Editor’s note: If electric vehicles (EVs) recharge at night, this report is a positive forecast for wind power.
The global market for motive batteries used to power electric vehicles (EV) and other conveyances is set to rise to $47 billion in 2017, up more than 50% from $31 billion in 2013, according a new report “Motive Batteries – World -2013” from IMS Research, now part of IHS.
“The rapid growth of the motive battery market is projected to be driven by an explosion in demand for EVs and the continued adoption of start-stop vehicles, that is, gas-powered cars that cut off their engines instead of idling to save fuel,” said Thomas McAlpine, market research analyst for power supply and energy storage at IHS. “These EVs will provide opportunities for more expensive battery technologies such as valve-regulated lead–acid (VRLA) and lithium-ion batteries, driving market revenue. Meanwhile, as the global economy continues to recover, companies are beginning to invest more in greener processes, fueling demand for battery-powered vehicles in industrial applications such as forklift trucks and mining machinery.”
In addition to the high growth, significant changes in battery chemistry also are forecast in the coming years. For instance, the flooded lead-acid battery market is projected to lose significant share, falling from 49% of market revenues in 2013 to 39% in 2017. This trend will be most prominent in automotive battery markets, with lithium-ion and VRLA batteries dominating the fastest-growing applications, such as EVs, start-stop vehicles, and electric bikes.
In the largest motive battery applications outside of the automotive market, such as industrial trucks and golf carts, flooded lead-acid technology is projected to remain the most widely selected choice, retaining the majority of its share. A slow transition to VRLA batteries is forecast in certain applications, including recreational vehicles and marine applications, where the maintenance-free properties of the battery are popular among consumers.
The average selling price of lithium-ion batteries is projected to fall significantly in the next five years, partly driven by growing volume. As a result, the technology is forecast to become more competitive, resulting in increased success in other applications such as golf carts and commercial aircraft.
“As concerns on global climate change continue and fuel prices climb, the motive battery market is projected to thrive in a greener future,” McAlpine concluded.
Filed Under: Energy storage, News