Electric Vehicle Battery Housing Market Booms USD 31.27 Bn by 2034 at 31.84% C

Electric Vehicle Battery Housing Market Insights, Forecast and Competitive Strategies

Forecasts suggest that the electric vehicle battery housing market will expand from USD 2.02 billion in 2024 to USD 31.27 billion by 2034, with a CAGR of 31.84% during this period. North America leads the electric vehicle battery housing market, while Asia Pacific shows the fastest growth. Lithium-ion batteries, aluminum housing, underbody mounting, air cooling, and cylindrical designs dominate, with other segments poised for strong growth.

The electric vehicle battery housing market is forecast to grow from USD 2.66 billion in 2025 to USD 31.27 billion by 2034, driven by a CAGR of 31.84% from 2025 to 2034. The rising sales of EVs in mid-income nations coupled with numerous government initiatives aimed at developing the EV infrastructure has boosted the market expansion. Additionally, rise in number of EV startups along with technological advancements in the automotive sector is playing a vital role in shaping the industrial landscape. The growing use of sustainable materials for manufacturing EV battery housing is expected to create ample growth opportunities for the market players in the upcoming days.

Electric Vehicle Battery Housing Market Growth and Trends 2025

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Introduction

The electric vehicle battery housing market is a prominent sector of the automotive industry. This industry deals in manufacturing and distribution of EV battery housing in different parts of the world. There are various types of housing developed in this sector comprising of cylindrical cell battery housing, pouch cell battery housing, prismatic cell battery housing and some others. These housings are manufactured using numerous types of materials consisting of aluminum, carbon fiber reinforced plastic, steel, magnesium and some others. It is designed for protecting different types of batteries comprising of li-ion batteries, nickel-metal hydride batteries, lead-acid batteries, solid-state batteries and some others. This market is expected to rise significantly with the growth of the EV sector around the globe.

Highlights of the Electric Vehicle Battery Housing Market

  • North America generated highest revenue of the electric vehicle battery housing market.
  • Asia Pacific is expected to rise with the highest CAGR during the forecast period.
  • By battery type, the lithium-ion batteries segment led the market.
  • By battery type, the lead-acid batteries segment is expected to rise with the fastest CAGR during the forecast period.
  • By housing material, the aluminum segment held the largest share the market.
  • By housing material, the steel segment is expected to grow with a considerable CAGR during the forecast period.
  • By mounting type, the underbody mounting segment dominated the market.
  • By mounting type, the battery pack integration (BPI) segment is expected to rise with a significant CAGR during the forecast period.
  • By cooling system, the air cooling segment held the largest share of the market.
  • By cooling system, the immersion cooling segment is expected to expand with a notable CAGR during the forecast period.
  • By battery housing design, the cylindrical cell battery segment dominated the market.
  • By battery housing design, the pouch cell battery housing segment is expected to rise with a robust CAGR during the forecast period.

The major trends in this market consists of partnerships, business expansions and increasing sales of EVs.

Partnerships

  • Several market players are partnering with each other to develop a wide range of enclosures for protecting EV batteries. For instance, in March 2025, Novelis partnership with Shape Corp and Metalsa. This partnership is done for developing a high-performance EV enclosure.

Business Expansions

  • Numerous EV housing companies are investing heavily for opening up new production facilities to increase the production EV enclosures. For instance, in May 2025, Fluence announced to open a new production plant in Arizona, U.S. This new manufacturing unit is inaugurated to manufacture a wide range of EV housings.

Increasing Sales of EVs

  • The sales of EVs have grown rapidly in several countries such as India, China, Japan, the U.S., and some others that in turn increases the demand for battery housings. According to the International Energy Agency, around 6.4 million BEVs were sold in China during 2024.

Battery Type Insights

How did the Lithium-ion Batteries Segment Led the Electric Vehicle Battery Housing Market in 2025?

The lithium-ion batteries segment led the electric vehicle battery housing market. The increasing use of li-ion batteries in EVs for providing superior driving range has driven the market expansion. Additionally, rapid investment by the battery manufacturers for developing high-quality li-ion batteries is expected to boost the growth of the electric vehicle battery housing market.

The lead-acid batteries segment is expected to grow with the fastest CAGR during the forecast period. The growing use of lead-acid batteries in affordable electric vehicles has boosted the market growth. Also, rapid investment by market players to manufacture superior-quality enclosures for lead-acid batteries is expected to drive the growth of the electric vehicle battery housing market.

Housing Material Insights

What Made the Aluminum to be the Most Dominant Segment of the Electric Vehicle Battery Housing Market in 2025?

The aluminum segment held the largest share the electric vehicle battery housing market. The growing use of aluminum housing in electric trucks for providing additional safety to batteries has boosted the market expansion. Additionally, numerous benefits of aluminum such as high strength-to-weight ratio, excellent corrosion resistance, high thermal and electrical conductivity, and some others is expected to propel the growth of the electric battery housing market.

