The global electric vehicle battery market size was estimated at US$ 46.03 billion in 2021 and is expected to hit over US$ 559.87 billion by 2030 with a registered CAGR of 32% during the forecast period 2022 to 2030.
The global leading automotive manufacturers such as General Motors, BMW, Volkswagen, and Fords Motors are increasing their emphasis on rolling out various types of electric vehicles in the market. The rising awareness regarding the benefits of electric vehicles, surging popularity of the advanced electric vehicles, and the growing production volumes by the top automakers are the prominent factors that are driving the growth of the global EV battery market. The growing government initiatives to promote the adoption of EVs by incentivizing the manufacturers and by offering subsidies to the customers are positively driving the sales of the EVs. The government policies to promote the establishment of charging stations through public-private partnerships are expected to boost the growth of the market in the forthcoming years. The rising investments in the urbanization and the growing government investments in the infrastructural development is expected to support the growth of the EV battery market in the foreseeable future. The rising advancements in the technologies and the declining battery prices is projected to fuel the adoption of the EVs across the globe. Moreover, the rising pollution levels and deteriorating environmental conditions has forced the government to adopt strict policies regarding the reduction of carbon footprint and conservation of the environment. Therefore, the rising efforts to control the emission from vehicles are expected to spur the demand for the electric vehicles and subsequently the demand for the EV batteries is expected to grow.
Report Scope of the Electric Vehicle Battery Market
|Market Size by 2030||USD 559.87 Billion|
|Growth Rate from 2022 to 2030||
CAGR of 32%
|Largest Market||Asia Pacific|
|Fastest Growing Region||North America|
|Forecast Period||2022 to 2030|
|Segments Covered||Battery Type, Vehicle Type, Propulsion, Li-ion Battery Component, Method, Capacity, Battery Form, Material Type, End User, Geography|
|Companies Mentioned||Hitachi, Sony, ATLASBX Co. Ltd., Narada Power Source Co., Ltd., TCL Corporation, Huanyu New Energy Technology, C&D Technologies, Inc., Duracell, Crown Battery Manufacturing, EnerSys, Inc., Panasonic, NEC Corporation, North Star, GS Yuasa Corp., BB Battery Co.|
Battery Type Insights
The lithium-ion segment dominated the global EV battery market in 2021. The higher density of energy and the lightweight of the lithium-ion batteries are the most significant feature that has boosted the adoption of the lithium-ion batteries in the electric vehicles. The lithium-ion batteries are extensively used in the hybrid and electric vehicles across the globe. The rising popularity and growing sales of the hybrid and electric vehicles across the globe has resulted in the dominance of this segment in the global EV battery market.
Lead acid batteries are expected to gain rapid traction during the forecast period. This is attributed to the increasing popularity of the lead acid batteries as these batteries are much more economical as compared to the lithium-ion batteries. Furthermore, a huge cost is involved in the mining and refining of lithium and extensive mining may deplete the lithium resources. Hence, the lead acid batteries can offer a good alternative to the lithium-ion batteries. Therefore, this segment is expected to grow at the highest CAGR.
Vehicle Type Insights
Depending on the vehicle type, the passenger vehicle segment was the largest revenue contributor to the global EV battery market in 2021. The government of various countries like Canada, India, and Japan are offering subsidies to the consumers to encourage the adoption of the electric passenger vehicles. Furthermore, the demand for the passenger vehicles is expected to remain significant during the forecast period owing to the rising awareness regarding the benefits of EV, growing disposable income, improving standard of living, rising demand for personal commute solutions, and growing urbanization. The huge penetration of the passenger electric vehicles across the globe has resulted in the dominance of this segment.
The commercial vehicle is expected to be the most opportunistic segment during the forecast period. There is a rapidly growing demand for the commercial electric vehicles especially in the developing economies. The normal commercial vehicles emission is higher than the passenger vehicles and hence the government are planning to increasing adopt the commercial electric vehicles to reduce carbon emission. The rising efforts to electrify the commercial vehicle segment are expected to foster the growth of this segment during the forecast period.
Based on the propulsion, battery electric vehicle was the dominant segment in the global EV battery market in 2021 and garnered revenue share 38%. The battery electric vehicles totally depend on the batteries for functioning and hence this is the highest contributor to the EV battery market. The rapidly declining battery prices with the advancements in the battery technology are spurring the adoption of the BEVs across the globe. The growing production of BEVs across the globe is expected to further fuel the growth of the global EV battery market in the upcoming future.
Plug-in hybrid electric vehicle is the second largest segment in the global EV battery market. The number of PHEVs is more as compared to the BEVs. The hybrid nature of the PHEVs has made it more popular among the consumers. The rising adoption of the PHEVs and the rising traditional fuel prices are the major factors that may increase the demand for the EV batteries for use in the PHEVs and hence drive the growth of this segment.
Asia Pacific was the largest EV battery market in 2021. The presence of top manufacturers in the region has facilitated the huge volume production of electric vehicles and EV batteries. The countries like China and India offers cheap labor and other factors of production and the pro-industrial government policies attracts huge investments from the top MNCs. The presence of huge consumer base in the region, growing demand for the electric passenger and commercial vehicles, rising investments in development of charging infrastructure, and growing government initiatives to promote the adoption of the electric vehicles are the prominent drivers of the Asia Pacific EV battery market.
The North America and Europe are expected to witness significant growth during the forecast period. The strict government regulations regarding the emissions and adoption of electric vehicles, high disposable income, and increased consumer awareness regarding the benefits of electric vehicles, high environment consciousness, and presence of top auto manufacturers in the region are the major factors that are expected to have a significant impact on the growth of the EV battery market in the foreseeable future. The increased demand for the sustainable products among the consumers and increased adoption of the advanced technologies is supporting the growth of the market in these regions.
Key Market Developments
Some of the prominent players in the global EV battery market include:
Segments Covered in the Report
By Battery Type
By Vehicle Type
By Li-ion Battery Component
By Battery Form
By Material Type
By End User
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