Battery Electric Vehicle Market Overview

“The Global Battery Electric Vehicle Market is expected to grow rapidly at a 15.26% CAGR consequently, it will grow from its existing size of from $65 billion in 2023 to $401.25 billion by 2030.”

While researchers look at options for materials to make solid-state batteries they may also want to look at how the materials they choose to use could influence manufacturing on a larger scale.

The development of solid-state batteries could be the key to the widespread acceptance of electric vehicles -- possibly an important step towards the transition to a zero-carbon transportation system. Researchers at MIT as well as Berkeley's University of California at Berkeley has proven the necessity to keep the future of low-cost large-scale manufacturing in the forefront when examining new battery ideas.

The need to cut down on carbon emissions is driving the rapid development of electrified mobility as well as the expansion of wind and solar in the electric grid. If these trends continue to grow as anticipated, the need for better ways to store electricity will increase.

The traditional lithium-ion battery continues advance, but they do are not without limitations, in part because of their physical structure. The lithium-ion battery is comprised consisting of 2 electrodes one positive and the other negativewhich are sandwiched between the organic (carbon-containing) liquid. When the battery is charged and discharged the electro-charged particles (or Ions) of lithium travel between one electrode and the other via the electrolyte in the liquid.

One issue with this system is the fact that, at specific temperatures and voltages the electrolyte in the liquid can get hot and explode. "Batteries are generally safe under normal usage, but the risk is still there," says Kevin Huang PhD '15, researcher in Olivetti's lab.

Another issue can be that lithium-ion batteries don't suitable to be used in vehicles. Massive, heavy batteries consume space and add to the overall weight of a vehicle and reduce the efficiency of its fuel. It's becoming increasingly difficult to make lithium-ion batteries lighter and smaller and still maintain their energy density, which is the amount of energy they hold per gram.

To address these issues Researchers are modifying some of the key characteristics that make up the lithium-ion battery in order to create a solid and solid, also known as "solid-state," version. They're replacing with liquid electrolyte in the middle with a thin solid electrolyte that is stable over an array of temperatures and voltages. By using a solid electrolyte they make use of a powerful positive electrode as well as a large capacity negative electrode, made of lithium metal which is much thinner than the typical layers of carbon that are porous. This makes it possible to shrink the overall size of the battery significantly while maintaining its energy storage capacity, and thereby achieve an increased energy density.

Energy storage systems, typically batteries, are crucial for electric vehicles that are all-electric Plug-in hybrid electric vehicles (PHEVs) as well as HEVs, which are hybrid vehicles (HEVs).

Different types of Energy Storage Systems

These energy storage devices are used in electric vehicles that are all-electric HEVs, PHEVs, and PHEVs.

Lithium-Ion Batteries

Lithium-ion batteries are used in many consumer electronics with a portable design like mobile phones and laptops due to their power density and high energy per unit volume and mass in comparison to other electrical battery systems for energy storage. They also feature a high power-to-weight ratio, a high energy efficiency, excellent high-temperature performance, long lifespan and low self-discharge. The majority of the components in lithium-ion batteries can be reused, but the expense of recycling materials is still a problem in the field. The majority of electric automobiles as well as PHEVs make use of lithium-ion batteries, although the exact chemical composition differs from the chemistry of batteries for consumer electronics. The research and development is ongoing to lower the cost of these batteries, prolong their life span and use less cobalt and address safety issues in regards to various faults.

Nickel-Metal Hydride Batteries

Nickel-metal Hydride batteries are utilized frequently in medical and computer equipment provide reasonable energy as well as specific power capabilities. Nickel-metal hydride batteries possess more life-cycle than lead-acid batteries. They are safe and tolerant of abuse. They are widely utilized in the HEV's. The biggest issues associated for nickel-metal hydride batteries is their high price, high self-discharge rates, high heat production in high temperature, and the necessity to limit the loss of hydrogen.

Lead-Acid Batteries

Lead-acid batteries are able to provide high-power and are safe, inexpensive and recyclable. They are also reliable. However, the low specific energy, low cold-temperature performance, as well as a short lifecycle and calendars hinder their usage. High-power lead-acid batteries with advanced technology are in development, however they are currently only utilized in electric-drive vehicles sold in the market to power additional charges. They also serve as stop-start capabilities in internal combustion engines to reduce idle time when stopping and decrease the consumption of fuel.

