ABI Research projects that the battery module market for hybrid and electric vehicles will grow from about $5 billion in 2010 to $47 billion in 2020, representing a CAGR of 25% over 10 years.
Continued demand for cleaner, more efficient vehicles, led by governments dealing with goals to cut emissions, means that financial incentives will be around for a long time, according to ABI. The recharging infrastructure is also developing rapidly in urban areas, which are being targeted as prime regions for electric vehicle adoption.
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. Also, some existing hybrid vehicles will be fitted with larger batteries to improve their electric-only range.—principal analyst David Alexander
Alternative technologies such as hydraulic hybrid drive, ultracapacitors, 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, according to the study.
ABI Research’s new study, “Electric and Hybrid-Electric Vehicle Components,” provides an analysis of global market trends, cost and technical evaluations of the major sub-systems, and discussion of existing product announcements. System volume and value forecasts for installations are provided globally, by region, through 2020.