The global electric vehicle battery market is set to strengthen its market hold at a promising CAGR of 8.5%, while it is forecast to hold a revenue of USD 21,258.4 million by 2033. The market is valued at USD 9,402.3 million in 2023.
Rising fuel prices, the use of lithium-ion batteries, higher sales of hybrid/electric vehicles, and technological advancements are fueling the sales of electric vehicle batteries.
| Report Attribute | Details |
|---|---|
| Electric Vehicle Battery Market Value (2023) | USD 9,402.3 million |
| Electric Vehicle Battery Market Anticipated Value (2033) | USD 21,258.4 million |
| Electric Vehicle Battery Market Projected Growth Rate (2023 to 2033) | 8.5% |
FMI's research report on the electric vehicle battery market suggests that the market was building up during the historical period. However, the advent of covid-19 and its implication on multiple markets damaged the electric vehicle sector a lot. However, the rising inflation and hike in fuel prices due to covid-19 have made people adopt electric vehicles.
The thorough research process took a significant time, especially during the pandemic phase, while bringing innovation to the electric automotive industry. The use of different types of batteries in various vehicles, along with governments subsidizing the sector and its applications to reduce pollution and fuel consumption, has led the market to grab a significant hold on the market space. Electric passenger cars are becoming the first choice as these are zero-emission cars. The introduction of new plug-in EV models is attracting end users to adopt electric technology as a form of transportation.
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A global study on the electric vehicle battery market explains that governments around the world have been promoting electric or hybrid vehicles. The reason behind that is sustainable fuels or alternative fuels. This helps the administration in limiting emissions. The future for the electric vehicle battery market looks promising as people are shifting towards electric vehicles as they are more efficient financially as well as environmentally.
Countries that have high population densities, such as India and China, are adopting vehicles that run on alternative fuels as these nations have lower availability of fuel, high prices, and lower per capita income. The new manufacturing hubs for electric vehicle battery production are also producing advanced and powerful batteries that perform better and have a longer shelf life. These factors are set to fuel the demand for electric vehicle batteries.
The new and advanced battery management systems and enhanced batteries covid-19 are forcing EV manufacturers to upgrade their batteries. This gives more to offer to end users. The trend of higher adoption of EVs to prevent high fuel prices. The covid-19 is damaging people's financial status, and fuel prices are touching the sky with the ongoing war and global sanctions on some oil-producing nations.
The higher adoption of EVs led to innovations in the industry as well as upgrading EVs components like batteries, motors, etc. These constitute some factors that majorly drive the sales of electric vehicle batteries. Let's understand them in detail:
Lower Running Costs
Due to electric fuel, the cost of running is much lower in EVs than in petrol and diesel vehicles. Electric vehicles depend on their batteries and motor performance, not fossil fuels. Charging an EV battery is cheaper than filling petrol or diesel.
The use of renewable and regenerative energy is the future of automotive. Long-term travel has become easier with new charging stations setting up their feet. These EV batteries can be charged through renewable energy sources such as solar panels, making it a futuristic industry.
Affordable Maintenance Cost
With lower running costs, the maintenance cost in EVs is also affordable. With no engine, EVs don't need any engine oils, service, or cleaning. Other than that, the easy transmission doesn't require any regular maintenance.
The servicing requirements for electric vehicles are lesser than conventional fossil fuel vehicles. Though the repair cost can be higher than the regular machines as the EV transmission is new, advanced, and requires professional supervision. The difference in costs between BEV, PHEV, and HEV is very small.
No Tailpipe Pollution
Another factor driving the demand for electric vehicle batteries is their positive impact on carbon footprint, as there is no tailpipe emission. Also, the EVs don't consume fuels which makes it a renewable and sustainable option, fueling the sales of electric vehicle batteries. Due to these policies, governments around the world provide multiple tax and financial benefits. This involves registration fees and road tax on purchasing electric vehicles that are lesser than petrol or diesel vehicles.
