Electric Vehicle Battery Market Trends, Segmentation and Future Scope

Electric Vehicle Battery Market Trends, Segmentation and Future Scope

A Chapter by Markets Insights

The electric vehicle battery market size was valued at USD 13,383.0 million in 2018 and is expected to grow at a compound annual growth rate (CAGR) of 16.7% from 2019 to 2025.


The global Electric Vehicle Battery Market size is expected to reach USD 38.6 billion by 2025, registering a CAGR of 16.7% from 2019 to 2025, according to the new report from Grand View Research, Inc. The growing preference for e-mobility and the subsequent rise in the popularity of electric vehicles (EVs) is expected to drive the market growth. Several countries have taken a lead in deploying various EVs, including two wheelers, buses, and other commercial vehicles.

Increasing efforts to reduce the production cost of electric vehicle batteries is prompting manufacturers to invest in developing countries, including China, India, and Mexico. Having realized the potential for economic development in emerging economies, some large plants for manufacturing batteries have already been planned in Asia Pacific. At the same time, the rising fuel prices coupled with increasing environmental concerns are prompting several governments to encourage the adoption of EVs.

EVs require more battery power because apart from functions, such as GPS navigation system, power windows, air-conditioning systems, and dashboard displays, which are powered by a battery, their entire drivetrain is dependent on battery power. Advances in battery technology have led to the advent of batteries that can cater not only to the conventional battery-driven functions but also to the drivetrain. Such favorable advances in battery technology are expected to drive the market growth.

In several metropolitan cities across the world, city administrations are drafting policies to support the deployment of electric vehicle supply equipment (EVSE) and rollout of adequate charging stations. For instance, in the Netherlands, the metropolitan area of Amsterdam has adopted a demand-based approach for deploying its EVSE network and making it accessible to owners of EVs. Similarly, a multi-government policy forum named Electric Vehicle Initiative (EVI) was established in 2009 under the Clean Energy Ministerial (CEM) to monitor and encourage the adoption of EVs across the globe. The International Energy Association (IEA) is serving as the EVI coordinator.

At present, EVs account for a relatively smaller share in the overall automobile sales. However, favorable regulatory initiatives are expected to trigger the adoption of EVs and subsequently open growth opportunities for the market for over the forecast period. For instance, the Paris Agreement endorsed by the European Union, the U.S., and Japan to support zero-emission vehicles is conducive to an increase in the sales of EVs.

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Further key findings from the report suggest:

  • Continued efforts by automotive manufacturers to produce more vehicles with electric drivetrains is necessitating the use of lithium-ion batteries for onboard energy storage
  • The battery electric vehicle (BEV) segment dominated the market in 2018 and is expected to continue being the largest segment over the forecast period. The plug-in hybrid electric vehicle (PHEV) segment is anticipated to register the highest CAGR over the forecast period
  • Companies based in Europe and North America have entered the Chinese market either by setting up manufacturing units in China or by striking strategic partnerships with Chinese companies
  • The evolving automotive industry in Indonesia, Mexico, India, Vietnam, and Thailand bodes well for the market growth over the forecast period
  • Advances in battery technology coupled with the growing preference for hybrid vehicles and zero-emission EVs are expected to drive the electric vehicle battery demand over the forecast period
  • The electric vehicle battery market growth largely depends on the policies drafted by governments and government agencies to encourage the adoption of EVs and deployment of charging infrastructure.

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Added on November 4, 2020
Last Updated on November 4, 2020
Tags: Electric Vehicle Battery Market

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Markets Insights
Markets Insights

Felton, CA

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