Global Electric Vehicle Battery Market was valued at US $ 56.4 billion in 2023 and is expected to reach US $ 134.6 billion by 2032 growing at a CAGR of 19.9% during the forecast period 2024 – 2032.
In an electric vehicle or hybrid electric vehicle, the rechargeable battery powers its electric motors. An increasing number of countries have begun to make more use of them. The battery is the key part of electric vehicle structure. One further reason for the common use in modern electric vehicles of lithium-ion and lithium polymer batteries is that their energy density compared to weight far surpasses other types. The major chemical ingredients in lithium-ion batteries are nickel, steel, cobalt, manganese and lithium.. The various components in the traditional electric vehicle battery all perform different functions and increase efficiency collectively.
Developments in technology as well as declining battery price are expected to spur the global integration of electric vehicles (EVs). Consequently, because pollution levels are rising and environmental quality deteriorating, the government has been forced to promulgate strict carbon footprint reduction measures and environmental protection regulations. Therefore, attempts to reduce the environmental impact of motor vehicles are slated to boost electric-car sales. This in turn is set further expand demand for EV batteries.
Large global automakers such as General Motors, BMW, Volkswagen and Ford motors are targeting the wide release of different electric vehicle models into the market. Rise in consumer awareness of EVs 'advantages; Demand for advanced electric vehicles taking off, with production volumes by the market's leading manufacturers on the rise are among factors driving growth in global EV battery markets. Government efforts, including subsidies to manufacturers and incentives for consumers are stimulating sales of electric vehicles.
In the wake of government policies encouraging public-private partnerships to develop recharge stations, in future years this market is expected to take off. In the ensuing few years, with government investment in infrastructure and rising investments in urbanization both leading to development of the EV battery market. With the vast rise in technological progress and declining prices of batteries, it is expected that electric vehicles will be taken up globally.
On top of this, rising levels of pollution and the worsening quality in terms of environmental conditions have forced legislators to implement tough measures promoting low carbon emissions and greening. With these trends further efforts to regulate exhaust emissions from vehicles will therefore stimulate demand for electric cars, which in turn should increase the need for EV batteries.
The Electric Vehicle Battery Market Trend Analysis
Lithium-ion batteries will dominate the market.
Rectifiers enabled car manufacturers to replace lead-acid and nickel cadmium rechargeable batteries with lithium ion power sources, having much higher energy densities. The latter attributes of lithium-ion batteries will enable battery pack manufacturers to reduce the overall size through space conservation. It is one of the lightest metals extant. Lithium-ion batteries do not have lithium metal. But they contain only lithium ions.
Compared to other battery types, lithium-ion batteries are in particular demand. Their favorable combination of capacity and low weight is the main reason for this. Other reasons why its adoption is increasing include superior performance (long life and low maintenance), long shelf life, environmental friendliness, and rapid charging. On the whole, however, lithium-ion batteries are more expensive than others; but in recent years as rival firms have stepped up their R & D investment and prices for critical materials have fallen dramatically--the trend has begun to reverse.
Historically, lithium-ion batteries have only been used in personal computers and consumer electronic devices (mobile phones). Nevertheless, there is a tendency to redraw these batteries so that they will be the major power source for hybrid and fully electric vehicle (EV) ranges. There are several factors behind this shift, including the fact that EVs have zero greenhouse gasses and carbon dioxide.
Segmentation Analysis of the Electric Vehicle Battery Market
Battery Type Insights
In 2021, the lithium-ion segment accounted for a major portion of the global electric vehicle battery market. The two most significant characteristics making lithium-ion batteries ideal for electric vehicles are their energy density and low weight. Lithium-ion batteries are widely used in hybrids and electric vehicles worldwide. This segment is currently the biggest share in today's global EV battery market because of growing international sales of and demand for hybrid-electric vehicles.
Vehicle Type Insights
As for type of vehicle, the passenger vehicle segment had largest revenue share in 2022. Government agencies from different nations, including Canada, India and Japan are subsidising consumers in order to promote mass use of electric passenger vehicles. In addition, prospects for the passenger-vehicles market are expected to remain robust through 2035, as rising disposable income and growing awareness of electric vehicles ’ advantages mean people 's lifestyles have been improving all along, demand for a personal commute is on the rise with increased urbanization. Its dominance in this sector is due to the huge global reach of electric passenger vehicles
Propulsion Insights
Category-wise, according to propulsion segment, in 2023 the battery electric vehicle category dominated global EV Battery Mechanism market by revenue share of 38.5 %. Battery electric vehicles rely entirely on batteries, so this sector takes up the largest percentage of the EV battery market. Because the costs of producing batteries have declined with technical developments, BEVs are spreading around the world more quickly than ever before. The global production of battery electric vehicles (BEVs) is projected to increase going forward, which will in turn drive growth for the world EV battery market.
Regional Analysis of the Electric Vehicle Battery Market
In 2022, the Asia-Pacific region represented approximately half of EV battery markets. Electric vehicles and EV batteries are produced in huge quantities because of the gathering there of leading manufacturers from around the world. MNCs are attracted to countries like China and India by their pro-industrial government policies, inexpensive labor and other factors of production. The rapid growth of Asia Pacific region's consumer base, strong and rapidly growing demand for electric passenger cars and commercial vehicles (versus legacy internal combustion engine [ICE] versions), rising investment in charging infrastructure development, the rise of government initiatives to incentivize adoption rates are all major tailwinds.
Top Key Players
Key Industry Developments in the Electric Vehicle Battery Market
| Report Components | Details |
|---|---|
| Base Year | 2022 |
| Forecast Period | 2023-2030 |
| Quantitative Units | Revenue in US $ |
| Segments Covered | By Battery Type: Lead-Acid Battery, Lithium-ion Battery, Sodium-ion Battery, Nickel-Metal Hydride Battery, Others By Vehicle Type, Passenger Vehicle, Commercial Vehicle; By Propulsion: Battery Electric Vehicle, Plug-in Hybrid Electric Vehicle, Hybrid Electric Vehicles, Fuel Cell Electric Vehicles; By Li-ion Battery Component: Positive Electrode, Negative Electrode, Electrolyte, Separator By Method, Wire Bonding, Laser Bonding; By Capacity: <50 kWh, 50-110 kWh, 111-200 kWh, 201-300 kWh, >300 kWh By Battery Form, Prismatic, Cyindrical, Pouch; By Material Type: Lithium, Cobalt, Manganese, Natural Graphite; By End User: Electric Vehicle OEMs, Battery Swapping Stations |
| Countries Covered | U.S. and Canada in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the APAC, Others include Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA), Brazil, Argentina, Mexico, and Rest of South America as part of South America |
| Market Players Covered | Hitachi, LTD., Sony Group Corporation, ATLASBX Co. Ltd., Zhejiang Narada Power Sour, BB Battery Co., Panasonic Energy Co., Ltd., Narada Power Source Co., Ltd., Robert Bosch LLC, Crown Battery, EnerSys, Inc., GS Yuasa Corporation, TCL Corporation, Huanyu New Energy Technology, C&D Technologies, Inc., Duracell, NEC Corporation, North Star, GS Yuasa Corp. |
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