The steel segment is expected to rise with a considerable CAGR during the forecast period. The increasing use of steel-based enclosures in passenger EVs has driven the market expansion. Also, several advantages of steel including high strength, durability, design flexibility, and recyclability is expected to drive the growth of the electric battery housing market.

Mounting Type Insights

Why did the Underbody Mounting Segment Held the Largest Share of the Electric Vehicle Battery Housing Market in 2025?

The underbody mounting segment dominated the electric vehicle battery housing market. The increasing application of underbody mounted enclosures in LCEVs for providing additional security to batteries has driven the industrial growth. Also, the growing emphasis of market players on manufacturing steel-based underbody-mounted housing is accelerating the growth of the electric vehicle battery housing market.

The battery pack integration (BPI) segment is expected to expand with a significant CAGR during the forecast period. The increasing use of battery pack integrated housing systems in luxury EVs for protecting batteries against dust and water has boosted the market growth. Additionally, the growing demand for aluminum-based BPI from EV manufacturers is expected to propel the growth of the electric vehicle battery housing market.

Cooling System Insights

Why did the Air Cooling Segment Held the Largest Share of the Electric Vehicle Battery Housing Market in 2025?

The air cooling segment held the largest share of the electric vehicle battery housing market. EV enclosures are important for air cooling as it protects the battery, power electronics, and management systems from external elements while facilitating controlled airflow for heat dissipation, thereby driving the market expansion. Additionally, rapid investment by market players for developing numerous types of EV housings to enhance air-cooling is expected to foster the growth of the electric vehicle battery housing market.

The immersion cooling segment is expected to rise with a notable CAGR during the forecast period. The rising focus of EV companies on integrating advanced immersion cooling technology in EVs as it delivers faster charging, extended battery life, improved thermal management, and enhanced safety, thereby fostering the industrial growth. Also, the increasing use of aluminum-based housing in luxury EVs to enhance immersion cooling capabilities is expected to propel the growth of the electric vehicle battery housing market.

Battery Housing Design Insights

How did the Cylindrical Cell Battery Housing Segment Led the Electric Vehicle Battery Housing Market in 2025?

The cylindrical cell battery segment dominated the electric vehicle battery housing market. The growing use of cylindrical cell batteries in electric bicycles and low-range EVs has boosted the market expansion. Additionally, the increasing application of plastic housing for providing protection in cylindrical cell battery is expected to foster the growth of the electric vehicle battery housing market.

The pouch cell battery housing segment is expected to grow with a robust CAGR during the forecast period. The increasing use of pouch cell batteries in premium EVs and electric buses due to their superior driving range has boosted the market expansion. Also, numerous advantages of pouch cell battery housings such as lightweight design, high energy density, and superior design flexibility is expected to propel the growth of the electric vehicle battery housing market.

Geographical Insights

Why North America Dominated the Electric Vehicle Battery Housing Market in 2025?

North America led the electric vehicle battery housing market. The increasing sales of EVs in the U.S. and Canada for reducing vehicular emission has driven the market expansion. Additionally, numerous government initiatives aimed at developing the EV industry coupled with rapid investment by automotive brands for manufacturing high-quality EV components is playing a vital role in shaping the industrial landscape. Moreover, the presence of various market players such as Ford, Envalior, Tesla, Magna International Inc. and some others is expected to foster the growth of the electric vehicle battery housing market in this region.

  • In April 2024, Envalior launched a new EV battery enclosure in the U.S. This new battery housing was developed in a partnership between Envalior and Kautex Textron.

Asia Pacific is expected to expand with the highest CAGR during the forecast period. The growing production and sales of electric buses in several countries including China, India, Japan, South Korea and some others has boosted the market growth. Also, rapid investment by government for launching EV adoption initiatives along with rise in number of EV startups is contributing to the industry in a positive manner. Moreover, the presence of numerous market players such as Jinzhou Rongtong Metal Products, Mitsui Chemical, Zhejiang Minsheng Automotive Parts, Furukawa Industrial Battery and some others is expected to propel the the growth of the electric vehicle battery housing market in this region.

  • In April 2025, Zhejiang Minsheng Automotive Parts announced to launch a new range of EV housings in South Korea. These EV enclosures are designed for the EV consumers of this nation.

Industry Leader Announcement

  • In May 2025, Tero Holländer, the Head of Business Line Batteries at Fortum Battery Recycling made an announcement stating that, “From order to disposal, we offer a safe and transparent service as a specialist in battery recycling and the treatment of hazardous waste,”. “Each kilogram of recycled battery materials takes us closer to a sustainable and autonomous European energy system."

Competitive Landscape

The electric vehicle battery housing market is a rapidly developing industry with the presence of several dominating players. Some of the prominent companies in this industry consists of Furukawa Industrial Battery, Magna Palfinger, Toyota Motor, SaarGummi, SK Innovation, Hyundai Kefico, VISIC, Kautex Textron, Magna International, YAPP Automotive, Jinzhou Rongtong Metal Products, Mitsui Chemical, ARRK, Taizhou Sunrise Power, Kongsberg Automotive, Activeon and some others. These companies are constantly engaged in developing housing solutions for EV batteries and adopting numerous strategies such as partnerships, collaborations, launches, joint ventures, business expansions, acquisitions, and some others to maintain their dominance in this industry.