Ultracapacitors

Ultracapacitors conserve energy in the contact between the electrode and the electrolyte, when they are energized by voltage. Energy storage capacity increases as the electrolyte-electrode surface area increases. Even though ultracapacitors have a low power density they possess extremely high power density, that means they are able to deliver huge quantities of power in very short periods of duration. Ultracapacitors may provide vehicles with extra energy during acceleration and hill climbing and assist in recovering brake energy. They could also serve as an energy storage device in electric-driven vehicles since they assist electrochemical batteries in balancing the power of their load.

Demand Outlook

The market for batteries in electric vehicles indicates this market had been growing up over the course of history. But the advent of covid-19 and its impact on various markets harmed the electric vehicle industry significantly. But, the increase in prices of inflation and the rise in the cost of fuel due to covid-19 have prompted people to adopt electric vehicles.

The extensive research process took an extensive amount of time, particularly in the period of the pandemic as it brought new ideas to the electric vehicle industry. The utilization of various types of batteries in different vehicles, together with government subsidies for the sector and its applications to lessen emissions and fuel consumption has allowed the market to gain a substantial share of the market. Electric passenger cars are increasingly becoming the most popular choice since they are emissions-free cars. The advent of new Plug-in EV models is drawing more customers to use electrical technology to be a mode of transportation.

Future Projection

A study of the global battery market for electric vehicles has revealed that all governments in the world have been pushing for hybrid or electric vehicles. The reason for this are sustainable or alternate fuels. This assists the government in decreasing emissions. The future of the battery market for electric vehicles is looking promising, as more and more the majority of people are moving to electric vehicles because they are more economical economically and environmentally.

Countries with large populations including India and China are embracing vehicles that use alternative fuels since these countries have fewer fuel sources as well as high costs and a lower income per capita. New manufacturing centers for battery production in electric vehicles are also producing high-end battery technology that can work better and last longer in time to last. These developments are likely to increase demand for batteries for electric vehicles.

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Market Dynamics

Growth Drivers

The latest and most advanced battery management systems as well as the upgraded batteries called covid-19 are causing EV manufacturers to improve their battery technology. This means that they can offer more to the end-users. The rising trend of greater adoption of EVs to reduce excessive fuel costs. The covid-19 is hurting people's financial standing and fuel prices are reaching the roof because of the ongoing war as well as global sanctions on oil-producing countries.

The greater acceptance of EVs has led to new developments in the field and also the upgrading of EVs components such as motors, batteries, etc. These are the main elements that drive the demand for electric battery packs for vehicles. Let's look at these in detail:

Lower Operating Costs

Because of the electric fuel, the price of running is less in electric vehicles than in diesel or petrol-powered vehicles. Electric vehicles rely on their motors and batteries and not fossil fuels. The charging of EV batteries is more affordable than filling up diesel or petrol.

The utilization of regenerative and renewable energy will be the norm in car technology. Traveling long distances has become much easier thanks to new charging stations that have set in their places. These EV batteries are charged with renewable energy sources, like solar panels, creating a futuristic field.

Low Maintenance Cost

With a lower cost of running and lower maintenance costs, the cost of maintaining in EVs are also low. Without an motor, EVs don't need any maintenance, oils or cleaning. In addition the simple transmission doesn't require regular maintenance.

The maintenance requirements for electric vehicles are less than fossil fuel vehicles that are conventionally used. Although the cost for repairs may be more expensive than regular electric vehicles since the EV's transmission is brand new, modern and requires professional oversight. The cost difference in prices between BEV HEV, and PHEV is not significant.

Zero Tailpipe Pollution

Another driver of demand for batteries for electric vehicles is their positive effect on carbon footprints, since there's no emissions from the tailpipe. Furthermore, EVs don't require fuel and are therefore a renewable and sustainable alternative, which is fueling the demand for electric battery packs for vehicles. Because of these policies, governments across the globe offer numerous tax benefits and financial advantages. This includes registration fees and road tax when purchasing electric vehicles which are lower than diesel or petrol-powered vehicles.

• Coupons
• Purchase Incentive
• Exemption from Road Tax
• Income Tax Benefits
• Scrapping Incentive Programs
• Interest Subventions

Challenge/Risk

The market for electric vehicle batteries report explains the price of the battery as the main obstacle. The cost of an electric car battery is between US$5,000 and US$9,400. This is a major factor that prevents the majority of consumers from embracing electric vehicles.

