Battery Modules for Hybrid and EVs to Hit US$47 B. in 2020: ABI Research

Taipei, Feb. 2, 2012 (CENS)--The year 2011 is an important kick-off year for the electric vehicle (EV) market, as different automakers have launched commercialized products, including both pure-electric cars, or battery electric vehicle (BEV), and plug-in hybrid electric vehicle (PHEV) models, with "range anxiety" still being a major hindrance to the penetration of such vehicles.

In 2011, the first PHEVs went into production to add the next level of electric-only drive to the steadily growing popularity of the hybrid assist vehicle. Large lithium-ion battery production facilities came online in a number of countries around the world to support the anticipated demand fueled in many countries by generous subsidies and tax benefits. The battery module market is expected to grow from about US$5 billion in 2010 to US$47 billion in 2020, representing a healthy compound annual growth rate (CAGR) of 25% over 10 years, according to ABI Research, a market intelligence company specializing in global connectivity and emerging technology.

“As well as the production vehicles that went on sale in 2011, announcements from all the major manufacturers make it clear that this segment will have much more competition in the next couple of years,” said ABI Research's principal analyst David Alexander. “Also, some existing hybrid vehicles will be fitted with larger batteries to improve their electric-only range.”

Continued demand for cleaner, more efficient vehicles, led by governments dealing with goals to cut emissions, means that financial incentives would be around for a long time, the research firm said. The recharging infrastructure is also developing rapidly in urban areas, which are being targeted as prime regions for electric vehicle adoption.

“Range anxiety is diminishing and consumer acceptance is growing, but the major obstacle for potential purchasers of an EV remains the high price,” says group director Dominique Bonte. “And while the costs of power electronics and electric motors are expected to drop significantly as production ramps up, no big price cuts are expected for the most expensive component, the battery pack.”

Alternative technologies such as hydraulic hybrid drive, ultra-capacitors, and flywheel energy storage continue development and testing in niche applications, but it seems that the battery-electric solution will be the recipient of the majority of the production investment during the forecast period, ABI Research said.