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Electric Vehicle Solid-state Battery Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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  • 100 Pages
  • June 2022
  • Region: Global
  • Mordor Intelligence
  • ID: 5572953
The EV solid-state battery market is anticipated to surpass USD 1 billion by 2027, registering a CAGR of about 52.8% during the Forecasts period (2022 - 2027).

The impact of COVID-19 on the electric vehicle market was inevitable as it affected almost every other industry. However, the electric vehicle (EV) market is witnessing substantial growth due to the swiftly escalating Y-o-Y adoption rate of electric vehicles across the world. For instance, there was a dramatic rise in electric vehicle sales in China, a total of 3.3 million in 2021, 1.3 million in 2020, and 1.2 million in 2019, and in Europe, 2.2 million in 2021, 1.37 million in 2020, and 0.55 million in 2019 despite the pandemic, showing signs of active market growth during the Forecasts period.

As of now, the electric vehicle market is dominated by Toyota Motor Corporation, Tesla Motors Inc., Volkswagen AG, Honda Motor Company Ltd, General Motors Group, Hyundai Kia Automotive Group, etc., with more than 86% of the market share. Further, these companies are expected to be early movers in the solid-state battery market and are likely to remain to hold the larger chunk of the market.

The Asia-Pacific region is expected to witness the fastest growth, followed by Europe and North America. The automotive industry in countries such as China, India, Japan, and South Korea is inclined toward innovation, technology, and the development of advanced electric vehicles and batteries. The increasing demand for reducing carbon emissions and developing more advanced battery technology is expected to propel the market growth during the Forecasts period.

Key Market Trends

Increasing Sales of Electric Vehicle

The movement to accelerate the adoption of light-duty passenger electric cars (EVs) and phase out traditional vehicles with internal combustion engines is gaining traction around the world. The increase in average fuel prices reflects the fact that Europe has a higher share of new electric car registrations than other parts of the world. Hence, mass adoption of electric vehicles, owing to rising fuel prices, is expected to proliferate globally in the electric powertrain market.

Europe is a crucial market for electric powertrains and holds a substantial share of automotive production. Countries such as Finland, Norway, Sweden, and the Netherlands have the highest adoption rate of EVs in the world. Globally, around 3 million new electric cars were registered in 2020, and Europe led with 1.4 million new registrations, followed by China with 1.2 million registrations and the United States with 295,000 registrations of new electric cars.

The annual sales volume of battery-electric passenger cars is projected to cross the 7 million mark by the end of 2026. It is expected to account for about 15% of the overall vehicle sales by the end of 2026. Hence, the increase in electric car registrations resulted in an increased production of electric vehicle powertrains.

The electric vehicle market has been witnessing healthy growth rates in recent years. In 2020, many European countries witnessed double-digit growth in EV sales. The European region captured around 43% of global electric car sales in 2020, compared to 26% in 2019. The overall plug-in vehicle sales reached about 3.24 million units compared to 2.26 million in 2019. This spike in sales was mainly due to an increase in regulatory norms by various organizations and governments to control emission levels and propagate zero-emission vehicles.

Consumers spent USD 120 billion on electric car purchases in 2020, recording a 50% increase from 2019, which breaks down to a 41% increase in sales and a 6% rise in average prices. Moreover, post-COVID-19 recovery, improving business sentiments and increasing awareness about green vehicles increased the consumer spending on electric vehicles. The uptick in electric vehicle sales offers great opportunities for EV parts manufacturers, including electric vehicle powertrain manufacturers.

Lower operating expenses, along with lower up-front expenditures, make electric vehicles more appealing to a wider range of customers, particularly low-income customers. Currently, transportation expenditures account for a significant portion of overall household expenses, and low-income households will gain the most from this more reasonable, accessible option.

The increasing demand for electric vehicles and the benefits of solid-state batteries are expected to the drive the demand over the Forecasts period.

Asia-Pacific May Illustrate Enormous Growth

The Asia-Pacific market is led by countries like China, India, and Japan. Asia-Pacific is still an immature market with immense hidden potential.

The government of China is encouraging people to adopt electric vehicles. The country has already made plans to phase out diesel fuel, which runs the current generation of commercial vehicles, such as trucks. The country is planning to completely ban diesel and petrol vehicles by 2050. The sales of electric cars accounted for 931 thousand units in 2020, with a growth of 11.64% over 2019. Therefore, the country, being one of the largest growing electric markets, along with new developments and orders for commercial vehicles, is likely to drive the Chinese electric vehicle market.

The electric vehicle market in India is on the growing stage. Automobile giants in India, including TATA, Mahindra, Maruti Suzuki, and Hyundai Motors, are taking initiatives to provide affordable options for electric vehicles in India. Moreover, the government is providing subsidies and schemes to adopt electric mobility in India.

The government has been formulating various strategies to reduce pollution in the country. For instance, with its FAME and FAME II policies, the country has been providing incentives to customers and attractive options for investors and manufacturers to set up EV plants to propel the nation toward the faster adoption of green vehicles.

Moreover, electric cars at reasonable prices are attracting consumers, such as Tata Nexon. The recently launched mid-size SUV is one of the hot-selling cars in India, and more than 4,000 units have been sold within the year. Similarly, the 3,000 units sold by MG electric cars at a reasonable price is one of the factors increasing the sales of electric cars in India.

In 2020, the Japanese government proposed a ‘carbon neutral’ goal of achieving zero carbon emissions by 2050. To achieve its environmental protection goals, Huis Ten Bosch introduced pure electric buses, despite disruptions of the COVID-19 pandemic. Moreover, the demand for alternatively powered vehicles, such as plug-in hybrids, fuel cell electric vehicles, and battery electric vehicles, has increased significantly over the past few years. Vehicle manufacturers across the country are testing the possibilities of electric trucks, which may support the government’s move from IC engine vehicles, thereby protecting the environment.

Such instances may aid the growth trajectory of the electric vehicle market, which, in turn, may propel the demand for solid-state batteries over the coming decade.

Competitive Landscape

The EV solid-state battery market is expected to be dominated by Toyota Motor Corporation, Renault Group, Stellantis NV, General Motors, Mitsubishi Motors, Volkswagen AG, Ford Motor Company, Hyundai Group, Samsung SDI, Panasonic, and LG Chem.

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Table of Contents

1.1 Study Assumptions
1.2 Scope of the Study
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5.1 Vehicle Type
5.1.1 Passenger Cars
5.1.2 Commercial Vehicles
5.2 Propulsion
5.2.1 Plug-in Hybrid Electric Vehicle
5.2.2 Hybrid Electric Vehicle
5.2.3 Battery Electric Vehicle
5.3 Geography
5.3.1 North America United States Canada Rest of North America
5.3.2 Europe Germany United Kingdom France Russia Spain Rest of Europe
5.3.3 Asia-Pacific India China Japan South Korea Rest of Asia-Pacific
5.3.4 Rest of the World South Americ Middle-East and Africa
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Toyota Motor Corporation
6.2.2 Renault Group
6.2.3 Stellantis NV
6.2.4 General Motors
6.2.5 Mitsubishi Motors
6.2.6 Volkswagen AG
6.2.7 Ford Motor Company
6.2.8 Hyundai Motor Company
6.2.9 Samsung SDI Co. Ltd
6.2.10 LG Chem Ltd

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Toyota Motor Corporation
  • Renault Group
  • Stellantis NV
  • General Motors
  • Mitsubishi Motors
  • Volkswagen AG
  • Ford Motor Company
  • Hyundai Motor Company
  • Samsung SDI Co. Ltd
  • LG Chem Ltd