Electric Vehicle Battery Market Size & Share, by Vehicle Type (Passenger Car, Commercial Vehicle, Two-Wheeler); Battery Type (Lithium-Ion, Nickel Metal Hydride, Lead Acid); Propulsion Type (Battery, Hybrid, Plug-In Hybrid) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 4770
  • Published Date: Sep 25, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2024 - 2036

EV Battery Market size is expected to reach USD 624.07 Billion by the end of 2036, growing at a CAGR of approximately 22% during the forecast period, i.e., 2024 - 2036. In the year 2023, the industry size of EV battery was USD 57.4 Billion. The growth of the market can be attributed to the rising need to save oil and gas, this factor is propelling nations all across the world to deploy electric vehicles. Around 50 TWh of electricity, or less than 0.5% of current global final electricity consumption, was used by the world's EV fleet in 2021. Moreover, in the same year, the adoption of EVs reduced oil consumption by about 0.3 Mb/d. In order to comply with the Net Zero Scenario in 2030, EVs would need to replace more than 7 Mb/d of oil.

In addition to these, factors that are believed to fuel the market growth of electric vehicle batteries include rising demand for electric vehicles which in turn is likely to boost the demand for batteries. According to the International Energy Agency, after ten years of exponential development, the number of electric cars sold worldwide reached 10 million in 2020, a rise of 43% over 2019. Moreover, in 2020, battery electric vehicles (BEVs) made up two-thirds of the stock and all new electric car registrations. Furthermore, in 2021, around 6.6 million electric cars were sold and sales of EV accounted for about 10% of all vehicle sales worldwide.


Electric Vehicle Battery Market
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EV Battery Market: Key Insights

Base Year

2023

Forecast Year

2024-2036

CAGR

~22%

Base Year Market Size (2023)

~ USD 57.4 Billion

Forecast Year Market Size (2036)

~ USD 624.07 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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EV Battery Sector: Growth Drivers and Challenges

Market-Growth-Drivers

Growth Drivers

  • Rise in the Number of New EV Models - The introduction of new models into the market is likely to boost the interest of people in electric vehicles and thus surge the demand for batteries. According to the International Energy Agency, in 2021, there were five times as many new EV vehicles as there were in 2015, making them more alluring to buyers. Almost 450 different EV models are now on the market.
  • Rising Pollution from Vehicles — Electric vehicles have no exhaust emissions, and driving one can help you lessen your carbon footprint. By utilizing renewable energy, you may further lessen the impact that charging your vehicle has on the environment.
  • Technological Advancement in Electric Battery— Advancement in technology is expected to bring opportunities for the market. A new battery technology developed by the Swiss start-up Morand can charge EVs in as little as 72 seconds. With this technique, known as eTechnology, an EV may be fully charged in just 2.5 minutes and receive an 80% charge in just 72 seconds.

Challenges

  • Risk of Damage to Lithium Batteries - Lithium-ion batteries are sensitive to voltage ranges outside of those considered safe, which are 2.5 to 3.65/41/4.2 or 435V. Due to the reactive components within the cells, exceeding this voltage range puts the user in danger of both premature aging and safety hazards. The modest current draw of the protective circuitry may cause the battery to discharge below the shutdown voltage when kept for extended periods of time.
  • The Growth of EVs is Extremely Slow in Under-developed Country
  • Raw Material for Batteries Require Mining of Rare Earth Minerals


Electric Vehicle Battery Segmentation

Vehicle Type (Passenger Car, Commercial Vehicle, Two-Wheeler)

The passenger segment is estimated to hold 60% share of the EV battery market in the year 2036. The growth of the segment can be attributed to the rising demand for passenger electric cars. The demand for passenger electric vehicles is rising quickly; the International Energy Agency predicts that by 2022, almost 13% of all new cars sold are to be electric. Furthermore, regionally speaking, in 2020, 35 million electric passenger cars were sold in China, followed by Europe, where 1.8 million cars were sold. Passenger cars contribute heavily to air pollution, therefore substituting gas-passenger cars with electric cars is likely to be a great solution and is also expected to boost the market growth.

Battery Type (Lithium-Ion, Nickel Metal Hydride, Lead Acid)

EV battery market from the lithium-ion battery segment is expected to gamer a significant share of approximately 50% in the year 2036. The growth of the segment is expected to grow on account of rising demand for lithium-ion batteries. On the other hand, compared to lead-acid batteries, lithium-ion batteries have a higher energy density and a longer lifespan. Owing to this, lead acid batteries are being phased out of many applications, including grid and transportation, and being replaced by lithium-ion batteries.

Our in-depth analysis of the global market includes the following segments:

 

          Vehicle Type

  • Passenger Car
  • Commercial Vehicle
  • Two-Wheeler

 

          Battery Type

  • Lithium-Ion
  • Nickel Metal Hydride
  • Lead Acid

 

          Propulsion Type

  • Battery
  • Hybrid
  • Plug-In Hybrid

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EV Battery Industry - Regional Synopsis

APAC Market Forecast

The EV battery market in Asia Pacific is projected to generate the largest share of about 35% by the end of 2036. This growth could be owing to the growing production of electric vehicles. In 2021, the Asia-Pacific market for electric car production increased by double digits over the preceding year to 122,243 units. Moreover, this region also has the presence of major market players which is also boosting the market expansion in this region.

North American Market Analysis

The North America EV battery market is also estimated to have notable growth over the forecast period. The growth of the market can be attributed majorly to the increasing investment for boosting the manufacturing of electric vehicle. In the manufacturing of electric vehicles and batteries, the United States is now prepared to draw the greatest amount of foreign investment. Since President Biden's appointment in 2021, companies have announced investments totaling around USD 210 billion in the EV battery industry.

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Electric Vehicle Battery Market Size
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Companies Dominating the EV Battery Landscape

top-features-companies
    • Honda Motors Co, Ltd.
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Panasonic Corporation
    • LG Energy Solution Ltd.
    • Contemporary Amperex Technology Co. Limited
    • Samsung SDI Co. Ltd.
    • BYD Company Ltd.
    • SK Innovations Co. Ltd.
    • SVOLT Energy Technology Co., Ltd.
    • Primearth EV Energy Co., Ltd.
    • Vehicle Energy Japan Inc.  

In-the-news

In The News

  • BYD Company Ltd. announced the launch of Blade Battery which help fix battery safety problems while simultaneously establishing industrywide safety requirements. In comparison to typical lithium iron phosphate block batteries, the battery pack's space utilization has enhanced by over 50% owing to its optimized battery pack construction.
     
  • Honda Motor Co., Ltd. announces the collaboration with LG Energy Solutions to launch a joint venture battery plant in Fayette County, Ohio. The new production facility will be ready by the end of 2024, by the end of 2025, the facility hopes to begin mass-producing pouch-type lithium-ion batteries with a production capacity of about 40GWh annually.

Author Credits:  Payel Roy, Dhruv Bhatia


  • Report ID: 4770
  • Published Date: Sep 25, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

The major factors driving the growth of the market are rise in number of new EV models, rising pollution from vehicles, and technological advancement in electric battery.

The market size of EV battery is anticipated to attain a CAGR of 22% over the forecast period, i.e., 2024 – 2036.

The major players in the market are Honda Motors Co, Ltd., Panasonic Corporation, LG Energy Solution Ltd., Contemporary Amperex Technology Co. Limited, and others.

The passenger car segment is anticipated to garner the largest market size by the end of 2036 and display significant growth opportunities.

The market in the Asia Pacific region is projected to hold the largest market share by the end of 2036 and provide more business opportunities in the future.
Electric Vehicle Battery Market Report Scope
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