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EV Battery Market Outlook

With increasing production of electric vehicles, the global EV battery market volume is estimated to grow at a CAGR of 20-25% during 2020-24, driven by the growing demand to reduce dependence on non-renewable energy sources

EV charging with V2G technology is anticipated to further boost the growth of the electric vehicle battery market

EVs will play a major role in the global commitment towards attaining sustainable development goals set by the United Nations. The resultant jump in demand and production is further strengthened by the rising concerns on increasing pollution levels and unchecked carbon emissions that are aggravating the effects of global warming and climate change

Within the various geographies, Asia-Pacific region is expected to grow at the fastest pace led by the increasingly stringent regulations enforced by governments across countries aimed at reducing carbon and GHG emissions

The other factor boosting growth in this region is the supply of nickel-metal batteries and lithium-ion batteries at competitive prices by companies

In North America, more shift towards electric vehicles and increasing investments in e-mobility and government incentives will likely drive growth of EV batteries

Going forward, we will likely see several automotive companies increasing their focus on developing batteries with improved specifications through collaborative partnerships with other manufacturers and stakeholders

Market Growth Drivers and Trends:

Most primary factors driving the global EV battery market are:

  • Advances in EV battery and associated technologies
  • Emergence of EV charging with V2G capabilities
  • Government initiatives to push adoption of EVs to reduce harmful emissions
  • Collaboration among value chain stakeholders, driving synergies and lowering costs

Potential Challenges: 

Key factors likely to restrain or slow down growth in EV batteries:

  • Slow and gradual penetration of Electric Vehicles in most global markets except for the US, China and Europe
  • Slow consumer demand for EVs on account of lesser number of vehicle options, concerns on driving range and higher vehicle prices compared to the traditional ICE powered vehicles
  • High cost of battery packs and challenges associated with Li-ion batteries such as decrease in cell storage capacity over times
  • Environmental concerns associated with sourcing of minerals used for batteries, disposal of old batteries, etc.
  • Less than optimal charging infrastructure in most countries leading to the need for governmental incentives and regulations to drive more demand

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Market Players Perspective:

While most of the manufacturers have already restarted their production post COVID-related shutdowns, the outbreak is estimated to set Chinese battery producers back by 26GWh of output in 2020 

Asian companies dominate the market for electric vehicle (EV) batteries and they are expanding their production capacity in Europe, China and the United States in a fight to win lucrative contracts from global automakers

As on 2019, the global EV battery market landscape was dominated by Korean EV battery companies with more than 40% of the global market share with LG Chem, Samsung SDI and SK Innovation topping the Korean list

Some of the key players operating in the global EV battery market profiled in this AGR Knowledge report are: CATL, Panasonic, LG Chem, BYD, Samsung CDI, Mitsubishi, AESC, etc.

EV Battery Market Research Scope: 

The base year of the study is 2019, with forecast done up to 2024. The report provides a detailed assessment of the global EV battery market, including insights on the market dynamics, key drivers, challenges, regulations impacting the market, and technology landscape. 

We have also estimated the current market size globally and by key regions; 5-year outlook of the market, factors driving growth along with regional insights and trends

The study also presents a thorough analysis of the competitive landscape, considering the market shares of the leading companies. These provide the key market participants with the necessary business intelligence and help them understand the future of the EV battery market globally and in key geographies.

Author – Prasanth R Krishnan
Associate Director Operations
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