Asia Pacific Hybrid Electric Vehicle Battery Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 5.64 Billion |
| Market Size (2029) | USD 14.86 Billion |
| CAGR (2024 - 2029) | 21.40 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Asia Pacific Hybrid Electric Vehicle Battery Market Analysis
The Asia Pacific Hybrid Electric Vehicle Battery Market size is estimated at USD 5.64 billion in 2024, and is expected to reach USD 14.86 billion by 2029, at a CAGR of 21.40% during the forecast period (2024-2029).
- In the coming years, the increasing adoption of electric vehicles (EVs), coupled with factors such as enhanced fuel efficiency, is set to boost the demand for hybrid electric vehicle batteries.
- Conversely, a limited availability of raw material reserves poses a significant challenge to the growth of the hybrid electric vehicle battery market.
- However, advancements in battery materials—such as heightened energy density, quicker charging times, enhanced safety features, and extended lifespan—present substantial opportunities for players in the hybrid electric vehicle battery market.
- India, driven by its surging electric vehicle adoption, is poised to be the fastest-growing region in the Asia Pacific hybrid electric vehicle battery market.
Asia Pacific Hybrid Electric Vehicle Battery Market Trends
Lithium-Ion Battery Type Dominate the Market
- The lithium-ion electric vehicle battery market across the Asia Pacific presents a fascinating landscape of opportunities and challenges. Due to their favorable capacity-to-weight ratio, lithium-ion hybrid EV batteries are gaining more popularity than other battery technologies. Other factors boosting their adoption include better performance (long life and low maintenance), better shelf life, and decreasing price.
- The price of lithium-ion batteries is usually higher than that of other batteries. However, major players across the market have been investing to gain economies of scale and R&D activities to enhance their performance, increasing the competition and, in turn, resulting in declining prices of lithium-ion batteries.
- Owing to the increasing average battery pack prices of electric vehicles (EV) and battery energy storage systems (BESS), the battery prices declined in 2023 to USD 139 /kWh, a decrease of over 13%. The trajectory of technological innovation and manufacturing enhancements is anticipated to decrease the battery pack prices further, projecting the price to reach USD 113/kWh in 2025 and USD 80/kWh in 2030.
- Furthermore, the price of lithium-ion batteries has been steadily decreasing due to advancements in technology, increased production scale, and improved supply chain efficiencies. These factors positively impact the production of hybrid electric vehicle batteries across the region. Governments across the regions are significantly investing in lithium-ion batteries to develop advanced lithium-ion batteries for hybrid EVs.
- For instance, in May 2024, China plans to invest around 6 billion yuan (USD 845 million) in developing next-generation battery technology for electrical vehicles (EVs) and hybrid vehicles. ASSBs are a new technology that improves on traditional lithium-ion batteries (LIBs) using a solid. They are less likely to catch fire or explode than conventional batteries and have higher energy density. Such advancements are likely to raise the demand for advanced lithium-ion batteries for hybrid vehicles in the coming years and positively reduce the battery price across the region.
- Additionally, policies from governments across the Asia Pacific region play a significant role in the development and adoption of lithium-ion batteries and hybrid electric vehicle (HEV) batteries. The government launched several policies that positively impacted the demand for lithium-ion batteries and promoted hybrid EVs across the region.
- For instance, as of 2023, the Australian government in New South Wales offers a USD 3,000 rebate for the first 25,000 EVs sold under USD 68,750 and aims for its entire passenger fleet to be electric by 2030. Victoria provides a USD 3,000 subsidy for the first 20,000 EVs sold under USD 68,740, along with stamp duty exemptions. Such initiatives are likely to accelerate the production and demand of hybrid EVs across the country in the coming years and are likely to raise the demand for lithium-ion batteries in the forecast period.
- Such projects and investments are likely to increase hybrid EV production across the region, as well as the rising demand for lithium-ion batteries during the forecast period.
