Battery Systems For Electric Vehicle - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2029

Battery Systems For Electric Vehicle - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2029

The Battery Systems For Electric Vehicle Market size is estimated at USD 29.73 billion in 2024, and is expected to reach USD 55.99 billion by 2029, growing at a CAGR of 13.5% during the forecast period (2024-2029).

Key Highlights

• The COVID-19 pandemic brought unprecedented challenges to the battery systems for the electric vehicles market. Lockdown measures and travel restrictions disrupted global supply chains, leading to delays and shortages in battery production. Manufacturing facilities and raw material supply chains were affected, impacting the availability and affordability of electric vehicles. Economic uncertainty, reduced consumer spending, and mobility restrictions resulted in a significant decline in electric vehicle sales. This decline directly impacted the battery systems market.
• The battery systems for electric vehicles market recovered and resumed its growth trajectory post-COVID due to several factors. Governments worldwide continue to prioritize decarbonization and sustainable transportation. Stimulus packages and supportive policies are likely to be implemented to boost the adoption of electric vehicles, which will drive the demand for battery systems.
• As the global economy recovers and restrictions ease, the demand for electric vehicles is expected to rebound. Consumers' increased focus on sustainability and environmental consciousness will contribute to the growth of the battery systems market. Continued research and development efforts will lead to advancements in battery technologies, including higher energy densities, faster charging capabilities, and longer ranges. These advancements will enhance the performance and attractiveness of electric vehicles, driving the demand for battery systems.
• Battery electric vehicles are powered by the electricity stored in the onboard battery. The onboard battery used in electric vehicles can be classified under one of the following three types: nickel metal hydride, lead-acid, and lithium-ion. The chemical energy stored in rechargeable battery packs installed in battery electric vehicles propels the electric motors and motor controllers.
• Major governments across developed countries, including China, the United States, and Japan, are investing in electric mobility, which is likely to provide significant growth opportunities for the battery system for electric vehicle market. Asia-Pacific and North America are likely to dominate the market during the forecast period.

Battery Systems for Electric Vehicles Market Trends

High Cost of Battery and Limited Driving Range Hindering the Market Growth

• Several factors, such as government subsidies and incentives, drive the global battery electric vehicles market. Governments in many countries have extended benefits in the form of financial incentives to the buyers of battery electric vehicles. The amount of these incentives usually depends on the size of the battery.
• For instance, the Sustainable Energy Authority of Ireland (SEAI) provides buyers of battery electric vehicles with grants of up to USD 5,400 and exempts them from vehicle registration tax. Despite the growth of the battery in the electric vehicles market, it is also curtailed by some serious challenges.
• The range and performance of the battery in electric vehicles are significant restraints for the market. The batteries are typically less powerful and have a limited range (60-100 miles per charge), and are considered suitable only for short-distance travel. The limited travel range of batteries of electric vehicles raises concerns among consumers that their vehicles may run out of charge/power before reaching their destination.
• Longer charging duration is another major challenge for the market. The lack of availability of supercharging stations adds to the woes associated with the use of batteries in an electric vehicle. The high cost of the battery in the electric vehicle also poses a threat to the growth of the battery market in particular and battery electric vehicles in general. For instance, the price per usable kilowatt-hour of a lithium-ion battery ranges from USD 500 to USD 650, and thus, makes up a large proportion of the vehicle's cost.

Asia-Pacific Market Growing at a Faster Pace

The Asia-Pacific region is indeed experiencing rapid growth in the battery systems for electric vehicles market. Several factors contribute to the region's increasing prominence in this sector. Countries like China, Japan, and South Korea have witnessed a substantial increase in electric vehicle sales. These nations are actively promoting the adoption of electric vehicles through supportive policies, subsidies, and infrastructure development. The rising demand for electric vehicles in the Asia-Pacific region drives the need for advanced battery systems.

• For instance, In May 2023, Chinese automaker JAC Group and tech company HiNa Battery teamed up to create an electric car powered by a sodium-ion battery.

Additionally, Asia-Pacific has emerged as a major manufacturing hub for electric vehicles and their components. The region boasts a robust supply chain and a skilled workforce, making it an attractive destination for battery system manufacturers. This localized manufacturing reduces production costs and allows for efficient distribution. The Asia-Pacific region is home to several innovative battery technology companies and research institutes. These entities are dedicated to developing advanced battery systems with higher energy density, improved safety, and faster charging capabilities. The emphasis on research and development fosters innovation and positions the region at the forefront of battery system advancements.

Moreover, governments in the Asia-Pacific region have recognized the potential of electric vehicles and battery systems in achieving sustainable transportation goals. They provide financial incentives, subsidies, and grants to promote domestic battery manufacturing and research. These initiatives accelerate the growth of the battery systems market in the region. The Asia-Pacific region is investing in the development of charging infrastructure to support the growing number of electric vehicles on the roads. Governments, in collaboration with private players, are establishing charging stations and implementing smart grid solutions to address range anxiety and enhance the overall EV experience. This infrastructure development further propels the demand for battery systems.

Considering these factors, the Asia-Pacific region is expected to witness a faster pace of growth in the battery systems for electric vehicles market compared to other regions. It offers significant opportunities for battery manufacturers, suppliers, and related stakeholders to capitalize on the burgeoning electric vehicle market.

Battery Systems for Electric Vehicles Industry Overview

The key vendors include Samsung SDI Co Ltd, Toshiba Corporation, BYD, and Panasonic Corporation, as they will be responsible for providing the automobile makers with the battery kit shortly. Currently, the battery manufacturers of electric vehicles are investing in R&D to improve the chemistry of the batteries to give a longer discharge time.

Technological advances in Li-ion batteries have made them comparatively lightweight with a long lifespan compared to conventional lead-acid and valve-regulated lead-acid battery (VRLA) batteries. With battery electric vehicles becoming the most viable alternative to ICE-powered automobiles and a solution to the problem of emissions, the demand for this type of vehicle is expected to increase considerably during the forecasted period, which calls for an excellent opportunity for electric battery manufacturers.

For instance, Swiss start-up Morand has introduced a groundbreaking battery technology that significantly reduces the charging time of electric vehicles to approximately 72 seconds. Their innovative EV battery utilizes a hybrid system, cleverly combining conventional battery technology with ultracapacitor technology, aptly named eTechnology. This pioneering approach allows electric vehicles to achieve an impressive 80% charge in a mere 72 seconds and complete a full 100% charge in just 2.5 minutes.

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