Electric Vehicle Battery Global Market Insights 2025, Analysis and Forecast to 2030, by Manufacturers, Regions, Technology, Product Type

Electric Vehicle Battery Market Overview

The Electric Vehicle (EV) Battery Market is poised for significant growth as the global automotive industry shifts towards electrification. With increasing environmental concerns, government incentives, and advancements in battery technology, the EV battery market is expected to witness a compound annual growth rate (CAGR) of 18.5%-22.3% from 2025 to 2030. The market size, valued at approximately $45.6 billion in 2025, is projected to reach $120 billion by 2030.

Market Size and Share Analysis

The EV battery market is segmented by product type, including Soft Pack Battery, Cylindrical Battery, and Square Battery. In 2025, the Square Battery segment dominated the market with a share of 48.7%, owing to its high energy density and compact design. The Cylindrical Battery segment held a 32.4% share, while the Soft Pack Battery segment accounted for 18.9%.

Key players in the market include CATL, Panasonic, BYD, LGC, SDI, Guoxuan High-tech, AESC, Tianjin Lishen, Farasis Energy, Shenzhen BAK, SKI, A123 Systems, and National Battery. In 2025, CATL led the market with a 32.5% share, followed by Panasonic at 18.7% and BYD at 12.3%.

Market Trends and Drivers

The EV battery market is driven by several factors, including:

• Government Policies: Governments worldwide are implementing stringent emission regulations and offering subsidies to promote EV adoption. For instance, the European Union aims to reduce CO2 emissions by 55% by 2030, while China plans to achieve 25% EV penetration by 2025.
• Technological Advancements: Innovations in battery chemistry, such as solid-state batteries and lithium-sulfur batteries, are expected to enhance energy density and reduce costs. The cost of lithium-ion batteries is projected to decrease from $137/kWh in 2025 to $100/kWh by 2025.
• Increasing EV Production: Global EV production is expected to grow from 6.7 million units in 2025 to 18.2 million units by 2030, driving demand for EV batteries.

Market Segmentation

By Product Type

• Soft Pack Battery: Expected to grow at a CAGR of 16.8%-19.2% from 2025 to 2030, driven by its flexibility and lightweight properties.
• Cylindrical Battery: Projected to grow at a CAGR of 17.5%-20.1%, owing to its high energy efficiency and durability.
• Square Battery: Anticipated to grow at a CAGR of 19.3%-22.3%, supported by its high energy density and compact design.

By Application

The EV battery market is segmented by application into Passenger Vehicles, Commercial Vehicles, and Two-Wheelers. In 2025, the Passenger Vehicles segment accounted for 68.4% of the market share, driven by increasing consumer demand for electric cars. The Commercial Vehicles segment held a 24.7% share, while the Two-Wheelers segment accounted for 6.9%.

By Region

• Asia-Pacific: Dominated the market in 2025 with a 56.3% share, driven by high EV adoption in China, Japan, and South Korea. The region is expected to grow at a CAGR of 19.8%-22.5% from 2025 to 2030.
• Europe: Held a 24.7% market share in 2025, supported by stringent emission regulations and government incentives. The region is projected to grow at a CAGR of 18.2%-20.7%.
• North America: Accounted for 15.6% of the market share in 2025, driven by increasing EV adoption in the U.S. and Canada. The region is expected to grow at a CAGR of 17.3%-19.8%.
• Rest of the World: Held a 3.4% market share in 2025, with growth driven by emerging markets in Latin America and the Middle East.

Market News on Policy and Companies

Recent developments in the EV battery market include:

• CATL announced a $5 billion investment in a new battery manufacturing plant in Europe, aiming to increase its production capacity by 80 GWh by 2026.
• Panasonic signed a $4.6 billion deal with Tesla to supply batteries for its new Gigafactory in Texas, expected to produce 100 GWh annually by 2025.
• The U.S. government introduced a $7.5 billion plan to build a nationwide EV charging network, aiming to install 500,000 charging stations by 2030.
• China announced a $1.4 trillion investment in renewable energy and EV infrastructure, targeting 25% EV penetration by 2025.

Segment Forecasts (2025-2030)

The EV battery market is expected to witness robust growth across all segments:

• Soft Pack Battery: Projected to reach $28.5 billion by 2030, growing at a CAGR of 16.8%-19.2%.
• Cylindrical Battery: Expected to reach $38.7 billion by 2030, growing at a CAGR of 17.5%-20.1%.
• Square Battery: Anticipated to reach $52.8 billion by 2030, growing at a CAGR of 19.3%-22.3%.

By region, Asia-Pacific is expected to remain the largest market, reaching $67.5 billion by 2030, while Europe and North America are projected to reach $29.6 billion and $18.7 billion, respectively.

Conclusion

The Electric Vehicle Battery Market is set for exponential growth, driven by government policies, technological advancements, and increasing EV production. With key players like CATL, Panasonic, and BYD leading the charge, the market is expected to reach $120 billion by 2030. As the world moves towards a greener future, the EV battery market will play a pivotal role in shaping the automotive industry.