Electric Vehicles Battery Market Size

Electric Vehicle Battery Market Overview

The Electric Vehicle Battery market industry is projected to grow from USD 25.34 Billion in 2024 to USD 192.55 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 28.85% during the forecast period (2024 - 2032). EV Battery Market Size was valued at USD 18.97 billion in 2023. Increased demand for electric automobiles, an uptick in new electric vehicle sales, and rising public awareness of environmentally friendly vehicles are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Electric Vehicle Projections

The global electric vehicle market continues to accelerate with tremendous growth. BEVs, PHEVs (Plug-in Hybrid Electric Vehicles), and FCVs (Fuel Cell Vehicles) gaining rapid share in the global vehicle industry. The electric vehicle industry recorded sales of 13.1 million units in 2023, with a growth rate of 29.8% compared to 2022. However, industry experts are anticipating a slower growth trajectory for the EV markets in 2024. As these reduced growth projections are being made, several key industry players have reassessed their EV strategies considering the demand and buying patterns of consumers. According to MRFR estimates, the global EV market volume is likely to grow with a CAGR rate of 15.3% and is expected to surpass 48-million-unit sales by 2032.

Electric Vehicle Battery Market Trends

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  Increasing demand for electric vehicles and government initiatives are driving the market growth

  
  

Market CAGR for electrical vehicle battery is being driven by factors such as increasing demand for electrical vehicles, increasing fuel prices, etc. As environmental concerns about conventional cars continue to mount, governments all over the world are supporting the use of alternative fuel vehicles. EVs, or electric vehicles, are zero-emission vehicles that are gaining popularity for environmentally beneficial public transit globally. Several national governments offer financial incentives to encourage the use of EVS, including tax exemptions and refunds, subsidies, reduced parking/toll charges for EVS, and free charging.

Additionally, automobile manufacturers are concentrating on producing sophisticated electric vehicle technologies including smaller engines and batteries that are anticipated to have reduced emissions at comparably lower costs. Lithium-nickel-manganese-cobalt-oxide (NMC) is currently the material of choice for batteries used in electric vehicles. Additionally, the Tesla Model X, S, and 3 electric cars in the United States use lithium-nickel-cobalt-aluminum oxide (NCA). For instance, in March 2020, BYD Motors Inc. introduced the revolutionary blade battery for electric vehicles, which optimises the battery pack structure by above 50% when compared to the conventional lithium iron phosphate batteries. Additionally, battery safety is greatly improved. Businesses are developing business models that enable consumers to change or exchange EV batteries once they have been depleted, such as battery swapping and battery-as-a-service (BaaS). This reduces the time required for battery recharging, increasing customer satisfaction and removing one of the key deterrents for consumers from choosing EVS.

EVS's expensive manufacturing costs have been a major obstacle to their broad adoption. Rising demand for EVs is a result of the anticipated fall in battery prices and decreased R&D expenses, which will likely lower the overall cost of purchasing electric hatchbacks, crossovers, or SUVs to levels comparable to ICE vehicles. Due to the expensive rechargeable lithium-ion batteries needed for EVs, their cost is much higher than that of ICE vehicles

For instance, Level 3 EV charging can charge an EV in around 30 minutes to one hour and ultra-fast charging can also provide charging in 15-30 minutes, their long-term use damages the EV batteries. Their prolonged use wears down the EV batteries. Because of this, battery swapping emerged as a substitute for fast charging stations, and demand for it has increased over the past few years. This is driving the Electric Vehicle Battery market revenue.

Electric Vehicle Battery Market Segment Insights

Electric Vehicle Battery Type Insights

The Electric Vehicle Battery Market segmentation, based on battery type includes Lithium-Ion Battery, Nickel Hybrid Battery and Lead-Acid Battery. The largest revenue share was accounted for by lithium-ion battery. These battery’s superior energy density and lightweight construction are the main factors boosting adoption. Additionally, because lithium-ion batteries are safer than alternatives, there is an increase in demand for them in electric vehicles. Over the projection period, rapid charging sessions will also support market expansion.

Electric Vehicle Battery Vehicle Technology Insights

The Electric Vehicle Battery Market segmentation, based on Vehicle Technology includes Plug-In Hybrid Vehicle Electric Vehicles, Battery Electric Vehicles, and Hybrid Electric Vehicles. The battery electric vehicles segment accounted for the biggest market share in 2022, and it is predicted that it would maintain its dominance with the highest CAGR during the projected period. Over the projection period, a decrease in reliance on fossil fuels is expected to boost category expansion.

