High Voltage Battery Market size was over USD 34.88 Billion in 2023 and is anticipated to reach USD 2.64 Trillion by the end of 2036, growing at around 39.5% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of high voltage battery is assessed at USD 47.28 Billion.. Market growth is believed to be due to the growing need to reduce pollution and CO2 emissions. Electric vehicles emit almost no exhaust gas from the exhaust pipe, making a significant contribution to reducing greenhouse gas emissions. Road transport accounts for about 75% of global CO2 emissions, and in recent years Asian economies have contributed to the emissions. Approximately 795 million tons of CO2 are emitted by Asian countries, out of which India produces approximately 291 million tons.
Other factors that are expected to boost the growth of the high voltage battery market include aggressive government initiatives for smart city development. Clean energy sources such as batteries play an important role in this regard. During the COVID-19 pandemic, approximately 45% of government agencies worldwide were unprepared for the unprecedented challenges they encountered during the pandemic. This has prompted governments to upgrade their traditional infrastructure and launch and further develop smart city plans. Smart cities enable facilities that can efficiently address these challenges.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024 – 2036 |
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CAGR |
39.5% |
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Base Year Market Size (2023) |
USD 34.88 Billion |
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Forecast Year Market Size (2036) |
USD 2.64 Trillion |
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Regional Scope |
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Battery Type (Lithium-ion Battery, Lead-Acid Battery, Aluminium Air Battery, Hydrogen Battery)
The lithium-ion battery is poised to dominate the global high voltage battery market by reaching a growth of 40% by the end of 2036. Growth in this sector is due to the increased investment in the production of lithium-ion batteries. The expanding lithium-ion battery capacity globally is expected to be financed by various investments, which he expects to exceed USD 620 billion over the next 21 years. The funding is intended to cover different areas of battery production including supply chain, material extraction, and refining. Additionally, the increasing demand for lithium-ion batteries contributed significantly to the segment growth in the market. Global demand for this battery is expected to increase by about 11-fold between 2020 and 2030, and its capacity is expected to reach more than 2 terawatt hours.
Application (Passenger Cars, Commercial Cars)
The passenger car segment in the high voltage battery market is expected to observe the largest CAGR between the time period 2023 – 2036. Growing demand for passenger cars is expected to drive the growth of this segment. Indian passenger car sales increased by more than 8% in December 2022. About 280,000 passenger cars were shipped from factories to dealers during the same period, up from nearly 25,000 last year. In addition, the growing popularity of electric vehicles has increased the demand for electric passenger vehicles. As per the analysis, the global sales of electric passenger vehicles will increase by 13% in 2023.
Our in-depth analysis of the global high voltage battery market includes the following segments:
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Voltage Capacity |
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Battery Type |
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Application |
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APAC Market Forecast
The high voltage battery market in the Asia Pacific region is predicted to dominate the market by expanding at a CAGR of 32% in the estimated period. The growth of the market is driven mainly due to the increase in automobile sales in the region. Total vehicle sales in China, including passenger cars, trucks, and buses, were approximately 27 million units. Sales of sedans and minivans will increase, reaching 24 million units in 2022. Furthermore, the Asia Pacific region is experiencing high investments in renewable energy projects such as solar and wind power. Thus, high-voltage batteries play a vital role in storing excess energy generated from these renewable sources and offer a stable power supply as well.
North American Market Statistics
The North America high voltage battery market is estimated to gain a substantial market share in the projection timeframe. The market growth is mainly due to increased investment in battery manufacturing. The U.S. battery-manufacturing investment plans have skyrocketed since President Biden signed a bill that would give a big boost to electric vehicles and renewable energy. For instance, in order to meet growing demand from automakers looking to ramp up production of electric cars and trucks, a South Korean battery maker said it would triple its investment plans for a new plant in Arizona. In addition, LG Energy announced that it will invest nearly USD 5 billion to build a new plant in the United States to start producing batteries for electric vehicles in 2025.
Author Credits: Dhruv Bhatia
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