Hybrid and EV Battery Market Size & Share Analysis - Key Trends, Future Opportunities, Growth Strategies, and Forecasts (2025

Description

The global hybrid and electric vehicle (EV) battery market was valued at USD 65.4 billion in 2024 and is expected to grow at a compound annual growth rate (CAGR) of 21.2%, reaching USD 301.5 billion by 2032. This significant growth is driven by the increasing demand for electric and hybrid vehicles, advancements in lithium-ion battery technology, and government incentives aimed at reducing carbon emissions. Major vehicle manufacturers are shifting toward electric mobility, further fueling the demand for EV batteries. The decline in the average selling price of batteries, driven by economies of scale and technological advancements, is also contributing to the market's expansion.

The growing demand for zero-emission vehicles, the global focus on environmental sustainability, and tougher regulations on fossil fuel consumption are encouraging the adoption of EVs and hybrid vehicles. Additionally, innovations in battery materials, such as improvements in anode and cathode designs, are enhancing battery efficiency and reducing production costs, making EVs more affordable and appealing to consumers.

Key Insights

Market Size & Growth: The hybrid and EV battery market is projected to grow from USD 65.4 billion in 2024 to USD 301.5 billion by 2032, advancing at a CAGR of 21.2%.

Government Support for EV Adoption: Government initiatives worldwide are the key driver of market growth. Policies such as tax incentives, fleet electrification goals, and zero-emission vehicle targets are encouraging the transition to electric mobility. For example, the U.S. aims for a 100% EV federal fleet by 2035, while countries like Germany, India, and the Netherlands are also setting aggressive goals for EV adoption by 2030.

Battery-as-a-Service (BaaS) Model: The BaaS model, which allows consumers to rent batteries instead of purchasing them upfront, is gaining traction. This model reduces the initial cost burden on consumers and allows for battery swapping, which can improve convenience by minimizing downtime for charging.

Advancements in Lithium-Ion Batteries: Lithium-ion (Li-ion) batteries dominate the market, holding 85% of the revenue share in 2024. Their growing adoption is due to their high energy efficiency, long cycle life, and declining prices. Innovations in battery chemistry, such as solid-state batteries, are expected to further enhance the performance and safety of EV batteries.

Propulsion Growth: Battery Electric Vehicles (BEVs) are the largest and fastest-growing category, accounting for 35% of the market in 2024. The growing adoption of BEVs is driven by their zero-emission nature, which aligns with global sustainability efforts. Governments are increasingly prioritizing the infrastructure and policies necessary to support BEVs, further enhancing their market share.

Hybrid and Plug-in Hybrid Electric Vehicles: While BEVs lead the market, hybrid and plug-in hybrid electric vehicles (PHEVs) are also experiencing substantial growth. These vehicles serve as a bridge to full electrification, offering a mix of battery power and conventional internal combustion engines. The adoption of these vehicles is spurred by rising fuel prices, increasing environmental awareness, and government incentives.

Vehicle Type Insights: Passenger cars make up the largest segment of the market, accounting for 45% of the revenue share in 2024. The demand for EVs in passenger cars is expected to grow significantly, driven by lower battery prices, stricter emission regulations, and consumer preference for environmentally friendly vehicles.

Regional Insights:

Asia-Pacific (APAC) is the largest and fastest-growing regional market, contributing USD 45 billion in 2024. This growth is driven by the widespread adoption of EVs in China, Japan, and South Korea, along with government support for electric mobility.

Europe follows as a significant market, with high adoption rates in countries like Germany, Norway, and the U.K. This region is focused on transitioning to EVs due to strong environmental regulations and government initiatives.

North America is also experiencing rapid growth, particularly in the U.S., where federal and state policies, such as tax credits and investments in EV infrastructure, are boosting EV adoption.

Technology & Innovation: Battery manufacturers are investing heavily in R&D to improve battery performance and reduce costs. Innovations like the high-density 4680 lithium-ion cells, which offer greater capacity and efficiency, are expected to drive further advancements in EV battery technology.

