Global EV battery Market 2022-2028

Global EV battery Market 2022-2028

The global market is growing at a CAGR of 18.2% during the forecast period (2022-2028). The global EV battery market is mainly driven by the increase in the demand for fuel-efficient, high-performance, & low-emission vehicles, and stringent government rules & regulations toward vehicle emission. With the proliferation of electromobility and the resulting increase in EV production, the market for EV batteries has seen consistently high growth rates over the past few years.

The COVID-19 pandemic didn’t affect the market negatively except for Japan. Electric car registrations increased in major markets in 2021 despite the COVID-19 pandemic and hence resulted in increasing demand for EV batteries. According to the International Energy Agency, new electric car registrations more than doubled to 1.4 million in 2021. In the large markets, Germany registered 395,000 new electric cars and France registered 185,000.The UK more than doubled registrations to reach 176,000. The new registration for electric car has also seen rise in Asia-Pacific region except Japan.

MARKET SEGMENTATION

The EV battery market is segmented on the basis of vehicle type, battery type, and propulsion type. Based on vehicle type, the market is segmented into commercial vehicle, passenger vehicle, and two-wheeler.The passenger vehicle segment is projected to grow at a CAGR of 19.5% during the forecast period. Government targets (target of 2028, 2028, and 2040) to introduce EV cars in various regions is the major factor for the segmental growth of the market.

Geographical Analysis

The global EV battery market is segmented into North America (the US and Canada), Europe (Germany, UK, France, Italy, Spain, and Rest of Europe), Asia-Pacific (China, India, Japan, and Rest of Asia-Pacific), and the Rest of the World. Among these, Asia-Pacific dominated the market in 2021, growing at a CAGR of 17.7% during the forecast period. The regional growth is attributed to the increasing deployment of electric vehicles in countries such as China. China is one of the largest EV markets, and the increasing adoption in the country has been in line with the clean energy policy. Moreover, the Government of China has been providing both financial and non-financial incentives for promoting the adoption of EVs in the country. Such favorable policies significantly drive the EV industry and hence increase demand for EV batteries.

KEY PLAYERS ANALYSIS

The global EV battery market is characterized by the presence of several players that are operating and providing their products across the globe. Some of the key players of the market include CATL, LG Chem Ltd., Panasonic Corp., and BYD Co. Ltd., among others. Further, to capitalize on the market opportunities, these market players are adopting various strategies such as mergers and acquisitions, product launch, geographical expansion, partnerships, and collaborations. For instance:

● In September 2021, Ford Motor Co and its Korean battery partner SK Innovation announced to invest $11.4 billion to build an electric F-150 assembly plant and three battery plants in the US, accelerating the US automaker's push into electric vehicles.

● In September 2021, CATL announced to invest $529 million to construct 137 GWh of lithium-ion battery capacity per year. The investment will go into five projects in China in Fujian, Guangdong and Jiangsu. These sites are expected to be finished within the next three years to meet the rising demand for EV’s and lithium batteries.

● In December 2021, LG Chem Ltd announced its plans to more than double the production capacity of battery cells it makes in China for Tesla Inc electric vehicles (EV) in 2021. The firm, a supplier for Tesla's Shanghai-built Model 3, will also ship its increased output from China as well as Korea to Tesla's factories in Germany and the US.