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Hybrid and Electric Vehicle Battery Market Analysis, Emerging Trends, Key Players, Future Scope

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With the rising deployment of hybrid and electric vehicles, the demand for hybrid and electric vehicle batteries is predicted to surge sharply in the coming years. According to the International Energy Agency (IEA), the sales of electric cars surpassed 2.1 million units across the world in 2019 and this augmented the worldwide stock to 7.2 million units. Moreover, electric cars accounted for as much as 2.6% of worldwide car sales and around 1% of the worldwide car stock in 2019, thereby registering an increment of 40% year-on-year.

The increasing adoption of these vehicles is propelling the requirement for proper electric vehicle charging infrastructure, which is, in turn, driving the expansion of the global hybrid and electric vehicle battery market. Additionally, the rapid technological advancements being made in lithium-ion batteries (LIB), which are used in electric vehicles, are also contributing toward the booming worldwide sales of hybrid and electric vehicle batteries. Lithium-ion batteries exhibit various beneficial traits, such as long lifespans, negligible memory effects, and high energy efficiency, which make them ideal for use in electric vehicles.

Out of hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), and battery electric vehicles (BEVs), the requirement for these batteries was found to be the highest in battery electric vehicles during the last few years and this trend is predicted to continue in the coming years as well. This is ascribed to the increasing incentives and subsidies being provided by the governments of several countries on battery electric vehicles in order to propel their deployment.

Nickel-metal hydride (NiMH) and lithium-ion batteries are the most widely used hybrid and electric vehicle batteries across the world. Between these two, the demand for lithium-ion batteries was observed to be higher in the years gone by. This was primarily because of the greater energy density and less weight of these batteries in comparison to the other batteries used in electric vehicles. In addition, the falling prices of lithium-ion batteries are also driving their sales across the globe.

Geographically, the demand for hybrid and electric vehicle batteries was the highest in the Asia-Pacific (APAC) region in the past years and the situation will not change in the forthcoming years as well, as per the estimates of the market research company, P&S Intelligence. This is attributed to the low prices of these batteries in the region, on account of the existence of several battery manufacturing companies in South Korea, Japan, and China. In addition, the abundant availability of raw materials, such as cobalt and lithium, is also fueling the manufacturing of hybrid and electric vehicle batteries in the region.

Therefore, it is safe to say that the sales of hybrid and electric vehicle batteries will soar in the coming years, primarily because of the rising deployment of electric vehicles and the falling prices of lithium-ion batteries across the world.

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