Global Electric Vehicle Battery Market Size, Share & COVID-19 Impact Analysis, By Battery Type, By Vehicle Type, By Propulsion, By End User, By Material Type, By Battery Form, By Capacity, By Method, By Li-ion Battery Component and by Region Forecast, 202

Global Electric Vehicle Battery Market Size, Share & COVID-19 Impact Analysis, By Battery Type, By Vehicle Type, By Propulsion, By End User, By Material Type, By Battery Form, By Capacity, By Method, By Li-ion Battery Component and by Region Forecast, 2024-2032

Global Electric Vehicle Battery Market was valued at US $ 56.4 billion in 2023 and is expected to reach US $ 134.6 billion by 2032 growing at a CAGR of 19.9% during the forecast period 2024 – 2032.

Technology advancements and falling battery costs are predicted to accelerate the adoption of electric cars (EVs) worldwide. As a result, the government has been compelled to enact stringent carbon footprint reduction policies and environmental protection laws since pollution levels are growing and environmental quality is declining. Consequently, initiatives to lessen the impact of motor vehicles on the environment are expected to increase sales of electric cars. This will therefore increase the need for EV batteries even more. Global automakers like General Motors, BMW, Volkswagen, and Ford Motors, want to introduce a variety of electric vehicle models to the market. The demand for sophisticated electric vehicles is increasing, and the top manufacturers in the industry are producing more vehicles, which is one of the causes propelling growth in the global EV battery markets. Another is the rise in consumer awareness of the benefits of EVs. The government is promoting the sale of electric vehicles through customer incentives and industry subsidies.

In the upcoming years, this market is anticipated to grow significantly due to government regulations that support public-private partnerships for the development of recharge stations. Over the next few years, the market for EV batteries grew as a result of increased government spending on infrastructure and growing urbanisation. It is anticipated that the use of electric vehicles would increase internationally due to the significant advancements in technology and the falling cost of batteries. Furthermore, legislators have been forced to enact stringent policies encouraging low carbon emissions and greening due to rising pollution levels and deteriorating environmental circumstances. Given these trends, more attempts to control vehicle exhaust emissions will likely increase demand for electric vehicles, which should raise the need for EV batteries.

“Lithium-ion batteries segment, by Battery type, to be dominating market from 2023 to 2030.”

The lithium-ion category held a sizable share of the worldwide market for batteries for electric vehicles in 2023. Lithium-ion batteries are perfect for electric vehicles because of two key features: their low weight and high energy density. Worldwide, a large number of hybrid and electric vehicles employ lithium-ion batteries. Due to rising demand for and sales of hybrid-electric vehicles abroad, this sector now holds the largest position in the worldwide EV battery market.

“Passenger Vehicle segment, by Vehicle type, to be dominating market from 2023 to 2030.”

In vehicle type, in 2023 the passenger car category had the highest revenue share. Government organisations from several countries, such as Canada, India, and Japan, are offering consumer subsidies to encourage the widespread use of electric passenger cars. Furthermore, the market for passenger cars is anticipated to grow strongly through 2035 as demand for personal commutes rises with increased urbanisation, rising disposable income, and growing awareness of the benefits of electric vehicles. These factors have all contributed to people's improved lifestyles. Because electric passenger cars are so widely available worldwide, it is the industry leader in this field.

“BEV segment, by Propulsion, to be dominating market from 2023 to 2030.”

With a revenue share of 38.5%, the battery electric vehicle category led the global EV Battery Mechanism market in 2023. Since batteries are the only power source for battery-electric cars, this industry accounts for the greatest portion of the EV battery market. Better yet, as technology advances, battery production costs have decreased, and BEV adoption is rising faster than ever before. Future projections indicate that the world's output of battery electric cars (BEVs) will rise, propelling the expansion of the worldwide market for EV batteries.

“Asia Pacific to be largest region in Electric Vehicle Battery market.”

The Asia-Pacific region accounted for around half of the global EV battery markets in 2023. Due to the global assembly of top manufacturers, electric vehicles and EV batteries are produced in large quantities. MNCs are drawn to nations like China and India because of their low labour costs, pro-industry regulations, and other production-related aspects. Major tailwinds include the rapidly expanding consumer base in the Asia Pacific region, the strong and quickly increasing demand for electric passenger cars and commercial vehicles (compared to legacy internal combustion engine [ICE] versions), the rise in government initiatives to encourage adoption rates, and rising investment in the development of charging infrastructure.

Electric Vehicle Battery Competitive Landscape

The competitive landscape of the Electric Vehicle Battery market involves assessing the competitive landscape to understand the strengths, weaknesses, opportunities, and threats of the industry. Key industry players have recognized that the adoption of Electric Vehicle Battery technology holds the potential for further growth. The growing desire among producers to optimize their production costs has spurred collaborative efforts among companies to scale up their production capacity. This strategic collaboration not only aims to increase revenue but also seeks to establish dominance in the market.

The Electric Vehicle Battery market is highly competitive, with numerous companies vying for market share. Prominent companies in the Electric Vehicle Battery Market include:

Hitachi, LTD., ATLASBX Co. Ltd., Sony Group Corporation, BB Battery Co., Zhejiang Narada Power Sour, Narada Power Source Co., Ltd., Panasonic Energy Co., Ltd., Crown Battery, Robert Bosch LLC, GS Yuasa Corporation, EnerSys, Inc., Huanyu New Energy Technology, Duracell, North Star, TCL Corporation, C&D Technologies, Inc., NEC Corporation, GS Yuasa Corp., and others.

Recent Developments:

In April 2024, in partnership with Yutung Bus Co., CATL introduced the battery pack, which powers various truck and bus classes as well as commercial vehicles.

In October 2023, Reliance of India introduced interchangeable, multifunctional EV batteries. As part of a major push towards renewable energy, the Indian oil refining behemoth Reliance Industries unveiled its interchangeable and versatile battery storage technology for electric vehicles (EVs). Homes can utilise rooftop solar panels which Reliance also intends to sell—to recharge their batteries or exchange them at the company's battery exchange facilities. When the corporation intended to begin selling these batteries was not made clear by the executives. The creation of battery storage technologies is a component of Reliance's larger $10 billion environmental initiative for sustainable energy initiatives. By 2035, the company wants to become net zero carbon and reduce its reliance on its core oil-to-chemical sector.