Electric Vehicle Battery Market Outlook
The global electric vehicle battery market size was valued at USD 56.40 Billion in 2022 and is likely reach to USD 288.84 Billion by 2031, expanding at a CAGR of 19.9% during the forecast period, between 2023 and 2031. In autos, a battery serves as a backup power source. A secondary (rechargeable) battery is used in an electric car.
These batteries support the clean energy creativity as they don't emit any dangerous gas which causes destruction to the environment. The development of EV batteries is a critical factor in lowering the cost of EVs and extending the driving range per recharge.
New cell chemistries are being developed for EV batteries in order to make them small and light while also storing more energy, allowing electric vehicles to compete with traditional fuel-powered vehicles.
Market Trends, Drivers, Restraints, and Opportunities:
- Increasing EV adoption globally, reducing battery prices, and increased investment by leading automotive OEMs to ensure the battery supply chain for their upcoming electric vehicles are projected to drive the market.
- Advances in electric vehicle (EV) batteries and associated technologies are drawing individual's interest in purchasing EVs, adding to the rise in demand of EV batteries.
- The extraction of raw materials such as lithium cobalt, used in electric vehicle batteries, has a negative impact on the environment, and government possesses restrictions on mining the raw materials, this is projected to hamper the market growth.
- The introduction of new plug-in models by leading EV manufacturers is propelling the market.
- Growing emphasis on electrification of public transportation fleets is fuelling the market.
- Government policies that encourage the deployment of public charging infrastructure, along with the growing efficiency of electric vehicles, are projected to generate considerable opportunities for market growth in the near future.
- The electric vehicle and its battery are very expensive, and the worldwide electric vehicle battery market is hampered by inadequate aftermarket services.
- Increased acceptance of electric mobility in emerging nations, increased investment in lithium-ion battery capacity, and increased deployment of battery-as-a-service is anticipated to create immense growth opportunities for market players.
Scope of Electric Vehicle Battery Market report:
The report on electric vehicle battery market includes an assessment of the market, size, share, trends, segments, and regional markets. Overview and dynamics have 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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Electric Vehicle Battery 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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Type (Lithium-ion, Sealed Lead Acid, Nickel-metal Hydride, Ultra Capacitors, Solid-state, and Others), Battery Capacities (<50 kWh, 50-110 kWh, 111-200 kWh, 201-300 kWh, and >300 kWh), Methods (Wire Bonding and Laser Bonding), Battery Form (Prismatic, Cylindrical, and Pouch), Propulsion (BEV, HEV, PHEV, and FCEV), Material Type (Lithium, Cobalt, Manganese, and Natural Graphite), Applications (Electric Cars, Light Commercial Vehicles, Heavy Commercial Vehicles, E-scooters & Motorcycles, and E-bikes), End Users (Electric Vehicle OEMs, Battery Swapping Stations)
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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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SK Innovations Co. Ltd.; LG Chem Ltd; BYD Company Limited; Samsung SDI Co. Ltd.; GS Yuasa International Ltd.; Vehicle Energy Japan Inc.; Northvolt AB; Panasonic Corporation; Contemporary Amperex Technology Co. Limited (CATL); A123 Systems, LLC; Exide Industries Ltd.; Primearth EV Energy Co., Ltd.; StoreDot Ltd.; Lithium Werks B.V.; Faradion Limited; and QuantumScape Corporation.
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Electric Vehicle Battery Market Segment Insights:
The lithium-ion battery segment is expected to hold a major market share
In terms of types, the electric vehicle battery market can be segregated into lithium-ion, sealed lead acid, nickel-metal hydride, ultra capacitors, solid-state, and others. The lithium ion segment is expected to hold a major market share.
The most prevalent type of battery used in modern electric vehicles is lithium-ion. When compared to lead-acid or nickel-metal hydride batteries, these batteries have a higher energy density.
Because of their small size, they are preferred in the automotive industry. For example, Nissan's lithium-ion battery enables for a higher density of lithium ions to be stored, enhancing travel distance. Because of their performance, cost, weight, and size, alternatives such as advanced batteries and super capacitors are not able to replace lithium-ion batteries.
The 101kWh to 300kWh segment is expected to increase at high CAGR
Based on battery capacities, the electric vehicle battery market is fragmented into <50 kWh, 50-110 kWh, 111-200 kWh, 201-300 kWh, and >300 kWh. The 101kWh to 300kWh segment is expected to increase at a high CAGR.
Medium EVs, such as light commercial vehicles and utility vehicles, commonly use batteries with power capacities ranging from 101kWh to 300kWh. The use of such EVs is expanding as a result of rising fuel prices and government measures to reduce emissions from logistics and public transportation fleets.
Furthermore, the rising launch of new EVs by automotive OEMs for electrification of logistics and public transportation fleets, as well as the increasing use of electric cars by e-commerce businesses such as Amazon and UPS, are driving the market.
The laser bonding segment is expected to grow at a rapid pace
On the basis of methods, the market is bifurcated into wire bonding and laser bonding. The laser bonding segment is expected to grow at a high CAGR.
