The EV battery market forecast by Fortune Business Insights says that this market is set to experience intense competition in the coming decade. New Delhi: With increasing production of electric vehicles, the global
EV battery market volume is estimated to reach at 40.6 million units with a CAGR of 21.1 per cent by 2026 from 8.6 million units in 2018, according to a recent report by Fortune Business Insights report.
The report titled “Global Electric Vehicle Battery 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”, stated that the demand for EV batteries is driven by the growing to reduce dependence on non-renewable energy sources.
"EVs are expected to play a central role in the global commitment towards attaining sustainable development goals set by the United Nations. This skyrocketing demand and production is further underpinned by the rising concerns regarding rampant pollution and unchecked carbon emissions that are exacerbating the effects of global warming and climate change," analysts noted in the report..
The report underlined that Asia-Pacific is anticipated to dominate the EV battery market share owing to the increasingly stringent regulations put in place by governments in the region to reduce carbon and GHG emissions. The volume of the market in Europe was at 3.1 million in 2018 and is expected to increase mainly on account of a well-established EV infrastructure.
The other factor favoring growth in this region is the supply of nickel-metal batteries and lithium-ion batteries at competitive prices by companies. Gradual shift towards electric vehicles as a result of volatile oil prices will be the main factor driving the market in North America. Additionally, rising investments in e-mobility ventures coupled with active government support will further fuel this market in the region.
To drive consumer adoption, many companies have started investing and collaborating with tech giants aggresively. In May 2019,
Panasonic Corporation launched Nymbus, a first of its kind smart EV charging service, in India. This next-gen charging system is equipped with charging stations, swap stations, and telematics, along with cloud analytics and artificial intelligence solutions.
On a similar note, Samsung SDI and
BMW Group signed a USD 3.2 billion contract in November 2019, under which Samsung will supply lithium-ion battery cells to BMW to enable the carmaker to release 25 new green car models by 2025.
The EV battery market forecast by Fortune Business Insights says that this market is set to experience intense competition in the coming decade. This is because major players are looking to consolidate their position through launch of innovative products and strategic collaborations to diversify their product offerings.