Global Electric Vehicle Battery Market Size, Share, Opportunities And Trends By Battery Type (Lithium-Ion, Aluminium-Ion, Hybrid Nickel Metal, Others), By Vehicle Type (Battery Electric Vehicle, Plug-in Hybrid Electric Vehicle, Hybrid Electric Vehicle), And By Geography - Forecasts From 2024 To 2029
- Published : Feb 2024
- Report Code : KSI061614428
- Pages : 138
The global electric vehicle battery market is anticipated to reach a market size worth US$263.891 billion by 2029, growing at a compound annual growth rate of 17.23%. The market is valued at US$86.733 billion in 2022.
The debut of EVs is expected to be the focus of significant automakers including Ford Motors, General Motors, and BMW AG, which will likely fuel market expansion. Also, several key drivers propelling this market include the rising demand for electric vehicles, customer interest in reducing vehicle carbon footprint, favourable government regulations, and better electric vehicle battery technology.
The advancement of EV batteries is the primary factor in lowering the price of EVs and extending the driving range between recharges. To make EV batteries lighter, smaller, and able to store more energy, new cell chemistries are being investigated. This will enable electric cars to compete with traditional fuel-based vehicles.
Market Drivers
- The falling price of lithium-ion batteries drives the electric vehicle battery market
The falling price of lithium-ion batteries significantly drives the market for electric vehicles in several ways. Firstly, it reduces the overall cost of producing electric vehicles, making them more affordable for consumers. This affordability attracts a larger customer base who may have previously been deterred by the higher upfront costs of electric vehicles compared to traditional combustion engine vehicles.
The Department of Energy's Vehicle Technologies Office has reported a significant reduction in the cost of lithium-ion battery packs for electric vehicles over the period from 2008 to 2022. Using constant 2022 dollars, the cost has decreased by 89%, with the estimated cost per kilowatt-hour (kWh) of usable energy being $153 for production at a scale of at least 100,000 units per year. This marks a substantial decline from the $1,355/kWh estimated in 2008. Secondly, lower battery costs lead to increased energy density and longer driving ranges for electric vehicles, addressing concerns about range anxiety among potential buyers.
Additionally, decreasing battery prices encourages investment in charging infrastructure, further bolstering the appeal of electric vehicles by reducing charging time and increasing convenience. Overall, the declining cost of lithium-ion batteries plays a pivotal role in accelerating the adoption of electric vehicles and transitioning towards a more sustainable transportation ecosystem.
- Rising interest in electric vehicles further drives the market
By 2025, sales of electric vehicles are predicted to exceed 30 million units, and by 2030, they are anticipated to surpass 70 million units, accounting for about 30% and 60% of all vehicle sales, respectively. The cumulative number of electric vehicles (excluding two/three-wheelers) is expected to rise from nearly 30 million in 2022 to approximately 240 million by 2030. This growth is attributed to an average annual growth rate of about 30%.
By 2030, electric vehicles are projected to make up over 10% of the total road vehicle fleet. Additionally, the scenario forecasts that total electric vehicle sales will exceed 20 million by 2025 and surpass 40 million by 2030, representing more than 20% and 30% of all vehicle sales, respectively.
Asia Pacific is anticipated to hold a significant share of the market-
The Asia Pacific region is anticipated to experience the fastest growth in the electric vehicle battery market due to several key factors. Firstly, countries in this region, particularly China and India, are witnessing rapid urbanization and industrialization, leading to an increase in demand for electric vehicles (EVs) as governments implement stricter emissions regulations and promote sustainable transportation solutions.
Additionally, the Asia Pacific region is home to several leading battery manufacturers, benefitting from a robust supply chain and advanced battery technology research and development initiatives. Furthermore, supportive government policies and incentives, such as subsidies for EV purchases and investments in charging infrastructure, are driving the adoption of electric vehicles, consequently boosting the demand for batteries. Overall, these factors contribute to the projected rapid growth of the electric vehicle battery market in the Asia Pacific region.