This segment is expected to grow rapidly during the forecast period, owing to the fact that laser-welded bonds can withstand high currents and provide the benefits of narrow welds, high welding speed, and low level of heat, which is important for battery tab welding because the chemicals within the batteries are heat sensitive.
The pouch segment is projected to increase at a rapid pace
On the basis of battery forms, the electric vehicle battery market is divided into prismatic, cylindrical, and pouch. The pouch segment is projected to increase at a rapid pace. The energy storage capacity of a pouch cell is substantially bigger in a given physical space than that of cylindrical cells.
Leading automotive and battery OEMs are investing in pouch cell forms to power the next generation of electric vehicles.
The HEV segment held the major share of the electric vehicle battery market.
In terms of propulsion, the market is split into BEV, HEV, PHEV, and FCEV. The HEV segment held the largest market share in 2020. HEVs rely on electric drive technology to reduce fuel consumption and eliminate the need for charging stations. As a result, these factors, combined with significantly lower costs when compared to BEVs, are expected to lead the segment in the coming years.
The light commercial vehicle segment is expected to increase at the substantial CAGR.
Based on applications, the electric vehicle battery market is segmented into electric cars, light commercial vehicles, heavy commercial vehicles, e-scooters & motorcycles, and e-bikes. The light commercial vehicle segment is expected to increase at a substantial CAGR.
The growth of segment can be attributed to the increasing shift of retail MNCs and transportation fleet operators to electric light commercial vehicles, growing awareness of the role of electric vehicles in reducing emissions, increased demand for electric vehicles to reduce fleet emissions, and stringent government rules and regulations regarding vehicle emissions.
The mass production of batteries, as well as government tax breaks, has further reduced vehicle costs, making electric light commercial vehicles more cost-effective.
The lithium material segment is expected to expand at a faster rate.
In terms of material types, the market is fragmented into lithium, cobalt, manganese, and natural graphite. The lithium segment is expected to grow at a rapid rate. The lithium battery is the most common type of battery used in electric vehicles. Lithium-ion batteries have a high power-to-weight ratio, are energy efficient, and perform well at high temperatures.
The battery swapping stations segment is expected to expand at a robust CAGR
On the basis of end-users, the electric vehicle market is bifurcated into electric vehicle OEMs and battery swapping stations. The battery swapping stations segment is projected to expand at a robust CAGR.
The segment is estimated to rise rapidly throughout the forecast period, owing to the fact that battery swapping services help minimize EV acquisition prices, extend battery lifespan, and increase battery swapping services by various automotive start-up firms.
Other mobility stakeholders, such as oil refining firms, are also collaborating with e-mobility start-ups to establish battery swapping stations.
Electric Vehicle Battery Market Regional Outlook
Europe is expected to dominate the market
Based on regions, the electric vehicle battery market is classified as North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North America is expected to dominate the market. Numerous giga factories situated in Europe to be commissioned over the projection period, as well as the region's strong adoption of electric mobility, are anticipated to propel the market.
From its present battery production capacity of 3%, the European region is predicted to account for one-third of global EV battery production capacities by 2028.
Segments
By Types
- Lithium-ion
- Sealed Lead Acid
- Nickel-metal Hydride
- Ultra Capacitors
- Solid-state
- Others
Battery capacities
- <50 kWh
- 50-110 kWh
- 111-200 kWh
- 201-300 kWh
- >300 kWh
Methods
- Wire Bonding
- Laser Bonding
Battery forms
- Prismatic
- Cylindrical
- Pouch
Propulsions
Material types
- Lithium
- Cobalt
- Manganese
- Natural Graphite
Applications
- Electric Cars
- Battery Electric Vehicles
- Plug-in Hybrid Electric Vehicles
- Pure Hybrid Electric Vehicles
- Light Commercial Vehicles
- Heavy Commercial Vehicles
- E-scooters & Motorcycles
- E-bikes
End Users
- Electric Vehicle OEMs
- Battery Swapping Stations
Regions
- Asia Pacific
- Europe
- North America
- Latin America
- Middle East & Africa
By Key Players
- SK Innovations Co. Ltd.
- LG Chem Ltd
- BYD Company Limited
- Samsung SDI Co. Ltd.
- GS Yuasa International Ltd.
- Vehicle Energy Japan Inc.
- Northvolt AB
- Panasonic Corporation
- Contemporary Amperex Technology Co. Limited (CATL)
- A123 Systems, LLC
- Exide Industries Ltd.
- Primearth EV Energy Co., Ltd.
- StoreDot Ltd.
- Lithium Werks B.V.
- Faradion Limited
- QuantumScape Corporation
Competitive Landscape
Key players in the electric vehicle battery market include SK Innovations Co. Ltd.; LG Chem Ltd; BYD Company Limited; Samsung SDI Co. Ltd.; GS Yuasa International Ltd.; Vehicle Energy Japan Inc.; Northvolt AB; Panasonic Corporation; Contemporary Amperex Technology Co. Limited (CATL); A123 Systems, LLC; Exide Industries Ltd.; Primearth EV Energy Co., Ltd.; StoreDot Ltd.; Lithium Werks B.V.; Faradion Limited; and QuantumScape Corporation.
These players engage in mergers & acquisitions, collaborations, agreements, and partnerships to strengthen their geographical presence.
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