The Electric Vehicle Battery Market is estimated to be valued at US$ 35.17 Billion in 2022 and is expected to exhibit a CAGR of 23.64% over the forecast period from 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Electric vehicle batteries are rechargeable batteries used to power the propulsion of battery electric vehicles. Lithium-ion batteries are most commonly used batteries in electric vehicles owing to their high energy density, low self-discharge, and minimal memory effect compared to lead-acid and nickel-based batteries. Lithium-ion batteries provide power to electric motors present in electric vehicles that convert stored electrical energy into mechanical energy.
Market key trends:
Rising adoption of electric vehicles is expected to be a major driver of the electric vehicle battery market growth over the forecast period. Growing environmental concerns and stringent emission regulations have compelled many countries to support adoption of electric vehicles. Various governments around the world are providing subsidies and tax incentives for purchase of electric vehicles. For instance, in the US, a federal income tax credit of up to $7,500 is offered for purchase of new electric vehicles. Such initiatives are increasing demand for lithium-ion batteries, thereby supporting electric vehicle battery market growth.
Porter's Analysis
Threat of new entrants: New players need huge capital investments in lithium-ion battery manufacturing plants, which poses high entry barriers.
Bargaining power of buyers: Buyers have moderate bargaining power owing to the presence of various stationary energy storage system providers.
Bargaining power of suppliers: Suppliers have high bargaining power as raw materials such as lithium, cobalt, and nickel are concentrated among a few players globally.
Threat of new substitutes: Emerging technologies such as hydrogen fuel cells are potential substitutes but are currently not commercially viable.
Competitive rivalry: Intense competition exists among existing players to gain higher market share through product innovation and contracts.
SWOT Analysis
Strengths: Growing demand for reliable power storage from industrial sectors and increasing investments in renewable energy projects drive the market growth.
Weaknesses: High initial costs of energy storage systems and lack of standardization affect wider adoption. Extended warranty periods needed to attract more commercial and industrial customers.
Opportunities: Favorable government policies and regulations regarding carbon emissions reduction and push for sustainable development create lucrative opportunities.
Threats: Geopolitical issues related to raw material supply and price fluctuations pose major threats. Trade barriers and import restrictions affect global supply chains.
Key Takeaways
The global stationary energy storage market is expected to witness high growth, exhibiting CAGR of 23.64% over the forecast period, due to increasing investments in renewable energy integration and decentralized power generation projects. The US market dominates currently due to supportive federal and state policies promoting clean energy.
The Asia Pacific region is poised to grow at the fastest pace during the projected timeframe owing to rising energy demand, government initiatives for universal electrification, and growing manufacturing sector in China and India.
Key players operating in the stationary energy storage market are Tesla, Duracell Power Center, Durapower Group, Contemporary Amperex Technology Co., Limited (CATL), and Toshiba Corporation. Tesla leads the residential energy storage space with its Powerwall product while CATL dominated the utility-scale stationary storage market in 2021.
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