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Electric Vehicle Battery Market size is estimated to grow by USD 53,626.86 million between 2022 and 2027 accelerating at a CAGR of 19.57% during the forecast period. The growth of the market depends on several factors, including increasing demand for EVs and their expanded applications, the shift of the automotive industry toward EVs, and advances in EV batteries and associated technologies.
This electric vehicle (EV) battery market report extensively covers market segmentation by type (lithium-ion battery, lead-acid battery, and others), vehicle type (battery electric vehicle, plug-in hybrid electric vehicle, and hybrid electric vehicle), and geography (APAC, Europe, North America, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges.
Batteries are one of the most important components of electric vehicles (EVs). EVs require batteries for both propulsion and starting lighting, and ignition (SLI). Batteries play a major role in the adoption of EVs due to their importance in determining the driving range, the cost of ownership, and the performance of the EVs.
Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
Increasing demand for EVs and their expanded applications is a major electric vehicle (EV) battery market driver. The market is primarily driven by the increasing sales of BEVs and PHEVs. Global EV battery sales surpassed 6.5 million units in 2021, marking a 109% growth compared to 2020. China led in EV battery sales in 2022, followed by Europe and the US. Advancements in EV technologies, expansion of charging infrastructure, and improving socio-economic conditions are expected to drive the demand for BEVs in the forecast period. The growing demand for BEVs and PHEVs contributes to the market's revenue generation.
The HEVs market is expected to experience significant growth due to the following factors:
These factors are anticipated to drive the global electric vehicle battery market in the forecast period.
Increasing use of software and sensors for intelligent BMS is an ongoing electric vehicle (EV) battery market trend. The growing adoption of EVs and PHEVs with advanced features has increased power consumption, leading to a demand for efficient rechargeable battery work cycles. This has driven the growth of intelligent Battery Management Systems (BMS) in the automotive segment. High-power-density lithium-ion batteries in EVs and PHEVs have prompted advanced BMS solutions. Intelligent BMS utilizes precise sensors and integrated circuits to monitor battery voltage and current with high accuracy. These BMSs ensure accuracy, fault detectability, and robustness. The increasing adoption of EV batteries and the need for intelligent BMS solutions are expected to drive market growth.
The growing global power crisis is a major electric vehicle (EV) battery market challenge hindering market growth. The rising demand for electricity to power EVs is driving the market for HEVs and EVs. However, in regions with limited power generation capacity like developing and underdeveloped countries, the high sales of EVs pose challenges. For example, in Europe, where EVs account for about 25% of vehicles on the road, it reduces oil consumption but increases electricity demand by 11%. Asian countries like India and Japan face power crises and rely heavily on energy imports, increasing electricity costs. This situation hampers EV sales and affects the EV battery market. The global power crisis is expected to impact market growth in the forecast period.
The electric vehicle battery market share growth by the lithium-ion battery segment will be significant during the forecast period. The lithium-ion batteries segment is anticipated to witness rapid growth during the forecast period, owing to the high demand for lithium-ion batteries from the EV industry and declining prices of battery technology. Lithium-ion batteries belong to a family of lithium metal chemistries that are manufactured using various combinations of anode and cathode materials. The most commonly used cathode combinations for transportation applications are Lithium Nickel Cobalt Alumina (NCA), Lithium Nickel Manganese Cobalt (NCM or NMC), Lithium Manganese Spinel (LMO), Lithium Titanate (LTO), and Lithium Ion Phosphate (LFP). Each of these combinations has different characteristics related to safety, cost, and performance. The anodes in all these batteries are generally carbon.
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The lithium-ion battery segment was valued at USD 19,153.35 million in 2017 and continued to grow until 2021. Lithium-ion batteries have higher current density, longer current holding capacity, and longer shelf life compared to other battery technologies on the market, making this battery technology superior to other battery technologies. Moreover, the cost of these batteries is expected to drop significantly due to mass production and various government incentives. Therefore, the demand for lithium-ion batteries for electric vehicles is expected to grow rapidly during the forecast period.
Increasing awareness of environmental concerns and the benefits of electric vehicles (EVs) has resulted in a significant surge in demand for battery electric vehicles (BEVs). Prominent automakers such as Tesla, Nissan, BMW, and Volkswagen have introduced BEVs like the Tesla Model S, Model X, Model 3, Model Y, Nissan Leaf, BMW i3, and Volkswagen ID. Governments worldwide are incentivizing the adoption of BEVs through measures like tax credits and rebates. In the US, for instance, the federal government offers up to USD 7,500 in tax credits for BEV purchases, with additional incentives provided by several states. As sustainability and environmental priorities grow, the demand for EV batteries in the BEV segment is expected to increase, driving market growth in the forecast period.
APAC is estimated to contribute 48% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The Asia Pacific region dominates the electric vehicle (EV) battery market with established suppliers such as Automotive Energy Supply Corporation, GS Yuasa International Ltd., LG Chem, and Panasonic Corporation. Governments in countries like China, Japan, India, and South Korea are actively promoting the shift from fossil fuel vehicles to EVs through targets, reforms, and incentives. R&D efforts in the APAC market focus on enhancing EV technology. China stands out in the region due to its large population, strong EV demand, and thriving manufacturing sector.
Despite challenges from the COVID-19 pandemic in 2020, the market rebounded in 2021 and 2022 with the relaxation of restrictions and vaccine campaigns. Government initiatives and technological advancements will continue to drive market growth, fueled by the increasing demand for EV batteries.
Vendors are implementing various strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.
Samsungsdi- The company offers electric vehicle batteries such as lithium ion PHEV, EV, and HEV.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The electric vehicle (EV) battery market research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Electric Vehicle (EV) Battery Market Scope |
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Report Coverage |
Details |
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Page number |
172 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 19.57% |
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Market growth 2023-2027 |
USD 53,626.86 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
16.34 |
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Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 48% |
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Key countries |
US, China, Japan, Norway, and Germany |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
A123 Systems LLC, Ballard Power Systems Inc., BYD Co. Ltd., Clarios, Crown Battery Manufacturing Co., Cummins Inc., East Penn Manufacturing Co. Inc., EnerSys, Enertech International Inc., Envision Group, Exide Industries Ltd., GS Yuasa Corp., Hitachi Ltd., LG Chem Ltd., OptimumNano Energy Co. Ltd., Panasonic Holdings Corp., Samsung SDI Co. Ltd., SK Innovation Co. Ltd., Solid Power Inc., Tianneng Battery, and Zhejiang Narada Power Source Co. Ltd. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Vehicle Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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