India Expected to have Significant Growth
- The market for hybrid and electric vehicle (EV) batteries in India and the Asia-Pacific region is experiencing significant growth. Many governments in the Asia-Pacific region, including India, are implementing policies to promote the adoption of hybrid electric vehicles. Incentives such as subsidies, tax rebates, and reduced registration fees make hybrid EVs more attractive to consumers.
- India’s automotive industry is rapidly evolving, with a significant focus on electric and hybrid vehicles (EVs and HEVs). Passenger car sales, including hybrid cars, have been rising significantly across the region over the past few years. For instance, according to the Society of Indian Automobile Manufacturers (SIAM), in 2023, the sale of Passenger Vehicles in India was 42.18 million units, an increase of 10.7% compared to 2022. The sales include a significant share of hybrid passenger cars, which are rising significantly during the period and are likely to follow the same trend in the coming years as the demand for hybrid cars is rising significantly across the region.
- Further, Increasing consumer demand for sustainable and advanced mobility solutions is driving automakers to invest in BEV production. A growing market for shared and autonomous electric mobility solutions further supports this demand.
- For instance, in July 2024, Ola Electric announced an investment of USD 100 million in the initial phase of building its gigafactory to produce indigenous lithium-ion batteries at its facility in Tamil Nadu, a state in India. The company aims to power its electric vehicles with its battery cells by early next year, replacing the batteries currently sourced from Korea and China. Such investment is likely to accelerate the production of lithium-ion batteries for EVs and hybrid passenger vehicles and raise the demand for hybrid batteries across the region in the coming years.
- Additionally, Indian government policies play a significant role in the development and adoption of lithium-ion batteries for hybrid electric vehicles (HEV). The government launched several policies that positively impacted the demand for lithium-ion batteries to promote HEVs across the region.
- For instance, as of 2023, the Indian government set a target of EV sales accounting for 30% of private cars, 70% of commercial vehicles, and 80% of two and three-wheelers by 2030. Further, the government has also offered subsidy incentives from INR 10,000 per kWh (USD 120) to INR 15,000 per kWh (USD 180). Such initiatives are likely to accelerate the production of lithium-ion batteries and fulfill the demand for HEVs across the country in the coming years.
- Such projects and initiatives showcase the feasibility and importance of HEV battery solutions for battery energy storage systems in EVs, which are likely to raise the demand for HEV batteries across the country in the coming year.
Asia Pacific Hybrid Electric Vehicle Battery Industry Overview
Asia Pacific hybrid electric vehicle battery market is fragmented. Some key players (not in particular order) are BYD Company Ltd, LG Energy Solution, Exide Industries Ltd, EnerSys, and Panasonic Holdings Corporation, among others.
Asia Pacific Hybrid Electric Vehicle Battery Market Leaders
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BYD Company Ltd
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EnerSys
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Panasonic Holdings Corporation
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Exide Industries Ltd
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LG Energy Solution
*Disclaimer: Major Players sorted in no particular order
Asia Pacific Hybrid Electric Vehicle Battery Market News
- May 2024: Australia's government unveiled the National Battery Strategy, positioning the nation to compete in battery production, notably in hybrid EV batteries. In the coming years, the government is set to roll out financial incentives amounting to USD 532 million to bolster battery production.
- April 2024: In response to India's accelerating energy transition, Japanese electronics and tech solutions leader Panasonic has partnered with Indian Oil (IOC), a public sector unit, to form a joint venture. Together, they aim to produce lithium-ion (Li-ion) batteries for electric vehicles in India.
