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Japan EV Battery Pack Market Size

The Japan EV Battery Pack Market is experiencing growth driven by the increasing electrification of vehicles, fueled by environmental concerns, regulatory norms, and government incentives. This has led to a rising demand for lithium-ion batteries, particularly for battery electric vehicles and plug-in hybrid electric vehicles. While plug-in hybrids are currently more popular, the development of charging infrastructure is gradually boosting the adoption of battery electric vehicles. The market's expansion is further supported by the introduction of new plug-in hybrid models, which are expected to enhance Japan's electric vehicle and battery sectors.

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Market Size of japan ev battery pack Industry

Japan EV Battery Pack Market Summary
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svg icon Study Period 2017 - 2029
svg icon Market Size (2024) USD 6.5 Billion
svg icon Market Size (2029) USD 7.67 Billion
svg icon Largest Share by Propulsion Type BEV
svg icon CAGR (2024 - 2029) 3.37 %
svg icon Fastest Growing by Propulsion Type BEV
svg icon Market Concentration Low

Major Players
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*Disclaimer: Major Players sorted in no particular order

Key Players

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Japan EV Battery Pack Market Analysis

The Japan EV Battery Pack Market size is estimated at 6.5 billion USD in 2024, and is expected to reach 7.67 billion USD by 2029, growing at a CAGR of 3.37% during the forecast period (2024-2029).

6.5 Billion

Market Size in 2024 (USD)

7.67 Billion

Market Size in 2029 (USD)

11.64 %

CAGR (2017-2023)

3.37 %

CAGR (2024-2029)

Largest Segment by Body Type

97.09 %

value share, Passenger Car, 2023

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Due to the launching of inexpensive EVs, tax subsidies, the benefits of EVs over gasoline cars, and strict regulations, electric cars are the biggest body type in Japan.

Largest Segment by Propulsion Type

88.12 %

value share, BEV, 2023

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BEVs outsell PHEVs owing to their easy affordability, little maintenance, zero carbon emissions, high subsidies and no fuel expenditures.

Largest Segment by Battery Chemistry

99.40 %

value share, LFP, 2023

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LFP batteries are the most frequent due of their low cost, long range, durability, and high import rate from China (80% of Chinese batteries are LFP).

Largest Segment by Battery Form

99.59 %

value share, Prismatic, 2023

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Prismatic cells are the most frequent battery type in Japanese EVs due to its cheap cost, higher safety, and high density per volume.

Leading Market Player

19.28 %

market share, GS Yuasa International Ltd., 2022

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Due to its wide battery supply to EV producers including Nissan, BMW, and others, GS Yuasa dominates the Japan Electric Vehicle Battery Pack Market.

Government support and technological advancements drive the adoption of BEVs

  • Electrification of vehicles has been gaining popularity in Japan over the past few years. Factors such as growing environmental concern, enforcing norms related to electric vehicles, advantages of electric vehicles over fossil fuel vehicles, and government help in terms of rebates and subsidies (such as since 2021, a subsidy of USD 7,200 has been offered on battery electric vehicles) have increased the demand of electric vehicles such BEVs and PHEVs in the country. This led to a significant growth in the demand for lithium-ion batteries for electric vehicles and plug-in hybrid electric vehicles in Japan.
  • The demand for plug-in hybrid electric vehicles is higher than the battery electric vehicles. However, the majority of the market, i.e., around more than 90% of the sales of overall electric vehicles, is dominated by hybrid vehicles. Plug-in hybrid vehicles have the option of switching to fuel or battery. However, development in the charging infrastructure is encouraging people to invest in battery electric vehicles gradually.
  • The requirement for lithium-ion batteries is increasing with the increased demand for battery electric vehicles. Batteries used in pure electric cars acquired a share of xx% in the overall sales of EVs in 2022. However, various companies are launching new products in the plug-in hybrid category. In March 2023, Toyota unveiled its new plug-in hybrid electric car, Prius, which provides a battery range of around 105 km, and bookings of the vehicle started. The introduction of new products is anticipated to strengthen Japan's electric car and battery industries during the forecast period.
Japan EV Battery Pack Market

Japan EV Battery Pack Industry Segmentation

Bus, LCV, M&HDT, Passenger Car are covered as segments by Body Type. BEV, PHEV are covered as segments by Propulsion Type. LFP, NCM, NMC, Others are covered as segments by Battery Chemistry. 15 kWh to 40 kWh, 40 kWh to 80 kWh, Above 80 kWh, Less than 15 kWh are covered as segments by Capacity. Cylindrical, Pouch, Prismatic are covered as segments by Battery Form. Laser, Wire are covered as segments by Method. Anode, Cathode, Electrolyte, Separator are covered as segments by Component. Cobalt, Lithium, Manganese, Natural Graphite, Nickel are covered as segments by Material Type.

