Electric Vehicle Battery Market (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: BEV, PHEV, HEV, FCFV; By End User: Electric Vehicle OEMs, Battery Swapping Stations; By Material Type; By Battery Form; By Capacity; By Method; By Li-ion Battery Component) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2022 – 2030


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.

Electric Vehicle Battery Market Size 2022 to 2030

Growth Factors

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

Report Coverage Details
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
Base Year 2021
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.

Propulsion Insights

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.

Electric Vehicle Battery Market Share, By Propulsion, 2021 (%)

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.

Regional Insights

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.

Electric Vehicle Battery Market Share, By Region, 2021 (%)

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

  • In August 2020, CATL revealed the plan of building new EV batteries without the use of nickel and cobalt owing to the high costs associated with the cobalt.
  • In November 2020, Samsung SDI decided to commercialize its li-ion battery to replace liquid electrolyte in batteries and improve the battery performance.
  • In December 2019, Samsung SDI acquired additional stake of15% in the Samsung SDI-ARN Power Battery Co. Ltd. and became the major stakeholder with 65% of the company’s stake.

Some of the prominent players in the global EV battery market include:

  • 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.

Segments Covered in the Report (Note*: We offer report based on sub segments as well. Kindly, let us know if you are interested)

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

By Geography

  • North America
    • U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
  • Asia-Pacific
    • China
    • India
    • Japan
    • South Korea
    • Malaysia
    • Philippines
  • Latin America
    • Brazil
    • Rest of Latin America
  • Middle East & Africa (MEA)
    • GCC
    • North Africa
    • South Africa
    • Rest of the Middle East & Africa

Frequently Asked Questions

What is the current size of electric vehicle battery market?
According to Precedence Research, the global electric vehicle battery market size was reached at US$ 46.03 billion in 2021 and is anticipated to rake US$ 559.87 billion by 2030.
The global electric vehicle battery market is expected to grow at a CAGR of 32% during the forecast period 2022 to 2030.
The major players operating in the electric vehicle battery market are 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., and BB Battery Co.
The burgeoning sales of the electric vehicles across the globe is expected to significantly drive the growth of the EV battery market during the forecast period. The rising public-private partnerships to establish charging station infrastructure is a notable government initiative that is expected to fuel the growth of the global EV battery market.
Asia Pacific will lead the global electric vehicle battery market during the forecast period 2022 to 2030.

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