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The electric vehicle battery market report explains the higher price of the battery to be the hindering force. An electric car battery costs between USD 5,500 and USD 9,400. This is one key factor that restricts end users from adopting electric vehicles.
Some nations monopolize cobalt extraction facilities and their massive chunk. This increases the risk of supply disruption, creating uncertainty in these market spaces. Another downside of an electric vehicle is its manufacturing which creates far more emissions than the production of petrol and diesel vehicles. Then the raw materials must be refined before they can be used, which again emits more greenhouse gases.
| Segment | Market Share % (2023) |
|---|---|
| Passenger Cars | 22.2% |
Passenger car is the most attractive segment by vehicle type in the electric vehicle battery market owing to their relatively high market value share and growth rate. It is estimated to remain the most lucrative segment in terms of value and volume over the forecast period. The passenger car segment is estimated to record a significant CAGR of 9% in the electric vehicle battery market during the forecast period.
Electric vehicle battery market analysis explains that the hybrid electric vehicle (HEV) segment held more than 70% of the share in 2022. The dominance of HEV over PHEV and BEV in the electric vehicle market makes them the prominent market for electric vehicle batteries. Hybrid electric vehicles are preferred as their twin-powered engine, comprised of an IC engine and electric motor, decreases fuel consumption.
Insufficient charging stations and the vulnerability of solo battery vehicles have slowed the market for PHEVs and BEVs. It is estimated that hybrid electric vehicles are expected to remain the most lucrative segment in terms of value and volume over the forecast period in the electric vehicle battery market.
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| Attributes | Details |
|---|---|
| The United States Market Share % (2023) | 28.7% |
| Germany Market Share % (2023) | 15.1% |
| Japan Market Share % (2023) | 5.3% |
| Australia Market Share % (2023) | 1.4% |
| China Value CAGR % (2023 to 2033) | 9.6% |
| India Value CAGR % (2023 to 2033) | 9% |
| The United Kingdom Value CAGR % (2023 to 2033) | 8.7% |
While the Asia Pacific region holds and is expected to hold a substantial share of the electric vehicle battery market. Though Europe is the fast-growing regional market. The electric vehicle battery market regional analysis explains that the factors attributed to the market growth are numerous gigafactories planned to be commissioned during the forecast period and the high adoption of electric mobility in the region.
The presence of big and small players in India sensed the need to meet the requirement for locally based manufacturers. The Indian market has gone into overdrive with a spurt of high investments and players. Companies such as Amara Raja Group have introduced plans to invest around USD 1 billion in five to seven years, fueling the sale of electric vehicle batteries.
The electric vehicle battery market demand analysis states that the startup scene has a lot of potential. New players are using different chemistry techniques, fueling the sales of electric vehicle batteries. The ecosystem fuels the manufacturing parts, but also, for building an appropriate ecosystem, startups are participating actively.
Recent Start-up Development:
The electric vehicle battery market suggests that the market's competitive landscape is dynamic and working on expanding its supply chains and distribution channels. The competitors work on mobility and performance while enhancing the shelf-life of the cell. The competitors allow mergers, acquisitions, etc., to expand their market size.
Recent Market Development
The sales of electric vehicle batteries are directly proportional to the demand for electric vehicles. The expansion of the electric vehicles industry increases the maintenance and repair hubs. Electric vehicle sales have been fueling in India, increasing the demand for electric vehicle batteries.
A higher amount of automation equipment outsourcing is anticipated to fuel the production of electric vehicle batteries. The rising fuel prices around the country are due to taxes and the ongoing war between Russia and Ukraine. The EV sales are expected to be around 10 lakh units, which equals the total EV sales in the past 15 years. The explosion of India's EV battery manufacturing units is attributed to policies and innovative developments.
The overall production of vehicles involves the availability of its components. The battery, electric motor, power electronics, and battery packs get assembled and create the base for any electric vehicle, be it a car or bike. India has made policy-wise developments for the betterment of its electric automotive industry, providing the component manufacturers the easy factory policies subsidies, business loans, and tax discounts.
