"Market Intelligence for High-Geared Performance"

Electric Vehicle Battery Market Size, Share & COVID-19 Impact Analysis, By Battery Type (Lead Acid Battery, Nickel-Metal Hydride Battery, Lithium-Ion Battery, Others), By Vehicle Type (BEV, PHEV, HEV), and Regional Forecast, 2020-2027

Region : Global | Format: PDF | Report ID: FBI101700

 

KEY MARKET INSIGHTS

Play Audio Listen to Audio Version

The global electric vehicle battery market size was USD 71.83 billion in 2019 and is projected to reach USD 82.20 billion by 2027, exhibiting a CAGR of 6.6% during the forecast period.

COVID-19 Cover

This report covers COVID-19 impact analysis on Electric Vehicle Battery Market

Request Sample

Owing to the improved battery technology, policy incentives, and the growing consumer interest to reduce vehicle carbon footprint, the share of electric vehicles (EVs) in the passenger car industry has increased over the past few years. The key determinant for increasing the driving range per recharge and reducing the cost of EVs is the development of electric vehicle batteries. To store more energy and to make them lighter and smaller, new cell chemistries are being developed for these batteries which would enable EVs to compete with the conventional vehicles.


Impact of COVID-19: Supply Chain Vulnerability for Crucial Electric Vehicle Battery Elements May Hamper Demand


China accounts for more than 75% of the global lithium cell manufacturing capacity and Chinese lithium reserves are around 30 times the U.S. levels. The outbreak of COVID-19 has resulted in a severe supply shortage of lithium for automakers such as PSA Group, Ford, and Fiat Chrysler among others which operate their production plants in the Hubei province, the initial epicenter of the virus. The pandemic induced lockdown is anticipated to reduce lithium-ion battery production output by 26 gigawatt-hours in China and has compounded the dependence of automakers on Asian battery manufacturers. Furthermore, the price of lithium hydroxide used in EVs has increased which is attributed to the logistical difficulties and greater production costs caused by the outbreak.


Previously, several European original equipment manufacturers (OEMs) used to focus only on packaging and research & development activities. They have avoided battery manufacturing themselves owing to the difficulties involved in setting up the production process, developing the correct battery chemistry, and sourcing the minerals to produce battery cells.


However, the pandemic has created a severe bottleneck for electric vehicle battery supply in the automotive industry. For instance, Audi citing this battery issue halted the production of its electric e-tron SUV and reduced its production target by nearly 1600 EVs to 4100 EVs for 2020. Similarly, Daimler and Jaguar Land Rover, owing to the unavailability of key elements such as cobalt and lithium have paused production of the Mercedes EQC and I-Pace electric SUV, respectively. It has impacted the profitability of these automakers.


Hence, efforts to diversify the supply chain for crucial elements such as lithium are expected to increase as a result of the pandemic and a short to mid-term supply shortage for such elements will result in the reduced production of EVs over the next two years.


LATEST TRENDS


Request a Free sample to learn more about this report.


Advancement of Battery Chemistry Aimed at Improving EV Performance is the Current Trend


Currently, lithium-nickel-manganese-cobalt-oxide (NMC) is the commonly used composition in EVs. Additionally, lithium-nickel-cobalt-aluminum oxide (NCA) is used in popular EVs in the U.S. (Tesla model 3, S, and X) However, the adoption of new battery chemistries for EVs is increasing at a faster pace.


For instance, the adoption of lithium-nickel-manganese-cobalt-aluminum oxide (NMCA) composition is expected to start over in the next three years. They provide a longer life cycle and higher energy density, as compared to the equivalent NCA and NMC material. Hence, the development of advanced battery chemistry is a positive trend influencing the electric vehicle battery market growth.


DRIVING FACTORS


Falling Price of Lithium-Ion Batteries to Augment Growth


Currently, the primary source of power for EVs is lithium-ion batteries. According to a study published by the U.S. International Trade Commission in 2018, lithium-ion batteries account for more than 70% of the rechargeable battery market. Additionally, the battery costs per kilowatt-hour (kWh) have declined to less than 200 USD in 2019 from around 1000 USD in 2010. Moreover, owing to the advancement of the battery pack manufacturing techniques and cell chemistry, battery costs are likely to decline below 100 USD/kWh by the end of the forecast period. Hence, a reduction in the prices of battery packs which are responsible for around 35% to 45% of EV manufacturing costs are expected to drive the growth of the market.


Stringent Emission Regulations to Fuel Adoption of Electric Vehicles


Electric vehicles hold a significant emission advantage over the conventional internal combustion engine vehicles attributed to the lack of transit-related emissions and the potential to utilize and develop renewable energy resources.


