Electric Car Battery Market size is projecting growth at a CAGR of 16.49% by 2026.
The recent research Electric car battery market outlook over the forecast period identifies increasing concerns of environmental conservation, transiting of automakers from conventionally fuel driven vehicles to electric cars, and technology advancement as key market growth drivers.
The rise in electric car manufacturing and sales over stringent regulations towards the emission norms is contributing towards macro market share of electric cars. Further, key automotive OEMs and ODMs such as Toyota, Mazda, and others are entering production and supply of electric vehicles.
Electric car batteries are segmented based on battery types into lithium ion battery, lead acid battery, and nickel metal alloy hydride battery. Among these, lithium battery accounted for major share with advantages of lightweight, high energy densities, and compact in size.
Amid, vehicle types, the passenger cars is leading the global electric car battery market due to consumer preferences shifting to electrical vehicles, easy availability of electrification stations summoned with rapid urbanization.
Lowering of taxes by policy makers to encourage the adoption of electric vehicles and reduce CO2 emissions and greenhouse effect also impacts electric car battery market growth. Following this, in July 2019, the Indian government cuts GST on electric vehicles from 12% to 5% and tax rate reduced from 18% to 5% on electric chargers.
Further, investments made on establishment of production facilities for electric car batteries are a growth market opportunity.
However, shortage of materials for making electric car batteries such as lithium, nickel, and cobalt with rise in production of electric cars and absence of alternatives of these materials are among the upcoming challenges faced by the electric car battery market.
Government initiatives propels the consumption of hybrid cars
Government bodies are funding electric vehicle production and collaborating with national laboratories and industries to improve productivity of electric car batteries. Accordingly, the United States is funding the US Department of Energy’s Vehicle Technologies Office increase the productivity of EVs with reduces costs.
Government subsidiaries to support purchase of hybrid vehicles also impacts strong market growth.
Further, many cities are shifting their public transportation and service vehicles to hybrid cars and buses to encourage the environmental conservation. The hybrid car makers like Toyota, Civic Hybrid, and others are designed to conserve fuels through producing less carbon dioxide pollutions.
Asia Pacific is proceeding growth phase over the estimated period
The electric car battery market across Asia pacific is strongly emerging over ongoing industrialization and government initiatives to encourage electric vehicles. Accordingly, international energy agency recorded 5.1 million passenger electric cars by the end of 2018, among which china accounted for 45% and contributed for major production base of electric car batteries globally.
Further, government initiative such as subsidiaries and tax exception rate is estimated to propel the electric car batteries market growth across Asia Pacific. Accordingly, in February 2019, the government of India approved the proposal of the FAME Phase II (Faster Adoption and Manufacturing of Electric Vehicles in India Phase II) scheme that reduces the purchase price of hybrid and electric vehicles in India. In addition, the Indian government allocated $ 1.4 billion budget to encourage the uptake of electric vehicles and is implemented for three years from April 2019.
Electric car makers are collaborating with battery producers to enhance their business operations
Electric car manufacturers in the industry are collaborating with electric battery OEMs to meet the production demand and expand business presence. For instance, in September 2019 Volkswagen signed a deal with Sweden's Northvolt to commence a large electric car battery factory in Germany.
Key players operating in electric car battery market are Panasonic Corporation, Mitsubishi Electric Corporation, LG Chem Ltd., Samsung Electronics Co. Ltd., GSR Capital (Automotive Energy Supply Corporation), BYD Company Limited (BYD Auto Co., Ltd.), Wanxiang Group Corporation, Beijing Pride Power Battery Technology Co Ltd, Tianneng Power International Limited, and Enersys (Quallion LLC)