In August 2023, the government decided to decrease the Electric Vehicle (EV) subsidy per unit for e-2Ws under the FAME India Scheme Phase-II from 40% to 15% of the ex-factory price, citing the growing presence of EVs in the market. This adjustment followed consultations with e-2W original equipment manufacturers (OEMs) on May 16, 2023, and subsequent approval by the Project Implementation and Sanctioning Committee (PISC) for the FAME India Scheme Phase-II.
Market Developments
- In October 2023, LG Energy Solution and Toyota inked a long-term agreement for battery supply to support the electrification of vehicles in the United States.
- In July 2022, Samsung SDI commenced the construction of its second battery production plant in Seremban, Malaysia. By 2024, this facility is scheduled to commence the production of cylindrical PRIMX 21700 batteries. The company plans to invest a total of $1.4 billion USD by 2025. The primary applications for the batteries manufactured at this plant will include electric vehicles (EVs), micro-mobility solutions, and various other purposes.
Segmentation
- By Battery Type
- Lithium-Ion
- Aluminium-Ion
- Hybrid Nickel Metal
- Others
- By Vehicle Type
- Battery Electric Vehicle
- Plug-in Hybrid Electric Vehicle
- Hybrid Electric Vehicle
- By Geography
- North America
- USA
- Canada
- Mexico
- South America
- Brazil
- Argentina
- Others
- Europe
- Germany
- UK
- France
- Spain
- Others
- Middle East and Africa
- Suadi Arabia
- UAE
- Others
- Asia Pacific
- China
- Japan
- South Korea
- India
- Australia
- Others
- North America
Frequently Asked Questions (FAQs)
1. INTRODUCTION
1.1. Market Overview
1.2. Market Definition
1.3. Scope of the Study
1.4. Market Segmentation
1.5. Currency
1.6. Assumptions
1.7. Base, and Forecast Years Timeline
1.8. Key Benefits to the Stakeholder
2. RESEARCH METHODOLOGY
2.1. Research Design
2.2. Research Processes
3. EXECUTIVE SUMMARY
3.1. Key Findings
3.2. Analyst View
4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter’s Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis
4.5. Russia-Ukraine War Impact Analysis
5. ELECTRIC VEHICLE BATTERY MARKET, BY BATTERY TYPE
5.1. Introduction
5.2. Lithium ion
5.2.1. Market Trends and Opportunities
5.2.2. Growth Prospects
5.2.3. Geographic Lucrativeness
5.3. Aluminum ion
5.3.1. Market Trends and Opportunities
5.3.2. Growth Prospects
5.3.3. Geographic Lucrativeness
5.4. Hybrid Nickel Metal
5.4.1. Market Trends and Opportunities
5.4.2. Growth Prospects
5.4.3. Geographic Lucrativeness
5.5. Others
5.5.1. Market Trends and Opportunities
5.5.2. Growth Prospects
5.5.3. Geographic Lucrativeness
6. ELECTRIC VEHICLE BATTERY MARKET, BY VEHICLE TYPE
6.1. Introduction
6.2. Battery Electric Vehicle
6.2.1. Market Trends and Opportunities
6.2.2. Growth Prospects
6.2.3. Geographic Lucrativeness
6.3. Plug-in Hybrid Electric Vehicle
6.3.1. Market Trends and Opportunities
6.3.2. Growth Prospects
6.3.3. Geographic Lucrativeness
6.4. Hybrid Electric Vehicle
6.4.1. Market Trends and Opportunities
6.4.2. Growth Prospects
6.4.3. Geographic Lucrativeness
7. ELECTRIC VEHICLE BATTERY MARKET, BY GEOGRAPHY
