Rising Preference for Electric Vehicles Steering Busbar Use in Automotive Industry

As per the International Energy Agency (IEA), in 2020, nearly 3.1 million electric vehicles (EVs) were sold across the world. The surging adoption of EVs can be credited to the escalating government support, owing to the rising environmental concerns, and this has fueled the adoption of busbars, globally. As conventional cell connections, including welded wires, lugs, and strips, are highly susceptible to failure when the cells displace because of the vibrations caused by a moving vehicle, automobile manufacturers are increasingly integrating busbars in EVs.

Moreover, the growing awareness about the cost-effectiveness and energy efficiency of busbars will steer the global automotive busbar market at a CAGR of 24.6% during 2021–2030. The market was valued at $17.4 million in 2020, and it is projected to reach $177.1 million revenue in 2030. Busbars reduce the manufacturing and internal material handling costs by curtailing the assembly time. Moreover, they provide ease of retrofitting, due to their less space requirements and shift in loads and are thus, increasingly being preferred for motor control center applications.

According to P&S Intelligence, Asia-Pacific (APAC) dominated the automotive busbar market in 2020, due to the high-volume production of EVs in South Korea, Japan, and China. This region has become a manufacturing hub for EVs and EV components due to the easy availability of raw materials, such as aluminum and copper. Moreover, the region is also expected to register the fastest growth in the coming years, owing to the increasing government initiatives being launched to fuel the adoption of EVs.

Thus, the growing shift toward EVs from conventional vehicles and increasing awareness about busbars among EV manufacturers will augment the usage of automotive busbars in the foreseeable future.