Cell to Pack Battery Market by Form (Prismatic, Pouch, Cylindrical), Battery Type (LFP, NMC), Propulsion (BEV, PHEV), Technology (Blade, LiSER), Vehicle Type (Passenger Cars, Commercial Vehicles) and Region - Global Forecast to 2030
[261 Pages Report] The cell to pack battery market is estimated to grow from USD 5.5 billion in 2023 to USD 29.3 billion by 2030, at a CAGR of 26.9%. The rise in demand for low-cost, lightweight, and high-energy-density batteries in electric vehicles has positively influenced the development of the cell to pack battery market. Also, the government initiatives for increasing the electrification of buses in public transport have created the opportunity for the growth of the cell to pack batteries due to their long-range driving capacity with fast charging feature.
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Cell to Pack Battery Market Dynamics
DRIVER: Growing technological advancements in batteries
There have been substantial improvements made by several companies in EV battery technology and increased R&D efforts to make it a viable alternative to conventional vehicles. Many major battery manufacturers like CATL (China), and LG Energy Solution. (South Korea), BYD Company Ltd. (China) and C4V (US) have emphasized their research and development activities to produce advanced battery technologies to gain a competitive edge. Advantages like less material requirement and a reduction in the number of process points in the production line while manufacturing a cell to pack battery due to the elimination of modules in the battery would also benefit the manufacturers by minimizing a certain amount in their production costs. For instance, in June 2022, CATL (China) unveiled its Qilin battery, the third generation of its CTP technology. It delivers a range of 1,000 km and has an energy density of up to 255 Wh/kg. The battery is expected to be mass-produced in 2023. In March 2020, BYD Company Ltd. (China) developed the battery blade technology, which eliminated the use of modules in the battery. The name is derived from the battery-shaped cells. Such technological advancements would drive the demand for the cell to pack batteries during the forecast period.
RESTRAINT: Limiting the use of electric vehicles
EVs have gained significant popularity across prominent geographies in the past few years due to increased awareness of zero-emission vehicles and several benefits of EVs, mainly for city or short-distance travel. However, there has been some exception to the growing trend.
Some European countries are planning to ban or restrict electric vehicle sales. For instance, Switzerland is preparing to cope with possible power cuts and blackouts. As a result, the country is planning to limit or ban the usage of electric vehicles. Further, it is also facing energy crises due to the Russia-Ukraine War. The main source of power generation in the country is hydro plants and energy imports from other European countries such as France, Russia, and Germany. However, due to conflicting scenarios, the supply chain has been disrupted, and scarcity of natural gas in countries like France and Germany has reduced electricity production to the lowest level in these countries. Due to the prevailing situation, Switzerland drafted an emergency proposal in December 2022 to partially ban EVs. The longevity of the Russia-Ukraine war would further deepen the energy crisis in other European countries to follow similar steps. This would impact the demand for electric vehicles and EV batteries, impeding the growth cell to pack battery market. Similarly, the high cost of charging infrastructure, rising concern for battery recycling, and development of thermal or nuclear power sources of electricity would also question the adoption of EVs, thus contracting the growth of CTP market growth during the forecast period.
OPPORTUNITY: Advancement in differential technology
The commercial vehicle segment, which includes trucks and buses, has also been focusing on developing electric models due to rising emission regulations. Owing to stringent emission norms, many OEMs like AB Volvo (Sweden), Daimler (Germany), BYD Company Ltd. (China), Tesla (US), Tata Motors (India), and Solaris Bus & Coach sp. z o.o. (Poland) have been working toward the development of heavy-duty electric trucks and buses. With the EV battery technology improvement, OEMs are developing long-ranged electric trucks. For instance, Tesla (US) delivered its first electric semi-truck in December 2022, which was announced in 2017. The truck is powered by four independent motors with a battery range of 500 miles.
Governments are also encouraging the usage of electric buses for public transport to control carbon emissions in urban areas. Due to increased demand for high-energy-density battery vehicles, the electrification of intercity travel electric buses has risen in many countries like India, China, Germany, France, and Poland. Thus, the demand for high-energy batteries in commercial vehicles would create a growth opportunity for the development of cell to pack batteries during the forecast period.
CHALLENGE: Battery design and initial costs.
One of the significant challenges faced in manufacturing cell to pack batteries is the battery design. Every vehicle battery has different requirements from the design perspective, whether it is a passenger car, a delivery van, a special purpose car like a sports car, or a heavy commercial vehicle like a truck or bus. The production of cell to pack batteries for such different vehicle applications requires high investment and setup costs and would demand high shifting costs if there is any design change.
Another significant challenge in selling high-energy technology batteries is their initial exorbitant costs. EV battery manufacturing is capital-intensive and needs high investment. It involves many steps, including the procurement of materials, battery management system, and cell manufacturing, which requires a high level of competency and resources across the supply chain. Apart from the initial investment, the cost of electricity can be a challenge in some countries, which is constantly rising. This can hinder the demand for EV batteries, negatively affecting the cell pack battery market.
