Electric Vehicle Battery Market – Global Industry Analysis and Forecast (2023-2029)

Electric Vehicle Battery Market was valued at USD 277.05 Billion in 2022, and it is expected to reach USD 1491.90 Billion by 2029, exhibiting a CAGR of 27.19% during the forecast period (2023-2029).

A rechargeable battery used to power the electric motors of a battery electric vehicle (BEV) or hybrid electric vehicle is known as an electric vehicle battery (EVB) (HEV). They are typically lithium-ion batteries with a high electric charge (or energy) capacity. Electric vehicle batteries differ from starting, lights, and ignition (SLI) batteries in that they are deep-cycle batteries that are meant to provide power for extended periods of time. Electric car batteries are distinguished by their relatively high power-to-weight ratio, specific energy, and energy density; smaller, lighter batteries are preferred since they lower vehicle weight and hence increase performance. Most contemporary battery technologies have substantially lower specific energy when compared to liquid fuels, which frequently affects the maximum all-electric range of the vehicles.

Demands from portable devices, laptop computers, mobile phones, and power tools have propelled developments in lithium-ion battery technology since the late 1990s. These advancements in performance and energy density have benefited the BEV and HEV markets. Unlike previous battery chemistries, such as nickel-cadmium, lithium-ion batteries may be drained and recharged on a regular basis and at any charge level. The battery pack accounts for a large portion of the cost of a BEV or HEV. The cost of electric car batteries has reduced 87% since 2010 on a per kilowatt-hour basis as of December 2019. Vehicles with more than 250 miles (400 kilometres) of all-electric range, such as the Tesla Model S, have been marketed and are currently available in a variety of vehicle sectors. In terms of operational expenses, the cost of electricity to power a BEV is a small fraction of the cost of gasoline for comparable internal combustion engines, indicating superior energy efficiency.
Research Methodology
The research report highly depends on both primary and secondary data sources. The research process involves the investigation of various factors affecting the industry, such as government policy, market environment, competitive landscape, historical data, current market trends, technological innovation, upcoming technologies, and technical progress in related industries, as well as market risks, opportunities, market barriers, and challenges. All conceivable elements influencing the markets included in this research study have been considered, examined in depth, validated through primary research, and evaluated to provide the final quantitative and qualitative data. The market size for top-level markets and sub-segments is normalised, and the impact of inflation, economic downturns, regulatory & policy changes, and other variables is factored into the market forecast.

This data is combined and added with detailed inputs and analysis, and presented in the report. Extensive primary research was conducted to acquire information and verify and confirm the crucial numbers arrived at after comprehensive market engineering and calculations for market statistics; market size estimations; market forecasts; market breakdown; and data triangulation. Bottom-up technique is widely employed in the whole market engineering process, along with multiple data triangulation methodologies, to perform market estimation and forecasting for the overall market segments and sub-segments covered in this research.To know about the Research Methodology :- Request Free Sample Report
Electric Vehicle Battery Market Dynamics
Battery Value-Chain Opportunity: Because of their importance in electrifying mobility and balancing power grids, batteries are emerging as a vital component in the transition to a more sustainable future. In a world grappling with climate change, battery use is more than just an opportunity to reduce vehicular CO2 and NO2 emissions; scaling up production of battery-cell manufacturing capacity also offers significant value-creation opportunities for manufacturers, creates new jobs that pay well, and supports national economic growth. The market might expand if the sector follows in the footsteps of other renewable technologies such as solar and wind and enters a virtuous cycle in which higher scale drives down prices, accelerating development in the electric vehicle market (EVs). The rapid increase in demand would lead to the development of additional capacity along the entire value chain.

A new battery manufacturing factory with a total capacity of 30 to 40 gigatonnes of electricity (GWh) per year might directly produce up to 3,200 jobs (exhibit). A comparable number of employment might be created indirectly through suppliers and construction, as well as the food and basic-services industries. As a result, battery production might contribute significantly to GDP development, particularly if an ecosystem of associated companies emerges. This comes at a time when the automotive industry's shift to EVs has generated concerns about job losses in vehicle manufacture and internal-combustion engine production. The most promising prospects may be found in Europe and North America, which have relatively young markets but are expected to be sites of significant future EV growth. By contrast, the battery value chain is well established in China, the world’s biggest market for EVs, and South Korea.

