EV Battery Pack Market Size

EV Battery Pack Market Analysis

The EV Battery Pack Market size is estimated at 165.1 billion USD in 2024, and is expected to reach 265.1 billion USD by 2029, growing at a CAGR of 9.93% during the forecast period (2024-2029).

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165.1 Billion

Market Size in 2024 (USD)

265.1 Billion

Market Size in 2029 (USD)

38.68 %

CAGR (2017-2023)

9.93 %

CAGR (2024-2029)

Largest Segment by Body Type

84.66 %

value share, Passenger Car, 2023

Sales of electric cars grew the most due to affordable model launches, government rebates and subsidies, EV benefits over conventional cars, and regulatory standards.

Largest Segment by Propulsion Type

94.41 %

value share, BEV, 2023

Affordable option over PHEV, less maintenance, zero emissions, no fuel expenses have contributed to the highest growth of BEV segment in Global EV sales.

Largest Segment by Battery Chemistry

41.25 %

value share, LFP, 2023

LFP batteries have acquired the highest share due to cheap production, long battery range, durability and highly manufactured by largest exporter of batteries i.e. China.

Largest Segment by Battery Form

66.40 %

value share, Prismatic, 2023

Prismatic cells are largely used due to easy manufacturing, higher density in similar volume over other forms, unexpensive production and high safety rating.

Leading Market Player

37 %

market share, Contemporary Amperex Technology Co. Ltd. (CATL), 2022

Contemporary Amperex Technology Co., Ltd. (CATL) sells the most batteries worldwide due to its vast production capacity, extensive client base, and global reach.

China leads battery demand for BEVs, PHEVs surge in Europe and North America

Governmental push for EVs and development in battery production infrastructure are driving the global EV battery pack market

EV Battery Pack Industry Segmentation

Bus, LCV, M&HDT, Passenger Car are covered as segments by Body Type. BEV, PHEV are covered as segments by Propulsion Type. LFP, NCA, NCM, NMC, Others are covered as segments by Battery Chemistry. 15 kWh to 40 kWh, 40 kWh to 80 kWh, Above 80 kWh, Less than 15 kWh are covered as segments by Capacity. Cylindrical, Pouch, Prismatic are covered as segments by Battery Form. Laser, Wire are covered as segments by Method. Anode, Cathode, Electrolyte, Separator are covered as segments by Component. Cobalt, Lithium, Manganese, Natural Graphite, Nickel are covered as segments by Material Type. Asia-Pacific, Europe, Middle East & Africa, North America, South America are covered as segments by Region.

• The electrification of vehicles in various countries globally has grown significantly over the past few years, making a positive impact on the demand for batteries as it is one of the major components of electric vehicles. The adoption of electric vehicles is growing due to various factors, including awareness of electric vehicles, strict norms from the government for EV adoption, advantages of EVs over the old fossil fuel vehicles, and zero-emission programs in various countries. As a result, the battery industry has grown parallelly and witnessed sales growth of 205% in 2021 over 2017 globally.
• The major demand for batteries for PHEVs and BEVs is from Asian countries, with China as one of the biggest players in the electric automotive industry. The demand for BEVs is higher compared to the PHEVs in the majority of the market; for instance, 90% is acquired by China. Various regions, such as Europe and North America, are also witnessing a significant growth in the demand for BEV and PHEV, which has also contributed to the growth of the demand for batteries across the globe. As a result, the use of lithium-ion batteries in battery electric vehicles grew by 89% in 2022 over 2021 globally.
• Launching of new products is attracting consumers to invest in EVs. For instance, in November 2022, the Chinese automaker BYD launched its electric SUV Atto 3 in India, which is equipped with a 60.48 kWh battery and offers a range of 521 km. The car has already got more than 2,000 bookings, and deliveries started in January 2023. Such launches are attracting customers, which is further expected to raise the demand for batteries with PHEV and BEV models during the forecast period in various countries globally.