Technavio has announced its latest market research report titled Global electric vehicle (EV) battery market 2024-2028
The global electric vehicle battery market, which includes lithium ion and lead-acid batteries (among others) is set to evolve and grow by US$65.23 billion from 2024-2028, according to a recent report from Technavio.
The company estimates the market will grow at a compound annual growth rate (CAGR) of more than 20.2 per cent during the forecasted period. They said greater demand for EVs and their expanded applications is what’s driving this transformation. There is also a trend towards the increasing use of software and sensors for intelligent BM.
“The Electric Vehicle (EV) and Plug-in Hybrid Electric Vehicle (PHEV) market is witnessing significant growth due to the increasing adoption of advanced features such as GPS, modern powertrain systems, AC systems, power windows, and display drives,” said Technavio in a news release.
They added that these innovations consume a lot of power, leading to a higher energy demand from EV batteries. As a result, Technavio highlighted a growing need for efficient and optimal battery management systems (BMS) to help with longer battery life and to reduce the need to frequently charge.
“The automotive industry is focusing on developing advanced high-end BMS solutions using high-power density lithium-ion batteries. Continuous research and development will drive the growth of the intelligent BMS market in the EV and PHEV segments,” they said.
Some of the challenges Technavio foresees include battery life, charging times, and driving ranges. They said there are new technologies like solid-state batteries from QuantumScape and Solid Power that offer promising solutions, but that the supply chain for batteries relies mostly on lithium, cobalt, and nickel — which need to be mined and refined.
“As the market evolves, we’ll see a mix of BEVs, PHEVs, SUVs, and other EV types. Traditional battery chemistries like lead acid, nickel-metal hydride, and lithium iron phosphate will continue to coexist with (the) lithium-ion segment in the EV technology landscape.”
