Next-Generation Battery Market for Transportation Projected to Skyrocket 80%
Factors driving market growth for next-generation batteries include the increasing sales of automobiles around the world, growing adoption of electric vehicles, rising sales of plug-in hybrid electric vehicles, and strong mandates for renewable energy.
The global next-generation battery market for the transportation industry is projected to grow at a CAGR of over 80% from 2018-2022, according to a report from Technavio. Factors driving market growth include the increasing sales of automobiles around the world, growing adoption of electric vehicles (EVs), rising sales of plug-in hybrid electric vehicles (PHEVs) and HEVs, and strong mandates for renewable energy.
The global nanotechnology-enabled battery market is anticipated to experience growth during the forecast period, but the concept is still new and in the developing stage. In 2015, lithium-sulfur battery manufacturers tried developing nanostructured electrodes and electrolytes in the battery to enhance energy efficiency.
Changing consumer demographics is a major factor contributing to the growth of the global next-generation battery market for the transportation industry. The tourism industry has been growing rapidly and is expected to grow further during the forecast period. Traveling and exploring new places are gaining popularity among the young generation. They are spending more on traveling and transport modes such as cars and bikes. The tourism industry of many countries such as the U.S., the UK, India, Australia, Germany, and New Zealand is experiencing huge growth as they receive hordes of international tourists. Europe recorded the highest growth in international tourism in 2017.
“World tourism is increasing due to increased consumer spending, which is a significant economic indicator,” according to a senior analyst at Technavio. “It reflects the overall consumer confidence in a nation’s economy. This rise in consumer spending is expected to support the sales of automotive vehicles during the forecast period, which will consequently boost the demand for automotive batteries. Also, countries such as India, Brazil, and Mexico are anticipated to experience significant growth in per capita annual disposable incomes during the forecast period.”
The solid-state battery segment held the largest market share in 2017, accounting for nearly 60% of the market. This segment is expected to demonstrate tremendous growth, with the market share contributed by this segment increasing by nearly 11% by 2022. Additional technology segments include lithium-sulfur and advanced lead-acid batteries.
The Americas led the global next-generation battery market for the transportation industry in 2017, accounting for a market share of close to 46%. It was followed by Asia-Pacific and EMEA (Europe, the Middle East and Africa). Asia-Pacific will post significant growth during the forecast period compared with the other two regions.
For more information, visit www.technavio.com.