Electric Vehicle Battery Market Sales Projected to Grow at 26.52% CAGR by 2032 Driven by Decreasing Costs of Lithium-Ion Batteries

According to Market.us, Leading market players are introducing fresh ideas and business models such as BaaS and battery swapping, allowing users to quickly replace their discharged batteries. This can result in higher customer satisfaction and increased global growth in the electric vehicle battery market.

New York, April 06, 2023 (GLOBE NEWSWIRE) -- The Global Electric Vehicle Battery Market size is projected to surpass around US$ 500 billion by 2032, and it is poised to reach a registered CAGR of 26.52% from 2023 to 2032 and size accounted for US$ 50.5 billion in 2022.

The emergence of the technology of Lithium-ion has increased the demand for the growth of batteries, which has been a primary solution for automobile manufacturer which can give power to battery electric vehicles which are also called BEVs and Plug-in Hybrid electric vehicles which is also called as (PHEVs). Some of the benefits which have helped in the growth of Li-ion as a battery technology are charge retention capacity batteries, High-energy density, and low maintenance batteries. BEVs and PHEVs in the Electric vehicle battery market, which are introduced by automobile manufacturers, are expected to offer Li-ion power as a primary solution of the battery to the power source in their vehicles.

Electric Vehicle Battery Market By Battery Type

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Key Takeaway:

  • By Battery Type in 2022, the Lithium-Ion Battery segment generated the highest revenue in the Global Electric Vehicle Battery Market share in 2022.
  • By Vehicle Type, the Battery Electric Vehicle (BEV) segment is dominating the market, and it is growing at a significant rate over the forecast period 2023 to 2032.
  • In 2022, Asia-Pacific Region dominated the market with the highest revenue share of 38.8%.
  • North-America Region held the second position in revenue share in 2022.

With the rising sales of electric vehicles, the e-mobility trend is assumed to gain traction for the forecasted period. The strategic collaboration between e-mobility providers, energy suppliers, and battery manufacturer is the major trend that drives the growth of the electric vehicle market globally. The establishment of green power generation capability and the continued rollout of the charging station is an add-on to the growth of the market. Developing countries such as India, China, Mexico, and South Africa have been experiencing significant growth in the registration of electric vehicles.

Factors affecting the growth of the Electric Vehicle Battery industry

There are several factors that can affect the growth of the Electric Vehicle Battery industry. Some of these factors include:

  • Reduction in the cost of the batteries: The reduction in the cost of Lithium-Ion batteries will likely drive the growth of the market of Electric Vehicle batteries globally.
  • Adoption of Electric Vehicles: The increase in the adoption of Electric vehicles will likely drive the growth of the market globally.
  • Concern about global emission: The rise in pollution and the increased concern about the emission will result in people adopting the electric vehicle, which will eventually drive the growth of the Electric vehicle battery market globally.

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Top Trends in Electric Vehicle Battery Market

Recently, lithium-nickel-manganese-cobalt-oxide, which is also called NMC, is used in the construction of electric vehicle batteries. Eventually, the adoption of new battery chemistries for electric vehicles is growing at a significant rate. This chemistry offers high energy density and a longer life cycle of the batteries, as compared to the equivalent batteries like NMC and NCA material. For example, the adoption of the lithium-nickel-manganese-cobalt-aluminum oxide, which is also called NMCA, in the forecasted period. Therefore, the development of advanced battery chemistry is a positive trend that drives the growth of the market globally.

Market Growth

In the last few years, consumers have been adopting electric vehicles and their advantages, such as these vehicles can run without fuels, such as diesel, gasoline, and petrol, and these vehicles also have low maintenance costs, which can eventually reduce the cost of the consumers. The German Federal Motors Transport Authority provided statistics that show that there is an increase in plug-in electric vehicle sales by 61%. Thus the advantages of environment-friendly vehicles drive the growth of the market globally.

Regional Analysis

Asia-Pacific region dominates the growth of the market globally. The majority of the production of electric vehicles is represented by Japan, china, and south korea. The majority of the electric batteries that are manufactured in China are used by the domestic market. And the electric vehicles that are produced by the European countries use batteries made by Japan and South Korea due to the similar electric grid of the European average. North America is the leading consumer of electric vehicle batteries, and the integration of battery storage with renewables systems is offering significant growth in the electric vehicle battery market for lithium-ion batteries. Europe will face significant growth in the market as the major factor for the growth is the plug-in electric vehicles and the incentive funds by the green recovery funds. Also, some of the major factories are planned across Europe for a boost in demand for electric vehicles.

Competitive Landscape

Major Key players in the electric vehicle battery market are ATLASBX Co., Sony, Hitachi, NEC Corporation, Panasonic Corporation, TCL Corporation, Huanyu New Energy Technology, and others key players. Companies like Panasonic and LG chem are heavily investing in Research and Development to lower the cost of batteries by reducing the use of expensive materials used for the manufacturing of the electric vehicle battery market. The cost of the batteries is the main restraint on the growth of the battery market.

Recent Development of the Electric Vehicle Battery Market

  • In June 2021- the announcement of building giga-factories of electric batteries in the United Kingdom was announced by Nissan Motors, along with a China-based technology company known as Envision AESC.
  • In March 2021- A lithium metal battery startup was done by the partnership of General Motors and SolidEnergy systems. This partnership was done, which aims to boost the development of the U.S. automobile manufacturer’s battery, which allows for the increase in the grieving range and smaller package.

