Power Battery Trays Market

Power Battery Trays Market Size

The global power battery trays market was valued at USD 7.45 billion in 2024. It is estimated to reach USD 25.31 billion by 2032, growing at a CAGR of 14.56% during the forecast period (2024–2032). The global power battery trays market is expected to witness substantial growth owing to the surging demand for electric vehicles (EVs) and hybrid electric vehicles (HEVs). Additionally, with growing environmental concerns and stringent government regulations to reduce carbon emissions, there is a rising shift toward electric mobility, fueling the demand for power battery trays globally. 

Market Overview

Power battery trays are structural components used to securely house and protect the battery packs in electric vehicles (EVs) and hybrid vehicles. These trays are typically made from lightweight, durable materials like aluminum or steel to ensure safety, support, and heat management. They also provide resistance to external impacts, vibrations, and environmental factors.

Power battery trays play a crucial role in maintaining the battery's stability and efficiency by preventing movement during vehicle operation and managing thermal conditions. With the rise of EVs, advancements in power battery tray design are aimed at enhancing vehicle performance and battery longevity.

Market Drivers

Rising Electric Vehicle Adoption

One of the key drivers of the global power battery trays market is the increasing adoption of electric vehicles (EVs). According to the International Energy Agency (IEA), global EV sales reached over 10 million in 2022, a sharp increase from 6.6 million in 2021. Governments across the globe are offering tax incentives and subsidies to encourage EV adoption, further driving the market.

Power battery trays are essential components for these vehicles, providing structural integrity and housing for batteries, which are integral to the vehicles’ performance. The trend toward lightweight materials, such as aluminum and composites, is further propelling the demand for advanced battery trays that enhance battery efficiency, reduce vehicle weight, and improve overall EV performance.

Moreover, major EV manufacturers, such as Tesla and BYD, are investing in innovative designs and materials for battery trays to increase energy density and vehicle range.

Market Restraint:

High Production Costs of Advanced Materials

Despite the promising growth, one of the major restraints for the global power battery trays market is the high production cost of advanced materials used in manufacturing. Battery trays made from lightweight materials like carbon fiber composites or aluminum are essential for reducing vehicle weight and improving efficiency. However, these materials are significantly more expensive than traditional steel, leading to higher production costs.

According to some reliable sources, the cost of aluminum is around 2-3 times higher than steel, and carbon fiber composites can be ten times more expensive. This cost differential makes it challenging for manufacturers to achieve cost-effective mass production, especially in price-sensitive markets. Smaller EV manufacturers may struggle to compete with established players due to the high initial investment required for these materials, potentially hindering the market’s growth. 

Market Opportunities:

Stringent Emission Regulations

The implementation of stringent emission regulations by governments worldwide is estimated to create opportunities for the growth of the global power battery trays market. The European Union's CO2 emission targets for passenger cars and the U.S. Clean Air Act have created a push for cleaner transportation solutions.

Traditional internal combustion engine vehicles are being gradually phased out, leading to a higher demand for EVs and, consequently, for power battery trays. These trays are designed to optimize battery cooling and ensure safety, which is crucial in complying with safety and environmental standards. For instance, Volkswagen and General Motors are focusing on sustainable battery tray designs that reduce carbon footprints, comply with safety regulations, and align with emission standards, thereby contributing to market growth.

Market Scope

Segmental Analysis of the Global Market:

The global power battery trays market is segmented by type and application.

Based on type, the global power battery trays market is segmented into aluminum, steel & stainless steel, and others.

The aluminum segment is expected to hold a significant share in the global power battery trays market due to its lightweight, high strength, and recyclability. Aluminium’s properties make it an ideal material for battery trays, as it reduces vehicle weight, enhances energy efficiency, and improves overall driving range in electric vehicles. With manufacturers like Novelis Inc. and Nemak developing advanced aluminum-based battery trays, the demand for this material is rising. Additionally, aluminum’s ability to withstand harsh environmental conditions without corrosion is a key advantage.

Based on application, the global power battery trays market is divided into BEV and PHEV. 

The Battery Electric Vehicle (BEV) segment contributes to the significant share in the global power battery trays market due to the growing demand for fully electric solutions. BEVs rely entirely on electric power, eliminating the need for internal combustion engines, which drives the need for efficient and lightweight battery trays. As environmental regulations tighten and consumer preference shifts towards zero-emission vehicles, BEV adoption is expected to surge. Leading automakers, such as Tesla and BYD, are focusing on innovative battery tray designs to enhance vehicle range and performance.

Regional Analysis of the Global Market:

The global power battery trays market is bifurcated based on region into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa.

The Asia-Pacific region is poised to dominate the global power battery trays market, driven by rapid growth in electric vehicle (EV) production and sales. China leads the market, accounting for over 60% of global EV sales in 2022, according to the International Energy Agency (IEA). Government incentives, such as subsidies for EV buyers and investments in EV infrastructure, have made China the largest market for power battery trays. Major Chinese companies like BYD and CATL are expanding their production capacities, fueling demand for battery trays.

Japan and South Korea

Japan and South Korea are also key players, with leading automakers such as Toyota and Hyundai heavily investing in EV manufacturing. South Korea's LG Energy Solution and *SK Innovation are ramping up battery production, contributing to the regional demand for lightweight and efficient battery trays. Additionally, Asia-Pacific’s focus on reducing carbon emissions and achieving sustainability goals is further accelerating EV adoption, which directly drives the power battery trays market. Furthermore, the presence of a strong supply chain and government-backed initiatives solidify Asia-Pacific's position as a growth leader in this market.

North American

The North American power battery trays market is poised for significant growth, driven by the increasing adoption of electric vehicles (EVs) and stringent government regulations aimed at reducing carbon emissions. The United States, a key player in this region, is witnessing a surge in EV sales, with over 1 million electric vehicles sold in 2023, according to the International Energy Agency (IEA). Government initiatives such as the Biden Administration's EV tax credits under the Inflation Reduction Act are further encouraging the transition to electric mobility, boosting the demand for battery trays.

Leading automakers, including Tesla and General Motors, are investing heavily in EV production, with Tesla expanding its battery manufacturing capabilities at the Gigafactory in Nevada. Additionally, the rise of lightweight materials like aluminum for battery trays is gaining traction in North America due to its recyclability and strength-to-weight ratio. The growing focus on sustainability and advancements in battery tray design, aimed at improving thermal management and reducing vehicle weight, is expected to bolster market growth in the region over the coming years.

Top Market Players in Power Battery Trays Industry

1. Benteler
2. Gestamp
3. Constellium
4. Hitachi Metals
5. Nemak, SGL Carbon
6. Novelis
7. Superior Die Technology (Huayu Automotive Systems)
8. Lingyun Industrial
9. Jiangsu Hengyi (Huada Automobile Technology)
10. Hoshion Aluminium
11. Minth Group
12. Everwin Precision Technology
13. Ruixin Technology
14. Hongtu Technology
15. Jinhongshun Auto Parts
16. others

September 2024- Panasonic Holdings' energy division completed preparations for the mass manufacture of its 4680 electric vehicle batteries, aiming to commence supply to automakers.