The global electric vehicle battery market was surpassed at USD 46.03 billion in 2021 and is expected to hit around USD 559.87 billion by 2030, growing at a CAGR of 32.0% from 2022 to 2030.
The growing preference for e-mobility and the subsequent rise in the popularity of electric vehicles (EVs) is expected to drive the market growth. Several countries have taken a lead in deploying various EVs, including two wheelers, buses, and other commercial vehicles.
Increasing efforts to reduce the production cost of electric vehicle batteries is prompting manufacturers to invest in developing countries, including China, India, and Mexico. Having realized the potential for economic development in emerging economies, some large plants for manufacturing batteries have already been planned in Asia Pacific. At the same time, the rising fuel prices coupled with increasing environmental concerns are prompting several governments to encourage the adoption of EVs.
EVs require more battery power because apart from functions, such as GPS navigation system, power windows, air-conditioning systems, and dashboard displays, which are powered by a battery, their entire drivetrain is dependent on battery power. Advances in battery technology have led to the advent of batteries that can cater not only to the conventional battery-driven functions but also to the drivetrain. Such favorable advances in battery technology are expected to drive the market growth.
In several metropolitan cities across the world, city administrations are drafting policies to support the deployment of electric vehicle supply equipment (EVSE) and rollout of adequate charging stations. For instance, in the Netherlands, the metropolitan area of Amsterdam has adopted a demand-based approach for deploying its EVSE network and making it accessible to owners of EVs. Similarly, a multi-government policy forum named Electric Vehicle Initiative (EVI) was established in 2009 under the Clean Energy Ministerial (CEM) to monitor and encourage the adoption of EVs across the globe. The International Energy Association (IEA) is serving as the EVI coordinator.
At present, EVs account for a relatively smaller share in the overall automobile sales. However, favorable regulatory initiatives are expected to trigger the adoption of EVs and subsequently open growth opportunities for the market for over the forecast period. For instance, the Paris Agreement endorsed by the European Union, the U.S., and Japan to support zero-emission vehicles is conducive to an increase in the sales of EVs.
Based on battery type, the lithium-ion segment accounted for the largest market share in 2020. Lithium-ion batteries are used in applications requiring lighter weights and higher energy density. These batteries offer a high energy density per weight and are hence used widely in automotive applications including electric and hybrid automobiles.
Lead-acid batteries happen to be among the most economical battery types preferred for larger power applications where weight is not a constraint. Moreover, given the high costs associated with mining and refining lithium coupled with the depleting resources of lithium, lead-acid batteries can be a preferred alternative for lithium-ion batteries. Lead-acid batteries can also be smelted to be recycled and reused.
Based on vehicle type, the passenger vehicles segment accounted for the largest market share in 2020. On the other hand, the commercial vehicles segment is expected to exhibit the highest CAGR over the forecast period. Government initiatives to encourage the adoption of electric passenger and commercial vehicles as part of the efforts to reduce air pollution stemming from vehicular emissions is expected to drive the growth of the electric vehicle battery market over the forecast period.
Based on propulsion, the market has been further segmented into battery electric vehicle (BEV), and plug-in hybrid electric vehicle (PHEV). The BEV segment dominated the market in 2020 and is estimated to remain the largest segment dominant over the forecast period. On the other hand, the PHEV segment is anticipated to exhibit the highest CAGR from 2022 to 2028. The BEV segment is particularly expected to gain high traction in emerging economies owing to the fuel economy regulations.
Based on region, the market has been further segmented into North America, South America, Europe, Asia Pacific, and MEA. The Asia Pacific region accounted for the largest market share in 2018. China alone accounted for a 28% share of the global market.
Europe and North America have also been witnessing a rising electric vehicle battery demand owing to the growing sales of electric cars in these regions. Some of the prominent electric vehicle manufacturers, including Tesla Motor Inc., Ford Motor Company, and Bayerische Motoren Werke AG, are based in the U.S. and Germany. Hence, the U.S. and Germany have taken a lead in electric vehicle battery production and sales. Moreover, the continued development of electric cars is intensifying competition among market players to provide better and cost-effective solutions. The intense market competition bodes well for the market growth.
Some of the prominent players in the electric vehicle battery market include:
By Battery Type
By Vehicle Type
Reasons to Purchase this Report:
- Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and policy aspects
- Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market.
- Market value USD Million and volume Units Million data for each segment and sub-segment
- Competitive landscape involving the market share of major players, along with the new projects and strategies adopted by players in the past five years
- Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players
In-depth interviews and discussions were conducted with several key market participants and opinion leaders to compile the research report.
This research study involved the extensive usage of both primary and secondary data sources. The research process involved the study of various factors affecting the industry, including the government policy, market environment, competitive landscape, historical data, present trends in the market, technological innovation, upcoming technologies and the technical progress in related industry, and market risks, opportunities, market barriers and challenges. The following illustrative figure shows the market research methodology applied in this report.
The study objectives of this report are:
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