Electric Vehicle Battery Market - Global Industry Size, Share, Trends, Competition, Opportunity, and Forecast, 2017-2027 Segmented By Vehicle Type (Passenger Car, Light Commercial Vehicle, Medium & Heavy Commercial Vehicle, Two-Wheeler), By Propulsion Type (BEV, PHEV, HEV, FCEV), By Battery Type (Lithium-Ion, Lead-Acid, Others), By Battery Capacity (<51 KWh, 51-100 KWh, 101-200 KWh, 201-300 KWh, >
Published Date: April - 2025 | Publisher: MIR | No of Pages: 320 | Industry: Automotive | Format: Report available in PDF / Excel Format
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The global electric vehicle battery market is anticipated to register a CAGR of 16.06% during the forecast period to reach USD 147.64 billion by 2027.
In the post-war period of the late 1940s, automobile manufacturing began mass-producing cars, and this initiated a booming oil economy from refineries to gas stations. With dense lithium-ion batteries that drive electric cars, the car is again reconfiguring conventional supply chains and creating a new industrial chain. Moreover, due to the growing sales of electric vehicles, demand for battery swappable station will increase in the future, which is anticipated to propel global electric vehicle battery market in the coming years in all regions.
During Covid-19 pandemic, there was a restriction on import-export activity across the globe which affected various businesses, more prominently the automobile sector. The International Organization of Motor Vehicle Manufacturers (OICA) forecasts that global vehicle production dropped by 13% in 2021, against the year 2019. Nonetheless, growing global fears about climate change and rising levels of pollution generated immense demand for electric vehicles. The market of electric vehicle battery is dominated by rising sales of zero emission vehicles, reduction in battery pack cost owing to technological innovation. To achieve the net zero targets of the region, electric vehicle sales have risen substantially throughout Europe. The United States indicates consistency towards the uptake of electric cars. In 2021, China manufactured 159% more electric vehicles in 2021 compared to the year before. In addition, the electric vehicle battery market is further driven by battery swap stations in every region, and China is dominating with 1300 battery swap stations as of the end of 2021, and it is expected to follow the same trend throughout the forecast period.
Rise in Adoption of Electric Vehicles
In 2021, global sales of electric vehicles doubled. A lot of governments are prioritizing the transition to clean mobility as well as the rapid acceptance and production of electric vehicles, which will reduce their cost. The Asia-Pacific region dominates the industry for electric
Increasing demand for Battery Swappable
Battery swapping is an alternative method to recharge drained batteries with fully charged batteries. The greatest barrier to the widespread adoption of electric vehicles is their lengthy charging times. Swap stations are being established everywhere due to the upsurge in demand. Additionally, there are factors that limit its development, including manufacturers resistance to standardizing battery access, safety issues and concern over integration of old batteries into systems, and the infrastructure needed for battery stations.
However, with increasing demand and a shift in consumer perceptions toward electric vehicles, the market for electric car batteries is expected to grow in the future years.
Increasing Popularity of Lithium-ion Batteries
As more nations switch to using electric vehicles instead of internal combustion engines (ICE), the demand for electric vehicle battery keeps rising. The cost of a battery is equivalent to 70-80% of overall cost of vehicle, making it one of the main components in electric vehicles. Lithium-ion batteries has high energy-to-weight ratios, high open circuit voltage, low self-discharge rate, no memory effect, and a slow loss of charge when not in use. Thus, it is expected that lithium-ion batteries segment will maintain its dominance in electric vehicle battery market.
Market Segmentation
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The electric vehicle (EV) battery market can be segmented by battery type, vehicle type, propulsion type, capacity, battery form, and region. Lithium-ion batteries dominate the market. Passenger cars make up a significant portion of the market, with the two-wheeler segment showing strong growth, particularly in India.
Key Segments and Their Characteristics
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Battery Type
- Lithium-ion The dominant type, known for its high energy density, long life, and rapid advancements in technology.
- Lead-acid A more traditional and cost-effective option, often used in lower-cost EVs and smaller vehicles.
- Solid-state Emerging as a potential future technology, offering higher energy density and safety.
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Vehicle Type
- Passenger cars The largest segment, with increasing sales of electric sedans, hatchbacks, and SUVs.
- Two-wheelers Rapidly growing, particularly in developing economies like India.
- Commercial vehicles Including vans, trucks, buses, and off-highway vehicles, with increasing electrification.
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Propulsion Type
- Battery Electric Vehicles (BEVs) The dominant type, offering zero tailpipe emissions.
- Plug-in Hybrid Electric Vehicles (PHEVs) Combine electric and gasoline power for longer ranges.
- Hybrid Electric Vehicles (HEVs) Utilize both electric and gasoline engines for fuel efficiency.
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Capacity
- <50 kWh Suitable for compact vehicles and smaller applications.
- 50-110 kWh Popular for mid-range electric cars, balancing efficiency and cost.
- 111-200 kWh Used in larger EVs and commercial vehicles.
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Battery Form
- Prismatic Dominate the market, offering high energy density per volume, cost-effectiveness, and safety.
- Pouch Flexible and lightweight, suitable for commercial vehicles.
- Cylindrical A more traditional form factor.
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Region
- Asia-Pacific A major growth region, particularly China, South Korea, and India.
- North America A significant market with strong government support for EVs.
- Europe Another major market with strong growth potential.
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Key market players are engaging in strategic partnerships, which are harnessing the market’s growth. For instance, in October 2022, Contemporary Amperex Technology Co., Limited, in partnership with SAIC, a Chinese automobile manufacturer, and two oil companies, Sinopec and China National Petroleum (CNPC), formed a joint venture aimed at advancing electric vehicles featuring replaceable batteries. Some prominent players in the global electric vehicle (EV) battery market include
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LG Energy Solution
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Panasonic Corp.
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SK Innovation Co., Ltd.
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EnerSys, Inc.
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Hitachi, Ltd.
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Mitsubishi Corp
Company Profiles
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Attribute |
Details |
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Market Size Value in 2021 |
USD 61.87 Billion |
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Revenue Forecast in 2027 |
USD 147.64 Billion |
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US Revenue Forecast in 2027 |
USD 8.89 Billion |
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Growth Rate |
16.06% |
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Base Year |
2021 |
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Historical Years |
2017 – 2020 |
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Estimated Year |
2022 |
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Forecast Period |
2023 – 2027 |
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Quantitative Units |
Revenue in USD billion, volume in thousand units and CAGR for 2017-2021 and 2022E-2027F |
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Report Coverage |
Revenue forecast, company share, competitive landscape, growth factors, and trends |
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Segments Covered |
· Vehicle Type · By Propulsion Type · Battery Type · Battery Capacity · Demand Category · Region |
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Regional Scope |
Asia Pacific, Europe, North America |
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Country Scope |
China, Japan, India, South Korea, France, Germany, Spain, United Kingdom, Sweden, Netherlands, Austria, Slovakia, United States, Mexico, Canada |
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Key Companies Profiled |
Contemporary Amperex Technology Co. Ltd. (CATL), Robert Bosch GmbH, LG Chem Energy Solutions, Samsung SDI Co. Ltd., GS Yuasa Energy Co. Ltd., Denso Corporation, Panasonic Corporation, BYD Co. Ltd., Hitachi Ltd., SK Innovation Co. Ltd. |
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Customization Scope |
10% free report customization with purchase. Addition or alteration to country, regional & segment scope. |
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Pricing and Purchase Options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
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Delivery Format |
PDF and Excel through Email (We can also provide the editable version of the report in PPT/pdf format on special request) |
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