According to global market research firm MarketsandMarkets, the electric vehicle (EV) battery market is projected to grow at a compound annual growth rate of 19% from the $56.4 billion it was worth in 2022 to $134.6 billion by 2027.
The growth of the EV battery market can be attributed to the increasing demand of electric vehicles, improvement in battery technology, supporting government policies and regulations, and the launch of new plug-in EV models.
“The lithium-ion battery dominates the EV battery market due to its high energy density, fast recharging capability, and high discharge power,” the report said. “As a result, lithium-ion batteries are the only available technology that is capable of fulfilling OEM requirements for developing electric vehicles with adequate drive range and fast charging. The cost of lithium-ion batteries is also a major factor driving its high demand since the decreasing cost of these battery types reached $130-$140 per kilowatt hour in 2021, compared with the $800-$900/kWh in the past years.”
Battery manufacturers are focusing on lithium-ion batteries and have invested in greenfield as well as capacity expansion projects to ramp-up production.
Single-passenger vehicles are expected to be the most popular vehicles for RV production, and the Asia-Pacific region is expected to be the heaviest adopter in the coming forecast years.