The global hybrid and electric vehicle battery market size is expected to reach $436,112.7 million by 2030, growing at a CAGR of 28% from 2021 to 2030. This can be ascribed to the advancements in lithium-ion H&E car battery technology and the surge in the popularity of hybrid vehicles and EVs. Lithium-ion batteries are mostly used batteries in such vehicles because of their great energy efficiency, long lifecycle, and lack of memory effects.
Aside from these, advancements in EV charging infrastructure are leading to greater investments in automobile utilities and charging hardware by power sector stakeholders. Furthermore, governments’ strict emission limits to safeguard the environment and reduce degradation-based possibilities are projected to have a significant positive impact on the lithium-ion battery business.
The largest application area of H&E vehicle batteries is electric vehicles. These vehicles use electric motors powered by batteries for their mobility. They need batteries of more energy capacity, due to their extended driving range and low P/E factor. Also, EV batteries are larger than those of PHEVs or HEVs. Thus, higher energy-density batteries are required for such vehicles. Furthermore, the rising consumer awareness about the importance of lowering global carbon emissions and the increasing fossil fuel prices are likely to drive market expansion in this category.
Moreover, the surging demand for hybrid vehicles and EVs, as an alternative to traditional fuel-powered vehicles, is facilitating the hybrid and electric vehicle battery market growth. As a result of the rising adoption of environmentally friendly vehicles, major manufacturers are entering the market, which is projected to promote the demand for these batteries in the long run.
APAC accounted for the largest revenue share, of more than 41%, in 2021, and it is expected to maintain the same trend in the forecast period as well. The increasing environmental concerns have led China to ban fossil fuel-based two-wheelers from all its major cities to decrease carbon emissions, resulting in a rise in the sales of electric two-wheelers in the nation. In addition, the emergence of the region as a global manufacturing hub has resulted in the high adoption of lithium-ion batteries.
Moreover, the region has the largest population in the world. This results in high sales of automobiles that utilize batteries for their operations. Due to the existence of a large number of manufacturers in China, Japan, and South Korea; and the lower battery pricing, due to the abundant supply of critical raw materials such as lithium and cobalt, support high-volume battery manufacturing in the region.
Major players operating in the global hybrid and EV battery market include Panasonic Holdings Corporation, Envision AESC Limited, BYD Motors Inc., LG Chem, Hitachi Ltd., Lithium Energy and Power GmbH & Co. KG, and Shenzhen BAK Battery Co. Ltd.