  • Electrification of vehicles has been gaining popularity in Japan over the past few years. Factors such as growing environmental concern, enforcing norms related to electric vehicles, advantages of electric vehicles over fossil fuel vehicles, and government help in terms of rebates and subsidies (such as since 2021, a subsidy of USD 7,200 has been offered on battery electric vehicles) have increased the demand of electric vehicles such BEVs and PHEVs in the country. This led to a significant growth in the demand for lithium-ion batteries for electric vehicles and plug-in hybrid electric vehicles in Japan.
  • The demand for plug-in hybrid electric vehicles is higher than the battery electric vehicles. However, the majority of the market, i.e., around more than 90% of the sales of overall electric vehicles, is dominated by hybrid vehicles. Plug-in hybrid vehicles have the option of switching to fuel or battery. However, development in the charging infrastructure is encouraging people to invest in battery electric vehicles gradually.
  • The requirement for lithium-ion batteries is increasing with the increased demand for battery electric vehicles. Batteries used in pure electric cars acquired a share of xx% in the overall sales of EVs in 2022. However, various companies are launching new products in the plug-in hybrid category. In March 2023, Toyota unveiled its new plug-in hybrid electric car, Prius, which provides a battery range of around 105 km, and bookings of the vehicle started. The introduction of new products is anticipated to strengthen Japan's electric car and battery industries during the forecast period.
Body Type
Bus
LCV
M&HDT
Passenger Car
Propulsion Type
BEV
PHEV
Battery Chemistry
LFP
NCM
NMC
Others
Capacity
15 kWh to 40 kWh
40 kWh to 80 kWh
Above 80 kWh
Less than 15 kWh
Battery Form
Cylindrical
Pouch
Prismatic
Method
Laser
Wire
Component
Anode
Cathode
Electrolyte
Separator
Material Type
Cobalt
Lithium
Manganese
Natural Graphite
Nickel
Other Materials
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Japan EV Battery Pack Market Size Summary

The Japan EV Battery Pack Market is experiencing a steady expansion, driven by the increasing electrification of vehicles and a growing emphasis on environmental sustainability. The market is characterized by a significant demand for lithium-ion batteries, fueled by the popularity of battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs). Government incentives, such as subsidies for battery electric vehicles, have further bolstered this demand. While PHEVs currently dominate the market, the development of charging infrastructure is gradually encouraging a shift towards BEVs. The market is highly consolidated, with major players like Toyota, Nissan, and Honda leading the charge, supported by their extensive product portfolios and strong consumer trust.

The Japanese electric vehicle market is witnessing a gradual but consistent growth, with a notable increase in the demand for electric hatchbacks and compact SUVs. Consumers are increasingly opting for smaller, economical cars that offer ease of parking and maneuverability in urban settings. This trend is reflected in the strong sales of models like the Toyota Aqua Prius C and the Yaris Cross, which combine fuel efficiency with compact design. The market is also seeing a variety of electric SUVs and sedans, with brands like Honda and Toyota offering competitive options. The EV battery pack market is fragmented, with key players such as CATL, GS Yuasa, and Lithium Energy Japan Inc. actively participating in research and development to enhance battery technology and expand their market presence.

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Japan EV Battery Pack Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2029 and analysis of growth prospects)

    1. 1.1 Body Type

      1. 1.1.1 Bus

      2. 1.1.2 LCV

      3. 1.1.3 M&HDT

      4. 1.1.4 Passenger Car

    2. 1.2 Propulsion Type

      1. 1.2.1 BEV

      2. 1.2.2 PHEV

    3. 1.3 Battery Chemistry

      1. 1.3.1 LFP

      2. 1.3.2 NCM

      3. 1.3.3 NMC

      4. 1.3.4 Others

    4. 1.4 Capacity

      1. 1.4.1 15 kWh to 40 kWh

      2. 1.4.2 40 kWh to 80 kWh

      3. 1.4.3 Above 80 kWh

      4. 1.4.4 Less than 15 kWh

    5. 1.5 Battery Form

      1. 1.5.1 Cylindrical

      2. 1.5.2 Pouch

      3. 1.5.3 Prismatic

    6. 1.6 Method

      1. 1.6.1 Laser

      2. 1.6.2 Wire

    7. 1.7 Component

      1. 1.7.1 Anode

      2. 1.7.2 Cathode

      3. 1.7.3 Electrolyte

      4. 1.7.4 Separator

    8. 1.8 Material Type

      1. 1.8.1 Cobalt

      2. 1.8.2 Lithium

      3. 1.8.3 Manganese

      4. 1.8.4 Natural Graphite

      5. 1.8.5 Nickel

      6. 1.8.6 Other Materials

Japan EV Battery Pack Market Size FAQs

The Japan EV Battery Pack Market size is expected to reach USD 6.50 billion in 2024 and grow at a CAGR of 3.37% to reach USD 7.67 billion by 2029.

In 2024, the Japan EV Battery Pack Market size is expected to reach USD 6.50 billion.

Japan EV Battery Pack Market Report Snapshots

Japan EV Battery Pack Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029