High Voltage Battery Market Analysis & Opportunity Outlook 2023-2035

Global High Voltage Battery Market Size, Forecast, and Trend Highlights Over 2023 - 2035

The global high voltage battery market size is estimated to reach USD 2289.7 Billion by the end of 2035 by growing at a CAGR of 41.95% over the forecast period, i.e., 2023 – 2035. In addition to this, in the year 2022, the market size of high voltage battery was USD 2289.7 Billion. The growth of the market can be attributed to the rising need to reduce pollution and levels of CO2 emission. The electric vehicle has nearly zero emission from exhaust pipes, which significantly contributes to reducing greenhouse gas emissions. Road transportation is responsible for approximately 75% of all global CO2 emissions, which have been boosted in recent years by Asian economies. Out of the around 795 million tons of CO2 released by Asian economies, India produces roughly 291 million tons. In the past ten years, CO2 emissions from the transportation sector alone have tripled.

In addition to these, factors that are believed to fuel the market growth of high voltage battery include the proactive effort put in by the government for the development of smart cities. One of the top priorities for every nation is to construct smart cities. In this aspect, a clean energy source such as battery plays a remarkable and crucial role in ensuring citizens' comfort and well-being. During covid-19 around 45% of government organization all across the world wasn’t prepared for the unprecedented problems that occurred during the pandemic. This prompted governments to enhance the traditional infrastructure and evolve it with the introduction of plans for smart cities. Smart cities enable facilities that help in tackling these challenges efficiently. On the other hand, rising investment in the automobile sector and growing demand for electric vehicles notably contributed to the growth of the high voltage battery market.

Global High Voltage Battery Market: Growth Drivers and Challenges

Growth Drivers

Growing Demand for Automobiles – Battery is an important component of a vehicle; it is a power provider which helps in starting the vehicle. Despite supply chain issues and rising prices, global SUV sales rose as well, climbing by about 3% between 2021 and 2022. SUV sales made up about 46% of all new automobile sales worldwide in 2022.
Rising Sales of Electric Vehicle – All-electric vehicles, plug-in hybrid electric vehicles (PHEVs), and hybrid electric vehicles require energy storage equipment, typically batteries. The battery act as a substitute for diesel or petrol and is responsible for the entire purpose of the car. Sales of electric vehicles rose in every market as a result of the launch of new models, high oil prices, and focused regulatory support. Global sales of electric cars climbed by around 60% in 2022, topping 10 million for the first time, up from sales of 6.6 million in 2021.
Increasing Investment in Battery Production– Rising investment is likely to increase the capacity of batteries and create more opportunities for the market. BMW announced the investment of USD 1 billion in a project to boost the production of batteries in the facility China located in the Northeastern Province of Lioning.
Growing Emission of Greenhouse Gases by Transport System – Batteries are green technology and are used as an alternative to fuels for electric cars. According to the United Nations Environment Programme, a quarter of all emissions of greenhouse gases (GHG) associated with energy come from the transportation sector, worldwide. One of the main contributors to both urban and regional air pollution today is the transportation sector, which relies heavily on the burning of fossil fuels.
Proactive Efforts to Build Smart Cities – Batteries are a source of clean energy and have the ability to make smart cities smarter and even more sustainable. The UN estimates that 10 cities are likely to surpass the 10 million population mark between now and 2030, bringing the total number of megacities to 43. Possibly among these cities are Shanghai, Mexico City, Delhi, New York, Cairo, and others.

Challenges

Negative Impact on the Environment- The raw material which are 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. Moreover, the production of batteries requires a huge amount of water, for instance, 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 ecosystems, which support thousands of aquatic plants and animals, are put at risk.
Lack of Adequate Facilities for the Manufacturing
Shortage of Charging Stations for the Battery-Operated Vehicles

Global High Voltage Battery Market Segmentation

The global high voltage battery market is segmented and analyzed for demand and supply by battery type into lithium-ion battery, lead-acid battery, aluminum air battery, and hydrogen battery. Out of the four types of battery, the lithium-ion battery segment is estimated to gain the largest market share in the year 2035. The growth of the segment can be attributed to the increasing investment in the production of lithium-ion batteries. The growing global capacity of lithium-ion batteries is likely to be funded by various investments that are expected to surpass USD 620 billion over the next 21 years. This funding is to encompass the various segment of the production of the battery including the supply chain, extraction, and refinery of the materials. Moreover, the rising demand for lithium-ion-made batteries significantly contributed to the market growth. The global demand for the battery is expected to rise by around 11 times between the years 2020 and 2030, and the capacity is likely to reach more than 2 terawatt-hours.

