Automotive Busbar Market To Generate Revenue Worth $168,858.1 Thousand by 2030
- Published: October 2023
The global automotive busbar market is projected to generate USD 168,858.1 thousand revenue by 2030, advancing at a CAGR of 21.4% during 2024–2030. This can be ascribed to the increasing development and sales of EVs, the rising number of government initiatives related to their adoption, and the low cost and operational benefits of busbars over cables.
According to the International Council on Clean Transportation (ICCT), in 2019, 44% of the world’s EVs were in just 25 markets, such as China, Japan, the U.S., and a few European countries. Among all the major countries that have a stronghold in the EV sector, China accounted for almost half of the sales in 2021, around 3.3 million. Thus, the rising demand for EVs leads to the surging need for automotive busbars.
Moreover, as per the IEA, the sales of EVs doubled in 2021 from 2020 to a recorded sale of 6.6 million. Around 10% of the car sales globally were electric in 2021, which brought the total car fleet to around 16.5 million. This growth continues even in 2022, with around 2 million electric cars sold within the first quarter of the year. Technological advancements in the electrification of two/three-wheelers, buses, and trucks boost their sales. Thus, the rising sale of these EVs is resulting in the increasing demand for busbars in the automotive sector.
Copper Busbar Is Dominating the Market
The copper category held a larger share, 84%, in terms of volume, in 2023. This is because copper busbars have lower power loss, voltage drop, and electrical resistance, and a higher ampacity compared to their aluminum counterpart. Also, copper is used more often for building wires, electronic cables, or other products that require high conductivity. Further, it is widely used for conductors in power generation and distribution as well as in automotive applications.
The demand for automotive busbars in the European market is projected to exhibit robust growth during the forecast period. This growth can be majorly due to the increasing government funding and investment in the transportation sector and the rising adoption of EVs. It has been observed that the sales of EVs have been increasing in the European continent, resulting in rising demand for automotive busbars.
In December 2020, EU leaders planned for cutting greenhouse gases – reducing them by 55% by 2030, rather than 40%. Due to this, the governments of European countries are planning to shift their preference toward EVs instead of fuel-based vehicles. Thereby, the rising adoption of EVs, including some of the expensive models, has bolstered the share of the European automotive busbar market.
Moreover, the German government intends to invest more than $3 billion in the charging infrastructure for cars and trucks by 2023. In addition, in the U.K., there has been a considerable rise in demand for electric vehicles. Additional taxes, such as congestion tax and parking surcharges, on conventional vehicles, have encouraged customers to opt for electric vehicles in the country.
Furthermore, the governments of several European countries have been taking positive steps toward the development of charging stations to support the EV sector by providing funds and financing for those projects. Thus, these types of initiatives taken by the governments would lead to the rising adoption of automotive busbars.
Major players operating in the automotive busbar market include ABB Ltd., Mersen Corporate Services SAS, Eaton Corporation plc, Interplex Holdings Pte. Ltd., AMETEK Inc., Siemens AG, Proterial Ltd., Legrand Holding SA, EG Electronics AB, and TB&C Holding GmbH.