Asia Pacific Hybrid Electric Vehicle Battery Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in USD billion, till 2029
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.1.1 The Increasing Electric Vehicle (EV) Production
4.5.1.2 High Fuel Efficiency of HEV
4.5.2 Restraints
4.5.2.1 Lack of Raw Material Reserves
4.6 Supply Chain Analysis
4.7 Industry Attractiveness - Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitutes Products and Services
4.7.5 Intensity of Competitive Rivalry
4.8 Investment Analysis
5. MARKET SEGMENTATION
5.1 Battery Type
5.1.1 Lithium-ion Battery
5.1.2 Lead-Acid Battery
5.1.3 Sodium-ion Battery
5.1.4 Others
5.2 Vehicle Type
5.2.1 Passenger Cars
5.2.2 Commercial Vehicles
5.3 Geography
5.3.1 China
5.3.2 India
5.3.3 Japan
5.3.4 South Korea
5.3.5 Malaysia
5.3.6 Thailand
5.3.7 Indonesia
5.3.8 Vietnam
5.3.9 Rest of Asia-Pacific
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted & SWOT Analysis for Leading Players
6.3 Company Profiles
6.3.1 BYD Company Ltd
6.3.2 LG Energy Solution
6.3.3 EnerSys
6.3.4 Panasonic Holdings Corporation
6.3.5 Energizer
6.3.6 Exide Industries Ltd
6.3.7 Amara Raja Batteries Ltd
6.3.8 AMTE Power
6.3.9 Bharat Electronics Limited (BEL)
6.3.10 Gotion High tech Co Ltd
- *List Not Exhaustive
6.4 List of Other Prominent Companies
6.5 Market Ranking/ Share Analysis
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Technological Advancements in Battery Materials
Asia Pacific Hybrid Electric Vehicle Battery Industry Segmentation
A Hybrid Electric Vehicle (HEV) battery is a rechargeable energy storage system that powers the electric motor of a hybrid vehicle. HEVs combine a conventional internal combustion engine (ICE) with an electric propulsion system. The battery in an HEV is crucial for capturing and storing energy, particularly during regenerative braking, and for providing additional power during acceleration.
Asia Pacific hybrid electric vehicle battery market is Segmented by Battery Type, Vehicle Type, and Geography. By battery type, the market is segmented into Lithium-Ion Battery, Lead-Acid Battery, Sodium-Ion Battery, and Others. By vehicle type, the market is segmented into Passenger Cars and Commercial Vehicles. The report also covers the market size and forecasts for the Asia Pacific hybrid electric vehicle battery market across major countries. The Report Offers the Market Size and Forecasts in Revenue (USD) for all the Above.
| Battery Type | |
| Lithium-ion Battery | |
| Lead-Acid Battery | |
| Sodium-ion Battery | |
| Others |
| Vehicle Type | |
| Passenger Cars | |
| Commercial Vehicles |
| Geography | |
| China | |
| India | |
| Japan | |
| South Korea | |
| Malaysia | |
| Thailand | |
| Indonesia | |
| Vietnam | |
| Rest of Asia-Pacific |
Asia Pacific Hybrid Electric Vehicle Battery Market Research FAQs
How big is the Asia Pacific Hybrid Electric Vehicle Battery Market?
The Asia Pacific Hybrid Electric Vehicle Battery Market size is expected to reach USD 5.64 billion in 2024 and grow at a CAGR of 21.40% to reach USD 14.86 billion by 2029.
What is the current Asia Pacific Hybrid Electric Vehicle Battery Market size?
In 2024, the Asia Pacific Hybrid Electric Vehicle Battery Market size is expected to reach USD 5.64 billion.
Who are the key players in Asia Pacific Hybrid Electric Vehicle Battery Market?
BYD Company Ltd, EnerSys, Panasonic Holdings Corporation, Exide Industries Ltd and LG Energy Solution are the major companies operating in the Asia Pacific Hybrid Electric Vehicle Battery Market.
What years does this Asia Pacific Hybrid Electric Vehicle Battery Market cover, and what was the market size in 2023?
In 2023, the Asia Pacific Hybrid Electric Vehicle Battery Market size was estimated at USD 4.43 billion. The report covers the Asia Pacific Hybrid Electric Vehicle Battery Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Asia Pacific Hybrid Electric Vehicle Battery Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Asia Pacific Hybrid Electric Vehicle Battery Industry Report
Statistics for the 2024 Asia Pacific Hybrid Electric Vehicle Battery market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Asia Pacific Hybrid Electric Vehicle Battery analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
