Demand for Green Vehicles to Boost the Electric Vehicle Battery Market | Technavio

Technavio has published a new report on the global electric vehicle battery market from 2017-2021. (Graphic: Business Wire)

LONDON--()--Technavio market research analysts forecast the global electric vehicle (EV) battery market to grow at a CAGR of close to 42% during the forecast period, according to their latest report.

The market study covers the present scenario and growth prospects of the global EV battery market for 2017-2021. The report also lists hybrid electric vehicle (HEVs), battery electric vehicle (BEVs), and plug-in hybrid electric vehicle (PHEVs) as the three major segments based on vehicle type. In 2016, the global EV battery market by HEVs accounted for 77% of the overall market share.

This report is available at a USD 1,000 discount for a limited time only: View market snapshot before purchasing

Buy 1 Technavio report and get the second for 50% off. Buy 2 Technavio reports and get the third for free.

Technavio analysts highlight the following three market drivers that are contributing to the growth of the global EV battery market:

  • Decline in price of electric vehicle batteries
  • Increasing demand for HEVs and EVs
  • Government subsidies and incentives driving the sales of electric vehicles

Looking for more information on this market? Request a free sample report

Technavio’s sample reports are free of charge and contain multiple sections of the report including the market size and forecast, drivers, challenges, trends, and more.

Decline in price of electric vehicle batteries

The major cost-consuming factor of EVs is the battery. If the cost of EV batteries could be brought down, then the total cost of the vehicle would see a significant decline. This would lead to a shift of the global EV market toward mainstream automotive business. It is estimated that an EV battery can be produced at USD 150/kWh or even less, which would be cost-competitive to gasoline-powered vehicles. The Tesla Model S 90D can cover 270 miles on its 85kWh battery.

According to Raj Gaurav Singh, a lead analyst at Technavio for automotive electronics research, “The cost of EV batteries has dropped significantly since 2010 owing to improvements in the chemistry and the manufacturing process of the battery. Moreover, manufacturers can attain economies of scale as the factories become larger owing to aggressive pricing by major battery makers. It is expected that by 2030, 58% of the total lightweight automotive market would be EVs.”

Increasing demand for HEVs and EVs

The hybrid and EV markets will register growth due to several factors such as the enforcement of stringent emission norms by countries across the globe. Such efforts are being made to minimize the negative effects of global warming and reduce GHG emissions. The 2009 EU norms set CO2 emission level for new passenger cars at 130g/Km. The target is to reach 95g/Km by 2020. These targets can be achieved only by employing hybrid or EVs.

In addition, many countries are providing various incentives and tax benefits to increase the use of green vehicles. Almost all top vehicle market regions have introduced fiscal incentives and subsidies to attract manufacturers to produce more hybrids and EVs locally. This is further encouraged by the rapidly decreasing cost of batteries. The battery market has been witnessing a decline in cost since 2013, owing to the increased production volume.

Government subsidies and incentives driving the sales of electric vehicles

The standards set by regulatory bodies are to benefit customers and reduce the impact of automobiles on the environment. This is a prime reason for the increased market traction of electric, hybrid, and alternative fuel vehicles. Governments of various countries are aiming to reduce their dependency on oil. To achieve this goal, they are marketing and providing benefits to increase the production and sale of EVs.

Currently, the global electric two-wheelers market is well-established. The market share of electric cars is also increasing every year. Electric buses and heavy-duty vehicles are still at the development stage and have a relatively low market share. However, as several countries are tightening their standards, the use of electric buses is expected to increase as they help in reducing emission, maintain fuel economy, and lowering operating cost advantages.

“Government agencies, such as the US Environmental Protection Agency, are focusing on encouraging green public transport solutions by providing subsidies. Investments in the development of infrastructure are expected to increase the use of EVs. This would directly impact the global EV battery market,” says Raj.

Browse Related Reports:

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 10,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

If you are interested in more information, please contact our media team at media@technavio.com.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
www.technavio.com

Release Summary

Technavio market research analysts forecast the global electric vehicle (EV) battery market to grow at a CAGR of close to 42% from 2017-2021.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
www.technavio.com