EV Battery Market worth $134.6 billion by 2027

EV Battery Market worth $134.6 billion by 2027 - Exclusive Report by MarketsandMarkets

0
696

CHICAGO : EV Battery Market is projected to grow at a CAGR of 19.0% from USD 56.4 billion in 2022 to USD 134.6 billion by 2027, according to a new report by MarketsandMarkets

The growth of the EV Battery Market can be attributed to the increasing demand of electric vehicles, improvement in battery technology, supporting government policies and regulations, and launch of new plug-in EV models.

Asia pacific is expected to be the largest EV Battery Market in the forecast

China, Japan, India, South Korea, and Thailand are included in the Asia Pacific region when analysing markets. With a share of more than 95%, China is the biggest contributor to the global market. Chinese businesses including Panasonic, LG, Chem, Samsung, CATL, and BYD are in charge of the domestic and international EV battery markets, respectively. Due to their access to more affordable parts and materials, Chinese EV producers are able to provide their products at lower costs.

With intentions for exports, China is likewise making large investments in the manufacturing of both commercial and passenger electric vehicles. To accommodate local demand, OEMs like BYD intend to establish factories in other continents to produce electric trucks and buses. The nation encourages the use of EVs by providing a subsidy for EV purchases. The nation is also enticing businesses to create better EV technologies, which will aid in EV batteries overall growth.

In May 2021, the Indian Government announced the Production Linked Incentive (PLI) Scheme National Program on Advanced Chemistry Cell (ACC) Battery Storage’ for achieving a manufacturing capacity of 50 GWh of ACC with an infrastructure funding of USD 35-40 million. 10 companies submitted their bid proposals under the “Advanced Chemistry Cell (ACC) Battery Storage Program in India. Specifically, Hyundai, Ola, Lucas-TVS, M&M, Amara Raja, Exide, Rajesh Exports, L&T, India Power Corporation, and Reliance New Energy Solar Limited have submitted their proposals.

With the advent of hybrid automobiles in recent years, South Korea and Japan began embracing electric vehicles. Toyota and Panasonic established a joint venture in October 2020 to start making hybrid vehicle batteries at a site in Japan. Mitsubishi, a Japanese producer, has declared that it will invest USD 9.6 million to increase electrolyte solution production for lithium-ion batteries in 2021. The corporation will utilise this money to modernise the machinery at its U.S., U.K., and Chinese manufacturing facilities.

The adoption of EVs in these nations has significantly increased because to developments in battery technology and targeted research.

Europe is expected to be the second largest market during the forecast

The governments of the European region are providing significant incentives to promote electric vehicles. As a result, the demand for electric vehicles has increased significantly. The region is home to manufacturers such as Renault, Audi, BMW, Mercedes, and others. Europe has set a very ambitious goal of reducing 80% CO2 emissions by 2030-2035 and has created a roadmap for the same. The governments of various countries in Europe are subsidizing electric vehicle infrastructure, and the focus is expected to continue to be on electric vehicles in the long run. In 2021, Europe witnessed high growth in the market with over 2.27 million EV sales, with a year-on-year growth of approximately 66% over 2020. In addition, the use of electric vans in the logistics sector of Europe is expected to bring opportunity for the EV battery market. Many leading logistics companies in Europe have started using electric vans for shipping and delivery purposes. For example, DHL, one of the leading logistics companies in the world, is using electric vans in some parts of the European region.

The lithium-ion battery segment is expected to be the during the forecast period

The lithium-ion battery dominates the EV Battery Market due to its high energy density, fast recharging capability, and high discharge power. As a result, lithium-ion batteries are the only available technology that is capable of fulfilling OEM requirements for developing electric vehicles with adequate drive range and fast charging. The cost of lithium-ion batteries is also a major factor driving its high demand since the decreasing cost of these battery types reached USD 130-140 /kWh in 2021 from around USD 800-900/kWh in the past years (Source: Multidisciplinary Digital Publishing Institute). Battery manufacturers are focusing on lithium-ion batteries and have invested in greenfield as well as capacity expansion projects to ramp-up production. For instance, CATL (China) plans to expand its production in Europe.   the company plans to expand the production capacity of its Erfurt manufacturing site to 14GWh by the end of 2022 and 60GWh in 2026.

Key Market Players

The EV Battery Market comprises major companies such as players CATL (China), Panasonic Holdings Corporation (Japan), LG Chem (South Korea), BYD (China), and Samsung SDI (South Korea).

Browse Related Reports:

Electric Vehicle Market by Component, Vehicle Type, Vehicle Class, Propulsion (BEV, PHEV, FCEV), Vehicle Drive Type (FWD, RWD, AWD), Vehicle Top Speed (<125 mph, >125 mph), Charging Point Type, Vehicle Connectivity, End Use, Region – Global Forecast 2030

Electric Vehicle Charging Station Market by Application (Public, Private), Level of Charging, Charging Point Type, Infrastructure, Service Type, Installation, Electric Bus Charging, DC Fast Charging, IOT Connectivity and Region – Global Forecast to 2027

About MarketsandMarkets™ 

MarketsandMarkets™ provides quantified B2B research on 30,000 high growth niche opportunities/threats which will impact 70% to 80% of worldwide companies’ revenues. Currently servicing 7500 customers worldwide including 80% of global Fortune 1000 companies as clients. Almost 75,000 top officers across eight industries worldwide approach MarketsandMarkets™ for their painpoints around revenues decisions.

Our 850 fulltime analyst and SMEs at MarketsandMarkets™ are tracking global high growth markets following the “Growth Engagement Model – GEM”. The GEM aims at proactive collaboration with the clients to identify new opportunities, identify most important customers, write “Attack, avoid and defend” strategies, identify sources of incremental revenues for both the company and its competitors. MarketsandMarkets™ now coming up with 1,500 MicroQuadrants (Positioning top players across leaders, emerging companies, innovators, strategic players) annually in high growth emerging segments. MarketsandMarkets™ is determined to benefit more than 10,000 companies this year for their revenue planning and help them take their innovations/disruptions early to the market by providing them research ahead of the curve.

MarketsandMarkets’s flagship competitive intelligence and market research platform, “Knowledge Store” connects over 200,000 markets and entire value chains for deeper understanding of the unmet insights along with market sizing and forecasts of niche markets.

Previous articleNioCorp & GXII announced The Signing of A Definitive Agreement
Next articleBallard Contract with Stadler to supply Fuel Cell Engines

LEAVE A REPLY

Please enter your comment!
Please enter your name here