Electric Vehicle Battery Market Research Report - Global Forecast to 2030

Electric Vehicle Battery Market Information Report, By Battery Type (Lithium-Ion Battery, Lead Acid Battery, Nickel Hydride Battery and others), By Vehicle Technology (Battery Electric Vehicles, Hybrid Electric Vehicles, Plug-in Hybrid Electric Vehicles and Others), by End Market (OEMs and Aftermarket) and By Region - Forecast To 2030

ID: MRFR/AM/3383-HCR | February 2021 | Region: Global | 188 pages

Electric Vehicles Battery Market Overview


Electric Vehicle Battery Market size is projected to be worth USD 192.29 Billion by 2030, registering a CAGR of 33.68% during the forecast period (2022 - 2030), The market was valued at USD 37.72 Billion in 2021.


An electric vehicle battery is a rechargeable battery. It does not require any combustion engine for propulsion and just uses chemical energy in the rechargeable batteries. So, these are eco-friendly vehicles with zero emissions. These are highly demandable for their compactness and cost-effectiveness. 


The automotive industry has introduced various advanced technologies in electric vehicles and the global market has acknowledged these technologies. Hence the major auto manufacturers like Tata Motors, Toyota, Mercedes-Benz, and Hyundai are preferring to adopt the EVs market due to the increasing demand over them. Thus the demand for the electric vehicle battery market is increased.


COVID-19 Analysis:


Due to the outbreak of the COVID-19, most of the business sectors are hit drastically. By the imposing of lockdowns, the overall production and sales of new vehicles were halted. Even though, in this tough pandemic situation, the electric vehicles battery market is positively impacted. The sales of electric vehicles are increased in 2020 compared to 2019. However, manufacturing units all over the world were shut down and production was stopped, at the second quarter of 2020, a slow recovery is witnessed by the new global deliveries of  BEVs and PHEVs which are increasing the electric vehicle battery market industry’s demand by 43% year-on-year.


The global electric vehicles market share is increased from 2.5% to 4.2% from 2019 to 2020. In 2020, nearly 1.47 million plug-in EVs are sold in Europe which is 137% more than in 2019. This growth is due to the introduction of new models and incentive boosts by green recovery funds. Even though at the end of March 31, 2020, popular brands like Panasonic and Samsung declined their profits and demand over their products, and the pandemic impacted the revenues of the major players, the overall electric vehicles sales were increased in 2020 in many countries. Moreover, upcoming supply contracts and new product developments are predicted to recover the post-2020 and helps in the growth of the electric vehicles battery market. 


Competitive Landscape


The prominent key players in the electric vehicles battery market outlook are the following:




  • Panasonic Corporation (Japan)




  • Automotive Energy Supply Corporation (Japan)




  • LG Chem Ltd (South Korea)




  • Boston- Power (US)




  • BYD Company Limited (China)




  • Quallion (US)




  • GS Yuasa Corporation (Japan)




  • Johnson Controls International (US)




  • Narada Power Source (China)




  • Hitachi Chemical Company (Japan)




  • Tianneng Power International (China)




  • Crown Battery Corporation (US)




Recent Developments




  • In August 2020, the popular company CATL introduced the new EV battery without the presence of nickel or cobalt. As cobalt is a very expensive component, the CATL is focussing to reduce the cost required for the portion of the cobalt with this development.




  • In November 2020, one of the top leading key players Samsung SDI decided to commercialize the li-ion battery which replaces the liquid electrolyte with the solid electrolyte in a battery cell, where the solid electrolyte improves the battery performance.




  • In July 2020, the famous vendor Panasonic Corporation collaborated with two industries named the Japan Fine Ceramics Center and Institute of Materials and Sytems for Sustainability, Nagoya University for the development of a technique that changes the li-ion batteries in all-solid-state batteries on a nanometer scale in real-time. This technology uses two methods Scanning Transmission Electron Microscopy (STEM) and machine learning that are applied to both bulk-type and thin-film-type all-solid-state lithium-ion batteries.




  • In July 2020, LG Chem announced that it is decided to reuse and recycle its used batteries proactively. This company would research and develop technologies to expect the remaining life by collecting the batteries from the customers.




Market Dynamics:


Drivers:


Worldwide, the surge in the demand for electric vehicles, government initiatives, growing fuel prices, and the expansion of global auto-manufacturers into new emerging markets are the major driving factors of the global electric vehicles battery market. Growing demand for electric cars may propel the growth of the market. Increasing the awareness among the people regarding eco-friendly vehicles is boosting the market.