Market Dynamics: The hybrid and EV battery market is competitive, with key players such as Panasonic, LG Energy Solution, BYD, and Contemporary Amperex Technology Co. dominating the sector. These companies are expanding their production capacities and forming strategic partnerships with automakers to meet the rising demand for EVs.

Key Manufacturers: Leading companies in the hybrid and EV battery market include Panasonic Holdings Corporation, LG Energy Solution, BYD Co. Ltd., Tesla Inc., and Samsung SDI Co. Ltd. These companies are focusing on scaling up production, improving battery performance, and reducing manufacturing costs to stay ahead in the rapidly growing market.

Market Challenges: Despite rapid growth, the market faces challenges such as the high cost of raw materials, including lithium and cobalt, which are essential for battery production. The industry is also grappling with supply chain constraints and the need for sustainable battery recycling solutions.

Product Code: 10678

Chapter 1. Research Scope

1.1. Research Objectives
1.2. Market Definition
1.3. Analysis Period
1.4. Market Size Breakdown by Segments
- 1.4.1. Market Size Breakdown, by Type
- 1.4.2. Market Size Breakdown, by Propulsion
- 1.4.3. Market Size Breakdown, by Vehicle Type
- 1.4.4. Market Size Breakdown, by Region
- 1.4.5. Market Size Breakdown, by Country
1.5. Market Data Reporting Unit
- 1.5.1. Revenue
1.6. Key Stakeholders

Chapter 2. Research Methodology

2.1. Secondary Research
- 2.1.1. Paid
- 2.1.2. Unpaid
- 2.1.3. P&S Intelligence Database
2.2. Primary Research
2.3. Market Size Estimation
2.4. Data Triangulation
2.5. Currency Conversion Rates
2.6. Assumptions for the Study
2.7. Notes and Caveats

Chapter 3. Executive Summary

Chapter 4. Market Indicators

Chapter 5. Industry Outlook

5.1. Industry Background
5.2. Market Dynamics
- 5.2.1. Trends
- 5.2.2. Drivers
- 5.2.3. Restraints/Challenges
- 5.2.4. Emerging Economies and Key Opportunities
- 5.2.5. Impact Analysis of Drivers/Restraints
5.3. Impact of COVID-19
5.4. Sociopolitical Impact
5.5. Porter's Five Forces Analysis
- 5.5.1. Bargaining Power of Buyers
- 5.5.2. Bargaining Power of Suppliers
- 5.5.3. Threat of New Entrants
- 5.5.4. Intensity of Rivalry
- 5.5.5. Threat of Substitutes
5.6. Innovation and Technology Trends
5.7. Supply Chain and Value Chain Insights
5.8. Economic and Regulatory Impact
5.9. Market Entry Strategies

Chapter 6. Competitive Landscape

6.1. List of Market Players and their Offerings
6.2. Market Share of Key Players (2024)
- 6.2.1. Global
- 6.2.2. North America
- 6.2.3. Europe
- 6.2.4. Asia-Pacific
- 6.2.5. Latin America
- 6.2.6. Middle East and Africa
6.3. Competitive Benchmarking of Key Players
6.4. Product Benchmarking of Key Players
6.5. Recent Strategic Developments by Key Players
6.6. Company Leadership Matrix

Chapter 7. Global Market

7.1. Overview
7.2. Market Revenue, by Type (2019-2032)
7.3. Market Revenue, by Propulsion (2019-2032)
7.4. Market Revenue, by Vehicle Type (2019-2032)
7.5. Market Revenue, by Region (2019-2032)

Chapter 8. North America Market

8.1. Overview
8.2. Market Revenue, by Type (2019-2032)
8.3. Market Revenue, by Propulsion (2019-2032)
8.4. Market Revenue, by Vehicle Type (2019-2032)
8.5. Market Revenue, by Country (2019-2032)

Chapter 9. Europe Market

9.1. Overview
9.2. Market Revenue, by Type (2019-2032)
9.3. Market Revenue, by Propulsion (2019-2032)
9.4. Market Revenue, by Vehicle Type (2019-2032)
9.5. Market Revenue, by Country (2019-2032)