Electric Vehicle Battery End Market Insights

The Electric Vehicle Battery Market segmentation, based on End Market includes Aftermarkets and OEMS. Under the end market segment, the OEMS category saw the highest demand. This can be attributed to the EV industry's growing global production. Due to the increasing demand for replacement parts and components, the aftermarket sector is anticipated to grow more quickly in the near future.

Figure 1: EV Battery Market, by End market, 2022 & 2032 (USD billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Electric Vehicle Battery Regional Insights

By Region, the study provides the market insights into Asia-Pacific, Europe, North America and Rest of the World. The Asia-Pacific EV Battery market area will dominate this market, owing to an increase in the number of persons who use electric vehicle. In addition, over the projected period, the government's emphasis on the conversion of two- and three-wheelers into electric vehicles is anticipated to fuel demand market will boost market growth in this region.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: EV Battery Market Share By Region 2022 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Electric Vehicle Battery market accounts for the second-largest market share due to the adoption of electric vehicles, fueling the demand for batteries. This is due to the region's escalating number of pollution control norms and strict rules to combat climate change. Further, the German Electric Vehicle Battery market held the largest market share, and the UK Electric Vehicle Battery market was the fastest growing market in the European region

The North America Electric Vehicle Battery Market held a sizable portion of the market in 2022 belonged to North America. Market expansion is being driven by rising U.S. demand for BEVS. Growing government spending to speed up domestic component production and fortify the EV supply chain would therefore probably fuel market expansion in the area. Moreover, US Electric Vehicle Battery market held the largest market share, and the Canada Electric Vehicle Battery market was the fastest growing market in the region.

Electric Vehicle Battery Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Electric Vehicle Battery market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Electric Vehicle Battery industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Electric Vehicle Battery industry to benefit clients and increase the market sector. In recent years, the Electric Vehicle Battery industry has offered some of the most significant electric vehicle batteries. Major players in the Electric Vehicle Battery market, including Automotive Energy Supply Corporation (Japan), Panasonic Corporation (Japan), BYD Company Limited (China) and others, are attempting to increase market demand by investing in research and development operations.

Panasonic Holdings Corp. creates, produces, and sells electrical goods. The Automotive segment focuses on in-vehicle electronics and infotainment, including next-generation cockpit systems, navigation systems, camera modules, onboard charging systems, and compressors that are integrated into inverters. This market for liquid crystal displays, motors, main batteries, rechargeable batteries, electromechanical and control equipment. According to a report from August 2022, Oklahoma was a top contender for the firm, a supplier to Tesla, to develop a new electric vehicle battery market production in the US. This would be in addition to the Kansas-based factory. Each would have roughly the same capacity.

In battery facilities design and engineering, their team consists of battery experts with distinguished operation and technical careers at the most prestigious battery manufacturers, such as Panasonic, BYD, LG, etc. on all types of battery formats, particularly batteries for EVs — hybrid, plug-in hybrid, and electric vehicles: They have highly competent battery design and battery plant engineering expertise in batteries for different uses, such as power tools, computers, cell phones, robotics, smart grids, etc. In 2022–2023, A state-of-the-art elemental pure lithium metal smelter and lithium alloy facility are the subject of a conceptual feasibility study by TRU Group with the goal to produce lithium metal and alloy of battery quality, the TRU Group's design of the lithium metal smelter will make use of the most modern and enhanced furnaces and processes.

Key Companies in the Electric Vehicle Battery market include

• Automotive Energy Supply Corporation (Japan)


• Panasonic Corporation (Japan)


• BYD Company Limited (China)


• Quallion (US)


• LG Chem Ltd (South Korea)


• Boston-Power (US)


• Johnson Controls International (US)


• Narada Power Source (China)


• GS Yuasa Corporation (Japan)


• Crown Battery Corporation (US)


• Tianneng Power International(China)


• and Hitachi Chemical Company (Japan)

Electric Vehicle Battery Industry Developments

Electric Vehicle Battery Market Segmentation

Electric Vehicle Battery Market Type Outlook

• Lithium-Ion Battery


• Nickel Hybrid Battery


• Lead-Acid Battery

Electric Vehicle Battery Market Vehicle Technology Outlook

• Plug-In Hybrid Vehicle Electric Vehicles


• Battery Electric Vehicles


• Hybrid Electric Vehicles

Electric Vehicle Battery Market End Outlook

• Aftermarkets


• OEMS

EV Battery Market Regional Outlook

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  Middle East
  
  


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  Africa
  
  


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  Latin America