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electric vehicle battery market

EV Battery Market Share, Size, Trends, Industry Analysis Report, By Method (Wire Bonding, Laser Bonding); By Battery; By Propulsion; By Vehicle; By Battery Capacity; By Battery Form; By Material; By Region; Segment Forecast, 2022 - 2030

  • Published Date: Oct 2022
  • Pages: 115
  • Format: PDF
  • Report ID: PM1623
  • Base Year: 2021
  • Historical Data: 2018-2020

Report Summary

The global EV battery market was valued at USD 50.12 billion in 2021 and is expected to grow at a CAGR of 18.9% during the forecast period. The growing demand for EV battery is expected to be driven by decreasing battery prices, awareness about zero-emission vehicles, and advancements in battery technology.

EV Battery Market Size
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EV batteries are replacing fossil fuels such as petrol and diesel in automotive industry owing to reduced emissions, , can be charged with renewable energy sources which makes them eco-friendly and eventually reduce electric costs, which is expected to drive their market growth. Furthermore, the road tax and registration fees associated with electric vehicle are comparatively low, which is expected to influence market growth.

The COVID-19 pandemic had a significant impact on the growth of the EV battery market. During the pandemic, there was a delay in the production of the battery as the extraction of materials such as lithium, cobalt, nickel, and aluminum was hampered. Moreover, supply chain and manufacturing facilities were disrupted due to the unavailability of raw materials, which eventually resulted in a decline in the sales of electric vehicles.

However, there was an early indication of the market's resiliency as the activities resumed at the end of 2020 owing to battery cost reductions, and consumer awareness for electric vehicles all contributed to the increased penetration of EV battery. Moreover, Europe has seen a significant post-pandemic surge as 2020 was the target year for emissions standards, and increasing government incentives for new electric vehicle consumers contributed to the market's revenue growth.

Manufacturers are mainly focusing on improving EV technology to encourage zero-emission vehicles. Additionally, a circular economy, which relies on constantly reusable items to narrow the gap between mining and manufacturing, can be promoted by recycling EV battery and other vehicle components that will reduce municipal solid waste (MSW) and eventually complement market growth over the forecast period.

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Industry Dynamics

Growth Drivers
The global EV battery market is likely to be driven by the automotive industry owing to the increasing government initiatives for the use of alternative fuel vehicles. Conventional vehicles run on fossil fuels like petrol and diesel, which are bound to deplete in the coming years, which has shifted consumer preference toward vehicles using sustainable energy sources thereby driving the battery market growth.

The primary regulatory factors driving the demand for EVs to both private and commercial users are financial incentives, such as value-added tax (VAT), government subsidies, and exemptions from car registration taxes which is likely to have a positive impact on the market growth.

In addition, leading automotive Original Equipment Manufacturers (OEMs) are collaborating with battery OEMs to strengthen their operation to develop high-performance EV batteries that will reduce charging time which is one of the vital factors driving market growth. Moreover, manufacturers are working on developing batteries that have a higher energy density that extends battery range and using nanowires that reduce charging time that meets rapidly growing market demand.

Report Segmentation

The market is primarily segmented based on battery, propulsion, vehicle, method, battery capacity, battery form, material and region.

By Battery

By Propulsion

By Vehicle

By Method

By Battery Capacity

By Battery Form

By Material

By Region

  • Lead-Acid
  • Lithium-Ion
    • Positive Electrode
    • Negative Electrode
    • Electrolyte
    • Separator
  • Nickel-Metal Hydride
  • Sodium-Ion
  • Solid-State
  • BEV
  • HEV
  • PHEV
  • FCEV
  • Passenger Cars
  • Vans/Light Trucks
  • Medium & Heavy Trucks
  • Buses
  • Off-Highway Vehicles
  • Wire Bonding
  • Laser Bonding
  • 5o kWh
  • 50-11o kWh
  • 11-200 kWh
  • 201-300 kWh
  • >300 kWh
  • Prismatic
  • Cylindrical
  • Pouch
  • Lithium
  • Cobalt
  • Manganese
  • Natural Graphite
  • North America (U.S., Canada)
  • Europe (France, Germany, UK, Italy, Netherlands, Spain, Russia)
  • Asia Pacific (Japan, China, India, Malaysia, Indonesia, South Korea)
  • Latin America (Brazil, Mexico, Argentina)
  • Middle East & Africa (Saudi Arabia, UAE, Israel, South Africa)

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Lithium-ion batteries accounted for the largest share in 2021

Lithium-ion batteries accounted for the highest revenue share in 2021. Primary factor accelerating the adoption of these batteries is their superior energy density and lightweight design. In addition, the demand for lithium-ion in electric vehicles is rising as they are safer than their alternatives; at the same time, rapid charging sessions complement market growth over the forecast period. Moreover, high durability, reliability, cooling performance, laminated-structure battery cells, and long-life cycle cells boost the market growth.

BEV is expected to spearhead the market growth

Battery Electric Vehicle (BEV) is expected to spearhead the market growth owing to their increasing adoption as they are completely electric and run-on rechargeable batteries.. In addition, the advancement in technology and declining battery prices is one of the significant reasons to complement market growth. Moreover, BEVs are zero-emissions vehicles and do not emit toxic gases that conventional gasoline vehicle does, which is expected to drive revenue growth over the forecast period.

