Global Electric Vehicle Battery Market Insights, Forecast to 2028

EV Battery Market Statistics 2028

The global Electric Vehicle Battery market size is estimated to be worth US$ 56690 million in 2022 and is forecast to a readjusted size of US$ 302610 million by 2028 with a CAGR of 32.2% during the forecast period. Key drivers of the EV battery market include stringent emission regulations leading to the widespread adoption of electric vehicles. 

The falling prices of lithium-ion batteries and advancements in battery chemistry will fuel the growth of the EV battery market during the forecast period. 

The launch of newer plug-in models by Electric Vehicle manufacturers will surge the growth of the market in the coming years. 

EV Battery Market Trends 

Shift to electric vehicles

Due to the increasing threat of climate change and rising environmental consciousness consumers are transitioning to electric vehicles. The prices of fuel and gas are skyrocketing due to the uncertain global environment. Furthermore, government authorities around the world are enacting strict regulations for achieving ambitious decarbonization targets. Fuel efficiency and emission standards are being rolled out to curb the global pollution levels of cars, trucks, buses, etc. Carmakers are setting up vehicle electrification targets to boost the overall production capacity. Several incentives and subsidy schemes are launched by governments around the world to incentivize EV purchases and reduce upfront vehicle costs. Tax exemptions have been provided on charging infrastructure. Furthermore, EVs are much more efficient than conventional internal combustion engine vehicles as they have fewer moving parts which reduce maintenance costs and store the excess energy in the grid. These factors will in turn drive the demand for the EV battery market during the forecast period. 

Developments in battery density and cheaper prices

The prices of lithium-ion batteries are decreasing continuously. This is fueling its adoption on a large scale. Along with these newer battery chemistries are being developed such as lithium- nickel- manganese- cobalt-aluminum oxide which has higher energy density and longer life cycles. The extensive research efforts to increase the cell charge densities have brought down the price significantly. Additionally, lithium-ion batteries offer a fast charge and provide a large choice of cell design and chemistries. The cycling performance is greater which typically extends to thousands of charging and discharging cycles. They are also being deployed as energy storage systems in renewable projects and transportation. In the coming years' recent inventions of disruptive materials will store more lithium in positive and negative electrodes. This leads to the combining of more battery and power. Such factors will boost the growth of the EV battery market in the forthcoming years.

Launch of newer models

The EV market is driving the manufacturing of more electric batteries. Major automobile companies are coming up with newer and better versions of cars with respect to range and charging capabilities, Hybrid electric vehicles contain automotive lubricants such as drivetrain fluids and thermal coolants which come into contact with integrated electric motors. Electrical components are integrated to increase long-term durability and energy efficiency. This minimizes friction loss to a large extent. Although far from their maturation stage battery-operated electric vehicles or BEVs are gradually entering the mainstream market. They do not have any gas engine parts and run completely on batteries. Moreover, these vehicles support fast charging and lead to reduced emissions. This in turn will boost the growth of the EV battery market in the subsequent years.

Lack of charging infrastructure and scarce raw materials

Several crucial raw materials like graphite, nickel, cobalt, and manganese are limited which could lead to supply chain constraints in the near future. Moreover charging infrastructure is far less than the number of electric vehicles manufactured leading to range anxiety. At-home and workplace installations are quite costly and complex. The sluggish creation of charging points is due to the growing scarcity of essential minerals. The lack of skilled technicians further adds to the problem. These factors are expected to hamper the growth prospects of the EV battery market during the forecast period. 

EV Battery Market Share Analysis

Based on type, the lithium-ion battery segment is expected to dominate in the EV battery market share due to higher energy density and faster-charging cycles thereby increasing their adoption.

Based on application, the HEV segment is expected to maintain the lead in the EV battery market share due to the fact that HEVs use electric drive technology that reduces fuel consumption and dependence on charging stations. Moreover, the upfront costs are very cheap. On the other hand, the BEV segment will grow the fastest due to strict fuel consumption standards set by governments. BEVS relies completely on rechargeable battery packs. 

Based on region, Asia-Pacific is expected to witness considerable growth in the EV battery market share as the majority of battery manufacturing units are located in countries like China.  

Segment by Type

• Lead-acid Batteries
• Lithium Battery
• Others

Segment by Application

• BEV
• HEV

BY COMPANY

• Panasonic
• LG Chem
• BYD
• Samsung SDI
• Johnson Controls
• GS Yuasa
• Hitachi Group
• Automotive Energy Supply
• Blue Energy
• Lithium Energy Japan
• Bosch
• Wanxiang
• Beijing Pride Power

Production by Region

• North America
• Europe
• China
• Japan
• South Korea
• India

Consumption by Region

• North America
• U.S.
• Canada
• Europe
• Germany
• France
• U.K.
• Italy
• Russia
• Asia-Pacific
• China
• Japan
• South Korea
• India
• Australia
• Taiwan
• Indonesia
• Thailand
• Malaysia
• Philippines
• Vietnam
• Latin America
• Mexico
• Brazil
• Argentina
• Middle East & Africa
• Turkey
• Saudi Arabia
• U.A.E

Scope of the EV Battery Market Report