The global high voltage battery market is also segmented and analyzed for demand and supply by application into passenger cars, commercial vehicles, and others. Amongst these three segments, the passenger cars segment is expected to garner a significant share in the year 2035. The rising demand for passenger car is expected to boost the growth of the segment. India's passenger vehicle sales increased by over 8% in December 2022. Moreover, in the same time period, around 280,000 passenger vehicles were dispatched from factories to the dealers, which is higher than the previous year, which was nearly 255,000. Furthermore, nearly 800,000 units of passenger cars were sold in Europe, and the sales of passenger cars in the region increased by around 12% in February 2023. Moreover, the rising popularity of electric vehicles has increased the demand for passenger electric cars. The International Energy Agency predicted that global sales of the electric passenger are expected to increase by 13%.

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

By Voltage Capacity	75 kWh-150kWh 226 kWh-300kWh More Than 300 kWh
By Battery Type	Lithium-Ion Battery Lead-Acid Battery Aluminum Air Battery Hydrogen Battery
By Application	Passenger Cars Commercial Vehicles Others

Global High Voltage Battery Market Regional Synopsis

The market share of high voltage battery in Asia Pacific, amongst the market in all the other regions, is projected to be the largest with a share of about ~32% by the end of 2035. The growth of the market can be attributed majorly to the increasing sales of automobiles. The total sales of vehicle, including cars, trucks, and buses were around 27 million in China. Out of which, the sale of sedan cars, minivans, and SUVs increased and reached 24 million in 2022. Moreover, in the same year, the sale of electric cars in China reached approximately 10%. On the other hand, the market growth in the region is also attributed to the rising investment to boost the production of batteries. For instance, both public and private sectors are planning to invest USD 24 billion to serve the recommendation of the Japanese Commission. With the help of this investment, government aims to boost the manufacturing capacity and supply chain of batteries by employing more than 30,000 qualified workers.

The North American high voltage battery market is estimated to be the second largest, registering a share by the end of 2035. The growth of the market can be attributed majorly to the increasing investment in battery manufacturing. Since President Biden signed a measure that provides considerable incentives for electric cars and renewable energy, investment plans for U.S. battery production have soared. For instance, to satisfy rising demand from automakers who are attempting to increase production of electric cars and trucks, a South Korean battery manufacturer announced it would triple its planned investment in a new factory in Arizona. In addition to this, LG Energy announced to invest nearly USD 5 billion to establish the new facility in the United States, and to start producing batteries for electric vehicles in 2025.

Further, the market in the Europe, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. The growth of the market can be attributed majorly to the rising demand for the electric vehicle which is likely to boost the demand for different types of batteries. Following the boom of 2020, sales of electric vehicles in Europe increased by more than 65% year over year to 2.3 million in 2021. Even though the automotive industry as a whole has not yet fully recovered from the pandemic, EV sales have remained high.

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Top Featured Companies Dominating the Global High Voltage Battery Market

The Lion Electric Company
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis

Celgard, LLC
Exide Industries Ltd.
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

In The News

The Lion Electric Company announced the completion of its first pack of lithium-ion batteries at the facility located Mirabel, Quebec. The Lion5 truck and the LionAmbulance, which are anticipated to enter commercial production in the first half of 2023, will be powered by the first batteries made in Mirabel.
Celgard, LLC announced the strategic collaboration with C4V to progress the creation of high-performance, high-voltage battery cells of the next generation. The company also aims at development of separator solution for the lithium-ion battery market

Global Economic Impact

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Despite Inflation & Fearing Recession, Businesses Across the Globe Expected to Do Better in 2023:

In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.

Key Questions Answered in the Report

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

Ans: Increasing investment in batteries production, rising demand for electric vehicle, and higher development of smart cities are the major factors driving the market growth.

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

Ans: The market size of high voltage battery is anticipated to attain a CAGR of ~41.95% over the forecast period, i.e., 2023 – 2035.

3) What are the challenges affecting the high voltage battery market growth?

Ans: Lack of infrastructure, and negative impact on the environment are estimated to be the growth hindering factors for the market expansion.

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

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

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

Ans: The major players in the market are Celgard, LLC, Exide Industries Ltd., 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 The Lion Electric Company.

6) How are the company profiles selected?

Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.

7) What are the segments in the high voltage battery market?

Ans: The market is segmented by battery type, voltage capacity, application, and by region.

8) Which segment captures the largest market size in the battery type segment 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.

Base Year	2022
Forecast Year	2023-2035
CAGR	41.95% %
Base Year Market Size (2022)	USD 34.21 Billion
Forecast Year Market Size (2035)	USD 2289.7 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)