Chapter 10. Asia-Pacific Market

10.1. Overview
10.2. Market Revenue, by Type (2019-2032)
10.3. Market Revenue, by Propulsion (2019-2032)
10.4. Market Revenue, by Vehicle Type (2019-2032)
10.5. Market Revenue, by Country (2019-2032)

Chapter 11. Latin America Market

11.1. Overview
11.2. Market Revenue, by Type (2019-2032)
11.3. Market Revenue, by Propulsion (2019-2032)
11.4. Market Revenue, by Vehicle Type (2019-2032)
11.5. Market Revenue, by Country (2019-2032)

Chapter 12. Middle East and Africa Market

12.1. Overview
12.2. Market Revenue, by Type (2019-2032)
12.3. Market Revenue, by Propulsion (2019-2032)
12.4. Market Revenue, by Vehicle Type (2019-2032)
12.5. Market Revenue, by Country (2019-2032)

Chapter 13. U.S. Market

13.1. Overview
13.2. Economic Indicators
13.3. Demographics and Population Insights
13.4. Regional Hotspots
13.5. Growth Drivers
13.6. Challenges and Barriers
13.7. Competitive Strategies
13.8. Emerging Players
13.9. Import/Export Policies
13.10. Compliance Requirements
13.11. Emerging Investment Areas
13.12. Major Ongoing Projects
13.13. Market Size and Forecast
- 13.13.1. Market Revenue, by Type (2019-2032)
- 13.13.2. Market Revenue, by Propulsion (2019-2032)
- 13.13.3. Market Revenue, by Vehicle Type (2019-2032)

Chapter 14. Canada Market

14.1. Overview
14.2. Economic Indicators
14.3. Demographics and Population Insights
14.4. Regional Hotspots
14.5. Growth Drivers
14.6. Challenges and Barriers
14.7. Competitive Strategies
14.8. Emerging Players
14.9. Import/Export Policies
14.10. Compliance Requirements
14.11. Emerging Investment Areas
14.12. Major Ongoing Projects
14.13. Market Size and Forecast
- 14.13.1. Market Revenue, by Type (2019-2032)
- 14.13.2. Market Revenue, by Propulsion (2019-2032)
- 14.13.3. Market Revenue, by Vehicle Type (2019-2032)

Chapter 15. Germany Market

15.1. Overview
15.2. Economic Indicators
15.3. Demographics and Population Insights
15.4. Regional Hotspots
15.5. Growth Drivers
15.6. Challenges and Barriers
15.7. Competitive Strategies
15.8. Emerging Players
15.9. Import/Export Policies
15.10. Compliance Requirements
15.11. Emerging Investment Areas
15.12. Major Ongoing Projects
15.13. Market Size and Forecast
- 15.13.1. Market Revenue, by Type (2019-2032)
- 15.13.2. Market Revenue, by Propulsion (2019-2032)
- 15.13.3. Market Revenue, by Vehicle Type (2019-2032)

Chapter 16. U.K. Market

16.1. Overview
16.2. Economic Indicators
16.3. Demographics and Population Insights
16.4. Regional Hotspots
16.5. Growth Drivers
16.6. Challenges and Barriers
16.7. Competitive Strategies
16.8. Emerging Players
16.9. Import/Export Policies
16.10. Compliance Requirements
16.11. Emerging Investment Areas
16.12. Major Ongoing Projects
16.13. Market Size and Forecast
- 16.13.1. Market Revenue, by Type (2019-2032)
- 16.13.2. Market Revenue, by Propulsion (2019-2032)
- 16.13.3. Market Revenue, by Vehicle Type (2019-2032)

