Executive Summary

The global Li-ion battery for AEVs market is witnessing steady growth due to the increasing demand for EVs worldwide. The market is expected to grow at a CAGR of 20.3% during the forecast period from 2021 to 2028. The growth of the market is driven by several factors, including government incentives and regulations promoting the use of EVs, decreasing battery prices, increasing adoption of EVs, and growing concern about greenhouse gas emissions.

Important Note: The companies listed in the image above are for reference only. The final study will cover 18–20 key players in this market, and the list can be adjusted based on our client’s requirements.

Key Market Insights

• The global Li-ion battery for AEVs market was valued at USD 22.5 billion in 2020 and is expected to reach USD 92.2 billion by 2028.
• The market is expected to grow at a CAGR of 20.3% during the forecast period from 2021 to 2028.
• The growth of the market is driven by several factors, including government incentives and regulations promoting the use of EVs, decreasing battery prices, increasing adoption of EVs, and growing concern about greenhouse gas emissions.
• Asia Pacific is expected to be the largest market for Li-ion batteries for AEVs, followed by North America and Europe.
• The passenger car segment is expected to be the largest segment of the market, followed by the bus and commercial vehicle segments.

Market Analysis

The global Li-ion battery for AEVs market is witnessing steady growth due to the increasing demand for EVs worldwide. The market is expected to grow at a CAGR of 20.3% during the forecast period from 2021 to 2028.

Market Drivers

1. Government incentives and regulations promoting the use of EVs Governments worldwide are promoting the use of EVs by offering incentives and subsidies to both manufacturers and consumers. For example, in the United States, the federal government offers a tax credit of up to $7,500 for the purchase of an electric vehicle. Similarly, in Europe, several countries offer purchase incentives for EVs.
2. Decreasing battery prices The prices of Li-ion batteries have been decreasing steadily in recent years due to advancements in technology and economies of scale. This has made EVs more affordable, thereby driving their adoption.
3. Increasing adoption of EVs The adoption of EVs is increasing worldwide due to their low operating costs, lower emissions, and improving technology. As a result, the demand for Li-ion batteries for AEVs is also increasing.
4. Growing concern

Market Restraints

1. High initial cost The initial cost of purchasing an EV is generally higher than that of a conventional vehicle. This is primarily due to the high cost of Li-ion batteries used in EVs. As a result, many consumers are reluctant to purchase an EV.
2. Limited range One of the main drawbacks of EVs is their limited driving range. Although the range of EVs has been increasing in recent years, it is still lower than that of conventional vehicles. This can be a major deterrent for consumers, particularly those who travel long distances.
3. Lack of charging infrastructure The lack of charging infrastructure is a major challenge for the adoption of EVs. Although the number of charging stations is increasing, it is still limited in many regions. This can be a major deterrent for consumers who are concerned about running out of charge while on the road.

Market Opportunities

1. Increasing demand for EVs in emerging economies The demand for EVs is increasing in emerging economies such as China and India, which are major markets for automotive manufacturers. This presents a significant opportunity for Li-ion battery manufacturers to expand their operations in these regions.
2. Technological advancements Advancements in technology, such as the development of solid-state batteries, are expected to increase the performance and reduce the cost of Li-ion batteries. This will make EVs more affordable and increase their adoption.
3. Collaboration between automotive and battery manufacturers Collaboration between automotive and battery manufacturers is expected to increase in the coming years. This will help to accelerate the development of EVs and improve their performance.

Market Dynamics

The global Li-ion battery for AEVs market is dynamic and characterized by intense competition among players. The market is expected to grow at a significant rate in the coming years due to the increasing adoption of EVs worldwide. The demand for Li-ion batteries for AEVs is expected to increase due to the growing concern about greenhouse gas emissions and the need to reduce reliance on fossil fuels.

Regional Analysis

The Asia Pacific region is expected to be the largest market for Li-ion batteries for AEVs, followed by North America and Europe. This is primarily due to the increasing adoption of EVs in these regions and the presence of major automotive manufacturers.

Competitive Landscape

Leading companies in the Global Li-ion Battery for AEVs Market:

1. Contemporary Amperex Technology Co. Limited (CATL)
2. Panasonic Corporation
3. LG Chem Ltd.
4. Samsung SDI Co., Ltd.
5. BYD Company Limited
6. Automotive Energy Supply Corporation (AESC)
7. GS Yuasa Corporation
8. A123 Systems LLC
9. Toshiba Corporation
10. Hitachi Chemical Co., Ltd.

Please note: This is a preliminary list; the final study will feature 18–20 leading companies in this market. The selection of companies in the final report can be customized based on our client’s specific requirements.

Segmentation

The global Li-ion battery for AEVs market is segmented on the basis of type, application, and region.

