Market Dynamics
Introduction:
What is an EV busbar?
An EV busbar is a metal strip usually made of copper or aluminum that is used to carry and distribute high-voltage current within an electric vehicle. It enhances energy efficiency, enables fast current switching, improves thermal management, and offers better recyclability compared to traditional cables. These busbars are made from copper or aluminum. They are crucial in managing the vehicle's weight, volume, and thermal performance, making their design and implementation essential in EV engineering.
Busbars are preferred over cables in EVs as they are approximately 70% shorter, which reduces power loss and improves overall system efficiency. They also offer superior heat management, easier installation, and greater weight and cost savings, especially when aluminum is used.
Market Drivers:
Global Electric Vehicle Growth: The global electric vehicle (EV) production has seen steady and continuous growth in recent years, driven by strong consumer demand, supportive government policies, and technological advancements.
Government Regulations & Incentives: Government regulations and incentives play a crucial role in accelerating EV adoption, which in turn drives demand for essential components like busbars.
Advanced Busbar Solutions: Flexible designs and improved coatings enhance performance, enabling higher loads and fast charging for evolving EV needs.
Rising Adoption of High-Voltage EV Systems: The rise in adoption of high-voltage EV systems is driving the demand for advanced busbar solutions.
Advantages of Busbar: Busbar's superior advantages, including compact design, higher current-carrying capacity, and improved thermal performance, are driving the replacement of traditional cables in EV architecture.
Segment Analysis
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Segmentations
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List of Sub-Segments
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Segments with High Growth Opportunity
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Propulsion-Type Analysis
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BEV and HEV
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BEV is expected to remain the demand generator for the busbar in the coming years.
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Product-Type Analysis
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Rigid Busbar and Flexible Busbar
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Rigid busbar is anticipated to contribute a larger share of the EV busbar market.
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Material-Type Analysis
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Copper Busbar, Aluminum Busbar, and Bimetallic Busbar
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Copper is the most preferred material used in the manufacturing of EV Busbar, whereas aluminum is expected to remain the fastest-growing material during the forecast period.
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Insulation Material-Type Analysis
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PET, PI, PA12, Epoxy Powder, Silicon Rubber, PVC, and Other Insulation Materials
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PET is the dominantly used insulation material for EV busbars, while PA12 is likely to experience the fastest growth during the forecasted period.
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Insulation Form-Type Analysis
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Powder Coating, Heat Shrink Tubing, Dipping, Film, and Other Insulation Forms
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Film remains the biggest insulation form type and is expected to experience the fastest growth in the coming years.
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Sales Channel-Type Analysis
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Battery Manufacturers and OEMs
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Battery manufacturers are expected to remain the most attractive sales channel type by 2031, whereas OEMs are likely to grow at a faster rate.
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Application-Type Analysis
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Inside Battery and Outside Battery
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Inside-battery busbars lead the EV busbar market, while outside-battery busbars are expected to witness faster growth during the forecast period.
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Inside Battery Cross-Sectional Area- Type Analysis
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<35 sq mm, 35-50 sq mm, and >50 sq mm
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35-50 sq mm cross-sectional area is expected to lead in sales, while the > 50 sq mm category is projected to grow fastest during 2025-2031.
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Outside Battery Cross-Sectional Area- Type Analysis
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<70 sq mm, 70-90 sq mm, and >90 sq mm
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70-90 sq mm cross-sectional area is expected to remain the most attractive product by 2031, while the > 90 sq mm category is projected to grow fastest during 2025-2031.
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Regional Analysis
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North America, Europe, Asia-Pacific, and The Rest of the World
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Asia-Pacific is expected to maintain its reign over the forecast period, whereas North America is likely to grow at the fastest rate.
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By Propulsion Type
“The BEV segment is projected to remain the leading category in the market and also experience the higher growth in the coming years.”
The EV busbar market is segmented into BEV and HEV. BEVs rely solely on electric power, requiring more high-conductivity and insulated busbars to manage energy flow across large battery packs, inverters, and e-motors compared to HEVs. Supportive government policies and stringent emission norms are pushing automakers toward higher BEV production over HEVs, directly driving greater demand for busbars.
HEVs, including mild and plug-in hybrids, generally use fewer busbars than BEVs due to partial electrification and lower system voltage. Plug-in hybrids use larger batteries and higher voltage than mild hybrids; they still require fewer busbars than fully electric vehicles, as they rely partially on fuel engines.
By Vehicle Type
“LV is expected to retain market dominance and register the faster growth in the coming years.”
The market is segmented into LV and M&HCV. Currently, LV (light vehicles) hold the lion’s share of the market due to higher production and widespread adoption of electric passenger cars globally. Government incentives, better charging infrastructure, and declining battery costs are accelerating the adoption of electric vehicles, thereby driving the demand for busbars for light vehicles.
M&HCV held a niche share of the market. However, the busbars used in these vehicles are typically larger and designed to handle higher voltage and current loads, demanding superior thermal and structural performance compared to those in LVs (light vehicles).
By Product Type
“Rigid Busbar is likely to remain dominant, while flexible busbar is expected to experience the faster growth during the forecasted period.”
The market is segmented into rigid busbars and flexible busbars. The rigid busbar offers unparalleled thermal performance, high current carrying capacity, mechanical strength, and compact and space-saving design. They are reliable solutions for high-power distribution in electric vehicles, such as connecting battery packs to inverters or power control units. Flexible busbars are likely to experience faster growth during the forecast period owing to their advantages, such as greater flexibility in routing, absorb vibrations better than rigid busbars, and ease of installation and maintenance.
By Material Type
“Copper is currently the most preferred material of the market, whereas aluminium is expected to experience the fastest growth during the forecasted period.”