Companies Investing in Manufacturing Plants: The most crucial phase in the battery value chain, cell production, is expected to contribute for up to 40% of battery-industry value generation by 2030. Manufacturers are investing billions of dollars in new battery-cell manufacturing facilities. If demand for battery cells rises at a rate of roughly 30% per year, the equivalent of about 90 more gigafactories as we know them now will be required globally over the next ten years. It can cause delays, as it did lately for certain Asian corporations constructing new plants in Europe. Securing finance, completing a billion-dollar project on time, attracting the proper expertise, and training hundreds of workers are all challenges. Other possible challenges include acquiring the capacity of capable machinery manufacturers, as well as certifying and building a supply chain.

There are now six or seven at-scale cell producers with ten years or more of experience, considerable volumes, and operations in many countries. Customers desire alternatives for buying batteries, but usually just three or four, therefore ten to fifteen vendors should be plenty to satisfy the global market. The market is expected to consolidate during the forecast period, as more than 15 manufacturers have already indicated their intention to commence cell manufacturing in Europe alone.

Major Car Companies Launching EV Vehicle: The electric vehicle market is rapidly developing across the world. As the demand for EVs grows, major automobile manufacturers are entering the market. Several major manufacturers, including Toyota, Tata Motors, Mercedes-Benz, and Hyundai, are developing electric car models to strengthen their standing in the market. Because of major manufacturers' interest in the industry, electric car development is expected to increase in the near future. The ferromagnetic blue metal is a key component of rechargeable batteries, and it is valued for its stability, hardness, anti-corrosion, and high-temperature resistance. The global cobalt sector has profited from the global transition to a green economy. Cobalt is also used to make nickel-based alloys (13% of total consumption), which are widely used in the aerospace sector, tool manufacture (8% of total consumption), and, in smaller amounts, pigments, soaps, and catalysts. Smartphones and laptops account for 36.3 percent of global offtake, while automotive applications account for 23%.

Increasing Consumer Preference for Battery Switching & BaaS: Battery switching and battery-as-a-service (BaaS) are two business concepts that enable consumers to replace/swap EV batteries after they have been depleted. This saves consumers time recharging the batteries, increases customer satisfaction, and addresses one of the primary reasons people do not purchase electric vehicles. The BaaS technique, which isolates the battery from the vehicle, is used by several Chinese electric car battery manufacturers, notably NIO. Rather of purchasing a battery along with the vehicle, the BaaS model allows EV owners to rent battery services on a monthly basis. The strategy benefits consumers in two ways: it saves money on battery expenditures and eliminates the need to worry about battery degradation.

Introduction of Electro Mobility & Increase in EV Manufacturing: The market for EV batteries has shown persistent high growth rates in recent years, owing to the introduction of electro mobility and the subsequent increase in EV manufacturing. Global EV battery manufacturers, for example, are predicted to generate 30 gigatonne-hours of storage capacity in 2020, roughly 60% more than the previous year, a trend that is likely to continue. China began to expand after the first two months of 2020, and Tesla was able to continue producing during the pandemic. Concerns about the negative consequences of climate change and growing carbon emissions in major cities have fueled a surge in demand for electric vehicles. The EV30-30 Scenario seeks to boost the market share of electric cars (EVs) to 30% by 2030. (excluding two- and three-wheelers). Over the forecast period, supporting government initiatives to promote electric car sales are expected to boost demand for EV batteries.

Withdrawal of Purchase Subsidies: Purchase subsidies have been withdrawn in key markets such as China and France. The Chinese Ministry of Finance, for example, declared plans to cut electric car subsidies in half in 2019, 20% in 2021, and 30% in 2022. Vehicles used for public transit and those costing less than USD 42,000, on the other hand, would continue to receive subsidies, with the new law mostly impacting luxury automakers. Because the Chinese Ministry of Finance only provides subsidies for vehicles with big battery capacities, EV battery producers must either provide high-capacity batteries to car manufacturers or cut battery prices in order to maintain the whole cost of a vehicle within the approved range.

