Global EV Battery Market to Reach 40.6 mn Units by 2026

A new report has predicted that the global EV battery market volume is projected to reach 40.6 million units by 2026, exhibiting a CAGR of 21.1 percent.

A new report has predicted that the global electric vehicle (EV) battery market volume was at 8.6 million units in 2018 and is projected to reach 40.6 million units by 2026, exhibiting a CAGR of 21.1 percent during the forecast period.

The report issued by Fortune Business Insights detailed that this increase will be on the back of the increasing impetus globally on governments and companies to transition to electric vehicles. The report titled “Global Electric Vehicle Battery Market Size, Share & Industry Analysis, By Type (Lead Acid Battery, Nickel-Metal Hydride Battery, Lithium-Ion Battery, Others), By Vehicle Type (PHEV, BEV, HEV), and Regional Forecasts, 2019-2026”, stated that the demand for EV batteries is driven by apprehension over the availability and longevity of non-renewable resources, upsurge in the fuel prices, and environmental concerns regarding emissions.

“EVs are expected to play a central role in the global commitment towards attaining sustainable development goals set by the United Nations. This skyrocketing demand and production are further underpinned by the rising concerns regarding rampant pollution and unchecked carbon emissions that are exacerbating the effects of global warming and climate change,” analysts noted in the report.

The report further pointed out that Asia-Pacific is anticipated to dominate the EV battery market share owing to the increasingly stringent regulations put in place by governments in the region to reduce carbon and GHG emissions, specifically China. While the volume of the market in Europe which will be second-largest market was at 3.1 million in 2018 and is expected to increase mainly on account of a well-established EV infrastructure. The other factor favouring growth in this region is the supply of nickel-metal batteries and lithium-ion batteries at competitive prices by companies.

The gradual shift towards EVs as a result of volatile oil prices will be the main factor driving the market in North America, which the report also projects to have strong growth. Foreign direct investments and investments from private-public partnerships with promising government policies would promote the growth of the market in this region.

The forecast also states that this market is set to experience intense competition in the coming decade. This is because major players are looking to consolidate their position through the launch of innovative products and strategic collaborations to diversify their product offerings.