Furthermore, the increasing awareness regarding climate change has compelled policymakers to implement stringent fuel economy regulations and actively promote the development of electric vehicles via initiatives such as incentivizing cell manufacturing for batteries. Hence, vehicular emission concerns are anticipated to propel the adoption of EVs which would boost the growth of the market of electric vehicle battery.


RESTRAINING FACTORS


Scarce Material Supply and Lack of Charging Infrastructure to Limit Adoption


Several minerals are necessary to store and utilize electricity as fuel such as manganese, cobalt, nickel, graphite, and rare-earth elements such as neodymium for which the supplies are geographically concentrated and substitutes are non-existent or limited. The growing demand for EVs is likely to lead to a short-term supply crunch for these essential battery components.


Furthermore, the lack of charging infrastructure is also a hurdle for the widespread adoption of EVs, particularly in emerging economies such as India. Additionally, the cost of installation is high and cost-efficiency for consumers to charge their vehicles is also not at the required level. Hence, the supply chain risks and the lack of charging stations are likely to restrain the growth of this market.


SEGMENTATION


By Battery Type Analysis


Lithium-Ion Segment Dominated the Market in 2019  


By type, the market is segmented into lead-acid battery, lithium-ion battery (Li-Ion), nickel-metal hydride (Ni-MH) battery, and others. The lithium-ion segment held the largest share of the market in 2019. They offer higher energy density and do not suffer from memory effect (loss of maximum energy capacity owing to rapid recharge), as compared to Ni-MH and lead-acid batteries. Hence, the lithium-ion segment is expected to dominate the market of electric vehicle battery over the forecast period.


By Vehicle Type Analysis


To know how our report can help streamline your business, Speak to Analyst


HEV Segment Held the Largest Market Share in 2019 Backed by their Cost-effectiveness


Based on vehicle type, the market for electric vehicle battery is segmented into plug-in hybrid electric vehicle (PHEV), battery electric vehicle (BEV), and hybrid electric vehicle (HEV). The BEV segment is estimated to exhibit a higher CAGR, as compared to the HEV segment. The government agencies implementing quota systems and stringent fuel economy regulations, particularly in the emerging economies are likely to propel the adoption of BEVs which rely entirely on rechargeable battery packs.


The HEV segment held the largest electric vehicle battery market share in 2019. HEVs utilize electric drive technology to deliver reduced fuel consumption and eliminate dependence on charging stations. Hence, these factors, coupled with their significantly lower costs, as compared to BEVs are expected to lead to the dominance of this segment over the forecast period.


REGIONAL INSIGHTS


Asia Pacific Electric Vehicle Battery Market Size, 2019 (USD Billion)

To get more information on the regional analysis of this market, Request a Free sample


The market for electric vehicle battery in Asia Pacific is characterized by the dominance of China, Japan, and South Korea which represent the majority of the global production capacity for EV batteries. The European electric cars largely utilize batteries produced in South Korea and Japan owing to the similarity of their electric grid to the European average. Also, the majority of the electric vehicle batteries produced in China are used by the domestic market in China.


Furthermore, the global lithium cell manufacturing is heavily concentrated in China and more than half of the battery manufacturing gigafactories are based in China. Hence, Asia Pacific is expected to dominate the market over the forecast period.


The U.S.-based OEMs are focused on eliminating the supply chain risks and the concerns regarding battery sourcing from a single region such as China. For example, establishing nearby manufacturing plants such as the Gigafactory 1 in Nevada operated by Tesla in collaboration with Panasonic would allow the co-development of battery cells and packs, as well as the swift troubleshooting of issues related to these components.


Furthermore, in 2019, the U.S. government published a federal strategy to ensure a reliable and secure supply of critical minerals which directs the Department of the Interior to localize the production of 35 critical minerals that include nickel and cobalt. Hence, North America is expected to show good growth in the market.


KEY INDUSTRY PLAYERS


LG Chem & Panasonic Corporation to Lead Stoked by Rising Investments in R&D Activities


Key players in the global market for electric vehicle battery include Samsung SDI, LG Chem, Panasonic, and BYD Company among others. The cost of the batteries continues to be a hurdle in increasing the affordability of EVs. Hence, companies such as LG Chem and Panasonic are investing heavily in R&D to lower the use of expensive cobalt in nickel-cobalt-manganese and nickel-cobalt-aluminum batteries.