This not only fuels the market but attracts investors to invest in the new blooming electric vehicle (EV) industry. Around 60% of an EV's cost depends on its parts, such as batteries and motors. The government introduced a production-linked scheme to help the companies to improve advanced chemistry cell storage capabilities. The budget for this initiative is Rs 18,000 crore.
Companies have introduced newly advanced battery management systems to enhance power delivery and transmission. The local battery manufacturers are also outsourcing the batteries to EV companies. The use of different metals for lower resistance and increased safety. New EV battery manufacturers focus on producing lithium-ion batteries that work efficiently in any device and hold a good high-temperature performance.
Sustainable engineering offers to create batteries that are also eco-friendly, as it has no emissions and can be recycled later. Some modern-age EV batteries are listed below.
| Report Attribute | Details |
|---|---|
| Growth Rate | CAGR of 8.5% from 2023 to 2033 |
| Base Year for Estimation | 2022 |
| Historical Data | 2018 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | Revenue in USD million and CAGR from 2023 to 2033 |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis |
| Segments Covered | Battery Type, Vehicle Technology, Vehicle Type, Battery Capacity, Region |
| Regions Covered | North America; Latin America; Europe; Asia Pacific; The Middle East and Africa |
| Key Countries Profiled | The United States, Canada, Brazil, Argentina, Germany, The United Kingdom, France, Spain, Italy, Nordics, BENELUX, Australia & New Zealand, China, India, ASEAN, GCC, South Africa |
| Key Companies Profiled | Automotive Energy Supply Corporation,; Panasonic Corporation; BYD Company Limited; GS Yuasa Corporation; LG Chem Ltd.; Samsung SDI Co., Ltd; Tesla Motors, Inc.; Hitachi Chemical Company, Ltd.; Narada Power Source Co. Ltd.; Johnson Controls International Plc.; Tianneng Power International Co., Ltd.; Crown Battery Corporation; Furukawa Electric Co., Ltd.; EnerSys; Wanxiang Group Corporation; East Penn Manufacturing Co.; Toshiba Corporation; Leoch International Technology Ltd. |
| Customization | Available Upon Request |
This market is estimated to reach USD 21,258.4 million by 2033.
(HEV) segment held more than 70% of the share in 2022.
The high price of the battery causes market growth risks.
Affordable maintenance cost raises the market growth.
Asia Pacific holds a substantial share of the market.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Battery Capacity 5.1. Less than 20 kWh 5.2. 21-40 kWh 5.3. More than 41 kWh 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Vehicle Technology 6.1. HEV 6.2. PHEV 6.3. BEV 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Vehicle Type 7.1. Passenger Cars 7.2. Light Commercial Vehicles 7.3. Heavy Commercial Vehicles 7.4. Others 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Battery Type 8.1. Lithium Ion 8.2. Lead Acid 8.3. Nickel Hydride 8.4. Others 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 9.1. North America 9.2. Latin America 9.3. Western Europe 9.4. Eastern Europe 9.5. South Asia and Pacific 9.6. East Asia 9.7. Middle East and Africa 10. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 17. Key Countries Market Analysis 18. Market Structure Analysis 19. Competition Analysis 19.1. Automotive Energy Supply Corporation 19.2. Panasonic Corporation 19.3. BYD Company Limited 19.4. GS Yuasa Corporation 19.5. LG Chem Ltd. 19.6. Samsung SDI Co., Ltd. 19.7. Tesla Motors, Inc. 19.8. Hitachi Chemical Company, Ltd. 19.9. Narada Power Source Co. Ltd. 19.10. Johnson Controls International Plc. 19.11. Tianneng Power International Co., Ltd. 19.12. Crown Battery Corporation 19.13. Furukawa Electric Co., Ltd. 19.14. EnerSys 19.15. Wanxiang Group Corporation 19.16. East Penn Manufacturing Co. 19.17. Toshiba Corporation 19.18. Leoch International Technology Ltd. 20. Assumptions & Acronyms Used 21. Research Methodology
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Electric Vehicle Battery Market