Mitsui Chemicals Geographic Revenue % (2024)

  • According to the annual report of Mitsui Chemicals, around 49% revenue of the company was generated from the Japan followed by others in 2024.

Recent Developments

  • In July 2025, Kautex announced that it had received orders from Pentatonic battery. According to this order, Kautex will deliver thermoplastic EV battery housing to Pentatonic battery.
  • In July 2025, TU Graz launched a protective housing of EV batteries. This housing is manufactured using wood and thin sheet of steel.
  • In April 2025, Hindalco Industries Ltd delivered 10,000 aluminum battery housing to Mahindra. This new range of battery housings are designed for BE 6 and XEV 9e.

Top Electric Vehicle Battery Housing Market Players

Electric Vehicle Battery Housing Market Top Key Players

  • Toyota Motor
  • SaarGummi
  • SK Innovation
  • Furukawa Industrial Battery
  • Magna Palfinger
  • Magna International
  • YAPP Automotive
  • Jinzhou Rongtong Metal Products
  • Mitsui Chemical
  • VISIC
  • Kautex Textron
  • Activeon
  • ARRK
  • Taizhou Sunrise Power
  • Kongsberg Automotive
  • Hyundai Kefico

Electric Vehicle Battery Housing Market Segments

By Battery Type

  • Lithium-ion Batteries
  • Nickel-metal Hydride Batteries
  • Lead-acid Batteries
  • Solid-state Batteries

By Housing Material

  • Aluminum
  • Carbon Fiber Reinforced Plastic (CFRP)
  • Steel
  • Magnesium

By Mounting Type

  • Underbody Mounting
  • Battery Pack Integration (BPI)
  • Rear-Mounted Battery Pack

By Cooling System

  • Air Cooling
  • Liquid Cooling
  • Immersion Cooling

By Housing Design

  • Cylindrical Cell Battery Housing
  • Pouch Cell Battery Housing
  • Prismatic Cell Battery Housing

By Region

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • Asia Pacific
  • The Middle East and Africa
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  • Insight Code: 1417
  • No. of Pages: 150+
  • Format: PDF/PPT/Excel
  • Last Updated: 01 September 2025
  • Report Covered: Revenue + Volume
  • Historical Year: 2021-2023
  • Base Year: 2024
  • Estimated Years: 2025-2034

Meet the Team

Shubham Madhukar Desale is a passionate and insights-driven Research Analyst with over five years of experience in market research, including more than four years of specialized expertise in the global automotive industry.

Learn more about Shubham Desale

Aditi Shivarkar, with 14+ years of experience in automotive market research, specializes in tracking trends across vehicle technologies, mobility solutions, and materials innovation. She delivers accurate, actionable insights that drive excellence in the automotive sector—fueling strategies around electrification, sustainability, and advanced manufacturing.

Learn more about Aditi Shivarkar

FAQ's

The market is projected to grow from USD 2.66 billion in 2025 to USD 31.27 billion by 2034, registering a strong CAGR of 31.84%. This rapid growth is fueled by the rising adoption of EVs, supportive government policies, and increasing technological innovations in lightweight and sustainable housing materials.

North America currently leads in revenue due to high EV adoption and strong manufacturing bases, while Asia Pacific is expected to witness the fastest CAGR. China, India, Japan, and South Korea are becoming hubs for EV production, backed by government incentives, EV startups, and large-scale battery manufacturing facilities.

Key trends include strategic partnerships between automotive and material companies, establishment of new manufacturing plants to meet demand, rising use of sustainable materials (aluminum, CFRP, wood-steel composites), and integration of advanced cooling systems like immersion cooling for enhanced performance and safety.

Technology disruption is evident in the shift toward lightweight aluminum and CFRP housings, battery pack integration (BPI) systems for luxury EVs, and advanced cooling methods. These innovations not only improve battery safety and efficiency but also reduce vehicle weight, directly supporting extended driving range and cost efficiency.

Regulatory mandates to reduce carbon emissions, along with government subsidies and infrastructure investments in EV adoption, significantly accelerate demand for battery housings. Policies in regions like the U.S., EU, China, and India are pushing OEMs and suppliers to innovate in sustainable housing solutions.

With a projected CAGR of over 30%, this sector presents high investment potential across manufacturing, material innovation, and cooling technology. Opportunities are especially strong in Asia Pacific and North America, where demand from both EV startups and established automakers is rising rapidly.

The industry faces challenges such as high raw material costs (aluminum, CFRP), supply chain dependencies, recycling complexities, and safety compliance with evolving EV standards. Companies need to focus on circular economy strategies and localized production to mitigate these risks.

The future outlook is highly positive, driven by rapid EV penetration, sustainable manufacturing practices, and technological innovation in lightweight, thermally efficient housings. By 2034, battery housing will become a critical enabler of EV safety, performance, and cost optimization, attracting sustained investments from automakers and material suppliers alike.

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