Safety Concerns of Electric Vehicle Battery: Most electric car batteries are regarded safe because they are subjected to a battery of testing before being used. However, a number of events, including the recall of 68,000 Chevrolet EV Bolts owing to five battery-related fires, have raised concerns about the battery's safety. Combustible materials such as lithium, manganese, and polymers are used in electric car batteries. When lithium comes into contact with water, it becomes very reactive. As a result, there are concerns regarding the performance and safety of these batteries in hot or moist environments. According to the National Fire Protection Association (NFPA) of the United States, the majority of EV fires in the country between 2019 and 2022 were caused by battery power systems.
Electric Vehicle Battery Market Segment Analysis
Based on Propulsion Type, the market is sub-segmented into Battery Electric Vehicle, Hybrid Electric Vehicle, and Plug-in Hybrid Electric Vehicle. The BEV segment led the market in 2022, and it is expected to continue to do so during the forecast period. PHEVs, on the other hand, are expected to expand at the quickest rate during the forecast period. Because of fuel efficiency limits, the BEV sector is expected to gain significant traction in emerging markets. The battery of a PHEV can be recharged using an external source of energy as well as the on-board engine and generator, whereas the battery of a BEV is entirely reliant on rechargeable battery packs. China has been the greatest market for battery electric car sales and manufacturing (BEVs). The growing popularity of small battery electric cars with battery packs is expected to drive the electric vehicle battery sector ahead. In response to growing demand, vendors are scaling up battery manufacturing while also striving to enhance margins and preserve price competitiveness.

Based on Battery Type, the market is sub-segmented into Lead Acid Battery, Nickel Metal Hydride Battery, Lithium ion Battery. In 2022, the lithium-ion industry held the biggest market share. Lithium-ion batteries are used when low weight and high energy density are required. These batteries are extensively used in automotive applications, including electric and hybrid cars, due to their high energy density per weight. Adequate EV charging infrastructure is important for e-mobility adoption and bodes well for lithium-ion battery sales growth.

Based on Vehicle Type, the market is divided into Passenger Vehicle, Commercial Vehicle. Because of the high rate of EV adoption in China, the passenger vehicle category is expected to lead the EV battery market in Asia Pacific. In 2022, the area planned utilising 61 percent of all cobalt used globally in EV batteries, an increase of more than 50% over 2018. (Image courtesy of the USGS National Minerals Information Center.) This rise is the result of Chinese cell vendors shifting from lithium to cobalt-bearing NCM cathodes. Panasonic, a significant battery supplier to OEMs including Tesla and Toyota, deployed more lithium batteries in 2019 than all of its competitors combined. In 2019, CATL boosted its lithium battery deployment to 4,800 tonnes over the previous year. CATL also successfully completed and passed all safety tests on its liquid cooling battery energy storage system (BESS) based on lithium iron phosphate (LFP) in 2020.
Electric Vehicle Battery Market Regional Insights
With a CAGR of 35.3 percent during the forecast period, Europe is estimated to account for 31.0% of the global EV battery market by volume in 2022. Because electric vehicles are now very costly, the expansion of the region's EV battery business is mainly reliant on government incentives and money. Europe includes Germany, France, Spain, the United Kingdom, Italy, Norway, Sweden, and Denmark for market study. The presence of OEMs such as VDL Groep (Netherlands) and AB Volvo (Sweden) in the area bodes well for the EV battery industry. Environmental regulations are forcing market participants to test and build better autos, which will drive the market for advanced battery technologies even higher.

