New Energy Vehicle Fuses: CAGR Of The Global Market Is Expected To Exceed 54% in 2020-2025

New Energy Vehicle Fuses: CAGR of the Global Market is Expected to Exceed 54% in 2020-2025

The new energy electric drive system has spawned more circuit safety protection requirements. Vehicle fuses are mainly divided into two categories: low-voltage and high-voltage. Among them, low-voltage fuses are often used in traditional components such as lights, wipers, and horns, and are used in traditional fuel vehicles and new energy vehicles. High-voltage fuses are mainly used in the main circuit and auxiliary circuit in the electric drive system of new energy vehicles, and are also used in charging piles of new energy vehicles.

We believe that, as the core component of circuit safety for new energy vehicles, the double increase in volume and price of fuses is expected to drive the rapid growth of related markets.

1) Quantity: In recent years, new energy vehicles have maintained a boom in production and sales. According to statistics from the China Automobile Association and the National Bureau of Statistics, my country's new energy vehicle production in 2021 will reach 3.507 million units and sales will reach 3.677 million units, both more than twice the level of last year. In terms of penetration rate, the penetration rate of new energy vehicles in my country will increase from 0.03% in 2010 to 13.4% in 2021. We believe that with the advancement of technology and relevant policy support for carbon neutrality goals in the future, the competitiveness of new energy vehicles relative to traditional fuel vehicles will be further enhanced, and the penetration rate of new energy vehicles is expected to accelerate in the future. According to the estimates of the Federation of Passenger Transport Associations, my country's new energy sales in 2022 are expected to reach more than 5.5 million vehicles, a year-on-year increase of at least 57%.

2) Price: Since the drive system of new energy vehicles is mainly driven by electricity, the proportion of circuit-related components is greatly increased compared with that of fuel vehicles. Except for basic low-voltage components, new energy vehicles are compared with traditional fuel vehicles in terms of electric drive system. There are a large number of medium and high voltage circuit protection requirements, which greatly increases the value of fuses in single-vehicle applications on new energy vehicles.

Global sales of new energy vehicles have increased rapidly, driving the expansion of the global automotive fuse market. According to EV Sales statistics, a total of 3.1248 million new energy vehicles will be sold globally in 2020, corresponding to a global market space of 510-610 million yuan for fuses for new energy vehicles. According to the "Long-term Development Outlook of Global New Energy Vehicle Market (2030)" report jointly released by EVTank and Ivey Economic Research Institute, the global sales of new energy vehicles is expected to reach 18 million by 2025. If the proportion of sales remains unchanged, the corresponding market will reach 2.94 billion to 3.51 billion, with a CAGR of more than 54%. (Report source: Future Think Tank)

With the rapid growth of new energy vehicle production and market, the demand for high-performance, safe, and reliable core components is constantly increasing. Besides circuit protection components such as high-voltage fuses, the battery system, as the core of electric drive, also requires structural components whose safety and reliability are paramount. Our company focuses on the research and development and production of aluminum alloy casings for new energy vehicle batteries, providing lightweight, high-strength, and excellent heat dissipation solutions. These solutions effectively protect battery modules under high pressure, high temperature, and collision conditions, providing robust safety assurance for the entire vehicle system while meeting the ever-growing demand for high-quality core components in the future new energy market.