Lithium Ion Batteries for Electric Vehicles Will Reach $22 Billion in Annual Market Value by 2020, Forecasts Pike Research
BOULDER, Colo.--(BUSINESS WIRE)-- In recent years, the lithium ion (Li-ion) battery industry has taken a number of steps forward. The technology continues to improve, leading battery cell manufacturers have built new factories that incorporate advanced production techniques, and automakers have greatly increased their research and development (R&D) efforts on plug-in electric vehicles (EVs). According to a new report from Pike Research, a part of Navigant's Energy Practice, these developments will translate into strong growth for Li-ion batteries over the remainder of the decade. The overall market for Li-ion batteries in light duty vehicles will grow from $1.6 billion in 2012 to almost $22 billion in 2020, the study concludes.
"The Li-ion battery looks set to be the chemistry of choice for the on-board energy storage market for the foreseeable future, taking over from nickel-metal hydride, which has been the preferred battery for hybrids to date," says senior research analyst David Alexander. "Li-ion batteries can supply the much greater capacity needed for battery electric and plug-in hybrid vehicles, and 2012 saw the launch and announcement of new models from many manufacturers, all featuring Li-ion batteries."
The pressure to reduce the cost of electric vehicles is high, and the cost of the battery pack is the most important factor in determining the premium cost of EVs. Large R&D funds have been invested, but only small incremental improvements have been achieved so far. One challenge is that volumes remain small in automotive terms. The cost of the battery pack will come down to about $447 per kilowatt-hour by the year 2020 at scaled production, according to the report.
The report, "Electric Vehicle Batteries", provides a detailed examination of the growing market for lithium ion batteries, including profiles of all of the leading Li-ion battery manufacturers. Forecasts for revenues from Li-ion batteries, segmented by vehicle type, are included, along with vehicle roadmaps for hybrid, plug-in hybrid, and battery electric vehicle sales by region. The report also includes a review of competing energy storage technologies, including ultracapacitors and nickel-metal hydride batteries. An Executive Summary of the report is available for free download on the Pike Research website.
About Pike Research
Pike Research, which joined Navigant's global Energy Practice on July 1, 2012, provides in-depth analysis of global clean technology markets. The team's research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Smart Utilities, Smart Transportation, Smart Industry, and Smart Buildings sectors. Additional information about Pike Research can be found at www.navigant.com/pikeresearch.
Navigant (NYS: NCI) is a specialized, global expert services firm dedicated to assisting clients in creating and protecting value in the face of critical business risks and opportunities. Through senior level engagement with clients, Navigant professionals combine technical expertise in Disputes and Investigations, Economics, Financial Advisory and Management Consulting, with business pragmatism in the highly regulated Construction, Energy, Financial Services and Healthcare industries to support clients in addressing their most critical business needs. More information about Navigant can be found at www.navigant.com.
* The information contained in this press release concerning the report, "Electric Vehicle Batteries," is a summary and reflects Pike Research's current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report's conclusions and the methodologies used to create the report. Neither Pike Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.
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