- Increasing demand for higher acceleration and significant investments by governments toward smart transportation are super-charging growth.
- The high voltage battery market is dominated by a few global players and comprises several regional players.
- Asia Oceania is expected to provide lucrative opportunities in the High Voltage Battery Market.
Global High Voltage Battery Market is projected to grow from $8.9 billion in 2018 to $89.1 billion by 2025, at a CAGR of 38.95% during the forecast period. The market growth is primarily driven by factors such as the increasing demand for higher acceleration and significant investments by governments toward smart transportation.
Recent Developments in High Voltage Battery Market
- In May 2018, Proterra introduced new high-power charging options to achieve 100% electric bus fleet. At the American Public Transportation Association’s (APTA) Bus & Paratransit Conference, Proterra introduced new systems for reliable, smarter charging that is flexible, scalable, and powerful.
- In November 2017, Tesla unveiled a prototype of Semi-Truck. The tractor can be linked up with any trailer, no brand-specific trailer is necessary. Semi-Truck can travel approximately 600 miles of range having a battery capacity of 800–1,000 kWh. The semi-trailer will go on full-fledged production by 2019.
- In July 2016, Tesla opened its Gigafactory in Nevada, US. It is one of the biggest battery manufacturing plants for EV batteries, in terms of capacity. Tesla built it keeping in mind the future demand for EVs.
- In October 2017, LG Chem, a leading manufacturer of advanced batteries based in Korea, announced the construction of an Electric Vehicle (EV) battery plant in Wroclaw, Poland. LG Chem will invest approximately $340 million in the plant by the end of 2018 to produce lithium-ion batteries. The company plans to produce 100,000 EV batteries in Poland annually.
The high voltage battery market is dominated by a few global players and comprises several regional players. Panasonic (Japan) is identified as the leading player in the high voltage battery market. The company is one of the established players and a globally renowned supplier of high voltage battery to electric vehicles. The company follows the strategy of new product developments to gain a competitive edge in the high voltage battery market. In September 2018, Panasonic developed the technology to visualize the movement of the lithium-ions in the next-generation batteries during the charging and discharging processes. Additionally, Panasonic is working with Tesla for the manufacturing of Model 3 batteries.
CATL (China) is also one of the leading players in the high voltage battery market. The company deals with major OEMs, such as PSA (France), BMW (Germany), Yutong Bus (China) , and Zhongtong Bus (China), across the globe. In addition, the company aims to have a global lithium-ion production capacity of 50 GWh by 2020. It has adopted the strategy of partnerships/collaborations/joint ventures/agreements/supply contracts to increase its presence in the high voltage battery market. In July 2018, CATL began cooperation with Ford-partner and EV manufacturer, Jiangling Motors. The duo is planning to do research and development on different vehicle models for their cooperation.
Asia Oceania to be the largest market for high voltage batteries, followed by North America
Asia Oceania is expected to provide lucrative opportunities in the High Voltage Battery Market owing to fast-developing countries and increasing expenditure on the development of fast charging infrastructure. Additionally, China is the largest market for BEVs in the world. Recent developments in the charging infrastructure and smooth EV government regulations have boosted the light-duty and heavy commercial electric vehicle markets in the country. These factors will contribute to Asia Oceania being the largest High Voltage Battery Market.
The North American region will be an early adopter of the high voltage battery BEVs and is estimated to be one of the major contributors to the High Voltage Battery Market during the forecast period. The higher demand for long range BEVs drives the growth of the high voltage battery industry. Additionally, the partnership or collaboration of major battery manufacturers and OEMs play a major role in the High Voltage Battery Market. The long distance between cities in the US requires buyers to have electric cars with long ranges.