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.
“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.
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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