High Voltage Battery Market Size & Share, Growth Forecasts 2035

Global Market Size, Forecast, and Trend Highlights Over 2023 – 2035

High Voltage Battery Market Size is set to cross USD 1,252 Billion by the end of 2035, growing at a CAGR of 39% during the forecast period i.e., 2023 – 2035. In the year 2022, the industry size of high voltage battery was USD 25 Billion. Market growth is believed to be due to the growing need to reduce pollution and CO2 emissions. Electric vehicles emit almost no exhaust gas from the exhaust pipe, making a significant contribution to reducing greenhouse gas emissions. Road transport accounts for about 75% of global CO2 emissions, and in recent years Asian economies have contributed to the emissions. Approximately 795 million tons of CO2 are emitted by Asian countries, out of which India produces approximately 291 million tons.

Other factors that are expected to boost the growth of the high voltage battery market include aggressive government initiatives for smart city development. Clean energy sources such as batteries play an important role in this regard. During the COVID-19 pandemic, approximately 45% of government agencies worldwide were unprepared for the unprecedented challenges they encountered during the pandemic. This has prompted governments to upgrade their traditional infrastructure and launch and further develop smart city plans. Smart cities enable facilities that can efficiently address these challenges.

High Voltage Battery Sector: Growth Driver and Challenges

Growth Drivers

Growing Demand in the Automotive Industry – Batteries are an important part of the automotive industry. It is a power supply device that assists in starting the vehicle. Despite supply chain issues and rising prices, global SUV sales also increased, growing by about 3% from 2021 to 2022. By 2022, SUVs will account for about 46% of new car sales worldwide.
Increased Sales of Electric Vehicles Battery – All-electric vehicles, plug-in hybrid electric vehicles (PHEW), and hybrid electric vehicles require an energy storage device (usually a battery). Batteries serve as an alternative to diesel and gasoline and are responsible for the entire purpose of the car. New model launches, rising oil prices, and targeted regulatory support drove electric vehicle sales up in all markets. Global sales of electric vehicles will increase by nearly 60% in 2022 from 6.6 million in 2021, surpassing 10 million for the first time.
Reducing Battery Cost – In the past few times, there has been a decline in the price of batteries primarily driven by advancements in technology, economies of scale, and increased manufacturing efficiency. These declining costs have made electric vehicles more affordable for consumers and have boosted the demand for high-voltage batteries worldwide.

Challenges

Negative Impact on Environment – The raw material which is required for the production of batteries, such as lead, cobalt, and others are rare earth minerals. These are extracted through the process of mining which adversely impacts the surrounding the area of mine. However, the production of batteries requires huge amounts of water, as the production of 1 ton of lithium requires nearly 2 million tons of water. Furthermore, even the aftermath of using batteries is not environmentally sustainable. Battery corrosion releases chemicals that contaminate groundwater and surface water as well as soil. When contaminated by battery chemicals, our ecosystem which supports thousands of aquatic plants and animals is put at risk.
Lack of adequate facilities for the manufacturing
Shortage of charging stations for battery-operated vehicles.

High Voltage Battery Segmentation

Battery Type (Lithium-ion Battery, Lead-Acid Battery, Aluminium Air Battery, Hydrogen Battery)

The lithium-ion battery is poised to dominate the global high voltage battery market by reaching a growth of 40% by the end of 2035. Growth in this sector is due to the increased investment in the production of lithium-ion batteries. The expanding lithium-ion battery capacity globally is expected to be financed by various investments, which he expects to exceed USD 620 billion over the next 21 years. The funding is intended to cover different areas of battery production including supply chain, material extraction, and refining. Additionally, the increasing demand for lithium-ion batteries contributed significantly to the segment growth in the market. Global demand for this battery is expected to increase by about 11-fold between 2020 and 2030, and its capacity is expected to reach more than 2 terawatt hours.

Application (Passenger Cars, Commercial Cars)

The passenger car segment in the high voltage battery market is expected to observe the largest CAGR between the time period 2023 – 2035. Growing demand for passenger cars is expected to drive the growth of this segment. Indian passenger car sales increased by more than 8% in December 2022. About 280,000 passenger cars were shipped from factories to dealers during the same period, up from nearly 25,000 last year. In addition, the growing popularity of electric vehicles has increased the demand for electric passenger vehicles. As per the analysis, the global sales of electric passenger vehicles will increase by 13% in 2023.

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

Voltage Capacity

75 kWh-150 kWh
226 kWh – 300 kWh
More than 300 kWh

Battery Type

Lithium-ion Battery
Lead-Acid Battery
Aluminium Air Battery
Hydrogen Battery

Application

Passenger Cars
Commercial Cars

Want to customize this research report as per your requirements? Our research team will cover the information you require to help you take effective business decisions.

Customize this Report

High Voltage Battery Industry – Regional Scope

APAC Market Forecast

The high voltage battery market in the Asia Pacific region is predicted to dominate the market by expanding at a CAGR of 32% in the estimated period. The growth of the market is driven mainly due to the increase in automobile sales in the region. Total vehicle sales in China, including passenger cars, trucks, and buses, were approximately 27 million units. Sales of sedans and minivans will increase, reaching 24 million units in 2022. Furthermore, the Asia Pacific region is experiencing high investments in renewable energy projects such as solar and wind power. Thus, high-voltage batteries play a vital role in storing excess energy generated from these renewable sources and offer a stable power supply as well.

North American Market Statistics

The North America high voltage battery market is estimated to gain a substantial market share in the projection timeframe. The market growth is mainly due to increased investment in battery manufacturing. The U.S. battery-manufacturing investment plans have skyrocketed since President Biden signed a bill that would give a big boost to electric vehicles and renewable energy. For instance, in order to meet growing demand from automakers looking to ramp up production of electric cars and trucks, a South Korean battery maker said it would triple its investment plans for a new plant in Arizona. In addition, LG Energy announced that it will invest nearly USD 5 billion to build a new plant in the United States to start producing batteries for electric vehicles in 2025.

Key Questions Answered in the Report

1) What are the major factors driving the growth of the high voltage battery market?

Ans: The growing demand in the automobile industry and increasing demand for electric vehicles are some of the major factors anticipated to drive the growth of the high voltage battery market.

2) What would be the CAGR of the high voltage battery market over the forecast period?

Ans: The market is anticipated to attain a CAGR of ~39% over the forecast period, i.e., 2023 – 2035.

3) Who are the major players dominating the high voltage battery market?

Ans: The major players in the market are Hoppecke Batterien GmbH & Co. KG., Leoch International Technology Ltd., SK Innovations Co. Ltd., SVOLT Energy Technology Co., Ltd., Honda Motors Co., Ltd., LG Energy Solution Ltd., Contemporary Amperex Technology Co. Limited, and others.

4) Which segment captures the largest market size in battery type in the high voltage battery market?

Ans: The lithium-ion battery segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

5) Which region will provide more business opportunities for the growth of the high voltage battery market in the future?

Ans: The market in Asia Pacific is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.

Base Year	2022
Forecast Year	2023 – 2035
CAGR	~39%
Base Year Market Size (2022)	~USD 25 billion
Forecast Year Market Size (2035)	~USD 1252 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)