectors. This temporary shutdown impacted various industries negatively, leading to revenue decline, loss of product sales, slowed production rate, unemployment, and many other severe impacts. Furthermore, it caused an economic downturn as the majority of the manufacturing facilities were suspended or working at half capacity.

It is quite intuitive that the growth of the electric vehicle battery heating system market is directly proportional to the growth of the overall EV market. As COVID-19 hit the world in early 2020, all the major economies had multiple setbacks due to lockdowns and supply chain bottlenecks. China and Japan play a vital role in passenger car production; both countries had to significantly cut back on their production. FY-20 was highly dissatisfied when it came to passenger car sales throughout the globe as consumer sentiments and preferences took a massive shift. Consumers started refraining from buying luxury goods.

Although demand started picking up in FY-21, the shortage of semiconductor chips, an essential part of car manufacturing, controlling air conditioning systems, operating infotainment systems, or ensuring proper working of multiple sensors involved, along with a constrict supply chain of lithium metal severely affected the automotive industry, resulting in lower car production. The closure of production plants and shortage of workforce due to stricter social distancing norms also affected the production of new vehicles. Another issue was regarding the procurement of raw materials. The supply chain tailback affected the companies to procure sufficient raw materials to meet their production needs, and at the same time, the elevated inflation significantly raised the cost of production.

Key Insights

The report will cover the following key insights:

• Key Industry Developments – Mergers, Acquisitions, and Partnerships


• Porter's Five Forces Analysis


• Technological Developments


• Impact of COVID-19 on the Electric Vehicle Battery Heating System Market

Regional Analysis

Asia Pacific is predicted to lead the electric vehicle battery heating system market over the coming years. Multiple factors that strengthen the region’s leadership include the rising populace migrating to the middle-income bracket, rising disposable income, multiple presences of OEM in China and Japan, cheap access to labor, the advent of 5G, and proliferation in technology adoption, among others. Additionally, Asia Pacific's growth is optimistic as China controls a colossal market of lithium, a critical metal used to make batteries for EVs, which gives the region’s manufacturers superiority over other regions. Increasing regulations and stricter environmental norms have forced manufacturers and consumers to shift from IC engine vehicles to electric and automated vehicles, which is further propelling the need for lithium-ion batteries due to their high power density and lightweight, resulting in a growth of the electric vehicle battery heating system market.

Key Players Covered

The report includes the profiles of key players such as Continental AG, Gentherm Inc., Dana Limited, Hanon Systems, Valeo, MAHLE GmbH, Robert Bosch GmbH, Grayson, VOSS Automotive GmbH, LG Chem, and Calsonic Kansei.

Segmentation

Key Industry Developments

• October 2022 – Researchers from Pennsylvania State University and a startup based at the college have devised a solution for battery heating. They proposed to add a sheet of nickel foil just a few micrometers thick between the stacked electrodes of each cell. The ultra-thin sheet act as a heating element when electricity is passed through it.


• January 2021 – Robert Bosch GmbH managed to increase the range of electric vehicles by up to 25% with improved battery thermal management. The company combined the heat pump with coolant pumps and valves to ensure accurate distribution of heat and cold in the vehicle.