The global cell to pack battery market size was valued at USD 18.7 billion in 2023 and is expected to reach USD 79.0 billion by 2033, at a CAGR of 15.5%, during the forecast period 2023-2033. 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.
Battery Electric Vehicles is estimated to be the largest market for the cell to pack batteries
Pure electric propulsion vehicles will lead the cell to pack battery market during the forecast period. The developments and innovations are primarily happening for this electric vehicle propulsion as these vehicles are installed with larger batteries offering limited drive range. EVs have large batteries requiring longer time, but the average range of most EVs is between 300-400 km. CTP batteries don’t use conventional architecture; their cells are directly incorporated into battery packs, which increases volumetric efficiency and assists in reducing the weight of vehicles. As a result, a battery with a higher density can be installed in the same space, increasing the EV range and lowering the overall vehicle weight. Thus, the reduced raw material costs, mainly for Lithium-ion, demand of lightweight, cost efficient and high energy density battery requirement has created an opportunity for cell to pack batteries in the pure electric vehicle segment. This enabled battery suppliers and automotive OEMs have introduced cell to pack batteries in pure electric passenger vehicles. At present, a few major OEMs such as BYD Company Ltd. (Han EV, Atto 3, e6 MPV), Tesla (Model 3), Nio Inc. (ET7), and Xpeng Inc. (P7, G3), among others, are offering cell to pack batteries in their battery-electric models. Presently the cell to pack battery demand is largely concentrated in China, which will be adopted in other Asian and European, and North American countries soon.
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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.
“Europe is the second largest cell to pack battery market.”
Europe has witnessed significant year-on-year growth in the cell to pack battery market. This growth of the cell to pack battery market is attributed to the government incentives and funds, as electric vehicles are expensive. Europe is home to automobile manufacturers such as Mercedes-Benz (Germany), Renault Group (France), Audi AG (Germany) and BMW AG (Germany). Europe has set a goal of reducing 80% of CO2 emissions by 2030−2035. The governments of various European countries are subsidizing electric vehicle infrastructure, and the focus is expected to continue to be on electric vehicles in the long run. The increasingly stringent regulations owing to environmental issues are propelling market players to test and develop advanced vehicles, which will further boost the market for cell to pack battery. In July 2022, Ford Motor Company (US), which has a presence in Norway, partnered with CATL (China) to use cell to pack batteries in their upcoming EV models in 2024. Norway has an EV model from BYD Auto, which has been selling BYD Tang in the domestic market since 2021. It is equipped with a blade battery. The player has entered other European markets and is expected to notice sales in the coming years.
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).
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