The Global Batteries for Electrical Vehicles Charging Stations Market size is expected to reach a valuation of US$ 42.47 billion by 2027 and is predicted to register a CAGR of 40.2% during the forecast period 2022-2027.
Owing to the improved policy incentives, battery technology, and therefore the growing consumer interest to reduce vehicle carbon footprint, the share of electric vehicles (EVs) in the passenger car industry has improved over the few years. The key determinant for increasing the driving range per recharge and decreasing the value of EVs is the development of electric vehicle batteries. To store more energy and to form them lighter and smaller, new cell chemistries are being developed for these batteries, which might enable EVs to compete with the standard vehicles.
Market Trends:
Currently, lithium-nickel-manganese-cobalt-oxide (NMC) is the commonly used component in Electric vehicles. Additionally, lithium-nickel-cobalt-aluminum oxide (NCA) is employed in popular Electrical vehicles within the U.S. (Tesla Model 3, S, and X). However, the adoption of the latest battery chemistries for Electrical vehicles is increasing at a faster pace.
In the next three years, lithium-nickel-manganese-cobalt-aluminum oxide (NMCA) will have great opportunities as there is increasing adoption of these products for various purposes. They provide an extended life cycle and higher energy density, as compared to the equivalent NCA and NMC material. Hence, the development of advanced battery chemistry could be a positive trend influencing the electric vehicle battery market growth.
Market Drivers:
Currently, the first source of power for EVs is lithium-ion batteries. As per a study published by the U.S. International Trade Commission in 2018, lithium-ion batteries account for over 75% of the rechargeable battery market. Additionally, the battery costs per kilowatt-hour (kWh) have fallen to less than 200 USD in 2019 from around 1000 USD in 2010. These factors are likely to propel the demand for batteries for electrical vehicle charging stations market. Moreover, due to the advancement of battery pack manufacturing techniques and cell chemistry, battery costs decreased below 100 USD/kWh by the top of the forecast period. Affordable prices of the electric vehicle manufacturing cost to propel the demand of the market. Electric vehicles hold a big emission advantage over traditional combustion engine vehicles attributed to the shortage of transit-related emissions and also the potential to utilize and develop renewable energy resources. Growing demand to manufacture electric vehicles from government organizations and raising awareness over the benefits of these vehicles are likely to boost the demand of the market. Hence, vehicular emission concerns are expected to propel the adoption of EVs, which might increase the expansion of the batteries for electrical vehicles charging stations market of the electric vehicle battery.
Market Restraints:
Several minerals are necessary to store and utilize electricity as fuel like cobalt, manganese nickel, graphite, and rare-earth elements like neodymium the supplies are geographically concentrated, and substitutes are non-existent or limited. The growing demand for EVs is probably going to steer to a short-term supply crunch for these essential battery components. Also, the shortage of charging infrastructure is additionally a hurdle for the widespread adoption of electric vehicles, particularly in developing economies like India. Additionally, the price of installation is high, and the cost-efficiency for consumers to charge their vehicles is also not at the specified level. Hence, the supply chain risks and also the lack of charging stations are likely to restrain the expansion of this market.
Market Recent Developments:
In March 2020, BYD officially launched the new Blade Battery for Electric vehicles that optimizes the battery pack structure by over 50%, as compared to the conventional lithium iron phosphate batteries. It also exponentially increases battery safety.
In 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.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2022 – 2028 |
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Base Year |
2022 |
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Forecast Period |
2023 - 2028 |
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CAGR |
40.2% |
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Segments Covered |
By Battery Type, Vehicle Type, and Region. |
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Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities |
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Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Market Leaders Profiled |
A123 Systems LLC, ENVISION AESC SDI CO., LTD., LG Chem, SAMSUNG SDI CO., LTD., TOSHIBA CORPORATION, BYD Company Ltd. (Shenzhen, China), Panasonic Energy, Tesla (California, US) |
Market Segmentation:
The batteries for electrical vehicles charging stations market is segmented into lithium-ion batteries (Li-Ion), lead-acid batteries, nickel-metal hydride (Ni-MH) batteries, and others. The lithium-ion segment held the biggest share of the market in 2019. Hence, the lithium-ion segment is predicted to dominate the global market of electric vehicle batteries over the forecast period.
Based on vehicle type, the batteries for electrical vehicles charging stations market for electric vehicle batteries are classified into the hybrid electric vehicle (HEV), plug-in hybrid electric vehicle (PHEV), and battery electric vehicle (BEV). The BEV segment is estimated to exhibit a better CAGR as compared to the HEV segment. The government agencies' stringent fuel economy regulations and implementation quota systems, particularly within developing economies, are likely to propel the adoption of BEV, which completely depends on rechargeable battery packs. The HEV segment held the biggest electric vehicle battery market share in 2019. HEVs use electric drive technology to deliver reduced fuel consumption and remove the dependence on charging stations. Hence, these factors, including their lower costs, as compared to BEV, are anticipated to improve the dominance of this segment over others in the given forecast period.
Market Regional Analysis:
The Global Batteries for Electrical Vehicles Charging Stations Market Report includes the segmentation of regions:
North America dominated the batteries for electrical vehicles charging stations market shares in 2020, and it is expected to continue its dominance during the forecast period. This can be largely due to rising investments in the development of charging station infrastructure in the region. The Batteries for Electric Vehicle Charging Stations Market in the Asia Pacific is expected to hit the highest CAGR during the forecast period owing to a rise in the demand for electric vehicles in China, India, and Japan. China is the leading market, with the greatest number of electrical vehicles sold in the region in 2020, which was around 1.77 million units.
The outbreak of COVID-19 has resulted in a very severe supply shortage of lithium for automakers like PSA Group, Ford, and Fiat Chrysler, among others which operate their production plants within the Hubei province, the initial epicenter of the virus. The pandemic-induced lockdown is anticipated to cut back lithium-ion battery production output by 26 gigawatt-hours in China and has compounded the dependence of automakers on Asian battery manufacturers. Furthermore, the value of lithium hydroxide utilized in electric vehicles has increased, which is attributed to the logistical difficulties and greater production costs caused by the outbreak. Previously, several European original equipment manufacturers (OEMs) want to focus only on packaging and research & development activities. They need avoided battery manufacturing themselves due to the difficulties involved in fixing the developing correct battery chemistry, production process, and sourcing the minerals to provide battery cells. However, this corona has caused a severe bottleneck in electric vehicle battery supply within the automotive industry. Similarly, Daimler and Jaguar Land Rover, because of the unavailability of key elements like cobalt and lithium, have paused production of the Mercedes EQC and I-Pace electric SUV, respectively. It has impacted the profitability of those automakers. Hence, efforts to diversify the availability chain for crucial elements like lithium are expected to increase as a result of the corona pandemic, and a brief to a mid-term supply shortage for such elements will end in the reduced production of EVs over the subsequent two years.
Market Key Players:
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