Certain countries own cobalt extraction facilities as well as their enormous share. This creates a greater risk of supply disruptions, causing uncertainty in these markets. Another drawback of electric vehicles is its manufacturing process, which produces much more carbon emissions than the production of diesel and petrol vehicles. The raw materials have to be de-oiled before they are utilized, which in turn emits more greenhouse gases.

Market Segment Analysis:

The increase in vehicle density is causing the point of fuel SLA batteries and expand the size of their segments.

The market share of SLA batteries is predicted to show approximately 9% growth by 2030 due to the increasing density of hybrid and electric vehicles around the world. Today there are some of the most efficient battery cells can achieve energy density of 300 Wh/kg. This is a achievement that was only between 100 and 150 Wh/kg previously. This growth in the sector can be attributed to the continuous expansion in industries in remote areas of the globe. Additionally, increasing demands for an adaptable and reliable power supplies is promoting the development of electric SLA vehicles too.

Taxes on registration and roads to make electric cars vital vehicle segments that can drive growth

The BEV market in the electric car segment is set to grow to over 200 billion USD in 2030. This is due to the lower registration fees and road taxes charged on electric cars. The tax is an incentive to encourage customers' preference to electric vehicles over traditional gasoline or diesel cars. Electric cars are also more quiet than ICE powered counterparts, and provide a wonderful solution to the reduction of noise pollution in cities and in urban environments.

Electric cars are also more efficient in regards to consumption of energy. In fact, they are able to convert more than 60% of the electrical energy generated by the grid in order to run the wheels opposed to diesel or petrol automobiles, which have the limit of converting only 17-23 percent of power in the fuel to wheels.

Effect COVID-19's effect on the battery vehicles market developments

The COVID-19 virus had negative effects on the auto industry on the basis of the disruptions in the global supply chain. Through the first half of 2020, worldwide sales of electric vehicles were 13% lower than the same period in 2019. Also, the market is dealing with a major shortage of semiconductors that could slow growth in the near term. However, the efforts of international government agencies will help to overcome these challenges and increase sales of battery electric vehicles in the anticipated timeframe. In the past, in January 2023, the US DOE invested over USD 42 million in 12 projects aimed at improving the supply chain in the US for advanced electric vehicles.

Competitive Landscape of the Battery Electric Vehicle Market

• BMW
• Volkswagen AG
• Ford Motor Company
• Toyota Motor Corporation
• Hyundai Motor Company
• Nissan Motor Corporation
• Energica Motor Company S.p.A

Recent Developments in the Battery Electric Vehicle Market

Oct 27, 2023: The PM e-Bus Sewa had found a mention in the India-United States joint statement released after the meeting of US President Joe Biden with Prime Minister Narendra Modi on the sidelines of the G20 Summit in September.

Oct 27, 2023: Ola Electric raises Rs 3,200 crore to fund EV business

Oct 27, 2023: Indian company that makes EV battery materials to build its first US plant in North Carolina

• Executives at Epsilon Advanced Materials Inc. and Gov. Roy Cooper announced the planned USD 650 million facility in Brunswick County that starting in 2026 would make synthetic graphite anode material necessary for batteries that power EVs and other energy storage systems.

Oct 26, 2023: Honda, GM scrap 'affordable' EV tie-up

Oct 26, 2023: Wardwizard Innovations & Mobility to invest Rs 2,000 crore to develop EV ancillary cluster in Gujarat

Oct 26, 2023: Piaggio sells about 26,000 electric 3-wheelers since 2019

Sep 29, 2023: BMW’s first fully electric car BMW iX1 xDrive30 sold out for 2023 on first day of launch

Indian startup bounce infinity is not a battery-making startup but built an electric vehicle battery eco-system. This fuels the demand for bounce infinity in multiple regions.

Another Indian startup, gygadyne energy, has introduced a battery with no lithium that can give better performance and get charged in 15 mins. They made a battery that can be adjusted into any vehicle, pushing the sales of electric vehicle batteries.

In December 2022, Contemporary Amperex Technology Co., Limited. signed an agreement with Changan Automobile to help Changan Automobile with its innovation capabilities and core advantages in the value chain of EV battery R&D, manufacturing and aftermarket services.

In December 2022, Panasonic Corporation signed an agreement with Lucid Group to supply lithium-ion batteries to their electric vehicles (EVs).

In November 2022, LG Chem Ltd invested more than $3 billion to build a battery cathode factory in Tennessee, as it ramps up plans to meet rising demand for U.S. electric vehicle components. It's one of the first major EV-related investments announced by a South Korean firm in the U.S. to supply cathode materials to Ultium Cells, a battery joint venture between General Motors and LG Chem's subsidiary LG Energy Solution Ltd (LGES).

