Fact.MR’s recently published electric vehicle battery report forecasts the market to expand at a whopping 25% CAGR, reaching US$ 900 Bn by the end of the 2021-2031 assessment period. Short-term prospects also appear highly lucrative, with a CAGR of 13.6% projected until 2022.
Historical data suggests that the market expanded healthily from 2016 to 2020, registering an impressive 12% CAGR. Although a general contraction in the automotive industry was experienced in the past half-a-decade, this didn’t appear to dampen the electric vehicle battery market growth prospects. The market closed in at US$ 91 Bn as of 2020.
Key Segments Covered
- Power Source
- Stored Electricity Electric Vehicle Battery
- On-board Electric Generator Electric Vehicle Battery
- Series Hybrid Electric Vehicle Battery
- Parallel Hybrid Electric Vehicle Battery
- Combined Hybrid Electric Vehicle Battery
- Vehicle Type
- Electric Vehicle Battery for Passenger Cars
- Electric Vehicle Battery for Commercial Vehicles
- Electric Vehicle Battery for Two Wheelers
- Electric Vehicle Battery for Others (Golf Carts etc.)
Key takeaways from the Market study
- Global EV battery market to expand nearly 10x by 2031
- By vehicle type, demand for EV batteries across passenger cars to capture 50% of global sales
- Stored electricity electric vehicle batteries to expand at over 10% CAGR
- Europe likely to account for over 3 out of 10 electric vehicle battery sales
- Asia to emerge as the dominant market, with China accounting for 28.3% of the revenue
- India to be an opportunistic market, poised to grow at a CAGR of 15% through 2031
“As vehicular emission regulations tighten, automobile owners are shifting towards hybrid and electric vehicles usage, prompting manufacturers to deploy batteries equipped with greater load carrying capacity,” says a Fact.MR analyst.
In forthcoming years, manufacturers in the electric vehicle battery industry will primarily focus on strategic acquisitions, collaborations, and product introductions.
- In May 2019, Panasonic Corporation announced the launch of ‘Nymbus’ – the first of its kind smart EV charging service in India. The new service combines various physical components such as charging stations, telematics systems, and others with virtual components including AI, cloud service, and analytics to deliver a one stop solution.
- As more people switch to electric vehicles, Hitachi High-Tech predicts a rise in demand for used lithium-ion batteries. According to the business, the annual global market for testing batteries is expected to reach between 500 billion ($4.8 billion) and 1 trillion yen by 2030.