Passenger cars is expected to dominate the market

The passenger car is dominating the market and is expected to continue its dominance over the forecast period owing to the growing adoption of electric vehicles across developing and developed economies. In addition, with the adoption of emission norms by several governments worldwide, this segment is expected to dominate the EV battery market. Moreover, a rise in awareness about the advantages of EVs, changing lifestyles, growing urbanization, and disposable income is expected to boost market growth.

Laser bonding is expected to grow at a highest CAGR

Laser bonding is expected to grow at a highest CAGR during the forecast period owing to laser welded bonds can endure higher currents. This segment provides the benefits of narrow, high-speed welding at a lower heat which is appropriate for joining battery cells containing compounds that are heat sensitive which is driving the segment growth. Precision and non-contact welding, which uses a focused heat source and can be altered to fit small, inaccessible places which are offered by lasers, complement the market growth.

50-110 kWh segment is expected to witness faster growth

The 50-110 kWh is expected to witness faster growth over the forecast period owing to quick charging at low cost & high energy efficiency, and a majority of electric vehicles run between this range. The increasing demand for electric vans and light trucks that majorly operate on 50-110kwh is driving the segment growth. In addition, increasing fuel prices and government initiatives to reduce fleet emissions of trucks and buses is expected to boost the segment growth.

Pouch segment is expected to account for the largest share in 2030

The pouch segment is expected to dominate the market over the forecast period owing to its better energy storage capacity. Pouch cells employ a sealed piece of flexible foil rather than a solid enclosure as their cell container. In addition, the packaging strategy is rather minimalistic, which minimizes weight and fits in the available space, which is likely to have a positive impact on revenue growth over the forecast period. Many automotive manufacturers are investing in pouch cells which is also expected to have a positive impact on the market growth.

Lithium material segment is expected to dominate the market

Lithium material segment is expected to dominate the market during the forecast period as it is used as a metallic anode. In addition, these batteries using lithium are comparatively lighterand less expensive, which is the major factor for driving the segment's growth. Moreover, they lower the operating cost and ensure the highest level of safety, which supports the market growth.

Asia Pacific is expected to dominate and witness fastest growth

Asia Pacific is the largest region for EV battery and is expected to witness faster growth over the forecast period owing to the rising demand for electric vehicles due to urbanization and purchasing power across several countries such as China, India, Malaysia, and Japan. In addition, the government's emphasis on the conversion of two and three-wheelers into electric vehicles is expected to drive demand over the forecast period.

Furthermore, India being the top-importer of lithium-ion batteries, China being the manufacturing hub of electric vehicles, and consumer awareness for clean energy is likely to have a positive impact on revenue growth.

Competitive Insight

Some of the major players operating in the global market include Atlasbx Co. Ltd., Bb Battery Co., BYD Company Ltd., C&D Technologies, Inc., Contemporary Ampere Technology Co., Ltd, Crown Battery Manufacturing, Duracell, East Penn Manufacturing Company, Enersys, Inc., EV Battery Market, Exide Industries Limited, Gs Yuasa Corp., Hitachi Chemical Co., Ltd, Huanyu New Energy Technology, LG Chem, Narada Power Source Co., Ltd, NEC Corporation, North Star, Panasonic Corporation, Samsung SDI, SK Innovation Co. Ltd, Sony, and TCL Corporation

Recent Developments

In June 2022, Heilongjiang transport development co. ltd have partnered up with contemporary amperex technology co., ltd to conduct research in the areas of heavy truck battery charging and swapping, cruising cabs battery switching and online ride-hailing cab battery swapping.

In May 2020, CATL announced a partnership with Solaris, a major electric bus manufacturer in Europe to encourage the electrification of public transit in Europe. CATL will also be providing lithium iron phosphate batteries with cutting-edge cell to pack technology to power Solaris buses.

EV Battery Market Report Scope

Report Attributes

Details

Market size value in 2021

USD 50.12 billion

Revenue forecast in 2030

USD 225.55 billion

CAGR

18.9% from 2022 - 2030

Base year

2021

Historical data

2018 - 2020

Forecast period

2022 - 2030

Quantitative units

Revenue in USD billion and CAGR from 2022 to 2030

Segments covered

By Battery, By Propulsion, By Vehicle, By Method, By Method, By Battery Capacity, By Battery Form, By Material, By Region

Regional scope

North America, Europe, Asia Pacific, Latin America; Middle East & Africa

Key companies

Atlasbx Co. Ltd., Bb Battery Co., BYD Company Ltd., C&D Technologies, Inc., Contemporary Ampere Technology Co., Ltd, Crown Battery Manufacturing, Duracell, East Penn Manufacturing Company, Enersys, Inc., EV Battery Market, Exide Industries Limited, Gs Yuasa Corp., Hitachi Chemical Co., Ltd, Huanyu New Energy Technology, LG Chem, Narada Power Source Co., Ltd, NEC Corporation, North Star, Panasonic Corporation, Samsung SDI, SK Innovation Co. Ltd, Sony, and TCL Corporation

Key Take-Away
Polaris Market Research
EV Battery Market Size Global Report, 2022 - 2030