By type:

• Lithium Iron Phosphate (LFP)
• Lithium Nickel Cobalt Aluminum Oxide (NCA)
• Lithium Manganese Oxide (LMO)
• Lithium Nickel Manganese Cobalt Oxide (NMC)

By application:

• Passenger Cars
• Buses
• Commercial Vehicles

Category-wise Insights

1. Lithium Iron Phosphate (LFP) batteries are expected to be the most popular type of Li-ion battery for AEVs in the coming years. This is primarily due to their high safety, long cycle life, and low cost.
2. The passenger car segment is expected to be the largest segment of the Li-ion battery for AEVs market. This is primarily due to the increasing adoption of EVs in this segment and the growing concern about greenhouse gas emissions.

Key Benefits for Industry Participants and Stakeholders

1. Increased demand for Li-ion batteries for AEVs is expected to drive the growth of the market in the coming years.
2. The increasing adoption of EVs worldwide presents significant opportunities for Li-ion battery manufacturers.
3. The development of solid-state batteries and other technological advancements is expected to improve the performance and reduce the cost of Li-ion batteries, making them more affordable and accessible.

4. Government incentives and regulations promoting the use of EVs are expected to increase the demand for Li-ion batteries for AEVs.

SWOT Analysis

Strengths:

• Li-ion batteries have a high energy density, long cycle life, and low self-discharge rate, making them ideal for use in electric vehicles.
• The increasing adoption of EVs worldwide is expected to drive the growth of the Li-ion battery for AEVs market in the coming years.
• Technological advancements are expected to improve the performance and reduce the cost of Li-ion batteries, making them more affordable and accessible.

Weaknesses:

• The high initial cost of Li-ion batteries and EVs is a major deterrent for consumers.
• The limited range of EVs and the lack of charging infrastructure are major challenges for the adoption of EVs.

Opportunities:

• The increasing demand for EVs in emerging economies presents significant opportunities for Li-ion battery manufacturers.
• Technological advancements, such as the development of solid-state batteries, are expected to improve the performance and reduce the cost of Li-ion batteries, making them more affordable and accessible.
• Collaboration between automotive and battery manufacturers is expected to accelerate the development of EVs and improve their performance.

Threats:

• Intense competition among players in the Li-ion battery for AEVs market.
• The emergence of alternative battery technologies that could potentially replace Li-ion batteries.

Market Key Trends

1. Increasing adoption of EVs worldwide The adoption of EVs is increasing worldwide due to their low operating costs, lower emissions, and improving technology. This trend is expected to continue in the coming years, driving the growth of the Li-ion battery for AEVs market.
2. Government incentives and regulations promoting the use of EVs Governments worldwide are promoting the use of EVs by offering incentives and subsidies to both manufacturers and consumers. This trend is expected to continue in the coming years, driving the growth of the Li-ion battery for AEVs market.
3. Technological advancements Advancements in technology, such as the development of solid-state batteries, are expected to improve the performance and reduce the cost of Li-ion batteries. This will make EVs more affordable and increase their adoption.

Covid-19 Impact

The Covid-19 pandemic has had a significant impact on the global economy, including the Li-ion battery for AEVs market. The pandemic has disrupted supply chains and reduced demand for EVs due to the economic slowdown. However, the long-term impact of the pandemic on the market is expected to be limited, and the market is expected to recover in the coming years.

Key Industry Developments

1. Partnership between Tesla and Panasonic Tesla and Panasonic have partnered to produce Li-ion batteries for Tesla’s electric vehicles. The partnership has helped to accelerate the development of EVs and increase their adoption.
2. Investment by Volkswagen in solid-state batteries Volkswagen has invested in solid-state batteries, which are expected to improve the performance and reduce the cost of Li-ion batteries. The investment is expected to help Volkswagen to develop EVs with longer ranges and lower costs.

Analyst Suggestions

1. Battery manufacturers should focus on reducing the cost of Li-ion batteries to make EVs more affordable and accessible to consumers.
2. Automotive manufacturers should invest in the development of EVs with longer ranges and faster charging times to increase their adoption.

Future Outlook

The global Li-ion battery for AEVs market is expected to grow at a significant rate in the coming years due to the increasing adoption of EVs worldwide. The market is expected to be driven by several factors, including government incentives and regulations promoting the use of EVs, decreasing battery prices, increasing adoption of EVs, and growing concern about greenhouse gas emissions. Technological advancements, such as the development of solid-state batteries, are expected to improve the performance and reduce the cost of Li-ion batteries, making them more affordable and accessible.

The Asia Pacific region is expected to be the largest market for Li-ion batteries for AEVs, followed by North America and Europe. The passenger car segment is expected to be the largest segment of the market, followed by the bus and commercial vehicle segments.

Conclusion

The global Li-ion battery for AEVs market is witnessing steady growth due to the increasing demand for EVs worldwide. The market is expected to grow at a CAGR of 20.3% during the forecast period from 2021 to 2028. The growth of the market is driven by several factors, including government incentives and regulations promoting the use of EVs, decreasing battery prices, increasing adoption of EVs, and growing concern about greenhouse gas emissions.