EV Battery Market to Experience 10.5% CAGR during 2022-2029; Trend of Electrification and Adoption of Emission-Free Mobility to Escalate Market

The global EV battery market size was valued at USD 37.91 billion in 2021. The market is projected to grow from USD 49.22 billion in 2022 to USD 98.97 billion by 2029, exhibiting a 10.5% CAGR during 2022-2029. Fortune Business Insights™ presents this information in its report titled “EV Battery Market Size, Share & Share & COVID-19 Impact Analysis, By Battery Type (Lithium-ion, Lead Acid, Nickel Metal Hydride, and Others), By Vehicle Type (Battery Electric Vehicles, Plug-In Hybrid Electric Vehicles, and Hybrid Electric Vehicles), and Regional Forecasts, 2022-2029”

Electric car batteries are in greater demand as Electric Vehicles (EVs) become more popular worldwide. Some of the key elements encouraging the adoption of electric vehicles globally include government emphasis on rapid electrification to reduce reliance on imports of fossil fuel and to combat climate change. Environmental concerns are also influencing the acceptance of green mobility and promoting the use of electric vehicles, which is expected to speed up the global EV battery market growth over the forecast period.

Favorable Regulatory Environment for EVs in the Midst of the Pandemic will Boost Market Expansion

The COVID-19 pandemic destroyed the automotive industry, but with favorable regulatory frameworks put in place by governments across the world, the demand for electric vehicles kept rising. In several nations, important regulations such as CO2 emission requirements and Zero-Emission Vehicles (ZEV) mandates were being strengthened even before the pandemic. By 2021, more than 20 nations would have declared a ban on the sale of conventional cars or required that all new automobiles be BEVs. As a result, the global market for EV batteries grew due to rising sales of electric vehicles during the COVID-19 pandemic.

Panasonic Established a Manufacturing Facility for Crucial Supply of Lithium-ion batteries

In July 2022, for a long-awaited U.S. vehicle battery plant, Panasonic selected Kansas City as its location. In its new manufacturing facility, the company plans to invest up to USD 4 billion. As the auto industry undergoes electrification, the company states that the factory would manufacture a crucial supply of lithium-ion batteries for automakers. 

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https://www.fortunebusinessinsights.com/industry-reports/electric-vehicle-battery-market-101700

Electrification is a Growing Major Trend that will Propel Market Expansion

One of the market’s major trends is rapid electrification. The global market growth is predicted to be impacted by the government's focus on building a strong network of EV charging stations and the EV ecosystem to promote the adoption of emission-free mobility. The manufacturers' focus on expanding their embrace of electrification is also having an impact on the worldwide Electric Vehicle battery industry. 

Competitive Landscape

Major Players Focused on Strategic Partnerships to Increase Competition

Some of the major international firms in the industry are leading the market, which has undergone significant consolidation. The highest Electric Vehicle battery market share was held by well-known companies, including Panasonic, BYD, LG Energy Solutions, and CATL. Nearly all of the top automakers are concentrating on forging strategic alliances with EV battery producers to guarantee a consistent supply of EV batteries, which heightens market rivalry.

Notable Industry Development: 

• August 2022: CATL announced an investment of USD 7.57 billion to establish a 100 GWh battery plant in Hungary. The company intends to increase its battery production to cater to the rising demand for EV batteries.

List of Key Players Profiled in the Report

• CATL (China)


• LG Energy Solutions (South Korea)


• Panasonic Corporation Pvt. Ltd. (Japan)


• BYD Motors Inc. (China)


• Samsung SDI Private Limited (South Korea)


• Amara Raja Batteries Limited (India)


• Exicom Tele-Systems Limited (India)


• EXIDE INDUSTRIES Ltd. (India)


• Okaya Power Pvt. Ltd. (India)


• Tata AutoComp GY Batteries Pvt. Ltd. (India)


• Toshiba Pvt. Ltd. (Japan)

Further Report Findings

• The Asia Pacific market was estimated to be worth USD 17.70 billion in 2021. Due to the increasing demand for electric vehicle batteries in China, the Asia Pacific region is predicted to maintain its position during the projected period and have the fastest growth. Growing localized manufacturing of Electric Vehicle battery parts, materials, and components in China and neighboring across APAC, such as Japan, South Korea, and, India, is likely to accelerate the market growth.


• In 2021, the second largest market share was held by Europe. Regulations in favor of the market with subsidies offered by the government along with tax benefits and incentives for the adoption of EVs are likely to grow the market at a rapid pace.


• North America held a moderate share in 2021. The U.S. government is highly focused on removing dependency on China for the EV supply chain.

Table of Segmentation