Electric Vehicle Battery Market To Reach $198.9 Billion By 2030

Electric Vehicle Battery Market Growth & Trends

The global electric vehicle battery market size is expected to reach USD 198.9 billion by 2030, growing at a CAGR of 21.1% from 2023 to 2030, according to a new study conducted by Grand View Research, Inc. Increasing government initiatives for reducing carbon emissions and promoting the adoption of electric vehicles (EVs) drive the market growth. Growing consumer interest in EVs owing to lower operating costs and environmental benefits boosts the product demand. Rising advancements in battery technologies and the development of batteries that give better range, enhanced performance, and faster charging times, safety, and reliability are further expected to boost the growth of the market. Lithium-ion batteries have become more efficient, reliable, and cost-effective, driving down the cost of electric vehicles.

These types of batteries are currently used in the majority of EVs and are expected to maintain their dominance during the forecast period. Several manufacturers, including Nissan Motor Corp. and Tesla Inc., have invested heavily in this battery technology. Furthermore, various companies are establishing battery manufacturing plants to produce batteries owing to the rising demand for EVs. For instance, in May 2022, Stellantis N.V., an automotive manufacturing corporation, and Samsung SDI Co., Ltd., a battery manufacturing company, signed definitive agreements to create an electric vehicle battery production plant in Kokomo, Indiana, U.S. The facility is planned to start operations in 2025 and is expected to have an initial production capacity of 23 GWh per year, with an aim to increase to 33 GWh over the next few years.

In addition, in November 2022, Canoo, a prominent high-tech mobility firm, announced the establishment of a battery module manufacturing plant at MidAmerica Industrial Park in Pryor, Oklahoma, U.S. as part of its expansion plan to increase manufacturing capabilities and job opportunities in the area. The outbreak of the COVID-19 pandemic severely impacted several economies. In addition, increased fuel prices owing to the Russia-Ukraine conflict are expected to prompt consumers to adopt electric vehicles considering the lower lifecycle cost of an electric vehicle as compared to internal combustion engine (ICE) vehicles, which is ultimately making more demand for electric vehicle batteries. Furthermore, aggressive investments in innovation and subsequent advances in battery technology are expected to create new opportunities for the growth of the EV battery market.

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Electric Vehicle Battery Market Report Highlights

• The lithium-ion battery segment is anticipated to register the fastest CAGR over the forecast period. Increasing adoption of lithium-ion EV batteries owing to their benefits, such as lightweight & space-saving design, high energy efficiency & power-to-weight ratio, high-temperature performance, and low cost, drives the segment growth

• The battery electric vehicle (BEV) segment accounted for the largest market share in 2022. The growing popularity of mini-battery EVs with rechargeable battery packs is expected to drive the growth of the segment

• The two-wheeler segment is anticipated to grow at the fastest CAGR over the forecast period. The increasing production and sales of two-wheeled EVs in countries, such as India, China, and Taiwan, and the growing market for e-bikes/e-scooters in developing countries are expected to boost the segment growth

• Asia Pacific is anticipated to be the fastest-growing regional market owing to the presence of product manufacturing companies, rapid growth in the sales of EVs, and extensive deployment of EV charging infrastructures & battery swapping stations in countries, such as China India, Taiwan, and Japan

Electric Vehicle Battery Market Segmentation

Grand View Research has segmented the global electric vehicle battery market based on battery type, propulsion type, vehicle type, and region:

EV Battery Type Outlook (Revenue, USD Million, 2017 - 2030)

• Lithium-Ion Battery

• Lead-Acid Battery

• Others (Solid-state Battery, Nickel-Metal Hydride, Sodium-ion Battery)

EV Battery Propulsion Type Outlook (Revenue, USD Million, 2017 - 2030)

• Battery Electric Vehicle (BEV)

• Plug-In Hybrid Electric Vehicle (PHEV)

EV Battery Vehicle Type Outlook (Revenue, USD Million, 2017 - 2030)

• Two-Wheeler

• Passenger Cars

• Buses

• Commercial Light Duty Vehicles

  • Three-Wheeler

  • Four-Wheeler

• Others (Trucks, Trailers)

EV Battery Regional Outlook (Revenue, USD Million, 2017 - 2030)

• North America

  • U.S.

  • Canada

• Europe

  • Germany

  • U.K.

  • France

• Asia Pacific

  • China

  • India

  • Japan

  • Australia

  • South Korea

• Latin America

  • Brazil

  • Mexico

• MEA

  • Kingdom of Saudi Arabia

  • UAE

  • South Africa

List of Key Players in Electric Vehicle (EV) Battery Market

• Contemporary Amperex Technology Co., Ltd. (CATL)

• LG Energy Solution

• BYD Company Ltd.

• Panasonic Corp.

• Samsung SDI Co., Ltd.

• SK Innovation Co., Ltd.

• Toshiba Corporation

• EnerSys, Inc.

• Hitachi, Ltd.

• Mitsubishi Corp.