As per the analysis report of Allied Market Research, the electric vehicle battery market size is estimated to increase to $108.2 billion by the year 2031. Earlier, the EV battery market was valued at $23.8 billion globally in the year 2021. With that estimate, the EV battery market size will be increasing at a CAGR (Compound Annual Growth Rate) of 16.6 percent from the year 2022 to 2031.
Table of Contents
Battery is one of the core components of any electric vehicle. It is the power source for the electric motor. An electric vehicle battery converts chemical energy into electrical energy and supplies it to the electrical motor of the vehicle. Following that, the electrical motor converts the electrical energy into rotational energy and makes the vehicle run.
Usually, for an electric vehicle, a series of 18-30 parallel cells are used in a pack of EV batteries, that generates the required output voltage for propulsion.
With the advancement of electric vehicle ranges and safety, carmakers are also innovating in battery technology. The idea is to produce the least emissions by EVs at a relatively lower cost. If we talk about specifically electric vehicle technology, batteries are commonly designed with Lithium, Cobalt, Copper, Nickel, and Manganese elements.
In the year 2022, BYD Motors Inc. which is a major player in the electric vehicle segment, launched a blade battery for EVs, which was designed by optimizing the battery pack structure by more than 50 percent. It also increased the safety of the battery drastically.
Report Data for EV Battery Market and Information
| Forecast Period | 2022–2031 |
| Base Year | 2021 |
| Market Size (in the year 2021) | $23.8 Billion |
| Market Size (in the year 2031) | $108.2 Billion |
| CAGR | 16.6% |
The analysis report has a total of 255 pages in it. The report covered different segments related to electric vehicles like their Battery Type, Vehicle Type, Propulsion Type, and Region. The driving data points for the report included the following points.
- Rise in the demand for EVs (Zero Emission Vehicles).
- The falling price of EV batteries.
- Advancements in EV battery technology.
The restraining factors considered in the report were the following.
- Stringent pollution norms for lead.
- Price fluctuation of the raw materials.
- Taxes on the import of EV batteries.
The opportunity factors taken into consideration for the report are the following.
- Advancement and Evolution of Lithium-ion technology.
- Government initiatives for EVs and Clean Energy.
Impact of COVID-19 on the EV Market
COVID-19 impacted the automotive market negatively and production of the vehicles was slowed down for some time. It also slowed down the growth of the EV market across the world, but experts predict that the recovery of the EV segment is even better and EV market growth is even higher than expected.
The growth of the EV market is due to continuously increasing fossil fuel prices and rise for the concern about its environmental impact. In addition to it, the government is also proactively providing tax credits and subsidies for electric vehicle purchases.
Key Player in the EV Battery Market
The following companies are key players in the EV battery market, and the report considered the data points from the following companies.
- BYD Company Ltd
- LG Chem Ltd, Pride Power
- GS Yuasa International Ltd.
- Wanxiang Group Corporation
- Tianneng rechargeable battery manufacturers
- Panasonic Corporation
- Samsung Electronics Co. Ltd.
- Contemporary Amperex Technology Co., Limited.
- ENERSYS
Final Words
With the growth of electric vehicles across the world, the EV battery market is also going to expand and reach $108.2 billion by 2031. Factors like the reduced price of lithium, increased concern for environmental impact due to automotive, government proactive policies, and continuous increasing price of fossil fuel are helping the EV battery market to grow.
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