Global Battery Systems for Electric Vehicle Market - Forecasts and Trends (2018 - 2023)
Battery systems in the electronic vehicle are set to grow globally with automobile manufactures set to introduce these cars in full stream in the year 2020 with Asiatic countries being the front-runners. Battery systems for electric vehicle market are expected to register a CAGR of around 15% during the forecasted period of 2018-2023 and are expected to reach the market size of USD XX Billion at the end of 2023. The key vendors include Samsung, Toshiba, BYD, and Panasonic, as they will be responsible for providing the automobile makers with the battery kit shortly.
Battery electric vehicles are powered by the electricity stored in the onboard battery. The onboard battery used in electric vehicles can be classified under one of the following three types: nickel metal hydride, lead-acid, and lithium-ion. The chemical energy stored in rechargeable battery packs installed in battery electric vehicles propels the electric motors and motor controllers.
The global battery electric vehicles market is growing at a steady pace and is expected to post a significant CAGR of around USD 14 Billion by the end of 2023. As a result of the changes in the climatic conditions worldwide and the impact of globalization, most of the countries have been notified to control their emissions it mostly include Asian Pacific countries. This is expected to increase the demand for battery electric vehicles during the forecast period. By the end of 2023, Asia Pacific will account for the majority of the market share, driven by the Environmental Protection Agency (EPA) regulations governing emission and fuel standards in the region, followed by North America. The demand for pure electric vehicles is on the rise and is expected to become a major propellant for the market. Lithium-ion batteries accounted for the highest share in the market.
Challenges and Opportunities
The global battery electric vehicles market is driven by several factors, such as government subsidies and incentives. Governments in many countries have extended benefits in the form of financial incentives to the buyers of battery electric vehicles. The amount of these incentives usually depends on the size of the battery. For instance, the Sustainable Energy Authority of Ireland (SEAI) provides buyers of battery electric vehicles with grants of up to USD 5,400 and exempts them from vehicle registration tax.
Despite the growth of the battery in electric vehicles market, it is curtailed by some serious challenges too. The range and performance of the battery in the electric vehicles are the significant restraints for the market. The batteries are typically less powerful and have limited range (60-100 miles per charge) and are considered suitable only for short distance travel. The limited travel range of batteries of electric vehicles raises concerns among the consumers that their vehicles may run out of charge/power before reaching the destination. Longer charging duration is another major challenge for the market. Lack of availability of supercharging stations adds to the woes associated with the use of batteries in an electric vehicle. The high cost of the battery in the electric vehicle also poses a threat to the growth of the battery market in particular and battery electric vehicles in general. For instance, the price per usable kilowatt-hour of a lithium-ion battery ranges from USD 500 to USD 650, and thus, makes up a large proportion of the vehicle’s cost.
The market, however, shows immense potential to grow at a rapid pace during the forecast period. Currently, the battery manufacturers of electric vehicles are investing in R&D to improve the chemistry of the batteries to give a longer discharge time. Advances in technology in Li-ion batteries have made them comparatively lightweight with a long lifespan compared to conventional lead-acid and valve-regulated lead-acid battery (VRLA) batteries. With battery electric vehicles becoming the most viable alternative to ICE-powered automobiles and a solution to the problem of emissions, the demand for this
Type of vehicle is expected to increase considerably during the forecasted period, which calls for an excellent opportunity for electric battery manufacturers.
Major Players: BYD, PANASONIC, SAMSUNG SDI, TOSHIBA amongst others.
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Provides latest insights into the Battery Systems for Electric Vehicle Market
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Analyzing various perspectives of the market with the help of Porter’s five forces analysis
Detailed analysis on the region that is expected to witness the highest growth
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