Global EV Battery Market Expected to Grow at a CAGR of More Than 19%

electric car

The Global EV Battery market is expected to grow with a CAGR over 19% by 2025, owing to increasing demand for environment-friendly vehicles says Research and Markets.

The research firm in its report notes that the Global EV Battery market is dominated by several players, amongst them the major players are Panasonic Corporation, Mitsubishi Electric Corporation, Samsung Electronics Co. Ltd., Johnson Controls International Plc, Toshiba Corporation, Automotive Energy Supply Corporation, LG Chem Ltd., and BYD Company Ltd.

Companies in this industry are following different strategies to strengthen their market position. For instance, In October 2018 LG Chem signed an agreement with Volkswagen Group to supply them with Electric Vehicle batteries. It will supply lithium-ion batteries to the company.

The major factors for propelling the demand are the diseases caused by air and water pollution. Environmental pollution causes more than three times deaths than malaria, tuberculosis, and AIDs, countries such as Indian and China records the maximum death caused by environmental pollution. Pollution causes 7% of the medical expenses among middle-income group people across the world, in addition, according to World Bank air pollution cost in India was approximately 8% of its GDP or USD 560 billion in 2013.

The increasing number of deaths in India and China are encouraging government and non-government organizations to spread awareness regarding environmental pollution and its health impacts. Due to which several governments’ regulations, particularly pollution prone countries have initiated supportive policies and programs to produce and adopt electric vehicles, which is surging the demand for global electric vehicles battery market over the forecast span.

Pollution caused by coal-burning in industry, for home heating and power plants accounted for about 40% of PM2.5 exposures and lead to 366,000 deaths in 2013. Hence, rising public awareness of air quality and the burden of disease caused by air pollution is an essential step in reducing air pollution and improving public health which is accelerating market demand for electric vehicles battery market.

Key Battery Type Analysis

  • Lithium-ion Battery market is growing with a CAGR of 19.8%, in terms of value in 2025 due to its high-energy density, charge retention capacity, and low maintenance.
  • Lead Acid Battery market is growing with a CAGR of 18.6 %, in terms of value in 2025 due to their mature technology, high availability, and low cost.
  • Nickel Metal Hydride Battery (NiMH) market is growing with a CAGR of 18.3 %, in terms of value in 2025 due to its low-cost rechargeable features.
  • Others include rechargeable batteries like Nickel Cadmium Battery (NiCd), Zinc-air Battery and Molten Salt Batteries that are less commonly used in the electric vehicles. Others battery market segment is growing with a CAGR of 11.4% in terms of value in 2025.

Vehicle Technology Analysis

  • Battery Electric Vehicle (BEV) market is growing with a CAGR of 19.8% in terms of value in 2025. Factors such as growing demand for zero-emission vehicles, government initiatives, and improved charging infrastructure are responsible for the growth of BEVs and thus, leading to the growth of the battery market for BEVs.
  • Plug-In Hybrid Electric Vehicle (PHEV) market is growing with a CAGR of 18.7% in terms of value in 2025 owing to increased fuel efficiency.
  • Hybrid Electric Vehicle (HEV) market is growing with a CAGR of 15.3% in terms of value in 2025. Stringent emission norms, government incentives for the use of hybrid vehicles, and concern for fuel efficiency are the factors driving the Hybrid Electric Vehicle market.

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