Global Electric Vehicle Battery Market: Overview

Global Electric Vehicle Battery market is expected to grow with a CAGR over 19% during the forecast period 2018-2025, owing to increasing demand for environment friendly vehicles. Diseases caused by air and water pollution are epidemic among minorities. Environmental pollution cause more than three times death 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. Increasing number of deaths in India and China are encouraging government and non-government organization to spread awareness regarding environment pollution and its heath 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.

Global Electric Vehicle Battery Market Size, By Technology, 2014-2025 (USD Million)

Global Electric Vehicle Battery Market: Key Battery Type Analysis

Electric Vehicle Battery is segmented in various types which include Lithium-ion Battery, Lead Acid Battery, Nickel Metal Hybrid Battery, and Others.

· 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. Lithium-ion batteries are preferred substitutes due to longer lifecycle and better performance characteristics. It is the leading as well as fastest growing segment in the battery type segment. Use of lithium-ion batteries for onboard energy storage is increasing owing to the continuous efforts by automotive manufacturers to produce more vehicles with electric drivetrains

· 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. Lead acid battery market is expected to grow significantly during the forecast period owing to the growing demand for stationary lead acid batteries in off-grid renewable energy generation and increasing adoption of vehicle electrification. Lead-acid is one of the oldest energy storage devices, which is being used in numerous applications. Advanced lead-acid batteries provide the start-stop functionality to improve fuel efficiency of micro-hybrid vehicles.

· 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. NiMH batteries are made of environmentally friendly materials. The batteries contain only mildly toxic substances and are recyclable. Nickel metal hydride batteries today represent one of the fastest growing market segments for rechargeable batteries due to the high energy density and more environmentally acceptable chemistry offered by this technology.

· 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. The nickel–cadmium battery (NiCd battery or NiCad battery) is a type of rechargeable battery using nickel oxide hydroxide and metallic cadmium as electrodes NiCd batteries are made in a wide range of sizes and capacities, from portable sealed types interchangeable with carbon-zinc dry cells, to large ventilated cells used for standby power and motive power.

Global Electric Vehicle Battery Market: 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 battery market for BEVs. A battery electric vehicle (BEV) is a vehicle that runs on chemical energy stored in an on-board battery. The on-board battery generates the electricity from nickel metal hydride, lead acid, or lithium-ion battery. It runs on electric motors and motor controllers than on an internal combustion engine.

· 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. A plug-in hybrid electric vehicle (PHEV) is a hybrid electric vehicle whose battery can be recharged by plugging it into an external source of electric power, as well by its on-board engine and generator. Most PHEVs are passenger cars, but there are also PHEV versions of commercial vehicles and vans, utility trucks, buses, trains, motorcycles, scooters, and military vehicles.

· 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. Hybrid electric vehicles have become one of the most promising new markets for OEMs. An increasing number of functions that traditionally were performed by mechanical or electrical systems are now handled by electronics.

Global Electric Vehicle Battery Market: Vehicle Type Analysis

· Commercial Vehicle market is growing with a CAGR of 19.5% in terms of value in 2025. Increasing awareness of the pollution menace, government policies and mandates to restrict pollution, reduction in battery prices, and rapid adoption of electric vehicles such as buses and vans are some of the major factors driving the growth of electric commercial vehicle market.

· Passenger Car market is growing with a CAGR of 18.5% in terms of value in 2025 due to increasing government efforts aimed at encouraging the use of electric vehicles amid alarming pollution levels, globally. Technological advancements on account of increasing focus on research & development activities by leading automobile companies to launch affordable and premium quality electric passenger cars, in addition to rising penetration of electric passenger cars in developing economies, are expected to aid the electric passenger car market over the coming years.

· Two-Wheeler market is growing with a CAGR of 19.1% in terms of value in 2025 due to the growing demand in the developing countries like India as a low-cost transportation and commuting solutions. The dire need for curbing carbon emissions has fuelled the market expansion for electric two wheelers. The initiatives undertaken by the governments to reduce carbon footprint across the globe is the key driver of market growth.

Global Electric Vehicle Battery Market: Regional Analysis

· Asia Pacific dominates the global electric vehicle battery market and it is expected to grow with a CAGR of over 19%, in terms of value, during the forecast period, due to the expansion of the electric vehicle industry in the region, especially in China, Japan, and South Korea. The push for green power as a result of national mandates undertaken by governments in Asia-Pacific to reduce carbon emissions has resulted in the development of new battery chemistries and the betterment of existing ones.

· North America is anticipated to grow with a significant CAGR of 18.7% in terms of value, during the forecast period in the global electric vehicle charging station market due to increasing investments for the manufacturing for electric vehicle. North America is leading the global market in the manufacture of electric vehicles. The government and private players are focused on providing battery electric vehicles and using eco-friendly transport, resulting in increased demand for EHPV.

Global Electric Vehicle Battery Market: Competitive Dynamics

The Global Electric Vehicle Battery market is dominated by a number of 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.