Electric Vehicle Traction Batteries Market: Low VOC Emitting Solvent
- Traction batteries are primarily lead-acid batteries used to power the propulsion of battery electric vehicles (BEVs). Traction batteries are used for the propulsion of different types of BEVs such as forklifts, electric trolleys, and electric lifting equipment.
- Electric vehicle traction batteries are being used as third generation replacements to chlorofluorocarbons (CFCs), hydrochlorofluorocarbons (HCFCs), and perfluorocarbons (PFCs) due to their nearly zero stratospheric ozone depletion and relatively low global warming potential
- Traction batteries are used in forklifts, electric golf carts, riding floor scrubbers, electric motorcycles, electric cars, trucks, vans, and other electric vehicles. Electric cars held the major share in the electric vehicle traction batteries market.
Key Drivers of Electric Vehicle Traction Batteries Market
- Demand for electric vehicle traction batteries is rising due to the increase in usage of electric vehicles in the last few years. Electric vehicles are vivid symbols of the transformation toward a sustainable and ecologically-friendly society.
- Increase in demand for electric vehicles is due to the many reasons. Conventional vehicles use fossil based fuels, which have negative effects on the environment and human life, thus unbalancing the ecological system.
- The second obvious reason for the growing interest in EV from leading countries is politics. The difference in the political interests of major oil exporters and importers became the reason for the 1970s energy crisis and local wars, thus demonstrating that sustainable shock-free development should be based on new energy vehicles.
- Rise in opportunities for China-based carmakers to produce EV traction batteries is another factor driving the market. The Government of China is investing in R&D to bring advancements in traction batteries for electric vehicles. Many car manufacturers such as Tesla, Toyota, and Renault are now launching electric vehicle models using traction batteries. This is estimated to drive the electric vehicle traction batteries market.
Low Global Warming Potential to Offer Attractive Opportunities
- Global warming is one of the major environmental concerns in world. The primary cause of global warming is human activity that releases carbon into the atmosphere, by burning of fossil fuels. Electric vehicle traction batteries help overcome this issue. The ozone depletion potential of electric vehicle traction batteries is zero. This offers lucrative opportunities for the electric vehicles traction batteries market.
Stiff Competition from Counterparts to Hamper Market
- Electric vehicle traction batteries face stiff competition from counterparts such as lithium ion batteries. Lithium ion batteries are used in electric vehicles. These batteries possess various advantages over lead-acid traction batteries.
- Lead-acid batteries have shorter lifespan and require regular maintenance. Lithium batteries are much more expensive upfront, but are maintenance-free and have longer lifespan to match their higher price tag.
- Thus, competition from lithium ion batteries is posing a threat to the electric vehicle traction batteries market
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Asia Pacific Expected to Hold Major Share of Global Electric Vehicle Traction Batteries Market
- Geographically, demand for electric vehicle traction batteries can be split across five regions: North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
- Asia Pacific is the leading consumer of electric vehicle traction batteries, followed by North America and Europe. Asia Pacific is expected to be the largest global electric vehicle traction batteries market in the near future due to the rise in demand for greener transportation along with several initiatives by private organizations as well as governments.
- Countries such as China and India are also undertaking initiatives to attract major OEMs to manufacture electric vehicle traction batteries in the domestic markets. Increase in global concerns regarding the negative effect of climate change along with alarming pollution levels recorded in the major cities has created significant demand for electric vehicle traction batteries. Furthermore, various government initiatives to protect the environment are encouraging the sale of electric vehicles. This is driving the electric vehicle traction batteries market in Asia Pacific.
- Various leading players such as Tesla and Ford are launching different models of electric vehicles in North America. This is boosting the electric vehicle traction batteries market in the region. Infrastructure developments and industrialization in developed economies have opened new avenues, creating several opportunities for OEMs. Implementation of new technologies and establishment of new government regulations are driving the electric vehicle traction batteries market in this region.
- The market in Middle East & Africa and Latin America is estimated to expand at a sluggish pace during the forecast period, as these regions have abundance reserves of oils to run conventional vehicles rather than electric ones
Key Players in Market
The electric vehicle batteries market is highly fragmented with companies focusing on integrating advanced technologies to improve their market share. Companies are offering a complete portfolio of the products, and are focusing on different business strategies to strengthen their position in the market. Key players operating in the electric vehicle traction batteries market include:
- GS Yuasa International Ltd.
- East Penn Manufacturing Co., Inc.
- Hollingsworth & Vose
- SAMSUNG SDI CO. LTD.
- LG Chem Power Inc.