Electric vehicles battery market to reach USD 94 billion

The global electric vehicles battery market is estimated to reach 93.94 billion US dollars by 2026. The demand for electric cars is increasing rapidly, with global stock numbers surpassing two million in 2016.

A market research report by BIS Research has forecast the global electric vehicles (EV) battery market to reach almost 94 billion dollars by 2026.

The expected growth in the market for EV batteries is attributed to increasing collaborations between the key component manufacturers and rising numbers of electric vehicles.

With government bodies actively promoting the usage of electric vehicles to reduce high emission levels, the demand for electric cars is increasing rapidly.

Falling battery prices and improved charging infrastructure are also expected to be key factors in the growth of the market.

The evolution of Lithium-ion technology has fuelled the growth rate for batteries over the last two decades. Among the benefits of Li-ion batteries are high energy density and charge retention capacity along with low maintenance.

Surabhi Rajpal, senior analyst at BIS Research, commented in a statement: “While other alternate battery technologies such as Nickel Metal Hydride and Hydrogen fuel cells are also present in the market, Lithium-ion technologies are expected to be the most prominent in terms of usage.

“Factors such as high energy density, long cycle life, and relatively higher performance parameters make lithium-ion technologies the most lucrative battery system available in the market.”

During the forecast period, the electric vehicle battery market for passenger cars is expected to grow at a faster rate than commercial vehicles due to factors such as increasing demand for electric cars, stringent governmental regulations and high energy density of batteries.

Photo credit: Alan Trotter/ CC BY 2.0

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