APAC's xEV batteries market expected to reach 29.9 million units by 2029

Thailand and Indonesia are amongst the region's key players.

The Asia-Pacific (APAC) region's electric vehicle (EV) market is witnessing significant growth, driven largely by proactive government initiatives that encourage the adoption of EVs through favourable policies and incentives.

Central to the functionality of these vehicles are advanced xEV batteries, which are projected to expand steadily, reaching 29.9 million units by 2029.

This growth corresponds to a compound annual growth rate (CAGR) of 9.3% from 2024 to 2029. The report estimated that approximately 19.2 million units will be sold in 2024, indicating a consistent upward trend.

Gorantala Sravan Kumar, Associate Project Manager for Automotive at GlobalData, noted that Asian nations have been proactive in enacting policies that enhance the EV sector, subsequently driving demand for advanced xEV batteries.

Countries like Thailand and Indonesia have emerged as prominent players in the EV market, driven by strong governmental support. Thailand’s implementation of an EV incentive programme has significantly boosted EV sales, establishing it as a regional centre for electric mobility.

Indonesia, rich in resources, is also attracting considerable investments in its automotive sector.

Policies encouraging the development of charging infrastructure and offering financial incentives are vital for sustaining this momentum. 

China remains the global leader in the EV landscape, supported by robust government backing. Subsidies for production and sales of EVs have made them increasingly competitive against traditional gasoline vehicles.

“The trends and drivers of innovations in EV batteries in Asia are closely linked to government policies and market demand. As the demand for EVs continues to rise, there is a growing need for advanced xEV batteries that offer higher energy density, faster charging capabilities, and longer lifespan," said Sravan Kumar.

He emphasised that Asian countries are investing in research and development (R&D) to drive innovation in EV battery technology, with a focus on improving performance and reducing costs. With continued government support, the outlook for EV adoption and battery technology innovation in the region looks promising.