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Scope of the Report

Report AttributeDetails
Market Value (2022)USD 50.5 Billion
Market Size (2032)USD 500 Billion
CAGR (from 2023 to 2032)26.52%
North America Revenue Share30.1%
Asia-Pacific Revenue Share38.8%
Historic Period2016 to 2022
Base Year2022
Forecast Year2023 to 2032

Market Drivers

The lithium-ion is the main source for the manufacturing of electric vehicles at present. Lithium-ion batteries hold 70% of the share of the rechargeable battery market globally. Due to the advancements in battery packs and the cell chemistry techniques of manufacturing, in the coming years, the prices of batteries are expected to drop. Therefore, the decrease in the cost of the battery is the main key driver of the growth of the market globally. The price of the battery, which is charged kWh, is dropped from 1000 US$ to 200 US$. Rigorous fuel economy regulations are implemented by government regulatory bodies due to the growing awareness about climate change, which resulted in the development of electric vehicles by providing subsidies. The importance of Electric vehicles is more than the traditional automobiles, which are fuel-based, release low emissions, and have the potential to develop and utilize renewable energy resources. Therefore the concern about the emission emitted by the vehicles is likely to boost the growth of the market globally.

Market Restraints

To store and utilize electricity as a fuel, several minerals are essential, namely nickel, graphite, cobalt, manganese, and elements that are rare on the earth, such as neodymium. The increase in the demand for electric vehicles results in a short-term lack of supply of these components which are used in batteries. The supplies of these minerals are geographically determined, and the alternatives for the battery are limited or do not exist. The lack of charging infrastructure is also the key restraint to the growth of the market. The lack of charging infrastructure will eventually decrease the adoption of electric vehicles in emerging economies. Also, the cost of installation of the charging infrastructure is high, and the cost per charge of the electric vehicles is low, which can be a restraint for the growth of the market.

Market Opportunities

Key major players in the market are coming up with some new ideas and new business models such as batter-as-a-service, which is also called BaaS, and battery swapping, which allows the user to change or swap electric batteries once the battery is discharged. This can save time for the users, which is spent on charging the batteries and which results in customer satisfaction and can be the main reason for consumers to adopt electric vehicles. And this can drive the growth of the market for electric vehicle battery market globally.

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Report Segmentation of the Electric Vehicle Battery Market

Battery Type Insight

Based on the battery type, the segment is classified into Lead-acid, nickel-metal hydride, lithium-ion, sodium-ion, and others. Lithium-ion batteries have high energy density and are used in applications that require lightweight. The lithium-ion segment is dominating the market globally. Lead-acid batteries are used in applications where weight is not a constraint and in applications where economical batteries are required. These batteries are widely used in automotive applications, which include hybrid, and electric vehicles, due to their high energy density per weight. Lead acid batteries can be preferred as an alternative to lithium-ion batteries.

Vehicle Type Insight

The battery electric vehicle dominates the growth of the market. It holds the largest market share during the forecasted period. The rise in electric vehicle adoption due to cost-saving and zero carbon emission is driving the market's growth. The increase in technological advancement is also the reason for the market's growth. The continuous advancement in technologies, which will initially decrease the price of the batteries of the electric vehicle, is one of the major reasons for the global growth of the market. The advantages of zero-emission and the ability to not emit toxic gases is the main factor driving the growth of the market.

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Market Segmentation

By Battery Type

By Vehicle Type

  • Battery Electric Vehicle (BEV)
  • Plug-In Hybrid Electric Vehicle (PHEV)
  • Hybrid Electric Vehicle (HEV)

By Geography

  • North America
    • The US
    • Canada
    • Mexico
  • Western Europe
    • Germany
    • France
    • The UK
    • Spain
    • Italy
    • Portugal
    • Ireland
    • Austria
    • Switzerland
    • Benelux
    • Nordic
    • Rest of Western Europe
  • Eastern Europe
    • Russia
    • Poland
    • The Czech Republic
    • Greece
    • Rest of Eastern Europe
  • APAC
    • China
    • Japan
    • South Korea
    • India
    • Australia & New Zealand
    • Indonesia
    • Malaysia
    • Philippines
    • Singapore
    • Thailand
    • Vietnam
    • Rest of APAC
  • Latin America
    • Brazil
    • Colombia
    • Chile
    • Argentina
    • Costa Rica
    • Rest of Latin America
  • Middle East & Africa
    • Algeria
    • Egypt
    • Israel
    • Kuwait
    • Nigeria
    • Saudi Arabia
    • South Africa
    • Turkey
    • United Arab Emirates
    • Rest of MEA

Key Market Players

  • Sony
  • Hitachi
  • NEC Corporation
  • Panasonic Corporation
  • TCL Corporation
  • Huanyu New Energy Technology
  • Duracell
  • NorthStar
  • Crown Battery Manufacturing
  • GS Yuasa Corp
  • East Penn Manufacturing Co.
  • C&D Technologies, Inc.
  • B. Battery Co., Ltd.
  • Narada Power Source Co., Ltd.
  • CSB Battery Company Ltd.
  • EnerSys, Inc.
  • Coslight Technology International Group Co., Ltd.
  • Zibo Torch Energy Co., Ltd.
  • Other Key Players

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