Electric Vehicle (EV) Battery Market

Electric Vehicle (EV) Battery Market Outlook

The global electric vehicle (EV) battery market was valued at USD 91 Billion in 2020 and it is projected to reach USD 900 Billion by the end of 2031, registering a CAGR of 25% during the forecast period 2021-2031.

Newly published findings by Fact.MR- a market research and competitive intelligence provider- establishes that the global market for electric vehicle batteries exhibited robust Y-o-Y expansion of 14% in 2019, with sales being valued closed to US$ 91 Bn.

Report Attributes	Details
Market size value in 2020	USD 91 Billion
Market forecast value in 2031	USD 900 Billion
Industry Growth Rate	CAGR of 25% from 2021 to 2031
Forecast Period	2021-2031
Historical Data Available for	2016-2020
Key Regions Covered	North America Latin America Europe East Asia South Asia Oceania Middle East & Africa
Key Market Segments Covered	Power Source Powertrain Vehicle Type Region
Key Companies Profiled	Bayerische Motoren Werke AG Daimler AG Ford Motor Company General Motors Honda Motor Company Limited Mitsubishi Heavy Industries Ltd. Nissan Motor Corporation Limited Renault SA Tesla Motors Inc. Toyota Motor Corporation Volkswagen AG, Toshiba Corporation Delphi Automotive LLC (Aptiv) Samsung SDI Co. Ltd. LG Chem Ltd. Denso Corporation Panasonic Corporation
Pricing	Available upon Request

The debut of Electric Vehicles (EVs) and the subsequent expansion in their market is one of the chief growth accelerators for this market. In the short-run, until 2022, global market for electric vehicle batteries is likely to surge at a CAGR of 13.6%, while in the long-run, it will likely expand nearly 10x to reach US$ 900 Billion.

EV Battery Revenue Analysis 2016-2020 Vs Future Outlook 2021-2031

From 2016 to 2020, global sales of electric vehicle batteries surged at above 12% CAGR, with sales being valued at US$ 91 Bn by the end of the said historical period. Sales have been influenced by a significant increase in demand for zero-emission vehicles as a result of rising fuel prices, depletion of fossil fuel reserves, and tightening pollution rules.

As producers shift their focus towards more cutting-edge technologies and forming strategic collaborations with automotive OEMs, the electric vehicle battery market will have brighter prospects. Mounting environmental concerns such as global warming and rising pollution levels have prompted manufacturers to propose alternative energy sources to power vehicles.

Based on the aforementioned prevailing trends, Fact.MR projects the demand for electric vehicle batteries to register an astronomical surge, registering a whopping CAGR exceeding 25% from 2021 to 2031.

How are new Plug-in EV Models Driving Market Demand?

Across the globe, the electric car market is expanding at a breakneck pace. As a result of the increased demand for EVs, major vehicle manufacturers are entering the market, which is ultimately expected to stimulate demand for EV batteries in the long-run.

Prominent manufacturers, including Toyota, Tata Motors, Mercedes-Benz, and Hyundai, are developing electric vehicle models to strengthen their positions in the industry. Electric car development is projected to accelerate shortly, thanks to major manufacturers' interest in the field.

Recently, in April 2021, Toyota Motor Corporation announced the release of its new battery electric vehicle (BEV) series- Toyota bZ. A concept version of the first model in the series, the bZ4X would be unveiled in Shanghai, while 15 BEVs, including 7 Toyota bZ BEVs, would be introduced globally by 2025.

How are Surging E-mobility Trends Expected to Widen EV Battery Sales?

With increased sales of electric vehicles, the e-mobility trend is likely to gain traction over the projection period. The continuing implementation of integrated charging stations, as well as the construction of green power-generation capabilities, would add to the market's growth potential.

Strategic alliances between e-mobility providers, battery makers, and energy suppliers are another trend that is predicted to promote sales of electric vehicle batteries. At the same time, automakers are pushing technology advancements to ensure that their electric vehicles have robust propulsion.

Why are Concerns over Battery Safety a Concern?

