The global electric battery market is expected to grow by US$37.69 billion between 2021-2025, with a CAGR (compound annual growth rate) of 21.78 per cent through 2024, according to a recent market report from Technavio.
“The electric vehicle (EV) battery market is fragmented with several players,” said Technavio in a news release. “The market growth is expected to change if the market structure changes due to industry consolidation or if some vendors exit the market.”
Technavio expects several factors to drive the growth of the market during their forecast period: Advances in EV battery (plus associated technologies), a shift from the automotive industry towards EVs, and a decline in EV lithium-ion battery cost.
They expect the market to show an accelerating growth of $44,243.52 million during their forecast period. The company also anticipates that the lithium-ion battery segment will generate the highest (maximum) revenue in the EV battery market, thanks to high demand for lithium-ion batteries from the EV industry and a decline in the price of battery technology.
In terms of geography, the company said that APAC (Asia Pacific) will present “significant opportunities for market vendors due to the presence of numerous established vendors and the rising adoption of electric vehicles in the region.”
The report considers sub-segments such as APAC, North America, Europe, and South America. China, Japan and Germany are key countries that are anticipated to have the highest revenue share globally, and are expected to remain the largest markets for EV batteries.
The report also anticipates that safety concerns regarding lithium-ion batteries will be one of the key elements holding the market back, while significant developments in EV charging infrastructure will be a major trend helping the EV battery market.
“Factors such as the deployment targets for charging stations, enactment of regulations, provision of financial aids, and the mobilization of funding for installations are supporting the development of EV charging infrastructure,” said Technavio.
The company adds that an increase in EV sales is driving the demand for EV charging stations, and is attracting investments towards the development of EV infrastructure in several countries.
