Electric Vehicle Battery Market Size, 2020 Industry Share and Global Demand | 2027 Forecast by Fortune Business Insights™
ElectricVehicle Battery Market will exhibit a CAGR of 6.6% during the forecastperiod, and reach USD 82.20 billion by 2027, and the Market value asper 2019 was USD 71.83 billion.
FortuneBusiness Insights™ in a new report, titled, “Electric VehicleBattery Market Size, Share & Industry Analysis, By Type (Lead Acid Battery,Nickel-Metal Hydride Battery, Lithium-Ion Battery, Others), By Vehicle Type(PHEV, BEV, HEV), and Regional Forecasts, 2019-2026.”
Electric Vehicle Battery Market Drivers and Restraint:
Falling Price of Lithium-Ion Batteries to Augment Growth
Currently,the primary source of power for EVs is lithium-ion batteries. According to astudy published by the U.S. International Trade Commission in 2018, lithium-ionbatteries account for more than 70% of the rechargeable battery market.Additionally, the battery costs per kilowatt-hour (kWh) have declined to lessthan 200 USD in 2019 from around 1000 USD in 2010. Moreover, owing to theadvancement of the battery pack manufacturing techniques and cell chemistry,battery costs are likely to decline below 100 USD/kWh by the end of theforecast period. Hence, a reduction in the prices of battery packs which areresponsible for around 35% to 45% of EV manufacturing costs are expected todrive the growth of the market.
Stringent Emission Regulations to Fuel Adoption of ElectricVehicles
Electricvehicles hold a significant emission advantage over the conventional internalcombustion engine vehicles attributed to the lack of transit-related emissionsand the potential to utilize and develop renewable energy resources.
Furthermore,increasing awareness regarding climate change has compelled policymakers toimplement stringent fuel economy regulations and actively promote thedevelopment of electric vehicles via initiatives such as incentivizing cellmanufacturing for batteries. Hence, vehicular emission concerns are anticipatedto propel the adoption of EVs which would boost the growth of the market ofelectric vehicle battery.
RESTRAINING FACTORS
Scarce Material Supply and Lack of Charging Infrastructure toLimit Adoption
Severalminerals are necessary to store and utilize electricity as fuel such asmanganese, cobalt, nickel, graphite, and rare-earth elements such as neodymiumfor which the supplies are geographically concentrated and substitutes arenon-existent or limited. The growing demand for EVs is likely to lead to ashort-term supply crunch for these essential battery components.
Furthermore,the lack of charging infrastructure is also a hurdle for the widespreadadoption of EVs, particularly in emerging economies such as India.Additionally, the cost of installation is high and cost-efficiency forconsumers to charge their vehicles is also not at the required level. Hence,the supply chain risks and the lack of charging stations are likely to restrainthe growth of this market.
List of Key Players Covered in the Electric Vehicle BatteryMarket Report:
- GS Yuasa International Ltd. (Kyoto, Japan)
- BYD Company Ltd. (Shenzhen, China)
- LG Chem (Seoul, South Korea)
- Tesla (California, US)
- Panasonic Corporation (Osaka, Japan)
- Samsung SDI CO., LTD (Seoul, South Korea)
- Hitachi Chemical Co., Ltd. (Tokyo, Japan)
- Contemporary Amperex Technology Co., Limited (CATL) (Ningde, China)
To gain more insights into the market with a detailed tableof content and figures, Click Here: https://www.fortunebusinessinsights.com/industry-reports/electric-vehicle-battery-market-101700
Some of the key industry developments in the ElectricVehicle Battery Market Include:
- March 2020 – BYD officially launched the new Blade Battery for EVs that optimizes the battery pack structure by over 50%, as compared to the conventional lithium iron phosphate batteries. It also exponentially increases the battery safety.
- February 2020 – LG Chem partnered with the U.S.-based luxury EV company, Lucid Motors to supply cylindrical batteries for its EVs from the second half of 2020 up to 2023.
- December 2019 – LG Chem established a joint venture with General Motors for electric vehicle batteries with mass production expected to begin in 2023 in a new manufacturing plant in Ohio.
