EV Battery Testing and Diagnostic Services Industry, Global, 2025-2034

Battery Chemistry Evolution is Driving the Transformational Growth and Technological Advancements of Testing and Diagnostics

Since the battery is the most expensive component of an electric vehicle (EV), effective battery diagnostics and repair have become a crucial sustainability element in the EV market. Appropriate diagnostics and repair equipment and services not only reduce overall maintenance costs for consumers by targeting repair and preventing expensive replacements but also enhance efficiency, safety, and performance. Transformative trends, such as the integration of artificial intelligence and machine learning, second-life applications, and the circular economy, are vital to the evolution of battery testing and diagnostics.

In this report, Frost & Sullivan analyzes trends in EV battery testing and diagnostics/repair services. Other important information includes:

• EV battery diagnostics approaches
• Futuristic battery testing and diagnostics technology
• Business models/technology adopted by operating stakeholders
• Repair demand for various battery chemistries in the next 10 years
• Competitive environment, focusing on selected participants
• Opportunities for stakeholders

The Impact of the Top 3 Strategic Imperatives on the EV Battery Testing and Diagnostics Industry

Innovative Business Models

• Why: Consumers' growing acceptance of electric vehicles (EVs) increases the need for battery diagnostics and testing.
• Testing and diagnostics players opt for various business models to cater to different customer groups, such as individual EV owners, fleet operators, and dealerships.
• Frost Perspective: Business models such as battery-as-a-service (BaaS), leasing, and health monitoring subscription gain significance.
• These diagnostics business models adopted by original equipment (OE) and independent aftermarket (IAM) channels play a crucial role in retaining customer interest in EVs by providing a sense of easy maintenance.

Competitive Intensity

• Why: Customized diagnostics solutions for different customer groups will be vital in gaining an edge in the competition.
• This is because fleet companies, individual EV drivers, and logistics service providers will have different requirements when it comes to monitoring and diagnostics.
• Frost Perspective: Comprehensive, tailored diagnostics services-from monitoring and predictive maintenance to end-of-life services-will become important.
• However, providing such services will require extensive partnerships among various diagnostics stakeholders in the value chain.

Disruptive Technologies

• Why: New battery chemistries for higher density, faster charging, and better safety are under research, pilot, and introduction stages.
• Solid-state, sodium-ion, and graphene-based batteries are some battery chemistries likely to become more prominent in the coming years.
• Frost Perspective: New battery chemistries will increase the initial capital cost for diagnostics as they will require advanced tools catering to specific chemistry types.
• However, the overall cost of diagnostics and repair will decline as the performance of batteries improves.

Scope of Analysis

Geographic Scope: Global (Americas/Europe/Asia-Pacific/Africa and the Middle East)

Battery Chemistry: Nickel manganese cobalt (NMC)/lithium ferrophosphate (LFP)/nickel-cobalt-aluminum oxide (NCA)/others (combination of various battery chemistries, such as lithium cobalt oxide [LCO], lithium manganese oxide [LMO], lithium-metal-polymer [LMP], lithium-titanate-oxide [LTO], and nickel-metal hydride [NiMH]) Vehicle Category Passenger Vehicle Class 1 to 3 Study

Objective The study aims to analyze the transformative trends in EV battery testing and diagnostics/repair services Focus

• Trends impacting battery diagnostics and repair
• EV battery diagnostics approaches
• Future battery testing and diagnostics technology
• Business models/technology adopted by operating stakeholders
• Opportunities for stakeholders in the battery diagnostics/repair market
• Repair demand for various battery chemistries in the next 10 years
• Competitive environment - Overview of selected players

Growth Restraints

Restraint

• Lack of Battery Standardization: Various testing and diagnostic tools are required to cope with different battery standards, increasing the overall cost.
• Uncertain Total Cost of Ownership (TCO) of EVs: Uncertainty around battery resale value and replacement cost makes it difficult for fleet owners to calculate the accurate TCO.
• Capital Intensive Equipment: EV battery testing and diagnostics equipment are not capital cost-efficient, which will restrict easy entry for new smaller players.
• Data Security: The extensive collection of vehicle data and usage of cloud-based platforms for diagnostics will cause safety concerns among consumer groups.
• Integration into Older EV Models: Upgrading/Retrofitting older EV models with new EV battery diagnostics methods can be complex and expensive.

Growth Drivers

Driver: Growing Use of Energy Storage Systems

Deploying grid balancing and renewable energy integration via energy storage systems requires extensive battery testing.

Driver: Circular Economy

Testing and diagnostics help assess the accurate remaining useful life of batteries for the second use.

Driver: Integrated Remote Diagnostics

Integrated remote vehicle diagnostics not only optimize charging patterns but also enable timely maintenance.

Driver: Advancements in Battery Technology

Exclusive and specialized techniques/methods become inevitable when testing/diagnosing futuristic batteries to ensure accuracy.

Driver: Regulatory Compliance

Diagnostic tools to monitor battery conditions and ensure compliance with the respective region's regulations will drive quality standards in battery services.

Competitive Environment

Number of Competitors: 20

Competitive Factors: Technology adoption, Business model, Business type applicability

Key End-user Industry Verticals: EV drivers, Fleet operators

Notable Competitors: EV manufacturers: Tesla, BYD, Volkswagen; Non-EV manufacturers: Aviloo GmbH, SK On, Recurrent

Predominant Revenue Model: Aftermarket services, Diagnostics/Repair

Key Competitors

• BYD
• Tesla
• BMW
• GAC
• Volkswagen
• Mercedes Benz
• Geely
• Nissan
• SK On
• LG Energy Solution
• MAHLE
• DEKRA
• Aviloo
• Recurrent
• Cox Automotive
• Midtronics, Inc.
• Bosch Automotive Service Solutions Inc.
• Geotab
• Lepont
• Neware Technology