The global electric vehicle (EV) battery market is projected to witness rapid growth during the forecast period (2016–2022).
Historically, the battery electric vehicle (BEV) category dominated the electric vehicle battery market, and it is expected to maintain the trend during the forecast period. It is attributed to the increasing subsidies on the production and incentives on the adoption of electric vehicles. Additionally, various countries are planning to set targets to raise the portion of zero-emission vehicles (ZEV) in the total vehicle sales in the coming years, which, in turn, is expected to further drive the growth of the BEV category.
Increasing Usage of Li-NMC Batteries is the Key Trend in the Market
The rapid shift toward lithium–nickel-manganese–cobalt oxide (Li-NMC) batteries, mainly from Lithium–iron phosphate (LFP) batteries, in the electric vehicle battery market, is due to the increased demand for passenger cars that can be driven for longer distances on a single charge. The higher energy density of Li-NMC batteries, which supports the higher vehicle range, is encouraging the electric vehicle manufacturers to use these more. Additionally, the price range of Li-NMC batteries has come down rapidly in the recent years, which is further expected to increase their usage in the production of electric vehicles.
Growing Electric Vehicle Production and Demand are the Major Growth Driver of the Market
The increasing EV production and demand, worldwide, are driving the growth of the electric vehicle battery market. Over the past few years, the demand for EVs has grown rapidly in various countries. Issues ranging from environmental concerns to fluctuating oil prices continue to push governments and consumers toward alternatives to internal combustion engine (ICE)-powered automobiles. Additionally, governments of various countries are encouraging consumers to adopt EVs, by offering various monetary benefits on their purchase, which is further driving the growth of the market.
Segmentation Analysis of Electric Vehicle Battery Market
Lithium-ion (LIB) batteries are expected to possess the dominating share in the electric vehicle battery market during the forecast period. It is attributed to their benefits such as higher energy density, continuously reducing prices, and higher safety, which benefit the EV manufacturers to lower the overall cost of the electric vehicles.
Geographical Analysis of Electric Vehicle Battery Market
Asia-Pacific (APAC) held the dominating share in the electric vehicle battery market during the historical period (2012–2015), and it is expected to continue possessing the major share during the forecast period. The growth of APAC’s market is mainly driven by the high sales of electric cars and commercial vehicles in the region, due to the lucrative policies of the government in countries such as China and Japan, which possess significant shares in electric vehicle sales, worldwide.
Competitive Landscape of Electric Vehicle Battery Market
The major manufacturers in the global electric vehicle battery market are mostly present in APAC countries, such as China, Japan, and South Korea. Some of the leading players manufacturing batteries for EVs are Panasonic Corp., BYD Co. Ltd., LG Chem Ltd., Hitachi Vehicle Energy Ltd., Shenzhen BAK Battery Co. Ltd., Automotive Energy Supply Corp. (AESC), and Samsung SDI Co. Ltd.
In April 2016, Hitachi Automotive Systems developed a high-output 48V lithium-ion battery pack for mild hybrid electric vehicles. The mild HEVs use a battery and motor to provide power assistance when the vehicle is being driven by its ICE.
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In March 2015, LG Chem, a major electric vehicle battery market player, was selected by Daimler AG as the supplier of LIBs for smart’s EV that will be launched in 2016. LG Chem will provide the battery cells for the smart EVs that will be integrated into battery packs by Daimler. Smart is a brand of Daimler that manufactures and markets micro cars.
Global Hybrid and Electric Vehicle Battery Market Segmentation