Electric Vehicle (EV) Battery Market to grow by USD 65.23 Billion from 2024-2028, driven by rising EV demand, AI-powered report highlights market evolution - Technavio

NEW YORK, Oct. 7, 2024 /PRNewswire/ -- Report on how AI is driving market transformation - The Global Electric Vehicle (EV) Battery Market  size is estimated to grow by USD 65.23 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 20.2%  during the forecast period. Increasing demand for EVS and their expanded applications is driving market growth, with a trend towards increasing use of software and sensors for intelligent BMS. However, growing global power crisis  poses a challenge - Key market players include A123 Systems LLC, Ballard Power Systems Inc., BYD Co. Ltd., CLARIOS LLC, Crown Battery Manufacturing Co., Cummins Inc., East Penn Manufacturing Co. Inc., EnerSys, Enertech International Inc., Envision Group, Exide Industries Ltd., GS Yuasa International Ltd., Hitachi Ltd., LG Chem Ltd., OptimumNano Energy Co. Ltd., Panasonic Holdings Corp., Samsung SDI Co. Ltd., SK Innovation Co. Ltd., Solid Power Inc., Tianneng Group, and Zhejiang Narada Power Source Co. Ltd..

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Key Market Trends Fueling Growth

The Electric Vehicle (EV) and Plug-in Hybrid Electric Vehicle (PHEV) markets are witnessing significant growth due to the increasing adoption of advanced features such as Global Positioning Systems (GPS), power train systems, air conditioning (AC), power windows, and display drives. These features consume substantial power, leading to a higher energy demand from EV batteries. As a result, there is an increasing need for efficient and optimal battery management systems (BMS) to ensure a long battery life and minimize charging frequency. The automotive industry is focusing on developing advanced high-end BMS solutions using high-power density lithium-ion batteries. Intelligent BMS trends include the use of software and sensors for precise information, which helps design an efficient battery management system. The accuracy, fault detectability, and robustness of the BMS controller are crucial factors driving the growth of the EV battery market. These trends are expected to continue, leading to increased demand for EV batteries during the forecast period.

The Electric Vehicle (EV) battery market is surging as automakers prioritize EV technology for their fleets. Lithium-ion batteries remain the go-to choice for most EVs due to their long driving ranges and relatively quick charging times. However, new players like QuantumScape and Solid Power are developing solid-state batteries, promising even better performance and shorter charging times. Battery life is a key concern for consumers, with automakers focusing on improving it through advancements in battery technology. EV sales continue to grow, with SUVs, PHEVs, BEVs, and EREVs leading the charge. The demand for batteries is driving the need for more manufacturing capacity, with companies like Tesla and Panasonic building gigafactories. Lithium-ion battery prices have been decreasing due to increased supply and demand. However, the supply chain for lithium, cobalt, nickel, and other essential minerals can be volatile, impacting battery prices. New battery technologies, such as Lithium Iron Phosphate and graphite-manganese-phosphoric acid batteries, are being explored to reduce reliance on traditional battery materials. Energy density is a critical factor in improving EV performance and reducing costs. Companies are focusing on improving cell-to-pack and cell-to-chassis efficiency to increase energy density. The race is on to bring the next generation of EV batteries to market and stay ahead of the competition. Meanwhile, some automakers are exploring alternatives to lithium-ion batteries, such as hydrogen vehicles and ethanol vehicles, but their market penetration remains limited. The EV battery market is an exciting space to watch as companies push the boundaries of innovation to meet the growing demand for cleaner, more efficient transportation solutions.

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Market Challenges

• The global Electric Vehicle (EV) battery market is experiencing significant growth due to the increasing demand for EVs. However, in regions with limited power generation capacity, such as developing countries like Norway, the Netherlands, and the UK, as well as underdeveloped countries like Nepal, the high sales of EVs pose challenges. For instance, Europe, which has nearly a quarter of EVs on the road, saves approximately 13 million barrels of crude oil daily. However, this shift to EVs also increases global power demand by 11%. Power crises in countries like India and Japan, which rely heavily on imports for their energy needs, further impact the EV market. Japan's electricity consumption, driven by its EV adoption, adds to its already significant energy import dependence and cost. These power crises and the subsequent electricity cost increases hinder the sales of EVs and, consequently, EV batteries, potentially hindering market growth.
• The Electric Vehicle (EV) battery market is experiencing significant growth, with the Lithium-ion battery segment leading the way. Companies like Tesla and Panasonic are expanding their Gigafactories to increase manufacturing capacity. However, challenges persist, such as the reliance on limited resources like lithium, cobalt, nickel, and other materials for battery production. Mining and refining these elements can impact the supply chain and drive up battery prices. New battery technologies like Lithium Iron Phosphate and sodium-ion batteries are emerging, but manufacturing capacity and energy density remain key concerns. The Cadillac Lyriq, an all-electric SUV, uses laser bonding to improve battery performance. BEVs, EREVs, and PHEVs are driving EV sales, but the Internal Combustion Engine still dominates. Northvolt and LG Energy Solutions are investing in battery manufacturing to secure energy security. The battery pack price remains high, with cell-to-pack and cell-to-chassis technologies aiming to reduce costs. The battery chemistries continue to evolve, with graphite, manganese, and phosphoric acid playing crucial roles. The market is dynamic, with Lead acid batteries, Nickel-metal hydride batteries, and Lithium-ion batteries competing in the EV landscape.