Cell to pack battery Market Ecosystem
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The prismatic form is estimated to hold the cell to pack battery market by battery form segment during the forecast period
Prismatic cells will lead the cell to pack battery market by battery form segment as this technology's most preferred cell form. This is mainly due to its advantages as prismatic cells are large, contribute to higher energy density, and have a compact structure than cylindrical type cells as the internal layers of the anode, cathode, and separators are folded into a cubic or flattened spiral form. A single prismatic cell may hold the same energy as 20 to 100 cylindrical cells. These benefits have prompted the higher usage of prismatic cells in cell to pack battery technology. In 2021, Tesla announced using lithium iron phosphate (LFP) batteries using prismatic cells in all standard-range vehicles globally. CATL (China) introduced the CTP3.0 battery, the Qilin battery based on a prismatic structure offering 13% higher energy density than Tesla's 4680 battery, developed with a cylindrical configuration. In February 2020, Panasonic Holdings Corporation and Toyota Motor Corporation formed a joint venture- Prime Planet Energy & Solutions, Inc. specializing in automotive prismatic batteries. Hence, the rising need for high energy density with better space utilization in cell to pack batteries would drive the demand for prismatic battery form in the future.
Blade battery is expected to be the largest in the present time for the cell to pack battery market
In March 2020, BYD Company Ltd. launched a patented technology – ‘blade battery’- based on cell to pack technology, eliminating the usage of modules. Based on the cell's shape, the battery is termed the blade battery. Leveraging this technology, BYD launched various passenger vehicles in China and received a positive response in the domestic market. In China, more than 85,000 and 5,000 units of BYD Han EV and BYD Tang were sold in 2021. With more models to be launched, the BYD Company Ltd. and Blade battery market is expected to boost in coming years.
Further, the company's vision to gain mass success triggered it to expand outside China aggressively. It launched a few models, such as e6 MPV and Atto3, available in the Indian market. e6 is the electric MPV available for the B2B segment, whereas Atto3 SUV will be available from 2023 onwards in the domestic market. Additionally, in October 2022, Maruti and Toyota announced using Blade batteries from BYD in their upcoming EV models in India by 2025. In July 2022, BYD Company Ltd. announced its entry into the Japanese market and would launch three models named Atto 3, Dolphin, and Seal in the early months of 2023. Additionally, the company also entered the European market as BYD Tang is available in Norway and some other European markets and entered in other countries of Europe, including Germany and the UK. Further, the company also offered HAN model in the US, which is equipped with blade battery technology. These technological innovations and global expansion strategies allow to reap an early mover advantage to BYD Company Ltd. in cell to pack battery market, and gaining technical stability in commercial vehicles will ensure a significant revenue boost from blade battery technology at a global level.
Asia Pacific holds the dominant position in the regional market for the cell to pack battery
Asia Pacific is projected to lead the cell to pack battery market during the forecast period, mainly due to the dominance of China. China is predicted to claim more than 90% of the market in passenger cars. The country is home to major battery suppliers such as CATL and Sunwoda Electric Co. Ltd. Additionally; major OEMs include Tesla (US) (Model 3), BYD Company Ltd. (China) (Atto3, e6 MPV, Han EV), Xpeng (China) (P7), and NIO (China) (ET7) are gaining momentum in the Chinese market. These players have developed and introduced CTP batteries in some of their EV models. The trend is expected to continue, prospering the cell to pack batteries demand in Chinese market. Other key automakers of Asia Pacific region such as Toyota Motor Corporation, Hyundai Motors, and Daihatsu Motor Co., Ltd. among others have announced to launch cell to pack battery technology in upcoming EV models from 2023-2024 onwards. Rising demand of electric mobility to achieve zero emission, significant investments by automakers, and government initiatives and incentives program will drive electric vehicle and cell to pack battery in the region.
Key Market Players
Contemporary Amperex Technology Co., Limited. (China), BYD Company Ltd. (China), LG Energy Solution. (South Korea), Tesla (US), XPENG INC. (China), C4V (US), and Sunwoda Electronic Co., Ltd. (China). These companies adopted new product launches and expansion to gain traction in the cell to pack battery market.
