According to research by P&S Market Research, the global hybrid and electric vehicle battery market is expected to grow at a CAGR of 20 per cent in terms of value during 2016-2022. The report, Global Hybrid and Electric Vehicle Battery Market Size, Share, Development, Growth and Demand Forecast, claims that, among the various applications, the electric vehicle segment accounted for the largest share (46.5 per cent) of the hybrid and electric vehicle battery market in terms of value in 2015.
Electric vehicles require battery for their operation, while hybrid electric vehicles use conventional fuel along with an electric propulsion system. Hybrid electric vehicles accumulate energy when the vehicle decelerates. The power stored in batteries of hybrid electric vehicles is used for energy tasks, such as accelerating from standstill. Once the vehicle is in motion, the combustion engine runs the vehicle's movement.
The majority of European countries import hybrid and electric vehicle batteries from China, Japan, and South Korea. Despite slower economic growth in Europe, countries such as Norway, France and Sweden are expected to witness growth in the hybrid and electric vehicle market during the forecast period. The increasing penetration of hybrid and electric vehicles is expected to drive the growth of the hybrid and electric vehicle battery market during the forecast period.
China accounted for the largest market share of electric vehicle in 2015. With newly built smart cities and modern infrastructure, China is giving significant attention to emission-free public transit systems. The Chinese government offers subsidies on the purchase of emission free vehicles that has assisted the growth of the electric vehicle market in the country. China is expected to lead the global hybrid and electric vehicle battery market during the forecast period. The average cost of lithium-ion battery is expected to decline significantly by the end of 2022.
The battery is a major factor in determining the cost and range of battery driven hybrid and electric vehicles. Due to the high cost of the batteries, the overall cost of the vehicle is also high and it acts as an impediment to the hybrid and electric vehicle battery market However, only the initial purchase cost is high, as the vehicle runs on electricity and the price of electricity to run an electric vehicle is a small fraction of the cost of liquid fuel needed to produce an equivalent amount of energy; therefore, the operating cost is cheaper. The range up to which an electric vehicle can run on a single charge is also determined by the battery's capability.
Electric vehicles require battery for their operation, while hybrid electric vehicles use conventional fuel along with an electric propulsion system. Hybrid electric vehicles accumulate energy when the vehicle decelerates. The power stored in batteries of hybrid electric vehicles is used for energy tasks, such as accelerating from standstill. Once the vehicle is in motion, the combustion engine runs the vehicle's movement.
The majority of European countries import hybrid and electric vehicle batteries from China, Japan, and South Korea. Despite slower economic growth in Europe, countries such as Norway, France and Sweden are expected to witness growth in the hybrid and electric vehicle market during the forecast period. The increasing penetration of hybrid and electric vehicles is expected to drive the growth of the hybrid and electric vehicle battery market during the forecast period.
China accounted for the largest market share of electric vehicle in 2015. With newly built smart cities and modern infrastructure, China is giving significant attention to emission-free public transit systems. The Chinese government offers subsidies on the purchase of emission free vehicles that has assisted the growth of the electric vehicle market in the country. China is expected to lead the global hybrid and electric vehicle battery market during the forecast period. The average cost of lithium-ion battery is expected to decline significantly by the end of 2022.
The battery is a major factor in determining the cost and range of battery driven hybrid and electric vehicles. Due to the high cost of the batteries, the overall cost of the vehicle is also high and it acts as an impediment to the hybrid and electric vehicle battery market However, only the initial purchase cost is high, as the vehicle runs on electricity and the price of electricity to run an electric vehicle is a small fraction of the cost of liquid fuel needed to produce an equivalent amount of energy; therefore, the operating cost is cheaper. The range up to which an electric vehicle can run on a single charge is also determined by the battery's capability.