7.1. Introduction
7.2. North America
7.2.1. By Battery Type
7.2.2. By Vehicle Type
7.2.3. By Country
7.2.3.1. United States
7.2.3.1.1. Market Trends and Opportunities
7.2.3.1.2. Growth Prospects
7.2.3.2. Canada
7.2.3.2.1. Market Trends and Opportunities
7.2.3.2.2. Growth Prospects
7.2.3.3. Mexico
7.2.3.3.1. Market Trends and Opportunities
7.2.3.3.2. Growth Prospects
7.3. South America
7.3.1. By Battery Type
7.3.2. By Vehicle Type
7.3.3. By Country
7.3.3.1. Brazil
7.3.3.1.1. Market Trends and Opportunities
7.3.3.1.2. Growth Prospects
7.3.3.2. Argentina
7.3.3.2.1. Market Trends and Opportunities
7.3.3.2.2. Growth Prospects
7.3.3.3. Others
7.3.3.3.1. Market Trends and Opportunities
7.3.3.3.2. Growth Prospects
7.4. Europe
7.4.1. By Battery Type
7.4.2. By Vehicle Type
7.4.3. By Country
7.4.3.1. United Kingdom
7.4.3.1.1. Market Trends and Opportunities
7.4.3.1.2. Growth Prospects
7.4.3.2. Germany
7.4.3.2.1. Market Trends and Opportunities
7.4.3.2.2. Growth Prospects
7.4.3.3. France
7.4.3.3.1. Market Trends and Opportunities
7.4.3.3.2. Growth Prospects
7.4.3.4. Spain
7.4.3.4.1. Market Trends and Opportunities
7.4.3.4.2. Growth Prospects
7.4.3.5. Others
7.4.3.5.1. Market Trends and Opportunities
7.4.3.5.2. Growth Prospects
7.5. Middle East and Africa
7.5.1. By Battery Type
7.5.2. By Vehicle Type
7.5.3. By Country
7.5.3.1. Saudi Arabia
7.5.3.1.1. Market Trends and Opportunities
7.5.3.1.2. Growth Prospects
7.5.3.2. UAE
7.5.3.2.1. Market Trends and Opportunities
7.5.3.2.2. Growth Prospects
7.5.3.3. Others
7.5.3.3.1. Market Trends and Opportunities
7.5.3.3.2. Growth Prospects
7.6. Asia Pacific
7.6.1. By Battery Type
7.6.2. By Vehicle Type
7.6.3. By Country
7.6.3.1. China
7.6.3.1.1. Market Trends and Opportunities
7.6.3.1.2. Growth Prospects
7.6.3.2. Japan
7.6.3.2.1. Market Trends and Opportunities
7.6.3.2.2. Growth Prospects
7.6.3.3. South Korea
7.6.3.3.1. Market Trends and Opportunities
7.6.3.3.2. Growth Prospects
7.6.3.4. India
7.6.3.4.1. Market Trends and Opportunities
7.6.3.4.2. Growth Prospects
7.6.3.5. Australia
7.6.3.5.1. Market Trends and Opportunities
7.6.3.5.2. Growth Prospects
7.6.3.6. Others
7.6.3.6.1. Market Trends and Opportunities
7.6.3.6.2. Growth Prospects
8. COMPETITIVE ENVIRONMENT AND ANALYSIS
8.1. Major Players and Strategy Analysis
8.2. Market Share Analysis
8.3. Mergers, Acquisitions, Agreements, and Collaborations
8.4. Competitive Dashboard
9. COMPANY PROFILES
9.1. Contemporary Amperex Technology Co., Limited
9.2. LG Energy Solution
9.3. BYD Company Limited
9.4. Panasonic
9.5. Samsung SDI Co. Ltd
9.6. CALB
9.7. Sunwoda Electric Vehicle Battery Co. Ltd
9.8. QuantumScape CorporationV
Contemporary Amperex Technology Co., Limited
LG Energy Solution
BYD Company Limited
Panasonic
CALB
Sunwoda Electric Vehicle Battery Co. Ltd
QuantumScape Corporation
Related Reports
Report Name | Published Month | Get Sample PDF |
---|---|---|
Solid State Battery Market Size & Share: Report, 2023-2028 | Feb 2023 | |
Electric Vehicle Telematics Market Size: Report, 2024 - 2029 | Sep 2024 | |
EV Solid State Battery Market Size & Share: Report, 2024 - 2029 | Jun 2024 |