EV battery market to be $547b by 2034

The global EV battery market is projected to expand at a prolific compound annual growth rate (CAGR) of 18.5% and reach $547 billion (US$347b) by the end of 2033, up from $105b (US$63.55b) in 2023.

So says a new Fact.MR analysis, explaining a battery is usually made to meet all the needs of an EV’s charging system.

A typical EV battery pack comprises blocks of 18 to 30 parallel cells connected in series to produce the required propulsion voltage, it adds.

Fact.MR says increased consumer awareness of EV benefits, evolving lifestyles, rapid urbanisation, and rising disposable income are anticipated to push EV sales, thereby driving the need for more EV batteries.

“Deployment of electric vehicle batteries in passenger cars is expected to increase at a CAGR of 18.6% over the forecast period owing to stricter emission rules by several governments around the world.”

Fact.MR says several charging stations are essential for EV long-distance commuting, “however, a comprehensive electrification program has yet to be put into place for all types of transport vehicles, including automobiles, two-wheelers, public transport vehicles, and freight delivery trucks”.

Longer-range EVs are more practical for people who travel over longer distances, says Fact.MR, adding that due to improvements in battery technology and electric car battery charger efficiency, high-speed charging will also become a reality, reducing downtime while driving.

“As a result, the market will be driven by rising EV demand.”

Fact.MR says increased demand for electric cars, improvements in battery technology, favourable government policies and regulations, and the release of new plug-in EV models are some of the reasons propelling the market for EV batteries.

“Sales have been influenced by a significant increase in demand for zero-emission vehicles as a result of rising fuel prices, the depletion of fossil fuel reserves, and tightening pollution rules.”

Leading producers are creating electric car models to boost their market share, and the attention of major manufacturers in the industry is expected to boost EV development, adds Fact.MR.

It expects growing e-mobility will push battery development as well.

“Strategic collaborations between e-mobility providers, battery manufacturers, and energy suppliers are boosting sales of electric vehicle batteries.

“Automakers are simultaneously promoting technological breakthroughs to guarantee that the propulsion systems in their electric vehicles are powerful.”

Top EV battery manufacturers are focusing on new developments, quality control, product standards, collaborations, and supply chain management, while key automakers are concentrating on forming strategic alliances with battery producers to secure a stable supply of batteries, says Fact.MR.

“For instance, in 2021 Panasonic introduced its new Tesla-specific 4680 battery cell.

“According to the manufacturer, the new battery offers six times higher power capacity and five times more energy.

“A new battery cell may also be less expensive, have great efficiency, and have a long range in tiny battery packs.”

Click here for more information on the Fact.MR report.