Battery Systems For Electric Vehicle Market Size

Battery Systems for Electric Vehicles Market Analysis

The Battery Systems For Electric Vehicle Market size is estimated at USD 29.73 billion in 2024, and is expected to reach USD 55.99 billion by 2029, growing at a CAGR of 13.5% during the forecast period (2024-2029).

• The COVID-19 pandemic brought unprecedented challenges to the battery systems for the electric vehicles market. Lockdown measures and travel restrictions disrupted global supply chains, leading to delays and shortages in battery production. Manufacturing facilities and raw material supply chains were affected, impacting the availability and affordability of electric vehicles. Economic uncertainty, reduced consumer spending, and mobility restrictions resulted in a significant decline in electric vehicle sales. This decline directly impacted the battery systems market.
• The battery systems for electric vehicles market recovered and resumed its growth trajectory post-COVID due to several factors. Governments worldwide continue to prioritize decarbonization and sustainable transportation. Stimulus packages and supportive policies are likely to be implemented to boost the adoption of electric vehicles, which will drive the demand for battery systems.
• As the global economy recovers and restrictions ease, the demand for electric vehicles is expected to rebound. Consumers' increased focus on sustainability and environmental consciousness will contribute to the growth of the battery systems market. Continued research and development efforts will lead to advancements in battery technologies, including higher energy densities, faster charging capabilities, and longer ranges. These advancements will enhance the performance and attractiveness of electric vehicles, driving the demand for battery systems.
• Battery electric vehicles are powered by the electricity stored in the onboard battery. The onboard battery used in electric vehicles can be classified under one of the following three types: nickel metal hydride, lead-acid, and lithium-ion. The chemical energy stored in rechargeable battery packs installed in battery electric vehicles propels the electric motors and motor controllers.
• Major governments across developed countries, including China, the United States, and Japan, are investing in electric mobility, which is likely to provide significant growth opportunities for the battery system for electric vehicle market. Asia-Pacific and North America are likely to dominate the market during the forecast period.