Electric Vehicle Battery Global Market Report 2024

The electric vehicle battery market size has grown exponentially in recent years. It will grow from $51.47 billion in 2023 to $63.48 billion in 2024 at a compound annual growth rate (CAGR) of 23.3%. The expansion observed in the historical period can be attributed to several factors, including government incentives and regulations promoting electric vehicles, advancements in battery technology, increasing environmental concerns and emphasis on sustainability, the rise of renewable energy sources, and a reduction in battery costs. These factors collectively contributed to the growth of the electric vehicle market during the historic period.

The electric vehicle battery market size is expected to see exponential growth in the next few years. It will grow to $135.98 billion in 2028 at a compound annual growth rate (CAGR) of 21%. Anticipated growth in the forecast period can be attributed to the increasing adoption of electric vehicle fleets, evolving consumer preferences and heightened awareness, geopolitical factors influencing the automotive industry, supply chain resilience considerations, and the expansion of charging infrastructure. Key trends expected in the forecast period encompass the growing mega-trend for electrification, advancements in technology within the electric vehicle sector, innovation in battery materials and manufacturing processes, the adoption of battery leasing and subscription models, and the development of fast-charging technologies.

The electric vehicle battery market is poised for growth, driven by the increasing demand for zero-emission vehicles. Zero-emission vehicles, which produce no tailpipe emissions during operation, are gaining popularity due to environmental concerns, government incentives, and a growing awareness of sustainable transportation. This shift towards cleaner and eco-friendly mobility solutions is propelling the demand for electric vehicles, which rely on electric vehicle batteries to store and supply electricity for emission-free transportation. According to the International Energy Agency in July 2023, the electric car market experienced rapid expansion, surpassing 10 million in sales in 2022. The share of electric cars in total sales more than tripled from approximately 4% in 2020 to 14% in 2022 within three years. The strong momentum in electric vehicle sales is expected to continue throughout 2023, driving the growth of the electric vehicle battery market.

Major players in the electric vehicle battery market are concentrating on the development of innovative material technologies, such as sodium-ion battery technology, to enhance energy density and lower costs. Sodium-ion battery technology introduces advancements such as higher energy density, faster charging capabilities, longer cycle life, and improved safety features to enhance overall performance and address key challenges in electrified transportation. In December 2023, KPIT Technologies, an India-based provider of automotive and mobility software, launched sodium-ion battery technology. This technology shows potential in reducing reliance on imported core battery materials and finds applications in electric two- and three-wheelers, commercial vehicles, stationary uses such as UPS backups and grid storage, and applications in the marine and defense sectors. Sodium-ion batteries boast an extended lifespan, retaining 80% capacity for 3000-6000 cycles, and exhibit faster charging capabilities compared to lithium batteries.

In October 2022, Nikola Corporation, a US-based manufacturer of zero-emission battery-electric and hydrogen-electric vehicles and hydrogen station infrastructure, acquired Romeo Power Inc. for an undisclosed amount. The integration of Romeo Power strengthens Nikola's capabilities, enabling vertical integration to expedite product development and enhance performance, marking a significant step in their dedication to revolutionizing the transportation sector. Romeo Power Inc., based in the US, is a designer and manufacturer of high-quality lithium-ion battery solutions for electric vehicles, contributing to advancements in electric vehicle battery technologies.

Major companies operating in the electric vehicle battery market are Hitachi Chemical Co. Ltd., Tesla Inc., Panasonic Corporation, BYD Company Limited, SK Innovation Co. Ltd., Contemporary Amperex Technology Co. Limited, LG Chem Ltd., Mitsubishi Electric Corporation, Fuji Electronic Co Ltd, Johnson Controls International plc, Toshiba Corporation, Samsung SDI Co. Ltd., EVE Energy Co. Ltd., CALB (China Aviation Lithium Battery Co. Ltd.), East Penn Manufacturing Co., Northvolt AB, Wanxiang Group Corporation, Varta AG, A123 Systems LLC, Shenzhen BAK Battery Co. Ltd., SVOLT Energy Technology Co. Ltd., Okaya Power Pvt. Ltd., Microvast Power Systems, Farasis Energy Inc., Beijing Pride Power Battery Technology Co. Ltd., Crown Battery Corporation, Hangzhou Tiecheng Information Technology, Tianjin Lishen Battery Joint-Stock Co. Ltd., OptimumNano Energy Co. Ltd.

Asia-Pacific was the largest region in the electric vehicle battery market in 2023 and is expected to be the fastest-growing region in the forecast period. The regions covered in the electric vehicle battery market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the electric vehicle battery market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The electric vehicle battery is a rechargeable energy storage device designed specifically to power electric vehicles. These batteries store electrical energy in chemical form and supply it to the electric motor when needed for propulsion, enabling the operation of the electric vehicle.

The primary types of electric vehicle batteries include lead-acid batteries, lithium-ion batteries, and others. Lead-acid batteries play a crucial role in the electric vehicle (EV) sector, serving as essential power sources for auxiliary functions such as lighting, communication, and safety mechanisms, complementing the primary lithium-ion battery pack responsible for propulsion. In terms of propulsion, electric vehicles are categorized into battery electric vehicles, hybrid electric vehicles, and plug-in hybrid electric vehicles. Additionally, electric vehicle types encompass passenger cars, light commercial vehicles, heavy commercial vehicles, and other variations.

The electric vehicle battery research report is one of a series of new reports that provides electric vehicle battery market statistics, including the electric vehicle battery industry's global market size, regional shares, competitors with an electric vehicle battery market share, detailed electric vehicle battery market segments, market trends and opportunities, and any further data you may need to thrive in the electric vehicle battery industry. This electric vehicle battery market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The electric vehicle battery market consists of sales of solid-state batteries, nickel-metal hydride batteries, and lithium iron phosphate batteries. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


This product will be delivered within 3-5 business days.