Electric Vehicle Battery Market size was valued at $23 billion in the year 2017 and is anticipated to grow at $ 84 till 2025 and witnessing a CAGR of 17.2% during the forecast period from 2018 to 2025.
Electric Vehicle Battery Market Overview
Electric vehicle batteries undergo different tests before bringing into the market for use. Electric vehicle batteries contain different inflammable material like plastics, lithium and manganese. There are several crucial factors play an important role to boost the electric vehicle battery market growth such as growing demand for electric vehicles, launching of new plug-in EV models, supporting government policies and improvement in battery technology. Governments are encouraging for the adoption of vehicles making use of substitute sources of fuel. Electric vehicles are zero-emission vehicles and are obtaining preference due to their clean public transport around countries. Electric vehicle battery is a secondary battery used as a secondary power medium in automobiles. It makes use of chemical energy that is stored in secondary battery packs for power and therefore cannot need any combustion engine for propulsion.
Electric Vehicle Battery Market Drivers and Restraints
The appearance of Lithium-ion technology impelled the market growth rate over the previous two decades. Primary initial hybrid vehicles used Nickel Metal Hydride batteries. Low maintenance, high-energy density and charge retention are a few of the major advantages, which accelerated the growth of the battery market. Automobile industries are introducing PHEVs and BEVs in the electronic vehicle battery market, which enhance the technology and are projected to provide Li-ion motorized solutions as a key primary power basis in their vehicles. Customers are more preferring battery electric-plug-in vehicles as these vehicles rum smoothly without gasoline, fuel, petrol and diesel. Growing global concerns about the negative impact of climate change and huge pollution levels witnessed in the prominent cities have contributed to a crucial demand for electric vehicles. Increasing global awareness about climate change, increase in demand for zero-emission vehicles and decline in the price of the electric vehicle battery system are the major electronic vehicle battery market driving factors.
Electric Vehicle Battery Market Segmentation:
By Battery Type
- Nickel Metal Hydride Battery
- Lead Acid Battery
- Lithium ion Battery
By Vehicle Type
- Passenger Car
- Commercial Vehicle
By Propulsion Type
- Hybrid Electric Vehicle
- Battery Electric Vehicle
- Plug-in Hybrid Electric Vehicle
- North America
- Rest of Europe
- Rest of Asia-Pacific
- Latin America
- Middle East
Europe is the major region obtained market share of 31.0% of the global electronic vehicle battery market in the year 2021 and is anticipated to record a CAGR of 35.3% during the estimation period. The growth of the market is greatly dependent on government incentives in the region as electronic vehicles are very costly at present. France is also anticipated to grow hugely in the market due to the proposals undertaken by the French government for the promotion of electric commercial vehicles. Increasing focus is given on the use of electronic vehicles by the government in the region.
The electronic vehicle market is recording huge growth around many regions. Hence, prominent automobile manufacturers are making entry into electronic vehicle market because of the growing demand for electronic vehicles. There are a few prominent automakers working on Electronic vehicles for making their place in the industry include the following:
- Tata Motors
Several key automakers showing great interest in the electronic vehicle space, advancements in electronic vehicles are anticipated to increase in upcoming days.