Electric Vehicle Battery Market Size, Market Share, Application Analysis, Regional Outlook, Growth Trends, Key Players, Competitive Strategies and Forecasts, 2021 To 2029

Government Support through Taxes & Incentives and Regulations on Emissions Influencing the Electric Vehicle Battery Market Growth Positively

The electric vehicle battery market was valued at US$ 3.59 Bn in 2020 and expected to grow at a CAGR of 20.2% during the forecast period from 2021 to 2029. The electric car revolution has become a hot investing theme in recent years as many believe it will transform the future of transport. Currently, push factors such as government support through taxes and incentives coupled with regulations on emissions are driving the market for electric vehicles. The aforementioned factors further make electric vehicles cheaper than cars with internal combustion engines (ICE) owing to which carmakers are investing heavily on R&D activities. Improving market conditions including technological, economic and political factors are expected to create favorable growth opportunities for the electric vehicle market to flourish, a factor influencing the electric vehicle market growth positively. Moreover, in the coming years, car manufacturers are expected to significantly expand their electric vehicle product range. This growth can be understood from the fact that in 2020, the number of new BEV and PHEV models launched globally doubled and again expected to further double in 2021. Therefore, these factors in combination expected to contribute to the electric vehicle battery market growth in the coming years.

However, barriers to large scale adoption of electric vehicles exist in the form of limited vehicle range, battery degradation & cost and lack of charging infrastructure. For instance, it takes an average time of four minutes to refuel an ICE car as compared to that of a BEV, which takes around 7 hours and 20 minutes to recharge.

Low Maintenance Cost, High Charge Retention Capacity and High Energy Density to Make Lithium-Ion Battery a Popular Choice in Coming Years

The adoption of lithium-ion battery in electric cars expected to be high during the forecast period. Initially, Nickel Metal Hydride (NiMH) batteries were mainly used to power hybrid vehicles, however, over the years, lithium-ion battery have emerged as the primary solutions for automakers to power plug-in hybrid electric vehicles (PHEVs) and battery electric vehicles (BEVs). The factors supporting the increasing adoption of lithium-ion battery in electric cars include, low maintenance cost, high charge retention capacity and high energy density. These factors expected to positively influence the adoption of lithium-ion battery in BEVs and PHEVs in the coming years. However, certain drawbacks exist for lithium-ion battery in the form of it being an expensive battery technology and major safety concerns pertaining to overcharging and overheating.

R&D Activities to Remain on the Center Stage for Electric Vehicle Battery Manufacturers

Research and development activities is one of the most common strategies adopted by the manufacturers of electric vehicle battery. These manufacturers are focusing on battery performance improvements and cost reductions in order to improve the appeal of electric vehicles. Moreover, in order to achieve the aforementioned factors, the manufacturers are making continuous efforts to increase the production scale and battery sizes. Furthermore, with the transition to technologies beyond lithium-ion, further improvements are expected to be witnessed in the area of electric vehicle battery.

Asia Pacific to register the fastest Growth during the Forecast Period

Asia Pacific was the largest regional market for electric vehicle battery worldwide in 2020. China stood as the largest market for electric cars in 2020 globally. The adoption of electric cars in the country has been growing at a very rapid rate. In 2020, China witnessed a growth of 72% in the sales of electric cars owing to which various electric car manufacturers are eyeing the region as potential market for revenue generation. For instance, Tesla recently announced its plan to invest US$ 5 Bn in in a factory in Shanghai. This will enable the company to have better access to the domestic market and at the same time ease the effects of punitive tariffs for its Chinese customers. With this move, the company expected to produce 500,000 cars annually in China. One of the most prominent factor aiding the electric vehicle battery market growth in Asia Pacific can be attributed to rising concerns related to energy security and incentives on use of battery powered vehicles. Europe expected to be another important market for electric vehicle battery in the coming years. The popularity of electric vehicle in the region can be understood from the fact that, in 2020, the market share of electric cars in Norway, Iceland and Sweden accounted for 39%, 12% and 6% respectively.

Historical & Forecast Period

This research report presents the analysis of each segment from 2019 to 2029 considering 2020 as the base year for the research. Compounded Annual Growth Rate (CAGR) for each respective segments are calculated for the forecast period from 2021 to 2029.

Key players profiled in the report include AESC, Panasonic, Mitsubishi, BYD, LG Chem, Wanxiang, Samsung, Tianneng, Beijing Pride Power and Boston-Power, Inc. among others.

Key questions answered in this report

• What was the global electric vehicle battery market size in 2020 and forecast for 2029?
• What are the current trends in the electric vehicle battery market?
• What are the various valuable opportunities for the players in the market?
• Which is the largest regional market for electric vehicle battery?
• Which region expected to be the fastest-growing and why?
• What are the future prospects for the electric vehicle battery market?
• What are the major drivers and restraints influencing the market growth?
• What are the new innovations by the leading players?
• What are the key strategies adopted by the leading players in market?

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