The electric vehicle (EV) market in the Asia-Pacific (APAC) region is on a rapid growth trajectory, fueled by government policies and incentives that are accelerating the adoption of EVs. A key component of this expansion is the increasing demand for advanced xEV traction batteries, which are essential for powering electric vehicles.
According to GlobalData, a leading data and analytics company, the volume of xEV batteries in the APAC region is expected to grow steadily, reaching 29.9 million units by 2029. This marks a compound annual growth rate (CAGR) of 9.3% between 2024 and 2029. The market is estimated to be at 19.2 million units in 2024, continuing its upward trend from previous years.
Gorantala Sravan Kumar, Associate Project Manager, Automotive at GlobalData, highlighted the role of government policies in driving EV adoption. “Asian countries have proactively implemented policies to support the EV market, thereby increasing the demand for advanced xEV batteries. Southeast Asian nations like Thailand and Indonesia are emerging as key players in the EV sector, supported by strong government incentives.”
Thailand, in particular, has introduced an EV incentive program, resulting in a surge in electric vehicle sales and positioning the country as a regional hub for electric mobility. Indonesia is also drawing investments, leveraging its abundant resources and supportive policies for EV manufacturing, including financial incentives for consumers and the establishment of charging infrastructure.
China, a global leader in EV adoption, has been instrumental in advancing the transition to electric vehicles. Through substantial government subsidies for EV manufacturing and sales, the country has made EVs increasingly competitive compared to traditional internal combustion engine vehicles. Additionally, China is heavily investing in charging infrastructure to ensure the continued growth of its EV market.
Japan and India are also making notable progress in EV adoption. Japan’s Clean Energy Vehicle subsidy system and India’s Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme are among the key initiatives driving EV growth in these countries. These policies, along with investments in charging infrastructure, are expected to further bolster the region’s EV market.
Sravan Kumar concluded, “Innovation in EV batteries is closely tied 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 lifespans. Asian countries are investing heavily in research and development to drive innovation in EV battery technology, positioning the region for continued growth in both EV adoption and battery technology innovation.”
With strong government support and ongoing advancements in battery technology, the outlook for the EV market in the APAC region remains highly promising.
