Battery Electric Vehicle Market
Battery Electric Vehicle Market Size, By Vehicle (Electric Cars, Electric Buses, Electric Trucks, Electric Motorcycles & Scooters, E-bikes), By Battery Type (SLA, Li-ion, NiMH), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast
Projections for the global battery electric vehicle market during the forecast period. The electric vehicle revolution has already begun and is gaining speed as we speak. So, what about the battery packs that are the lifeline to this movement?
Government incentives, such as tax rebates, and free charging facilities are major factors that have led to a significant shift in the demand for BEVs. Shifting focus of commercial transport vehicle fleet operators to clean transportation and mobility solutions is augmenting the industry growth. As per a report by trust.org, Moscow will replace petrol diesel vehicles with electric buses by 2030 with more electric buses being added each year.
Rapid investments in R&D activities by industry participants to develop advanced battery solutions for BEVs will foster the market progression. For instance, in October 2021, Tesla announced the use of Lithium Iron Phosphate (LFP) based batteries in all its standard range of electric cars to increase its profit margin. The new LFP batteries have a longer life expectancy, require no maintenance, are lightweight, enhance discharge & charge efficiency, and are easier to recycle compared to nickel-cobalt aluminum battery packs. Moreover, advancements in electric powertrains including improvements in torque and power to operate across diversified environment conditions will further accelerate the industry growth.
The major factors challenging the industry expansion are limited charging infrastructure and higher charging time. To overcome these restraints, industry participants are collaborating with government bodies to build charging infrastructure to support the acceptance of BEVs.
In 2020, the automobile industry was negatively impacted due to the COVID-19 pandemic, impacting the overall battery electric vehicle market. The global lockdown and stringent travel restrictions imposed by government authorities resulted in the shutdown of manufacturing facilities and unavailability of electric components, Li-ion battery packs & labor. This also resulted in postponements in investments, R&D activities, and subsequently the launch of new BEVs, reducing the market revenue of BEV companies. However, the industry is predicted to observe steady growth over the forecast period owing to supportive government policies and stimulus measures to achieve emission standards.
Emerging automotive technologies are accelerating electric car usage
The electric cars segment in the BEV market is slated to witness high growth rate through forecast years. Electric cars are equipped with technologically advanced features and facilities to improve driver safety such as sensors, telematics systems, cameras, blind-spot monitoring with rear cross-traffic alert, and others. These advanced safety features have proven their effectiveness in saving lives on the road. Market players are focusing on launching electric cars integrated with advanced features to widen their customer base.
Growing demand for Li-ion batteries
the Li-ion battery segment dominated more than half of the BEV market share in 2020. Increasing market demand for electric vehicles and the rising adoption of light commercial electric vehicles will stimulate the production of Li-ion batteries. The high demand for Li-ion batteries can be attributed to their minimum maintenance cost, long-life, high-power density, low-self discharge, and low environmental impact.
Asia Pacific battery electric vehicle market size was USD 100 billion in 2020 led by the availability of cheap raw materials, labor, and the presence of major battery manufacturers. Continuous investments by manufacturers to expand their battery plant facilities will fuel the regional revenue. Supportive government regulations and initiatives to impel the sale of electric vehicles will support the industry progression of BEVs in the region.
New product launches as a key strategy to strengthen global presence
Prominent players operating in the battery electric vehicle market include BYD company Ltd., Volkswagen AG, Hyundai Motor Company, Tesla Inc., Nissan Motor Corporation, Toyota Motor Corporation, BMW, Ford Motor Company, and Daimler AG. Several companies are emphasizing on diversifying their product portfolios to expand their global presence and strengthen their position in the market.