EV battery market to reach USD 302 billion by 2028.
The global Electric Vehicle Battery market size is estimated to be worth USD 56 billion in 2022 and is growing with a CAGR of 32.2%.
The effects of climate change along with alarming pollution levels in major cities have increased the demand for fuel-efficient vehicles. Rising petrol and diesel prices have shifted consumer demand toward electric vehicles.
People are preferring electric-powered vehicles for travel which has given rise to huge order supplies. These factors will in turn drive the growth of the EV battery market.
The global Electric Vehicle Battery market size is estimated to be worth USD 56 billion in 2022 and is forecast to be a readjusted size of USD 302 billion by 2028 with a CAGR of 32.2% during the forecast period.
Increasing demand for electric vehicles, improvement in battery technology, supportive government policies, and transition of rental fleets to EVs will fuel the growth of the market during the forecast period.
Battery companies and automakers are investing resources into developing cheaper, lighter, and denser batteries. Electric vehicle battery systems provide fewer emissions at lower costs than heavier or larger engines. For instance, lithium-ion batteries are compact and have higher energy densities. A full charge takes place in less than 2 to 3 hours with fast charging technology. This will drive the growth of the EV battery market in the coming years.
Government authorities around the world are investing funds into research and development projects for reducing carbon dioxide emissions from commercial vehicles. Efforts are on to decarbonize the transportation sector. For example, rental car fleets are transitioning toward EVs. Drivers are opting for electrified ride-sharing vehicles due to purchase subsidies and lower maintenance costs. This will positively impact the EV battery market during the forecast period.
Several local, state, and federal government organizations have introduced pro-EV policies. These include purchase incentives, fee reductions, competitive tenders, and green public procurement programs.
Other initiatives involve preferential EV rates, direct support for charging infrastructure and installing EV charging points for multifamily dwellings. Such factors will boost the growth of the EV battery market in the forthcoming years.
Based on region, Asia-Pacific will witness considerable growth due to rising demand for EVs in countries like China, India, and Japan owing to the shift toward clean energy sources. It is the top producer and consumer of EV batteries.
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