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2020-2026 global electric vehicle (EV) battery market

2019-12-11 16:15:01

The global electric vehicle (EV) battery market volume was at 8.6 million units in 2018 and is projected to reach 40.6 million units by 2026, exhibiting a CAGR of 21.1% during the forecast period.Nowadays, there is an increasing inclination towards battery plug-in/electric vehicles by consumers. This inclination is attributed to the need to lower emissions and bring down maintenance costs, which ultimately lowers consumer’s expenses. In recent years, the electric vehicle battery market has observed remarkable growth owing to the rising demand for electric vehicles across the globe. The demand for the EV battery is driven by apprehension over the availability and longevity of non-renewable resources, upsurge in the fuel prices, and environmental concerns regarding emissions. The electric vehicles meet sustainability and comply with global objectives to diminish carbon emissions, owing to which, they have gained popularity. Further, the development in batteries with their charge carrying capacity and lowering the cost of a battery is expected to propel the growth of this market. The development of the charging infrastructure would also expand the electric vehicle battery market size. 

Various governing bodies across the globe have implemented policies which provide subsidies, financial incentives, and tax exemptions to encourage consumers to adopt electric vehicles. These mechanisms are expected to drive the EV battery market over the forecast period. Twenty major cities across the world have announced a ban on the use of diesel and gasoline vehicles by 2030 or sooner. Additionally, governments are also investing in and encouraging policies for charging infrastructure development. Stringent government regulations towards emissions from vehicles to lower greenhouse gas presence would also help for the growth of the sale of electric vehicles. This will be one of the leading electric vehicle battery market trends. 

By type, the market is segmented into lithium-ion battery, nickel-metal hydride battery, lead-acid battery, and others. The lithium-ion battery segment is to dominate the market over the forecast period owing to its capabilities such as high energy density, higher capacities, low discharge rate, and low maintenance. The lithium-ion battery is used in all types of electric vehicles, majorly in hybrid vehicles.

By vehicle type, the electric vehicle battery market is segmented into the plug-in hybrid vehicle, battery-electric vehicle, and hybrid vehicle. The battery-electric vehicle segment is estimated to hold the largest market share and maintain dominance in the market over the forecast period.

The plug-in hybrid vehicles are expected to show exponential growth in the market. The plug-in hybrid vehicles mainly work on plugging into an external electricity source and permits a more extended range for electric-lonely power. They are fuel-efficient in traffic and are zero-emission vehicles when they are on battery power with ease of driving.