Chapter 17. France Market

17.1. Overview
17.2. Economic Indicators
17.3. Demographics and Population Insights
17.4. Regional Hotspots
17.5. Growth Drivers
17.6. Challenges and Barriers
17.7. Competitive Strategies
17.8. Emerging Players
17.9. Import/Export Policies
17.10. Compliance Requirements
17.11. Emerging Investment Areas
17.12. Major Ongoing Projects
17.13. Market Size and Forecast
- 17.13.1. Market Revenue, by Type (2019-2032)
- 17.13.2. Market Revenue, by Propulsion (2019-2032)
- 17.13.3. Market Revenue, by Vehicle Type (2019-2032)

Chapter 18. Italy Market

18.1. Overview
18.2. Economic Indicators
18.3. Demographics and Population Insights
18.4. Regional Hotspots
18.5. Growth Drivers
18.6. Challenges and Barriers
18.7. Competitive Strategies
18.8. Emerging Players
18.9. Import/Export Policies
18.10. Compliance Requirements
18.11. Emerging Investment Areas
18.12. Major Ongoing Projects
18.13. Market Size and Forecast
- 18.13.1. Market Revenue, by Type (2019-2032)
- 18.13.2. Market Revenue, by Propulsion (2019-2032)
- 18.13.3. Market Revenue, by Vehicle Type (2019-2032)

Chapter 19. Spain Market

19.1. Overview
19.2. Economic Indicators
19.3. Demographics and Population Insights
19.4. Regional Hotspots
19.5. Growth Drivers
19.6. Challenges and Barriers
19.7. Competitive Strategies
19.8. Emerging Players
19.9. Import/Export Policies
19.10. Compliance Requirements
19.11. Emerging Investment Areas
19.12. Major Ongoing Projects
19.13. Market Size and Forecast
- 19.13.1. Market Revenue, by Type (2019-2032)
- 19.13.2. Market Revenue, by Propulsion (2019-2032)
- 19.13.3. Market Revenue, by Vehicle Type (2019-2032)

Chapter 20. Japan Market

20.1. Overview
20.2. Economic Indicators
20.3. Demographics and Population Insights
20.4. Regional Hotspots
20.5. Growth Drivers
20.6. Challenges and Barriers
20.7. Competitive Strategies
20.8. Emerging Players
20.9. Import/Export Policies
20.10. Compliance Requirements
20.11. Emerging Investment Areas
20.12. Major Ongoing Projects
20.13. Market Size and Forecast
- 20.13.1. Market Revenue, by Type (2019-2032)
- 20.13.2. Market Revenue, by Propulsion (2019-2032)
- 20.13.3. Market Revenue, by Vehicle Type (2019-2032)

Chapter 21. China Market

21.1. Overview
21.2. Economic Indicators
21.3. Demographics and Population Insights
21.4. Regional Hotspots
21.5. Growth Drivers
21.6. Challenges and Barriers
21.7. Competitive Strategies
21.8. Emerging Players
21.9. Import/Export Policies
21.10. Compliance Requirements
21.11. Emerging Investment Areas
21.12. Major Ongoing Projects
21.13. Market Size and Forecast
- 21.13.1. Market Revenue, by Type (2019-2032)
- 21.13.2. Market Revenue, by Propulsion (2019-2032)
- 21.13.3. Market Revenue, by Vehicle Type (2019-2032)

Chapter 22. India Market

22.1. Overview
22.2. Economic Indicators
22.3. Demographics and Population Insights
22.4. Regional Hotspots
22.5. Growth Drivers
22.6. Challenges and Barriers
22.7. Competitive Strategies
22.8. Emerging Players
22.9. Import/Export Policies
22.10. Compliance Requirements
22.11. Emerging Investment Areas
22.12. Major Ongoing Projects
22.13. Market Size and Forecast
- 22.13.1. Market Revenue, by Type (2019-2032)
- 22.13.2. Market Revenue, by Propulsion (2019-2032)
- 22.13.3. Market Revenue, by Vehicle Type (2019-2032)