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Report Attribute |
Details |
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Base year for estimation |
2022 |
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Forecast period |
2023 - 2030 |
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Market Growth and Revenue forecast |
$ 29.3 Bn by 2030 at a CAGR of 26.9% |
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Top Players |
Contemporary Amperex Technology Co., Limited. (China), BYD Company Ltd. (China), LG Energy Solution. (South Korea), Tesla (US), XPENG INC. (China) |
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Fastest Growing Market |
Europe |
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Largest Market |
Asia Pacific |
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Segments covered |
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By Battery Form |
Prismatic, Pouch and Cylindrical |
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By Battery Type |
Lithium Iron Phosphate, Nickel Cobalt Manganese and Other Battery Type |
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By Electric Vehicle Type |
Electric Passenger Cars and Electric Commercial Vehicles (Buses and Trucks) |
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By Propulsion |
BEV and PHEV |
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By Battery Technology |
Blade Battery Technology, LiSER Battery Technology and Other Battery Technology |
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By Region |
Asia Pacific – China, India, Japan, and South Korea. |
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Additional Customization to be offered |
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This research report categorizes the cell to pack battery market based on Battery Form, Battery Type, Electric Vehicle, Propulsion, Battery Technology and Region
By Battery Form
- Prismatic
- Pouch
- Cylindrical
By Battery Type
- Lithium Iron Phosphate (LFP)
- Nickel Manganese Cobalt (NMC)
- Other Battery Type
By Electric Vehicle Type
- Electric Passenger Cars
- Electric Commercial Vehicles
By Propulsion
- BEV
- PHEV
By Battery Technology
- Blade Battery Technology
- LiSER Battery Technology
- Other Battery Technology
By Region
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Asia Pacific
- China
- India
- Japan
- South Korea
-
Europe
- France
- Germany
- Spain
- UK
- Sweden
- Norway
- Switzerland
- Netherlands
- Europe Others
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North America
- US
- Canada
Recent Developments
- In November 2022, BYD Company Ltd. (China) launched the Atto 3 electric segment SUV in the Indian market, equipped with the blade battery technology battery pack. The company claimed a range of 521 km with a 60.48 kWh battery pack.
- In November 2022, BYD Company Ltd. (China) entered a partnership with LEAL Group (Mauritius), an automotive dealership, in Mauritius to promote electric vehicles with blade battery technology.
- In November 2022, LG Energy Solution. (South Korea) and Compass Minerals (US) entered into an agreement that states that LG Energy Solution. will supply 40% of Compass Minerals' annual lithium carbonate production over six years, likely to commence in 2025. The companies also expect to cooperate in good faith on a portion of phase II production of battery-grade lithium hydroxide
- In September 2022, Sunwoda Electronic Co., Ltd. has entered the cell to pack battery market by introducing a new product named SFC480 battery. The new battery type offers a fast-charging solution. As per company details, 5 minutes of charge allows for a200 kms travel range.
- In August 2022, CATL (China) and ZEEKR (China), a part of the Zhejiang Geely Holding Group (China), entered into a five-year strategic agreement. CATL and ZEEKR jointly announced ZEEKR as the first car brand powered by mass-produced Qilin batteries. The newly developed high-energy batteries will initially be used in the ZEEKR 009 MPV model and followed in the ZEEKR 001 model.
Frequently Asked Questions (FAQ):
What is the current size of the global cell to pack battery market?
The global differential market is estimated to be USD 5.5 billion in 2023
What would be the dominating market for the cell to pack battery market?
Asia Pacific is predicted to be the dominating and largest cell to pack battery market during the forecast period.
Which battery type is currently preferred in the cell to pack battery market?
Lithium Iron Phosphate battery types are preferred in manufacturing the cell to pack batteries. The battery material's thermal resistance and low cost promote its usage in cell to pack battery.
Many companies are operating in the cell to pack battery market space globally. Do you know who are the front leaders, and what strategies have been adopted by them?
Contemporary Amperex Technology Co., Limited. (China), BYD Company Ltd. (China), C4V (US), Sunwoda Electronic Co., Ltd. (China), and LG Energy Solution. (South Korea) are some of the early birds in the cell to pack battery manufacturing. These companies adopted new product launches and expansion strategies to gain traction in the cell to pack battery market.
How is the demand for differential varies by region?
Asia Pacific is estimated to be the largest market for the cell to pack batteries. The Asia Pacific region has recently emerged as a hub for electric vehicle sales and production. Europe and North America are also expected to grow at a decent pace during the forecast period due to the region's increased awareness for usage of decarbonized vehicles for commute.
What are the revenue shifts which would be observed in this market?
Rising sales of electric vehicles, including passenger cars and commercial vehicles like buses, would create the demand for high energy density batteries with fast charging solution to improve the vehicle's efficiency would create the demand for high energy density cell to pack battery during the forecast period. .
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The study involved four major activities in estimating the current size of the cell to pack battery market. Exhaustive secondary research was carried out to collect information on the market, the peer market, and the parent market. The next step was to validate these findings, assumptions, and sizing with the industry experts across value chains through primary research. The bottom-up and top-down approaches were employed to estimate the complete market size. Thereafter, market breakdown and data triangulation processes were used to estimate the market size of segments and subsegments.
