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The global electric vehicle (EV) battery market is expected to witness significant growth rate between 2016 and 2022.
Among all the regions, Asia-Pacific (APAC) accounted for the highest revenue in the electric vehicle battery market during the historical period (2012–2015), and is expected to maintain the same trend in the forecast period. It is mainly driven by the presence of a large number of battery producers in China, Japan, and South Korea, thereby leading to the lower prices of EV batteries in APAC compared to other regions. Additionally, the presence of necessary raw materials, such as lithium and cobalt, in the region in abundance is supporting the high-volume battery production here.
Fundamentals Governing Electric Vehicle Battery Market
The increasing usage of lithium–nickel-manganese–cobalt oxide (Li-NMC) batteries in EVs is being observed as the key trend in the electric vehicle battery market. The shift toward Li-NMC batteries is due to the increasing demand for a higher driving range in passenger cars from a single charge. These batteries offer a greater energy density, which facilitates in offering the higher driving range. Thus, with the growing demand for a higher driving range and lighter EVs, the automotive manufacturers are preferring Li-NMC batteries, thereby driving the market for these batteries.
The technological advancements in the lithium-ion batteries (LIB) used in EVs are the major factor driving the growth of the electric vehicle battery market. The advantages of lithium-ion batteries such as high energy efficiency, long life, and no memory effects make them ideal for electric vehicles. The high adoption rate of these batteries for electric vehicle manufacturing is leading to the growth of the market.
Structural Analysis of Electric Vehicle Battery Market
When segmented based on application, the electric vehicle battery market was dominated by the battery electric vehicle (BEV) category during the historical period, and the same trend is expected during the forecasted period. It is mainly due to the increasing subsidies and incentives on battery electric vehicles (EVs), given for encouraging their adoption, worldwide.
Under the type segment, the LIB category dominated the electric vehicle battery market during the historical period, in value terms. It is mainly due to the less weight and greater energy density of such batteries over other types of batteries used in EVs. Additionally, the tremendously reducing LIB prices are leading to their higher usage in EVs.
Competitive Landscape of Electric Vehicle Battery Market
The electric vehicle battery market is dominated by few players currently; however, investments in the field of battery production are rising across various countries, as huge sales of EVs are expected in the near future. This is expected to increase the number of electric vehicle battery production facilities by the existing players and also pave the way for the entry of new players. Some of the major electric vehicle battery manufacturers are Panasonic Corp., Automotive Energy Supply Corp. (AESC), BYD Co. Ltd., LG Chem Ltd., Hitachi Vehicle Energy Ltd., Lithium Energy and Power GmbH & Co. KG, and Shenzhen BAK Battery Co. Ltd.
Recent Strategic Developments of Major Electric Vehicle Battery Market Players
In recent years, the global electric vehicle battery market players have taken various strategic measurers, including facility expansions and securing client wins, to gain a competitive edge in the industry. For instance, in October 2015, Hitachi Automotive Systems Ltd. started supplying Nissan Motors Co. Ltd. with high-output lithium-ion battery packs, comprised of a battery module that contains cylindrical battery cells and battery management system (BMS).
Moreover, in October 2014, Panasonic Corp. established a new a large-scale battery manufacturing plant for lithium-ion batteries, under its subsidiary, named Panasonic Energy Corporation of North America.
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