Are battery packs at the heart of EV market explosion?

“The main driver for battery pack applications is the growing EV market segment,” says Milan Rosina, PhD, Principal Analyst, Power Electronics and Batteries, at Yole Développement (Yole), within the Power & Wireless division. “The EV sector is booming mainly due to the need to significantly reduce average vehicle fleet CO2 emissions to match governments’ strict CO2 emission reduction targets and thus avoid heavy penalties.”

For Shalu Agarwal, PhD, Power Electronics and Materials Analyst at Yole, within the Power & Wireless division: “The total annual demand for battery packs for the aforementioned applications will grow from US$26.6 billion in 2019 to US$137.1billion by 2025. The growth rate for different applications varies, as their market dynamics have different drivers. At Yole, we think that the demand will be mainly driven by full electric vehicles, specifically BEVs, which will represent 75.9% of the total demand in GWh by 2025. PHEVs enable big CO2 emission reductions due to their electric engines, while keeping long driving ranges thanks to their ICEs. They will take the second place in our ranking of total demand measured in GWh by 2025.”

The high level of air pollution in some big cities is driving deployment of electric buses. Buses stop frequently and can potentially charge at each stop or terminus station, making them well-suited for battery power. Electric trucks can then benefit from battery and charging station technology development for buses. The use of electric trucks in the urban environment helps further reduce air pollution.

Stationary battery energy business is not the first priority of most battery manufacturers that are focusing today mainly on electric mobility. But the market growth for stationary battery systems is growing and is mainly driven by renewable energy sources, mainly photovoltaics and wind, and electricity grid regulation. EV/ PHEV charging stations have emerged as a new interesting market driver for stationary battery energy storage solutions to “smooth” strong electricity demand peaks while charging many EV/PHEVs at the same time. The market research and strategy consulting company, Yole, releases a technology and market analysis focused on the Li-ion batteries industry: Li-ion battery packs for automotive and stationary storage applications. This report proposes a comprehensive overview of the Li-ion battery sector covering insights into battery pack components, different technologies currently used in battery packs and related technology trends and supply chain. The end applications of battery packs analyzed include PHEVs, BEVs, electric buses and trucks, as well as stationary battery energy storage applications… Full story


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