Most electric vehicle batteries are deemed safe since they are put through a series of testing before being used. However, several occurrences, such as the recall of 68,000 Chevy EV Bolts following five battery-related fires, have raised concerns about the safety of these batteries.

Electric vehicle batteries are made up of combustible components like lithium, manganese, and polymers. When lithium is exposed to water, it becomes extremely reactive. As a result, there are worries about these batteries' performance and safety in extremely dry or moist settings, thus limiting future sales.

Country-wise Analysis

What Supports Increasing EV battery Sales in Europe?

In 2021, Europe is expected to account for over 30% of the global EV market by volume, registering a staggering CAGR over 35%. Because electric vehicles are currently relatively expensive, the growth of the EV battery business in the region is heavily reliant on government incentives and funds.

Germany is anticipated to remain at the forefront of the European EV battery industry. The presence of OEMs such as the VDL Groep (Netherlands) and AB Volvo (Sweden) in the region provides the potential for the EV battery market to flourish.

What are the Factors Driving Revenue Generation across Asia?

Asia will likely hold the greatest market share- with China EV Battery Market capturing around 28.3% of the total revenue. In response to the growing preference for electric vehicles, Asian countries, particularly China, India, and South Korea, have seen an increase in electric vehicle battery demand in recent years.

Because of reduced labor costs and low maintenance expenses, China has a high concentration of electric and conventional vehicle battery manufacturers. Besides China, India is likely to emerge as a major powerhouse, expanding at a whopping 15% CAGR through 2031- attributed to rising government incentives to promote EV production.

How Opportunistic are Growth Prospects in the U.S.?

The U.S has established a dominant position in the electric car battery landscape. Continuing development of electric vehicles is intensifying competition among industry participants, translating into a flurry of product launches. Fact.MR expects the market to surge at around 25% CAGR.

Because of the expanding sales of electric automobiles in these locations, North America has seen an increase in electric vehicle battery demand. Tesla Motor Inc., Ford Motor Company, and Bayerische Motoren Werke AG are among the most well-known electric vehicle manufacturers in the U.S

Category-wise Insights

Why are Passenger Cars Stimulating Heightened Demand?

According to Fact.MR’s analysis, EV batteries for passenger cars are expected to register maximum sales, accounting for more than 50% revenue in forthcoming years. This majorly due to widening preference for EVs globally.

Adoption rates are especially high across Asia- with China emerging at the forefront. The region alone considered using 61% of all cobalt used globally in manufacturing EV batteries in 2019, according to the USGS National Minerals Information Center.

How are Stored Electricity Electric Vehicle Batteries Becoming Popular?

Demand for stored electricity based EV batteries are expected to gain significant traction, attributed to the fact that electric vehicles for traveling larger distances are acquiring popularity. A CAGR above 10% is projected for this segment.

Similar to common rechargeable batteries, very large batteries can store electricity until it is needed. These systems can use lithium ion, lead acid, lithium iron or other battery technologies. Furthermore, large capacity storage batteries increase durability, as opposed to those requiring constant recharging.

Competitive Landscape

In forthcoming years, manufacturers in the electric vehicle battery industry will primarily focus on strategic acquisitions, collaborations, and product introductions.

• In May 2019, Panasonic Corporation announced the launch of ‘Nymbus’ – the first of its kind smart EV charging service in India. The new service combines various physical components such as charging stations, telematics systems, and others with virtual components including AI, cloud service, and analytics to deliver a one stop solution.
• As more people switch to electric vehicles, Hitachi High-Tech predicts a rise in demand for used lithium-ion batteries. According to the business, the annual global market for testing batteries is expected to reach between 500 billion ($4.8 billion) and 1 trillion yen by 2030.

Key Segments Covered

• Power Source

  • Stored Electricity
  • On-board Electric Generator

• Powertrain

  • Series
  • Parallel
  • Combined

• Vehicle Type

  • Passenger Cars
  • Commercial Vehicles
  • Two Wheelers
  • Others (Golf Carts etc.)