Global Market Size, Forecast, and Trend Highlights Over 2025-2037
Electric Vehicle Battery Market size was valued at USD 85 billion in 2024 and is projected to reach USD 440 billion by the end of 2037, rising at a CAGR of 15% during the forecast period, i.e., 2025-2037. In 2025, the industry size of electric vehicle battery is estimated at USD 95 billion.
The rising adoption of electric vehicles globally is driving the need for more efficient and higher-capacity batteries. The increasing demand for EVs is a key driver of the electric vehicle battery market as each new EV sold requires a high-capacity battery, making batteries essential to the expansion of the sector. According to a report by the International Energy Agency (IEA), EV sales reached over 14 million units in 2024 globally, reflecting the accelerating responsibility towards sustainable means of transport. This surge in electric vehicle adoption directly increases demand for EV batteries, compelling battery manufacturers to scale production, invest in modern advanced technologies, and expand global supply chains to support the surging global demand.
Environmental concerns, government incentives, and advancements in vehicle performance are some key pointers driving the global demand for EVs. This surge encourages battery manufacturers to expand capacity, develop batteries for longer range and faster charging, and build new gigafactories to meet rising supply demands. Additionally, the electrification of two-wheelers, buses, and delivery vans is a huge factor in broadening the market reach. For instance, Tesla sold over 1.8 million EVs in 2024. These figures show just how fast the EV market is growing. As a result, the demand for lithium-ion batteries is also rising, pushing battery makers to increase their production.