Another example is CATL, which supplies lithium iron phosphate batteries to Tesla. The company is developing a battery that does not contain cobalt or nickel. CATL also supplies Daimler and Volkswagen and has partnerships with Honda and Toyota. The development of such batteries can enable widespread adoption in commercially popular EVs and reduced cost burden on manufacturers, as well as consumers. Hence, the increased investment in R&D of suitable alternatives to expensive electric vehicle battery elements is a key area of focus for the majority of manufacturers.


LIST OF KEY COMPANIES PROFILED:



  • GS Yuasa International Ltd. (Kyoto, Japan)

  • BYD Company Ltd. (Shenzhen, China)

  • LG Chem (Seoul, South Korea)

  • Tesla (California, US)

  • Panasonic Corporation (Osaka, Japan)

  • Samsung SDI CO., LTD (Seoul, South Korea)

  • Hitachi Chemical Co., Ltd. (Tokyo, Japan)

  • Contemporary Amperex Technology Co., Limited (CATL) (Ningde, China)


KEY INDUSTRY DEVELOPMENTS:



  • March 2020 – BYD officially launched the new Blade Battery for EVs that optimizes the battery pack structure by over 50%, as compared to the conventional lithium iron phosphate batteries. It also exponentially increases the battery safety.

  • February 2020 – LG Chem partnered with the U.S.-based luxury EV company, Lucid Motors to supply cylindrical batteries for its EVs from the second half of 2020 up to 2023.

  • December 2019 – LG Chem established a joint venture with General Motors for electric vehicle batteries with mass production expected to begin in 2023 in a new manufacturing plant in Ohio.


REPORT COVERAGE


To gain extensive insights into the market, Request for Customization


The electric vehicle battery market research report covers a detailed analysis of the market and focuses on key aspects such as the leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights the key industry developments. In addition to the aforementioned factors, the report delivers an in-depth market analysis of several factors that have contributed to its growth over recent years.


Report Scope & Segmentation








































 ATTRIBUTE



  DETAILS



Study Period



  2016-2027



Base Year



  2019



Forecast Period



  2020-2027



Historical Period



  2016-2018



Unit



  Value (USD Billion) & Volume (Thousand Units)



Segmentation



By Battery Type



  • Lead Acid Battery

  • Nickel-Metal Hydride Battery

  • Lithium-Ion Battery

  • Others



By Vehicle Type



  • Battery electric vehicle (BEV)

  • Plug-in hybrid electric vehicle (PHEV)

  • Hybrid electric vehicle (HEV)



By Geography



  • North America (U.S., Canada, and Mexico)

  • Europe (U.K., Germany, France, and Rest of Europe)

  • Asia-Pacific (China, Japan, India, South Korea, and Rest of Asia- Pacific)

  • Rest of the World



Frequently Asked Questions

Fortune Business Insights says that the global electric vehicle battery market size was USD 71.83 billion in 2019 and is projected to reach USD 82.20 billion by 2027.

In 2019, the Asia Pacific market value stood at USD 35.39 billion.

Registering a CAGR of 6.6%, the market will exhibit good growth in the forecast period (2020-2027).

The lithium-ion segment is expected to be the leading segment in this market during the forecast period.

The falling price of lithium-ion batteries is the key factor driving the growth of the market.

LG Chem, CATL, BYD Company, and Panasonic Corporation are the major players in the global market.

Asia Pacific held the highest share in the market in 2019.

The stringent emission regulations and favorable government subsidies for the manufacturing and use of electric vehicles are propelling the adoption of electric vehicle batteries.

Electric Vehicle Battery Market Size, Share and Global Industry Trend Forecast till 2026
  • Sep, 2020
  • 2019
  • 2016-2018
  • 200

    CHOOSE LICENSE TYPE

  • 4850
    6850
    8850

Personalize this Research

  • Granular Research on Specified Regions or Segments
  • Companies Profiled based on User Requirement
  • Broader Insights Pertaining to a Specific Segment or Region
  • Breaking Down Competitive Landscape as per Your Requirement
  • Other Specific Requirement on Customization

Automotive & Transportation Clients

Kawasaki_Logo_vert

Client Testimonials

“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”

- One of the Leading Food Companies in Germany

“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”

- Intuitive Surgical

“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”

- Major Food Company in Japan

“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”

- Ziering Medical

“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”

- Major Manufacturer of Precision Machine Parts in India

“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”

- Hewlett-Packard

“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”

- Global Management Consulting Firm

“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”

- UK-based Start-up in the Medical Devices Sector

“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”

- One of the Largest Companies in the Defence Industry
We use cookies to enhance your experience. By continuing to visit this site you agree to our use of cookies . More info.
X