Electric Vehicle Battery Market Forecast to Hit $415.9 Billion by 2031
According to Meticulous Research®'s latest report, ‘Electric Vehicle Battery Market - Global Opportunity Analysis and Industry Forecast (2024-2031)’, the global EV battery market is on track to reach $415.9 billion by 2031. This represents a compound annual growth rate (CAGR) of 33.1% over the forecast period, driven by a surge in electric vehicle adoption and significant advancements in battery technologies.
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Rising Automotive Investments and Declining Costs Boost Market Growth
Automotive OEMs are making substantial investments in the development and production of electric vehicles, contributing to the expansion of the EV battery market. These investments, coupled with decreasing battery production costs, have made EVs more affordable for consumers. Additionally, governments around the world are providing incentives and implementing policies to promote the use of electric vehicles, further accelerating market growth.
Challenges: Lithium Supply Chain Disruptions and Energy Density Issues
Despite the positive market outlook, challenges remain. The supply of lithium, a critical material for lithium-ion batteries, is under pressure due to limited mining capabilities. This could cause supply chain disruptions for battery manufacturers. Additionally, current lithium-ion battery technology faces limitations in energy density, which affects the driving range of electric vehicles, posing a barrier to widespread adoption.
Emerging Markets and BaaS Business Models Present Growth Opportunities
Emerging markets offer significant growth opportunities for the EV battery industry as electric vehicle adoption gains momentum globally. Additionally, the rise of innovative business models like battery-as-a-service (BaaS) enables consumers to lease batteries, reducing the upfront cost of purchasing an electric vehicle. This flexible model also allows for battery upgrades as new technologies emerge, driving further market growth.
Lithium-Ion Batteries to Continue Leading the Market
Lithium-ion batteries are expected to remain the dominant battery type in the EV market, accounting for over 64.0% of the market share by 2024. Continuous improvements in battery technology, driven by research and development efforts, will ensure lithium-ion batteries maintain their leadership position in the market.
Battery Capacity Segment: 51kWh to 100kWh to Dominate
The 51kWh to 100kWh battery capacity segment is projected to dominate the market, capturing over 52.0% of the market share by 2024. These batteries offer a balance between range and cost, making them suitable for mid-range electric vehicles. As automakers develop more long-range electric models, demand for batteries within this capacity range will rise significantly.
Wire Bonding Technology to Lead in Bonding Type Segment
Wire bonding technology is expected to lead the bonding type segment, holding over 84.5% of the market share by 2024. Its precision, reliability, and cost-effectiveness make it a crucial technology in EV battery manufacturing. As electric vehicle production scales up, the need for efficient bonding technologies like wire bonding will continue to grow.
Prismatic Battery Forms to Gain Market Share
Prismatic batteries are anticipated to dominate the battery form segment, capturing over 45.0% of the market share by 2024. These batteries offer enhanced energy density and flexibility in terms of design, making them a preferred choice for electric vehicles. Technological advancements in prismatic battery designs will further contribute to their market growth.
Electric Cars to Lead in Application Segment
Electric cars are expected to account for 46.5% of the market share by 2024, making them the dominant application segment in the EV battery market. Increasing government incentives, tax rebates, and growing consumer awareness of the environmental benefits of electric vehicles are driving demand for electric cars globally. As more countries transition to electric mobility, the demand for electric cars is set to rise.
OEMs to Dominate in the End-User Segment
OEMs are projected to dominate the end-user segment of the EV battery market, capturing 85.0% of the market share by 2024. Leading automotive manufacturers are investing heavily in expanding their battery production capacity to meet the growing demand for electric vehicles. Government support and the continuous launch of new electric vehicle models are also key factors driving this segment's growth.
Asia-Pacific Region to Maintain Market Leadership
The Asia-Pacific region is expected to maintain its leadership in the global EV battery market, holding over 68.0% of the market share by 2024. The region’s dominance is driven by the presence of major EV battery manufacturers in countries like China, Japan, and South Korea. Additionally, supportive government policies and partnerships between automakers and battery manufacturers will further enhance market growth in this region.
Conclusion: Bright Future for the Global EV Battery Market
In conclusion, the electric vehicle battery market is set for robust growth in the coming years. Despite challenges such as lithium supply constraints and energy density limitations, the market is well-positioned to benefit from the increasing global demand for electric vehicles and continued advancements in battery technology. Industry stakeholders can look forward to significant growth opportunities as the market evolves.
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Key Players
The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last three to four years. Some of the key players operating in the EV battery market are SK Innovations Co. Ltd. ( South Korea), LG Chem, Ltd (South Korea), Farasis Energy (GanZhou) Co., Ltd. (China), SVOLT Energy Technology Co., Ltd. (China), BYD Company Limited (China), Samsung SDI Co., Ltd. (South Korea), GS Yuasa International Ltd. (Japan), Vehicle Energy Japan Inc. (Japan), Northvolt AB (Sweden), Panasonic Corporation (Japan), Contemporary Amperex Technology Co. Limited (CATL) (China), A123 Systems, LLC (China), Exide Industries Ltd. (India), Primearth EV Energy Co., Ltd. (Japan), E-One Moli Energy Corp. (Taiwan), StoreDot Ltd. (Israel), NOHMs Technologies, Inc. (U.S.), Lithium Werks B.V. (Netherlands), Faradion Limited (U.K.), and QuantumScape Corporation (U.S.).
According to European Commission, the global manufacturing capacity of lithium-ion cells for electric cars and energy storage is around 150 GWh, and Europe hosts around 3% of global production capacity, and it is estimated that the share range is from 7% to 25%. The European Commission and European industrial companies developed The European Battery Alliance, a central platform for dialogue on the future of battery cell production in Europe. This platform seeks to encourage the production of battery cells in both Germany and Europe and ensure that the batteries produced are competitive, innovative, and environmentally compatible. Also, the European government is taking initiatives to promote the adoption of EVs in the market. This will boost the demand for EV batteries in the region. The European Commission is seeking funding from the Spanish government's Programme for the Promotion of Industrial Competitiveness and Sustainability projects, which aims to extract 15,000 tons of raw material per year. Such initiatives for the development of battery technologies are expected to boost the demand for EV batteries in Europe in the forecast period.
Key Questions Answered in the Report:
- Which are the high-growth market segments in terms of type, battery capacity, bonding type, battery form, application and end user?
- What was the historical market size for EV batteries globally?
- What are the market forecasts and estimates for 2024–2031?
- What are the major drivers, restraints, opportunities, challenges, and trends in the electric vehicle battery market?
- Who are the leading companies in the electric vehicle battery market, and what are their respective market shares?
- What is the competitive landscape like?
- What are the recent developments in the EV battery market?
- What do major market players adopt the various growth strategies?
- What are the major market trends, and which are the high-growth countries?
- Who are the local emerging players in the EV battery market, and how do they compete with other players?
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