Electric Vehicle Battery Market Size & Growth Analysis to 2030

The global electric vehicle battery market size is expected to register a significant CAGR of around 30% during the forecast period 2022 to 2028. The increasing adoption of electric vehicles and the growing sale in developing economies are some major factors to drive the market growth. Furthermore, the increasing investment and growing focus of automakers to increase their EV production in the next upcoming years is expected to boost the market growth over the forecast period. For instance, in March 2022, Hyundai plans to invest USD 16 billion to target a 7% electric vehicle market share by 2030. Moreover, the stringent government regulation regarding CO2 emissions and the government’s supportive policies for electric vehicles in various countries are expected to fuel market growth.

Market Drivers:

Government Regulations and Incentives: Government regulations aimed at reducing greenhouse gas emissions and promoting clean transportation play a significant role in driving the demand for electric vehicles and, consequently, the EV battery market. Incentives such as tax credits, subsidies, and rebates encourage consumers to purchase EVs, creating a favorable market environment for EV batteries.

Advancements in Battery Technology: Technological advancements in battery technology, particularly in lithium-ion batteries, have significantly improved the performance, energy density, and range of electric vehicles. These advancements have led to increased consumer confidence in EVs and have fueled the growth of the EV battery market.

Declining Battery Costs: The cost of EV batteries has been declining over the years due to economies of scale, improved manufacturing processes, and technological advancements. Lower battery costs make electric vehicles more affordable and competitive with traditional internal combustion engine vehicles, driving the demand for EVs and the EV battery market.

Increasing Environmental Awareness: Growing environmental awareness and concerns about climate change have prompted individuals and organizations to adopt greener transportation solutions. Electric vehicles, powered by clean energy sources and emitting fewer greenhouse gases, are seen as a sustainable alternative to traditional vehicles. The shift toward environmentally friendly transportation fuels the demand for EVs and EV batteries.

Infrastructure Development: The development of charging infrastructure is crucial for the widespread adoption of electric vehicles. Governments, private companies, and utilities are investing in the establishment of charging stations and networks to address range anxiety and provide convenient charging options. The expansion of charging infrastructure supports the growth of the EV battery market by alleviating concerns about limited charging opportunities.

Supportive Policies and Initiatives: Supportive policies and initiatives at the national and regional levels play a significant role in driving the EV battery market. These include targets for EV adoption, research and development grants, infrastructure investments, and mandates for zero-emission vehicle sales. Such policies create a favorable market environment for EVs and drive the demand for EV batteries.

Collaboration and Partnerships: Collaboration between automakers, battery manufacturers, and technology companies is driving the development of advanced EV battery solutions. Partnerships aim to enhance battery performance, durability, and charging capabilities. Collaboration also helps in sharing expertise and resources, accelerating the growth of the EV battery market.

Range Anxiety Mitigation: Range anxiety, the fear of running out of battery power before reaching a charging station, has been a concern for potential EV buyers. Improvements in battery technology, such as increased energy density and longer ranges, help alleviate range anxiety and increase consumer confidence in EVs. The continuous improvement of EV battery technology contributes to the growth of the EV battery market.

Public Perception and Consumer Demand: Increasing public perception of electric vehicles as a viable and desirable mode of transportation is driving consumer demand for EVs and EV batteries. Factors such as lower operating costs, quieter operation, and smoother driving experiences contribute to the growing interest in electric vehicles. The rising consumer demand fuels the growth of the EV battery market.

Market Snapshot:

Market Insights:

The global electric vehicle battery market is bifurcated into battery type, vehicle type, propulsion, and geography. On the basis of battery type, the market is further segmented into lithium-ion, lead-acid, and others. The lithium-ion battery segment dominated the global market in 2021 and expected to grow at the same trend over the forecast period. The higher capacity and lighter weight are some of the prominent factors to drive the segment growth. Furthermore, the widespread use of these batteries in electric and hybrid vehicles are expected to drive the segment growth over the forecast period.

On the basis of vehicle type, the market is bifurcated into passenger vehicles and commercial vehicles. The passenger vehicles segment dominated the global electric vehicle battery market in 2021 and expected to hold a significant market share of around two-third market share by the end of the analysis period. The growing sale of passenger cars in developing economies is a major factor to drive the segment growth. On the flip side, the commercial vehicles segment is accounted to register the fastest growth rate over the forecast period. The increasing adoption of electric commercial vehicles around the world is expected to drive the segment growth over the forecast period.

To know more about the report, request sample papers

The electric vehicle battery comprehensive study analyzes industry trends, market size, competitive analysis, and market forecast – 2022 to 2028. Research Corridor report provides detailed premium insight into the global market and reveals the potential revenue streams, commercial prospects, market drivers, challenges, opportunities, issues, and events affecting the industry. In addition, the report has a dedicated section covering market forecasts and analysis for leading geographies, profiles of major companies operating in the market and expert opinion obtained from interviews with industry executives and experts from prominent companies.

The electric vehicle battery market research report presents the analysis of each segment from 2019 to 2028 considering 2020 as the base year for the research. The compounded annual growth rate (CAGR) for each respective segment is calculated for the forecast period from 2021 to 2027.

Historical & Forecast Period

• 2019-20 – Historical Year
• 2021 – Base Year
• 2022-2028 – Forecast Period

Market Segmentation:

By Battery Type:

• Lithium-Ion
• Lead-Acid
• Nickel-Metal Hydride
• Sodium-Ion
• Others

By Vehicle Type:

• Passenger Vehicles
• Commercial Vehicles

By Propulsion:

• Battery Electric Vehicle (BEV)
• Plug-In Hybrid Electric Vehicle (PHEV)

By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Regional Analysis:

Geographically, the Asia Pacific dominated the global electric vehicle battery market in 2021 and expected to hold the largest revenue share of over one-third market share by the end of the analysis period. China is the largest automaker in the world and accounted for the largest EV battery market share of over one-fourth of the market in 2021. Furthermore, the rising shift toward electric vehicles and the increasing purchasing power of consumers in developing economies are further anticipated to boost the market growth in the Asia Pacific. On the other hand, Europe is estimated to hold a significant share of the global market due to the stringent government regulation regarding emission control.

Competitive Assessment:

Some of the major market players operating in the global electric vehicle battery market are Panasonic Corporation, LG Energy Solution Ltd., Samsung SDI Co. Ltd., Contemporary Amperex Technology Co. Ltd., and BYD Co. Ltd. Companies are exploring markets through expansion, new investment, the introduction of new services, and collaboration as their preferred strategies. Players are exploring new geography through expansion and acquisition to gain a competitive advantage through joint synergy.

Key Companies:

• Panasonic Corporation
• LG Energy Solution Ltd.
• Samsung SDI Co. Ltd.
• Contemporary Amperex Technology Co. Ltd.
• BYD Co. Ltd.
• Sony
• ATLASBX Co.
• Hitachi
• NEC Corporation
• TCL Corporation

Key Questions Answered by Electric Vehicle Battery Market Report

• Global electric vehicle battery market forecasts from 2022-2028
• Regional market forecasts from 2022-2028 covering Asia-Pacific, North America, Europe, Middle East & Africa, and Latin America
• Country-level forecasts from 2022-2028 covering 15 major countries from the regions as mentioned above
• Electric vehicle battery submarket forecasts from 2022-2028 covering the market by battery type, by vehicle type, by propulsion, and geography
• Various industry models such as SWOT analysis, Value Chain Analysis about the market
• Analysis of the key factors driving and restraining the growth of the global, regional, and country-level electric vehicle battery markets from 2022-2028
• Competitive Landscape and market positioning of top 10 players operating in the market