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Segment Overview 

This electric vehicle (ev) battery market report extensively covers market segmentation by

1. Type 
• 1.1 Lithium-ion battery
• 1.2 Lead-acid battery
• 1.3 Others
2. Vehicle Type
• 2.1 Battery electric vehicle
• 2.2 Plug-in hybrid electric vehicle
• 2.3 Hybrid electric vehicle
3. Geography 
• 3.1 APAC
• 3.2 Europe
• 3.3 North America
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Lithium-ion battery-  The lithium-ion battery segment is experiencing significant growth in the Electric Vehicle (EV) market due to the increasing demand for this battery technology from the EV industry. Lithium-ion batteries, which belong to the lithium-metal chemistries family, are manufactured using various combinations of anode and cathode materials. The most common cathode combinations used in transportation applications are lithium-nickel-cobalt-aluminum oxide (NCA), lithium nickel manganese cobalt oxide (NCM), lithium-manganese spinel (LMO), lithium titanate (LTO), and lithium-ion phosphate (LFP). Each of these combinations offers distinct characteristics in terms of safety, cost, and performance. Lithium-ion batteries have a higher current density, longer power-holding capacity, and longer shelf life compared to other battery technologies. Additionally, the mass production and government incentives are driving down the cost of these batteries. Lithium-ion batteries are preferred for EVs due to their superior electrochemical performance and capacity. They are smaller and lighter than lead-acid batteries of similar capacity, reducing the weight of EVs and offering flexibility to manufacturers. Moreover, these batteries require minimal maintenance, reducing downtime in EVs. Lithium-ion batteries come in cylindrical, prismatic, and laminate shapes, with each cell having unique characteristics for creating the battery pack based on end-user requirements. Panasonic Corporation offers cylindrical lithium-ion cells, Samsung SDI CO., LTD. Provides laminate lithium-ion cells, and LG Chem offers prismatic lithium-ion cell-based battery packs. Lithium-ion batteries do not have the drawbacks of other battery chemistries, such as lead-acid batteries and NiMH batteries, making them the preferred choice for EVs. Therefore, the demand for lithium-ion batteries in the EV market is expected to continue growing, driving the market's expansion during the forecast period.

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Research Analysis

Electric Vehicles (EVs) are revolutionizing the automotive industry with their eco-friendly and cost-effective solutions. A significant component of EVs is their batteries, which store and release electricity to power the vehicles. EV batteries come in various types, with lithium-ion batteries being the most popular due to their high energy density, long life, and short charging times. They offer impressive driving ranges, making EVs a viable alternative to traditional Internal Combustion Engine (ICE) vehicles. Battery technology is continually evolving, with solid-state batteries promising even better performance and safety. Automakers are investing heavily in EV technology, with Battery Electric Vehicles (BEVs), Plug-in Hybrid Electric Vehicles (PHEVs), Electric SUVs, and Electric Sedans leading the charge. The global EV battery market is growing rapidly, with the Lithium-ion segment dominating the market due to its superior performance. The demand for EV batteries is expected to reach Gigawatt hours in the coming years, driven by energy security concerns and the need to reduce carbon emissions. Lead acid batteries and Nickel-metal hydride batteries have been the traditional choices for EVs but are being gradually replaced by lithium-ion batteries due to their advantages. The EV battery market is poised for significant growth, with companies like Northvolt leading the way in innovation and production.

Market Research Overview

The Electric Vehicle (EV) battery market is experiencing significant growth as the adoption of electric vehicles (EVs) continues to rise. EV batteries play a crucial role in powering these vehicles, offering features like longer driving ranges, faster charging times, and improved battery life. Lithium-ion batteries are currently the dominant technology, but solid-state batteries and other advanced chemistries are on the horizon. Automakers are investing heavily in EV technology, with some announcing new models like the Cadillac Lyriq. Hydrogen vehicles and ethanol vehicles are also being explored as alternatives, but EVs are currently the most viable option for reducing emissions from the transportation sector. EV battery manufacturing is a complex process involving the mining and refining of raw materials like lithium, cobalt, nickel, and manganese. Gigafactories, such as those operated by Tesla and LG Energy Solutions, are increasing manufacturing capacity to meet demand. Energy density, battery performance, and manufacturing capacity are key considerations for battery technologies like Lithium Iron Phosphate, sodium-ion batteries, and others. Battery prices are also a significant factor, with advancements in battery manufacturing techniques like cell-to-pack and cell-to-chassis helping to reduce costs. The EV market is expected to continue growing, with sales of electric cars, SUVs, PHEVs, BEVs, and EREVs projected to reach new heights in the coming years. However, the supply chain for EV batteries remains a challenge, with energy security and raw material availability being key concerns.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Type
• Lithium-ion Battery
• Lead-acid Battery
• Others
• Vehicle Type
• Battery Electric Vehicle
• Plug-in Hybrid Electric Vehicle
• Hybrid Electric Vehicle
• Geography
• APAC
• Europe
• North America
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio