Electric Vehicle Battery Market Size

EV Battery Market size is expected to reach USD 624.07 Billion by the end of 2036, growing at a CAGR of approximately 22% during the forecast period, i.e., 2024 - 2036. In the year 2023, the industry size of EV battery was USD 57.4 Billion. The growth of the market can be attributed to the rising need to save oil and gas, this factor is propelling nations all across the world to deploy electric vehicles. Around 50 TWh of electricity, or less than 0.5% of current global final electricity consumption, was used by the world's EV fleet in 2021. Moreover, in the same year, the adoption of EVs reduced oil consumption by about 0.3 Mb/d. In order to comply with the Net Zero Scenario in 2030, EVs would need to replace more than 7 Mb/d of oil.

In addition to these, factors that are believed to fuel the market growth of electric vehicle batteries include rising demand for electric vehicles which in turn is likely to boost the demand for batteries. According to the International Energy Agency, after ten years of exponential development, the number of electric cars sold worldwide reached 10 million in 2020, a rise of 43% over 2019. Moreover, in 2020, battery electric vehicles (BEVs) made up two-thirds of the stock and all new electric car registrations. Furthermore, in 2021, around 6.6 million electric cars were sold and sales of EV accounted for about 10% of all vehicle sales worldwide.