Secondary Research
In the secondary research process, various secondary sources such as company websites, press releases, industry association publications, Intralogistics magazine articles, directories, technical handbooks, world economic outlook, trade websites, and technical articles were used to identify and collect information useful for an extensive commercial study of the cell to pack battery market.
Primary Research
In the primary research process, various primary sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information on the market. The primary sources from the supply side included various industry experts, such as CXOs; vice presidents; directors from business development, marketing, and product development/innovation teams; and related key executives from various key companies. Various system integrators, industry associations, independent consultants/industry veterans, and key opinion leaders were also interviewed.
Primary interviews were conducted to gather insights such as cell to pack battery market forecast, current technology trends, and upcoming technologies in the market. Data triangulation of all these points was carried out with the information gathered from secondary research. Stakeholders from the supply side were interviewed to understand their views on the points mentioned above.
Primary interviews were conducted with market experts from the supply side (cell to pack battery manufacturers) across the major regions, namely, Asia Pacific, Europe, and North America. Primary data was collected through questionnaires, emails, and telephonic interviews.
In the canvassing of primaries, we have strived to cover various departments within organizations, such as sales and operations, to provide a holistic viewpoint in our report. After interacting with industry experts, we have also conducted brief sessions with highly experienced independent consultants to reinforce the findings from our primaries. This, along with the in-house subject matter experts’ opinions, has led us to the findings as described in the remainder of this report:
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Market Size Estimation
The bottom-up and top-down approaches were used to estimate and validate the size of the global cell to pack battery market. In these approaches, the electric vehicle sales statistics for each vehicle type (electric passenger cars, heavy trucks and buses) at country level were considered.
Cell to pack battery market: Bottom-Up Approach
In the bottom-up approach, the sale and forecast of electric vehicle type which included the electric passenger cars, electric buses and electric trucks on the basis of the propulsion type like BEV and PHEV was determined. Further the penetration of cell to pack battery in different vehicle type by the propulsion (BEV and PHEV) at each country level was identified. The multiplication of the penetration rate and the sales of electric vehicles by propulsion gave the country level cell to pack battery market in terms of volume by vehicle type and by propulsion type. The average selling price of cell to pack battery for each vehicle type based on the kWh usage depending on the vehicle type was identified on the country level. Further, multiplying the country level market for vehicle type and propulsion on country level with the average selling prices for each vehicle type determined on country level determined the country level market by vehicle type and propulsion in terms of value. The summation of the country-level market for each vehicle type and propulsion, by volume and value, would give the regional level market, by vehicle type and propulsion. The summation of the regional markets provides the global market, by vehicle type and propulsion.
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Data Triangulation
All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources. All parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analysed to obtain the final quantitative and qualitative data. This data was consolidated, supplemented with detailed inputs and analysis from MarketsandMarkets, and presented in the report.
Report Objectives
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To define, describe, and forecast the cell to pack battery market in terms of value (USD million) and volume (units) based on the following segments:
- By battery form (prismatic, pouch, and cylindrical)
- By battery type (lithium iron phosphate (LFP), nickel manganese cobalt oxide (NMC), and other battery types)
- By electric vehicle type [electric passenger cars and electric commercial vehicles (buses and trucks)]
- By Propulsion (BEV and PHEV)
- By technology (blade battery technology, LiSER battery technology, and other battery technology)
- By region (Asia Pacific, Europe, and North America)
- To understand the dynamics (drivers, restraints, opportunities, and challenges) of the market
- To analyze the market share of leading players in the cell to pack battery market and evaluate the competitive evaluation quadrant.
- To assess the key player strategies and company revenue
- To evaluate the market with Porter’s Five Forces analysis, supply chain analysis, market ecosystem, case studies, ASP analysis, patent analysis, trends/disruptions impacting buyers, technology trends, recession impact, and regulatory analysis
- To analyze recent developments, including supply contracts, new product launches, expansions, and other activities, undertaken by key industry participants in the market
- To determine realistic, pessimistic, and optimistic scenarios related to the cell to pack battery market.
- To give a brief understanding of the market in the recommendations chapter
Available Customizations
With the given market data, MarketsandMarkets offers customizations in accordance to the company’s specific needs.
The following customization options are available for the report:
Cell to pack battery, By Vehicle and Propulsion type
- Passenger vehicles
- Commercial vehicle
Note: The electric vehicle type market will be provided by provided by propulsion (BEV and PHEV) for the considered regions
Cell to pack battery market, by Propulsion and Country
- BEV
- PHEV
Note: The market will be provided at countries considered under each region for the study
Note:
Asia Pacific (China, Japan, South Korea, India), Europe (France, Germany, Spain, UK, Switzerland, Netherlands, Norway, Sweden) and Americas (US, Canada)
Growth opportunities and latent adjacency in Cell to Pack Battery Market