Global Ev Battery Market- Market Size & Forecast To 2032

GLOBAL EV BATTERY MARKET- MARKET SIZE & FORECAST TO 2032

The global EV battery market is estimated to be worth of USD 67.2 Billion in 2023 and is growing at a CAGR of 19.74% during the forecast period from 2023 to 2032. EV batteries are replacing fossil fuels such as gasoline and diesel in the automobile sector owing to lower emissions. They can also be charged using renewable energy sources, making them eco-friendly and eventually lowering electric prices, which is projected to accelerate their market development. Additionally, the accompanying road tax and registration expenses for electric vehicles are very cheap, which is projected to affect market growth. Manufacturers are primarily focused on upgrading EV technology in order to promote zero-emission automobiles. Moreover, a circular economy may be encouraged by recycling EV batteries and other vehicle components, which will minimize municipal solid waste (MSW) and eventually complement market expansion throughout the projection period. However, there was an early hint of the market's resilience when activities restarted at the end of 2021 as a result of battery cost reductions and consumer awareness for electric cars, both of which led to greater EV battery adoption. Furthermore, as 2021 was the goal year for emissions limits, and growing government incentives for new electric car buyers contributed to the market's revenue growth, Europe saw a major post-pandemic rise.

Governments all across the globe are supporting the use of alternative fuel cars as environmental concerns about conventional autos grow. EVs are zero-emission cars that are becoming increasingly popular for environmentally beneficial public transit across the world. Some national governments give financial incentives like as tax exemptions and refunds, subsidies, reduced parking/toll charges for EVs, and free charging to encourage the usage of EVS.

Major EV markets including as China, the United States, and Germany are investing extensively in EV charging infrastructure as well as R&D for faster and more effective charging processes. Automakers are expected to invest more in order to fulfil the rising demand for EVs and alter the industry. Companies with considerable R&D spending for EV development include Tesla, Volkswagen, Ford, Nissan, BMW, and General Motors. Manufacturers provide a diverse range of electric automobiles, including tiny hatchbacks like the Leaf and premium sedans like the Tesla Model 3.

The market for electric cars has expanded as a result of the vast number of consumers enticed by the range of product possibilities. For example, in October 2021, General Motors announced intentions to invest USD 35 billion with the objective of producing and selling more than one million EVs and other technologies by 2025. The firm intends to be all electric by 2035. In November 2021, Ford announced that it will increase its annual EV production capacity to 600,000 by 2023. It plans to deliver 40% electrified automobiles by 2030. Volkswagen also announced plans to invest USD 86.3 billion in EV development through 2030. Other companies, such as Tesla, Nissan, and BMW, have made significant developments and planning for the projected EV demand over the next 5-10 years.

EV Battery market is segmented into battery type, battery form, method, material type, propulsion, vehicle type, and battery capacity.

Based on battery type, the market is segmented into lithium ion, lead acid, nickel metal hydride, solid state, sodium ion battery, and others. In 2021, lithium-ion batteries had the biggest revenue share. The improved energy density and lightweight construction of these batteries are the primary factors driving their acceptance. Furthermore, demand for lithium-ion batteries in electric cars is increasing since they are safer than alternatives; at the same time, quick charging sessions supplement industry expansion throughout the predicted period. Furthermore, excellent durability, dependability, and cooling performance, as well as laminated-structure battery cells and long-life cycle cells, drive market expansion.Based on battery form, the market is segmented into prismatic, pouch, cylindrical, others. The pouch segment is projected to dominate the market throughout the projection period owing to its superior energy storage capability,. Pouch cells use a sealed piece of flexible foil as their cell container rather than a solid enclosure. Furthermore, the packaging approach is simple, minimising weight and fitting into the available space, which is projected to have a beneficial influence on sales growth throughout the projection period. Numerous car manufacturers are investing in pouch cells, which is also predicted to boost market development.Based on form, the market is segmented into Wire bonding, laser bonding, and others. Laser bonding is predicted to increase at the fastest CAGR throughout the forecast period because laser welded bonds can withstand larger currents. This segment's growth is being driven by the benefits of narrow, high-speed welding at a lower heat, which is suited for attaching battery cells containing heat-sensitive chemicals. Precision and non-contact welding, which employs a concentrated heat source and can be adapted to fit small, inaccessible spaces and is provided by lasers, will help the industry develop.Based on material type, the market is divided into cobalt, lithium, natural graphite, manganese, and others. The lithium material category is likely to dominate the market over the projection period owing to it is employed as a metallic anode. However, lithium-ion batteries are lighter and less costly, which is a crucial element driving the segment's growth. Furthermore, they reduce operational costs while maintaining the greatest degree of safety, hence supporting market development.Based on size, the market is segmented into battery electric vehicle (BEV), hybrid electric vehicle (HEV), plug in hybrid electric vehicle (PHEV), and fuel cell electric vehicle (FCEV). Battery electric vehicles (BEV) are anticipated to dominate the market expansion owing to their growing popularity and the fact that they are entirely electric and operate on rechargeable batteries. Moreover, technological innovation and falling battery prices are important factors driving market expansion. Furthermore, BEVs are zero-emission cars that do not generate hazardous gases like traditional gasoline vehicles, which is predicted to fuel market growth during the projection period.Based on vehicle type, the market is categorized into passenger cars, light vehicles/trucks, medium & heavy trucks, buses, and others. The passenger car is expected to dominate the market and is anticipated to remain so for the foreseeable future, owing to the increased use of electric cars in both emerging and established nations. Furthermore, with various countries across the world adopting emission standards, this category is projected to dominate the EV battery market. Moreover, increased awareness of the benefits of EVs, changing lifestyles, expanding urbanisation, and disposable income are likely to drive market expansion.On the basis of end-use, the global EV Battery market is segregated into<50 KWH, 50-110 KWH, 110.1-200 KWH, 200.1-300 KWH, and Above 300 KWH. The 50-110 kWh range is predicted to develop quicker during the forecast period due to quick charging at cheap cost and excellent energy efficiency, and the majority of electric cars operate within this range. The growing demand for electric vans and light vehicles that run on 50-110kwh batteries is propelling the market forward. Moreover, rising fuel prices and government attempts to minimise truck and bus fleet emissions are likely to drive category development.Based on region, the EV Battery market has been segmented into North America, Europe, Asia Pacific, Middle East & Africa, and South America. The Asia-Pacific region ies expected to hold the majority of the worldwide market share in the forecast period owing to the increasing deployment of electric cars in countries such as China, Japan, and India, as well as the increased demand for automobiles due to urbanisation and rising power purchase parity, the region's use of lithium-ion batteries is likely to expand significantly. Favorable policies, such as energy efficiency standards and increasing peak demand charges, as well as technological advances, have led to increased interest in the commercial and industrial (C&I) sector from project developers, primarily due to strong growth in China and India, which is expected to drive demand for lithium-ion-based energy storage systems in the region.

China is one of the major markets for electric vehicles, and the country's rising acceptance of electric vehicles has been consistent with the country's clean energy programme. Furthermore, the Chinese government has been providing both financial and non-financial incentives to encourage the adoption of electric vehicles. However, in January 2021, China's Ministry of Finance reduced subsidies for electric vehicles (EVs) by 20% for the year 2021, as sales of so-called new energy vehicles (NEVs)—a category that includes hybrids, plug-in hybrids, and hydrogen-powered automobiles—restored momentum after plummeting during the pandemic last year.