Global Electric Vehicle Battery Market Growth and Prospects for Technological Advancement 2024 to 2032

 Electric Vehicle Battery Market Overview:

The electric vehicle battery market size is growing continuously, mainly due to the growing production and sales of electric vehicles over the last few years. Besides, the spurring rise in advanced EV batteries foments innovation races around range and power.  Battery manufacturers focus on improving their battery performance and management technologies that have already altered the market capitalization.

The growing demand for lithium-ion & hybrid batteries provides excellent opportunities to the market.  According to Market Research Future (MRFR), the global electric vehicle battery market is estimated to reach an exponential valuation by 2027, registering an impressive CAGR during the forecast period (2020–2027).

EV battery manufacturers strive to improve the suppressed demand and supply chain, rectify production challenges, and scramble to keep pace with technologies. They focus on the immediate prospect for industry consolidation and adjusting demand, largely via consumer subsidies and through taxes and fees.

On the other hand, changing regulatory norms, market dynamics, and technological trends are major factors impeding market growth. Also, price volatility and the demand-supply gap in raw materials required for battery production pose significant challenges to the growth of the market.

Major Players 

Players leading the EV battery market include Panasonic Corporation (Japan), Automotive Energy Supply Corporation (Japan), BYD Company Limited (China), Quallion (US), LG Chem Ltd. (South Korea), Boston-Power (US), Narada Power Source (China), Johnson Controls International (US), GS Yuasa Corporation (Japan), Crown Battery Corporation (US), Tianneng Power International (China), and Hitachi Chemical Company (Japan), among others.

Electric Vehicle Battery Market - Segments

The EV battery market is segmented into battery type, vehicle technology, end market, and region. The battery type segment is sub-segmented into lithium-ion battery, lead-acid battery, nickel hydride battery, and others. Among these, the sub-segment lithium-ion battery holds the largest market share, followed by nickel hydride and lead-acid battery.

The vehicle technology segment is sub-segmented into battery electric vehicles, hybrid electric vehicles, plug-in hybrid electric vehicles and others. Among these, the sub-segment battery electric vehicle holds the largest market share, followed by hybrid electric vehicles.

The end market segment is sub-segmented into OEMs and aftermarkets. The region segment is sub-segmented into the Americas, Europe, Asia Pacific, and rest-of-the-world.

Electric Vehicle Battery Market – Regional Market

The Asia Pacific region dominates the global electric vehicle battery market. China, South Korea, Japan, and India account for major market share due to the raw material advantages and the availability of cost-competitive workforces. Besides, the increasing demand for EVs and growing awareness of eco-friendly vehicles are major growth drivers. The APAC EV battery market is projected to maintain its market position throughout the review period.

Europe holds the second position in terms of electric vehicle battery market value. The region witnesses a rise in the sales of new electric vehicles, augmenting the demand for EV batteries. Also, Germany, UK and France being the leading countries in Europe, have fuelled the market growth. Additionally, stringent regulations and increasing demand for environment-friendly vehicles boost the electric vehicle battery market revenue. 

North America has been witnessing a spurring rise in the electric vehicle battery market revenues. Factors providing impetus to market growth include advances in technologies and storage capacities. Furthermore, the proliferation of EVs and the presence of key industry players act as a major tailwind for the region's market growth. The North American EV battery market is expected to grow at a significant rate over the forecast period. 

Electric Vehicle Battery Market - Competitive Analysis

The EV battery market size is estimated to witness significant strategic approaches, such as expansion, collaboration, mergers & acquisitions, and advanced technologies integration. Leading industry players also make strategic investments in driving research and development activities and fostering their expansion plans. 

Industry/Innovation/Related News

April 09, 2021 – Epsilon Advanced Materials Pvt. Ltd. announced opening a new anode production facility in Karnataka State, India. Anode materials are used in lithium-ion batteries for electric vehicles (EV). The company is an upcoming global supplier of synthetic graphite anode materials. Epsilon is looking to convert coal tar into graphite anodes to cut the dependence on China, which has a monopoly in electric-car batteries.

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