The overall number of electric vehicles sold in 2020 surpassed the entire number of electric vehicles sold in 2019. Despite a 14% dip in the global light vehicle market, the sector began to slowly return in the second half of 2020, with global BEV and PHEV deliveries up 43% year on year. According to EV-Volumes, the global EV market share will increase from 2.5% to 4.2% by 2020. In Europe, around 1.4 million plug-in electric vehicles were sold in 2020, a 137% increase over 2019. New models, incentive increases from green recovery funds, the 95g CO2 emission standard, and strong plug-in EV advertising were all important factors in Europe's rise.

France is expected to be the fastest-growing market for electric car batteries in the area. The French government's efforts to promote electric commercial vehicles and public transit fleet electrification are moving the country's EV battery industry ahead. The German government is also aiming to expand the usage of electric vehicles. Major battery manufacturers have been extending their European networks, enabling for significant development in electric vehicles and batteries. In 2017, for example, Samsung SDI invested more than USD 1.3 billion in expanding its manufacturing in Hungary. As a result, Samsung will be able to begin producing batteries for 50,000 electric vehicles in Hungary in 2018.
Report Scope:
The Electric Vehicle Battery Market research report includes product categorization, product application, development trend, product technology, competitive landscape, industrial chain structure, industry overview, national policy and planning analysis of the industry, and the most recent dynamic analysis, among other things. The study discusses the global market's drivers, opportunities, and limitations. It discusses the influence of various drivers, trends, and constraints on market demand during the forecast period. The research also outlines market potential on a global scale.

The research includes the production time, base distribution, technical characteristics, research and development trends, technology sources, and raw material sources of significant Electric Vehicle Battery Market firms in terms of production bases and technologies. The more precise research also contains the key application areas of market and consumption, significant regions and consumption, major producers, distributors, raw material suppliers, equipment providers, and their contact information, as well as an analysis of the industry chain relationship. This report's study also contains product specifications, manufacturing processes, cost structure, and data information organised by area, technology, and application.
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Electric Vehicle Battery Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2018 to 2022
Market Size in 2022:
US $ 277.05 Bn.


Forecast Period 2023 to 2029 CAGR:
27.19%
Market Size in 2029:
US $ 1491.90 Bn.


 Segments Covered:
by Propulsion Type
Battery Electric Vehicle
Hybrid Electric Vehicle
Plug-in Hybrid Electric Vehicle


by Battery Type
Lead Acid Battery
Nickel Metal Hydride Battery
Lithium ion Battery


by Vehicle Type
Passenger Vehicle
Commercial Vehicle


by Voltage Type
Retail & Consumer Goods
Healthcare & Life Sciences
Others



Electric Vehicle Battery Market, by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Electric Vehicle Battery Market Key Players
1. Tesla Inc.
2. BYD Company Limited
3. Volkswagen AG
4. General Motors
5. Samsung SDI
6. Automotive Energy Supply Corporation
7. LG Chem.
8. Panasonic Corporation
9. GS Yuasa International
10.AESC
11.Mitsubishi
12.Wanxiang
13.Beijing Pride Power
14.Tianneng
15.SB LiMotive
16.Quallion
17.Boston-Power
18.Energy Supply Corporation
19.Johnson Controls International
20.Narada Power Source
21.Crown Battery Corporation
22.Hitachi Chemical Company
23.CATL
24.Contemporary Amperex Technology Co. Ltd
25.ATLASBX Co.
26.Sony
27.NEC Corporation

Frequently Asked Questions:

1) What was the market size of Global Electric Vehicle Battery Market in 2022?
Ans - Global Electric Vehicle Battery Market was worth US$ 277.05 Bn in 2022.

2) What is the market segment of Global Electric Vehicle Battery Market?
Ans -The market segments are based on Propulsion type, Battery type, Vehicle type and Voltage.

3) What is forecast period consider for Global Electric Vehicle Battery Market?
Ans -The forecast period for Global Electric Vehicle Battery Market is 2023 to 2029.

4) What is the market size of Global Electric Vehicle Battery Market in 2029?
Ans – Global Electric Vehicle Battery Market size is estimated at US $ 1491.90 Bn in 2029.

5) Which region is dominated in Global Electric Vehicle Battery Market?
Ans -In 2022, Europe region dominated the Global Electric Vehicle Battery Market