The EV solid-state battery market is expected to grow at a CAGR of 40.56% between 2025 and 2030.
The market for EV solid-state batteries will be a prime growth area in the consumer electronics segment within the next few years.
Solid-state batteries have significant advantages over lithium-ion batteries, such as enhanced safety, increased energy density, and short charging times. As the market grows with the increasing demand for EVs, the need for novel and efficient batteries, including energy storage, will also rise.
Manufacturers are heavily investing in solid-state batteries, with Toyota, Hyundai, and Volkswagen taking the lead. Currently, the cost of solid-state batteries is higher than that of lithium-ion batteries, but this is again a constraint that may be shifted in the future as economies of scale set in.
EV solid state batteries market is rapidly rising in the Asia-Pacific region, mainly due to the fast-growing market in countries like China and Japan in electric cars. The market is also categorized by vehicle types, where the passenger and commercial vehicle markets are predicted to grow. In a global context, this type of battery will record significant growth in the near future due to increased demand for better battery technologies to support electric vehicles. These factors include the rising demand for electric vehicles, the quest for enhanced and safer energy storage technology in the EV solid-state battery, and the enhancement of renewable energy systems integration.
BEVs are leading the EV battery market, taking approximately 70% of the market in 2022. This growth is due to the rise in the use of BEVs in the PC market, particularly in the passenger car segment, as prominent manufacturers push their development of electric cars and commit to making their models electric. Consumers are also conscious of sustainable mobility solutions with longer battery life, faster charging times, and higher driving ranges, which affects their buying behaviors.
It is also estimated that the two-wheeler and commercial vehicle segments will grow drastically from 2023 to 2032. The increasing demand for electric scooters and motorcycles also contributes to the overall demand for the EV battery market, together with commercial vehicles like delivery trucks and buses. The steady increase of BEV usage across different segments brings opportunities for the development of new battery solutions, thus driving the EV battery market’s growth
The major economies like China, Japan, India, and South Korea dominate the Asia-Pacific region. Some of the fastest-growing emerging economies are from this region, such as ASEAN countries. This region is expected to dominate the electric vehicle solid-state battery market during the forecast period, owing to several countries, as mentioned above, that have significant production capacities that drive the demand.
Asia-Pacific (APAC) is the most dynamic region in terms of the demand for EV solid-state batteries due to the growth of the number of EVs and the necessity to enhance battery efficiency. China and India are emerging as leaders in solid-state battery research and development.
For instance, China is a predominant market within the APAC region in the solid-state battery business. It also boasts to be the largest electric vehicle market globally. This has increased the demand for lithium-ion batteries. Some of the popular manufacturing companies, such as BYD and CATL, plan to open many new manufacturing plants to meet this demand. It aims to revolutionize the EV market through the mass production of solid-state batteries. Hence, it competes with other Chinese companies, namely Guangzhou Tinci Materials Technology and Qingdao Sunlight Science and Technology, which are also venturing into developing the same. BYD, in August 2022, disclosed its intention to construct an EV battery factory in Jiangxi, China, with an annual output of 30GWh.
India is also entering the APAC solid-state battery market. The country has an electric vehicle-specific vision aiming to record a market share of 30 percent by 2030. This has led to an improvement in investment in battery production, where Exide Industries and Amara Raja Batteries are among the companies developing solid-state batteries for the Indian market. The Indian government has also extended some policies for using EVs, like Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME), where the government gives direct incentives in terms of price cuts to the users of EVs.
In conclusion, the Asia Pacific region’s EV solid-state battery market is larger and expected to grow shortly, especially in China and India. This growth is due to the rising demand for electric vehicles and the need for improved and efficient battery technologies, and the region stands ready for the above trends in the subsequent years.
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Growth Rate | CAGR of 40.56% |
| Study Period | 2020 to 2030 |
| Historical Data | 2020 to 2023 |
| Base Year | 2025 |
| Forecast Period | 2025 – 2030 |
| Forecast Unit (Value) | USD Billion |
| Segmentation |
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Geographical Segmentation |
North America, South America, Europe, Middle East and Africa, Asia Pacific |
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List of Major Companies in EV Solid State Battery Market |
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| Customization Scope | Free report customization with purchase |