The market is segmented into copper, aluminum, and bimetallic. Copper busbar has exceptional electrical conductivity, thermal efficiency, mechanical strength, resistance to corrosion, and compatibility with high-voltage systems. They can carry higher currents compared to aluminum busbars of the same size, making them a preferred choice for EVs, especially for high-power and high-performance applications.
Aluminum is preferred in weight-sensitive designs, being 40% lighter than copper. It is increasingly used where packaging space allows for 50% larger cross-sections compared to copper to achieve the same ampacity, making it ideal in applications where space constraints are relaxed.
By Insulation Material Type
“PET is likely to remain the dominant insulation, while PA12 is set to grow at the fastest pace during the forecasted period.”
The market is segmented into PET, PI, PA12, epoxy powder, silicon rubber, PVC, and other insulation materials. PET is the dominant insulation material type in the market in 2024, due to its cost-effectiveness, excellent dielectric strength, and good thermal stability. It is typically suitable for applications below 600V.
PI is used as it has exceptional thermal stability, excellent electrical insulation, chemical resistance, and mechanical strength. However, it has a higher cost, limiting its usage. Epoxy is a free-flowing, thermosetting dry powder that forms a durable insulating layer with high dielectric strength. It ensures uniform coating thickness and a smooth, consistent surface finish on busbars, enhancing both electrical insulation and mechanical protection.
PA12 is the fastest-growing insulation material, due to its high flexibility, durability, and chemical resistance, making it ideal for handling complex layouts. As EV battery designs become more compact and require better vibration resistance, PA12 is witnessing growing adoption, used by leading players, such as APTIV.
By Insulation Form Type
“Film insulation is expected to remain both the dominant and fastest-growing insulation form in the EV busbar market during the forecast period.”
The market is segmented into powder coating, heat shrink tubing, dipping, film, and other insulation forms. Film insulation currently dominates the EV busbar market due to its lightweight, flexible nature and high dielectric strength. It is ideal for compact and laminated busbar designs, enabling precise insulation with minimal thickness, supporting space-efficient layouts, and effective thermal management.
Powder coating is the second most-dominantly used insulation form type in the market as it forms a smooth, uniform layer that helps prevent short circuits and reduces the risk of electric shock. It is a fast and cost-effective process that reduces production time while ensuring a durable, high-quality finish. PET, PA12, and PI (Kapton) are the most widely used materials for film insulation form. Epoxy is the primary material used for powder coating in EV busbar insulation.
Heat-shrink tubing is another common insulation type used in the market. Silicone rubber and PE are primarily used as insulation material for heat shrink tubing form type.
By Sales Channel Type
“Battery manufacturers are expected to remain the dominant sales channel of the market during the forecast period, whereas OEMs are projected to grow at a faster rate during the same period.”
The market is segmented into battery manufacturers and OEMs. Currently, battery manufacturers dominate the market, primarily due to the need for insulated and high-conductive busbars for module-to-cell interconnections and to connect battery junction boxes within battery packs.
OEMs are rapidly gaining momentum in the market, driven by the growing emphasis on system-level integration of high-voltage busbars to enhance vehicle efficiency and performance.
By Application Type
“Inside-battery busbars dominate the market, while outside-battery busbars are set to grow faster in the forecasted period.”
The market is segmented into the inside battery and the outside battery. Inside-battery busbars dominated demand in 2024, largely due to their critical role in ensuring efficient current flow and thermal management within increasingly dense battery pack designs.
Outside-battery busbars are witnessing faster growth, supported by rising high-voltage architecture and growing complexity in e-powertrain layouts, where efficient power distribution across vehicle systems is essential.
By Inside Battery Cross-Sectional Area Type
“Busbars with a cross-sectional area of 35-50 sq mm is projected to retain its leading position in the market over the next few years.”
The market is segmented into <35 sq mm, 35-50 sq mm, and >50 sq mm. Busbars with a 35-50 sq mm cross-sectional area dominate the inside-battery applications due to their ideal mix of size, power capacity, and thermal performance.
The >50sqmm cross-sectional range is likely to witness the fastest growth, driven by the adoption of 800V systems that require higher current-carrying capacity. Larger cross-sections help minimize electrical resistance and heat generation, ensuring safer and more efficient power delivery.
By Outside Battery Cross-Sectional Area Type
“Mid-sized busbars (70–90 sq mm) dominate outside battery applications, whereas busbars with a cross-sectional area of > 90 sq mm are projected to experience the fastest growth in the coming years.”
The market is segmented into <70 sq mm, 70-90 sq mm, and >90 sq mm. The 70–90 sq mm cross-sectional area segment is dominating due to its balanced size, power handling capacity, and thermal performance.
Outside-battery busbars, which connect the battery to components, such as the inverter, motor, and onboard charger, often carry high current loads simultaneously. To handle this increased ampacity, they require larger cross-sectional areas for efficient and safe power transfer.
Regional Analysis
“Asia-Pacific is expected to remain the largest market for EV busbar during the forecast period, whereas North America is estimated to be the fastest-growing market during the same period.”
In terms of region, the market is segmented into North America, Europe, Asia-Pacific, and the rest of the world. Asia-Pacific is the largest producer and consumer of electric vehicles, majorly driven by China. Leading Chinese EV manufacturers include BYD, SAIC, Geely, and Xpeng. Also, a major EV OEM, Tesla, has a manufacturing plant in China. Rising infrastructure investments, strong government policies, the presence of leading EV battery and component manufacturers, and an increasing domestic consumer base of EVs are some other factors driving the demand for EV busbars in the region. North America is likely to experience the fastest growth during the forecast period owing to rising EV production, government incentives, and rising consumer demand.
