Cell-to-Pack Battery Market To Generate $27,871.9 Million Revenue by 2030

The global cell-to-pack battery market revenue is expected to reach USD 27,871.9 million by 2030, exhibiting a CAGR of 26.8% during 2024–2030.

This is credited to the surging demand for electric vehicles globally. CTP batteries are being extensively used in EVs due to their lightweight and high energy density features. The governments’ incentives for the adoption of EVs and the surging use of electric buses in urban areas are fueling the market.

Such power sources do not consist of modules, which makes them compact and lightweight. There has been an increase in the demand for long-range electric vehicles, which leads to the requirement for more-efficient and lightweight batteries. Significant advancements are being brought about in these batteries by prominent manufacturers, such as CATL, BYD, and LG Energy Solution, to cater to automotive OEMs’ shifting preferences. For instance, larger cells are being used to make them more compact and efficient, while silicon-based anodes are being used to improve their energy density and lifespan.

Lithium-Iron Phosphate Battery Dominates Market 

The LFP category accounts for the highest revenue in the battery type segment, and it is expected to advance with a significant CAGR, of 25%, over the forecast period.

This is because LFP batteries are lightweight, have low cost, and offer enhanced charging efficiency. Additionally, LFP cathodes are widely used to develop CTP batteries for all-electric vehicles due to their durability, longer lifespan, enhanced safety, and low maintenance.

Moreover, Tesla has announced that it will only use LFP batteries in all its upcoming EV models, to reduce costs, increase production, and augment the range and performance of the vehicles. Best-selling models, such as Model 3 and Model Y, are equipped with these batteries. This type is also used in electric buses owing to its low cost and high voltage properties.

Electric Passenger Cars Hold Largest Share

On the basis of vehicle type, the market is dominated by the electric passenger cars category. Due to the growing environmental awareness, worries about air pollution, and initiatives to minimize greenhouse gas emissions, there has been an increase in the demand for electric cars. Tax credits, subsidies, and stricter emission standards have been implemented by governments around the globe to encourage the use of electric vehicles. Moreover, the rapid advancements in battery technology have enhanced energy density, extended driving ranges, and sped up charging. Because of this, buyers who previously worried about the limited range and charging infrastructure will find electric passenger cars more appealing.

Moreover, the accessibility of charging stations, which was one of the main worries for prospective EV customers, is been eased by the initiatives being taken for the expansion of the charging infrastructure globally. Many nations and businesses are establishing challenging sustainability and climate targets, which necessitate moving toward a greener transportation sector. Electric cars are receiving increasing investment and attention because they are considered essential to accomplishing these goals.

Top companies manufacturing cell-to-pack batteries are CATL, Amperex Technology Co. Limited, BYD Company Ltd., LG Energy Solution, Tesla Inc., XPENG Inc., C4V, Sunwoda Electric Co. Ltd., Panasonic Holdings Corporation, and Samsung SDI. Co. Ltd.