Chapter 23. South Korea Market

23.1. Overview
23.2. Economic Indicators
23.3. Demographics and Population Insights
23.4. Regional Hotspots
23.5. Growth Drivers
23.6. Challenges and Barriers
23.7. Competitive Strategies
23.8. Emerging Players
23.9. Import/Export Policies
23.10. Compliance Requirements
23.11. Emerging Investment Areas
23.12. Major Ongoing Projects
23.13. Market Size and Forecast
- 23.13.1. Market Revenue, by Type (2019-2032)
- 23.13.2. Market Revenue, by Propulsion (2019-2032)
- 23.13.3. Market Revenue, by Vehicle Type (2019-2032)

Chapter 24. Australia Market

24.1. Overview
24.2. Economic Indicators
24.3. Demographics and Population Insights
24.4. Regional Hotspots
24.5. Growth Drivers
24.6. Challenges and Barriers
24.7. Competitive Strategies
24.8. Emerging Players
24.9. Import/Export Policies
24.10. Compliance Requirements
24.11. Emerging Investment Areas
24.12. Major Ongoing Projects
24.13. Market Size and Forecast
- 24.13.1. Market Revenue, by Type (2019-2032)
- 24.13.2. Market Revenue, by Propulsion (2019-2032)
- 24.13.3. Market Revenue, by Vehicle Type (2019-2032)

Chapter 25. Brazil Market

25.1. Overview
25.2. Economic Indicators
25.3. Demographics and Population Insights
25.4. Regional Hotspots
25.5. Growth Drivers
25.6. Challenges and Barriers
25.7. Competitive Strategies
25.8. Emerging Players
25.9. Import/Export Policies
25.10. Compliance Requirements
25.11. Emerging Investment Areas
25.12. Major Ongoing Projects
25.13. Market Size and Forecast
- 25.13.1. Market Revenue, by Type (2019-2032)
- 25.13.2. Market Revenue, by Propulsion (2019-2032)
- 25.13.3. Market Revenue, by Vehicle Type (2019-2032)

Chapter 26. Mexico Market

26.1. Overview
26.2. Economic Indicators
26.3. Demographics and Population Insights
26.4. Regional Hotspots
26.5. Growth Drivers
26.6. Challenges and Barriers
26.7. Competitive Strategies
26.8. Emerging Players
26.9. Import/Export Policies
26.10. Compliance Requirements
26.11. Emerging Investment Areas
26.12. Major Ongoing Projects
26.13. Market Size and Forecast
- 26.13.1. Market Revenue, by Type (2019-2032)
- 26.13.2. Market Revenue, by Propulsion (2019-2032)
- 26.13.3. Market Revenue, by Vehicle Type (2019-2032)

Chapter 27. Saudi Arabia Market

27.1. Overview
27.2. Economic Indicators
27.3. Demographics and Population Insights
27.4. Regional Hotspots
27.5. Growth Drivers
27.6. Challenges and Barriers
27.7. Competitive Strategies
27.8. Emerging Players
27.9. Import/Export Policies
27.10. Compliance Requirements
27.11. Emerging Investment Areas
27.12. Major Ongoing Projects
27.13. Market Size and Forecast
- 27.13.1. Market Revenue, by Type (2019-2032)
- 27.13.2. Market Revenue, by Propulsion (2019-2032)
- 27.13.3. Market Revenue, by Vehicle Type (2019-2032)

Chapter 28. South Africa Market

28.1. Overview
28.2. Economic Indicators
28.3. Demographics and Population Insights
28.4. Regional Hotspots
28.5. Growth Drivers
28.6. Challenges and Barriers
28.7. Competitive Strategies
28.8. Emerging Players
28.9. Import/Export Policies
28.10. Compliance Requirements
28.11. Emerging Investment Areas
28.12. Major Ongoing Projects
28.13. Market Size and Forecast
- 28.13.1. Market Revenue, by Type (2019-2032)
- 28.13.2. Market Revenue, by Propulsion (2019-2032)
- 28.13.3. Market Revenue, by Vehicle Type (2019-2032)

Chapter 29. Company Profiles

Chapter 30. Appendix

30.1. Sources and References
30.2. Related Reports

Hybrid and EV Battery Market Size & Share Analysis - Key Trends, Future Opportunities, Growth Strategies, and Forecasts (2025 - 2032)