Electric Vehicle (EV) battery market set for explosive growth over next five years
Forecasts estimate that the EV battery market will have a Compound Annual Growth Rate of 38% from 2020 to 2025
Massive demand from car companies suddenly transitioning towards electric vehicles is set to catapult the supporting battery market into the stratosphere according to the "Technology Opportunities in the Electric Vehicle Battery Market" report. It forecasts a CAGR of 38% over the next five years.
If these predictions come to pass, it will mean that the EV battery market will be five times larger than it is today.
The technologies in electric vehicle battery market have undergone significant changes in recent years, with battery technology evolving from low energy density to high energy density. The rising wave of new technologies, such as lithium-nickel-cobalt-aluminium (NCA) and lithium-nickel-manganese-cobalt (NMC) are creating growth potential in electric vehicle battery.
Favorable government policies and subsidies, growing concern about environmental pollution, more electric vehicle models and continued sales growth are increasing demand for electric vehicle and thus for electric vehicle battery.
The study finds that electric vehicle battery technology market is forecast to grow at 38% CAGR from 2020 to 2025. Lithium-ion battery technology is the largest segment of the electric vehicle battery market, and is growing at above average growth.