In November 2021, GS Yuasa International Ltd. launched its common lithium-ion batteries for launch vehicle, Epsilon-5. The common lithium-ion batteries for launch vehicles was developed under a contract with IHI Aerospace Co., Ltd., have been utilized in Epsilon Launch Vehicles ever since the very first Epsilon launch in 2013.

In August 2020, CATL announced to develop a new EV battery with no nickel or cobalt in it. The company focuses to save a major portion of the cost with this development as cobalt is one of the most expensive components in an EV battery. 

In November 2020, Samsung SDI announced that it will be commercializing a li-ion battery product that would replace liquid electrolyte in a battery cell with a solid electrolyte, which improves battery performance.

In March 2020, BYD announced the launch of a blade battery system, which consists of thin individual batteries. The thickness of a single battery is around 1.35 cm and occupies 50% less space than earlier products.

In July 2020, Panasonic Holdings Corporation announced the development of a technique to visualize lithium-ion dynamics in all-solid-state batteries on a nanometer scale in real-time, in collaboration with Japan Fine Ceramics Center (JFCC) and Institute of Materials and Systems for Sustainability, Nagoya University. The technique, which makes use of scanning transmission electron microscopy (STEM) and machine learning, was applied to both bulk-type and thin-film-type all-solid-state lithium-ion batteries.

In December 2019, Samsung SDI acquired an additional 15% stake in Samsung SDI-ARN (Xi'an) Power Battery Co., Ltd (SAPB) making it the majority stakeholder in the company with 65% of ownership. SAPB was initially found in 2014 by Samsung SDI Anqing Ring New Group and Xi’an Gaoke Group.

In July 2020, LG Chem declared that it would reuse and recycle its used batteries proactively. LG Chem would research and develop technologies to predict the remaining life by collecting the batteries supplied to customers.

In October 2020, CATL and RCS Global Group announced a partnership that would identify CATL’s cobalt, lithium, and graphite suppliers. The partnership would expand to cover aluminum, copper manganese, and nickel suppliers in the future. RCS Global would assess the suppliers for conformance with environmental and human rights requirements and work with CATL and the suppliers to develop a responsible supply chain.

Regional Insights

A supportive regulatory environment is needed to help strengthen Asia Pacific industry

It is estimated that the Asia Pacific battery electric vehicle market was responsible for 50% of the of the revenue in 2022 due to the constant shift of production to electric vehicles as well as a supportive regulatory environment. The region is regarded as having among the best regulatory environments for BEV makers in all of the globe. Indeed, countries like South Korea, Japan and China are considered to be among the most prestigious EV manufacturing hubs. Particularly, China, which is the biggest user and producer of battery electric vehicles in around the globe.

The country, along with its neighbors have been focusing on public charging infrastructure in recent times to stimulate commercial EV fleet expansion, which includes HDVs. In reality the Japanese Ministry of Economy, Trade, and Industry (METI) recently announced that in the mid-2030s, it plans to electrify every new car that are sold in Japan.

Segments Covered in the Battery Electric Vehicle Market

Battery Electric Vehicle Market, By Vehicle

• Electric cars
• Electric buses
• Electric trucks
• Electric motorcycles & scooters
• E-bikes

Battery Electric Vehicle Market, By Battery Type

• SLA
• Li-ion
• NiMH

Battery Electric Vehicle Market By Region

• North America
• Europe
• Asia Pacific
• Latin America
• MEA

Frequently Asked Questions:

What is the size of the battery electric vehicle market?

The Global Battery Electric Vehicle Market is expected to grow rapidly at a 15.26% CAGR consequently, it will grow from its existing size of from $65 billion in 2023 to $401.25 billion by 2030.

Which vehicle segment is likely to witness the most growth in the BEV industry by 2030?

The electric cars market is expected to cross a valuation of USD 400 billion by 2030, impelled by the low registration and road tax levied on electric cars.

Why is Asia Pacific slated to emerge as a revenue pocket for battery EV industry players?

The APAC market accounted for over 51.2% of the overall share in 2022. The region is likely to retain its dominant position due to the presence of a favorable regulatory scenario for BEV producers.

Who are the prominent battery EV suppliers globally?

The prominent battery electric vehicle suppliers include names such as General Motors, Honda Motor, Nissan Motor Company, Giant Bicycles, Mitsubishi Motors Company, and Hyundai Motor, among others.