Battery Systems for Electric Vehicle Market Outlook
The Battery Systems for Electric Vehicle Market size was USD 44.33 Billion in 2022 and is likely to reach USD 129.30 Billion by 2031, expanding at a CAGR of 12.63% during 2023 - 2031. The growth of the market is attributed to rising demand for electric vehicles (EV) vehicles.
The electricity stored in the onboard battery powers battery EVs. Electric motors and motor controllers are propelled by the chemical energy stored in rechargeable battery packs installed in battery EVs.
Government subsidies and incentives are expected to drive the market growth. Many governments around the world have extended financial incentives to buyers of battery electric vehicles. The value of these incentives is usually determined by the size of the battery. For instance, the Sustainable Energy Authority of Ireland (SEAI) offers grants of up to USD 5,400 to buyers of battery EVs and exempts them from vehicle registration tax.
Despite the growth of the battery market, it is also hampered by some significant challenges. The range and performance of the battery in electric vehicles are significant market restraints. The limited travel range of EV batteries raises consumer concerns.
Market Trends, Drivers, Restraints, and Opportunities
- Increasing initiatives and support from government state bodies is projected to drive the market.
- Rising adoption of renewable energy system is expected to positively influence the market growth.
- Rapid electrification of the automotive industry is estimated to spur the growth of the market during the forecast period.
- Ongoing development of innovative batteries with high travel range is anticipated to create immense opportunities for the market players in the projected timeline.
Scope of Battery Systems for Electric Vehicle Market Report
The report on the global battery systems for electric vehicle market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Battery Systems for Electric Vehicle Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Types (Lithium-ion Batteries, Nickel-metal Hydride Batteries, Lead-acid Batteries, Ultracapacitors, and Others) and Applications (Passenger Cars and Commercial Vehicles)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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Samsung SDI Co Ltd; Toshiba Corporation; BYD; and Panasonic Corporation
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Battery Systems for Electric Vehicle Market Segment Insights
Lithium-ion segment to hold a major market share
Based on types, the market is segregated into lithium-ion batteries, nickel-metal hydride batteries, lead-acid batteries, ultracapacitors, and others. The high energy per unit mass of lithium-ion batteries as compared to other electrical energy storage systems has expanded its market share. It’s also majorly used in portable consumer electronics such as cell phones and laptops. They have high power-to-weight ratio, sound high-temperature performance, and low self-discharge.
Most lithium-ion battery components can be recycled, but the cost of material recovery continues to be an issue for the industry. The US Department of Energy is also a sponsor of the Lithium-Ion Battery Recycling Prize, which seeks solutions for collecting, sorting, storing, and transporting of lithium-ion batteries for eventual recycling and materials recovery.
Passenger cars segment is anticipated to expand at a high CAGR
On the basis of end-users, the battery systems for electric vehicle market is divided into passenger cars and commercial vehicles.
In recent years, consumers have become more interested in battery electric/plug-in vehicles as they do not require fuel, such as petrol, diesel, or gasoline, and have lower maintenance costs, which ultimately reduces consumers' expenses.
Automobile manufacturers are concentrating on the development of advanced EV battery systems, which are expected to emit fewer pollutants while costing less than heavier and larger engines. Moreover, technological advancements in the EV battery system present a variety of opportunities for leading market players.
Asia Pacific is projected to account a significant market share
In terms of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa.
Change in global climatic conditions and the impact of globalization have encouraged countries to control their emissions. Asia Pacific is estimated to account for a majority of the market share by the end of 2028, driven by Environmental Protection Agency (EPA) regulations governing emission and fuel standards in the region, followed by North America. The demand for EVs is increasing and is expected to become a major market propellant in the coming years.
Segments
The global battery systems for electric vehicle market is segmented on the basis of
Types
- Lithium-ion Batteries
- Nickel-metal Hydride Batteries
- Lead-acid Batteries
- Ultracapacitors
- Others
End-users
- Passenger Cars
- Commercial Vehicles
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
Competitive Landscape
The major players in the battery systems for electric vehicle market include Samsung SDI Co Ltd, Toshiba Corporation, BYD, and Panasonic Corporation.
EV battery manufacturers are investing in R&D activities to improve the chemistry of the batteries in order to provide a longer discharge time.
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