Restraint:


The electric vehicle and its battery are very expensive and underdeveloped aftermarket services are the major restraints of the global electric vehicles battery market. Electric vehicle batteries are included several inflammable materials like lithium, manganese, and plastics. Moreover, lithium is highly reactive to water. So, the concerns regarding the performance and safety of these batteries either in hot or waterlogged environments are restricting the demand of the market. In the US, The National Fire Protection Association (NFPA) stated that between 2013-2017, most of the EV fires are caused by battery power systems and the major reason for the EV battery fires are heavy rain, heavy temperature fluctuations, and overcharging.


Opportunities:


An increase in the sales of new electric vehicles is escalating the growth of the global market.


The advanced business models like battery swapping and battery as a service (BaaS) allow the users to change the EV batteries once discharged which avoids the time spending on recharging the batteries. And BaaS model is more preferable which saves money on battery cost and avoids the worry about battery depreciation. This is one of the opportunities to accelerate market growth. 


Challenges:


Vehicles for public transport that costs less than USD 42,000 may continue to receive subsidies. This new rule was hitting only luxury car brands. The Chinese Ministry of Finance imposed subsidies for cars with high battery capacity. So, the EV manufacturers need to design the high capacity batteries or reduce the battery prices to level the overall cost of the vehicle falls under the subsidized range.


Segment Overview:


The global electric vehicles battery market has been divided into segments based on battery type, vehicle technology, end market, and region.


Based on Battery Type


The global market based on battery type is classified into few types a lead-acid battery, lithium-ion battery, nickel hydride battery, and others. Out of these batteries, lithium-ion battery is accounting for the largest market share and is followed by nickel hydride battery and lead-acid battery. The lithium ion’s battery technology allowing high energy density which increases travel distance and compact size make them preferable in the automotive industry.


Based on Vehicle Technology


The global market by vehicle technology is bifurcated into battery electric vehicles, hybrid electric vehicles, plug-in hybrid electric vehicles, and others.


Based on the End market


By the end-market, the global market is categorized into two types as OEMs and aftermarket.


Based on Region


Regionally, the global market is divided into four main geographies like Europe, North America, Asia-Pacific, and the Rest of the world. Asia-Pacific is dominating the largest market share due to the presence of emerging countries like  China, South Korea, Japan, and India which are the major markets.


Regional Analysis -


Globally, the electric vehicles battery market is analyzed into four major regions such as North America, Europe, Asia-Pacific, and the Rest of the World. Due to the presence of emerging countries like India, Japan, South Korea, and China which are the major markets. It is also registered as the fastest-growing economy across the globe. 


Due to the rising demand for electric cars and increasing awareness among the people regarding eco-friendly vehicles, Europe and North America are the second and the third leading regions. A rise in the sales of innovative electric vehicles has increased the demand for electric vehicle batteries in the European region. Germany, UK, and France are the major growth drivers in this region.


Report Overview:


Globally, this market research includes the Market Overview, COVID-19 analysis, Market Dynamics, Study Objectives, Segment Overview, Regional Analysis, Competitive Landscape, Recent developments, Segmentation Table, and FAQs. The market scenario includes the market drivers, restraints, challenges, and opportunities. The electric vehicles battery market forecast segments are battery type, vehicle technology, end market, and region.



Report Scope:
Report Attribute/Metric Details
  Market Size   2030: USD 192.29 Billion
  CAGR   33.68% CAGR (2022-2030)
  Base Year   2021
  Forecast Period   2022 to 2030
  Historical Data   2019 & 2020
  Forecast Units   Value (USD Million)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Battery Type, Vehicle Technology, End Market
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   Automotive Energy Supply Corporation (Japan), Panasonic Corporation (Japan), BYD Company Limited (China), LG Chem Ltd (South Korea), Quallion (US), Boston-Power (US), Johnson Controls International (US), Narada Power Source (China), GS Yuasa Corporation (Japan), Tianneng Power International (China), Crown Battery Corporation (US), and Hitachi Chemical Company (Japan) .
  Key Market Opportunities

  • Emerging economies have more opportunities for electric vehicles, and will create ample scope
  • Rise in the sales of new electric vehicles
  •   Key Market Drivers

  • Increasing demand for electric cars and growing awareness of ecofriendly vehicle
  • Increasing fuel prices, expansion of global auto-manufacturers into new emerging markets, and government initiatives


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    Frequently Asked Questions (FAQ) :


    The surge in demand for electric vehicles is projected to impact the global development of the market.

    An 33.68% CAGR is projected to be witnessed in the market.

    A profitable revenue level is anticipated to be seen in the market.

    Quallion (US), Boston-Power (US), LG Chem Ltd (South Korea), GS Yuasa Corporation (Japan), Johnson Controls International (US), and Narada Power Source (China) are the noteworthy contenders in the market.

    The Asia Pacific region is appraised to gain control of the market in the approaching period.