Battery and Automotive Manufacturers Combine Forces to Boost the World Hybrid Electric Vehicles

This research covers the world hybrid electric vehicle and plug-in hybrid electric vehicle battery market with detailed analysis on revenue and forecast for the same. This research also analyzes the market based on geographic region, construction type and distribution type. Each segment also discusses current issues facing the market, revenue and distribution forecasts, market and technology trends, and competitive analysis. Challenges are discussed at the total level.

This Frost & Sullivan research service titled World Hybrid Electric Vehicles/Plug-in Hybrid Vehicles Battery Market provides overall market growth, revenue analysis, market share analysis, competitive structure, industry challenges, drivers, restraints, and pricing trends. In this research, Frost & Sullivan’s expert analysts thoroughly examine the following: nickel metal hydride (NiMH) battery chemistry and lithium-ion battery chemistry.

Joint ventures between battery and automotive manufacturers are injecting a new dynamism into the world hybrid electric vehicles (HEVs) and plug-in hybrid vehicles battery (PHEVs) market. Toyota Motors set the trend when it undertook a collaborative venture with Panasonic for producing NiMH batteries for its line of HEVs. Expectations from these ventures are rising, and almost all automotive manufacturers are engaging with battery manufacturers to develop a battery with top-notch performance to power the HEV or PHEV manufactured by the company.

The overriding advantage of reduced emission and oil dependency is a key factor ramping up the attraction quotient for these alternative vehicles and batteries. "Initiatives taken by the governments across the globe and organizations working for green energy solutions have made this market an energetic and fast-evolving one," notes the analyst of this research service. "The number of participants entering into this market is increasing every year and automotive manufacturers consider HEVs and PHEVs capable of replacing the conventional vehicles at a rapid pace over a 10 to 15 year timeframe."

Government aid in the form of tax incentives and credit has provided a leg up for participants in this space. The Governments of the United States and the European Union are planning to roll out incentives to invigorate market prospects. With the developed nations actively promoting PHEVs, the market is witnessing a rapid development phase. Currently, NiMH batteries are predominantly used for the existing HEVs, lithium-ion powered ones are under development. Issues surrounding performance have proved challenging for market participants, as HEVs powered by NiMH batteries have not attained the level of efficiency of conventional vehicles. NiMH is a mature technology that offers little scope for further advancement; hence, the market is gravitating toward lithium-ion batteries, which are poised for accelerated uptake in the future.

Another aspect impeding market progression is the heavy investment required for the setting up of HEV and PHEV battery manufacturing plants. Battery manufacturers are applying for grants offered by the government to develop these batteries. Battery cost is also a matter of concern. Increasing volumes of HEVs have reduced the price of currently available NiMH batteries. Similarly, increasing volumes of the best-suited lithium-ion batteries are likely to make these batteries and vehicles more affordable.

Widespread usage of PHEVs requires charging stations and electricity for this additional demand. This results in enhanced need for the development of a wide network of well-established charging stations and entails additional investment. "Although many organizations, such as Plug-in America and Project Better Place are working for promoting PHEVs and developing charging stations, cooperation from the Government, PHEV manufacturers, and electric utility are necessary for the success of PHEV," says the analyst.

"Since people are taking a wait and watch attitude with developing such charging stations and well established infrastructure support, the demand for PHEVs is likely to be low during the initial years of its launch." Research for developing suitable fuel cells, flywheels, and ultracapacitors is underway, and competition is expected to be fierce in the foreseeable future. In such a scenario, efforts must be made to educate consumers on the advantages of HEVs and spur a massive shift toward battery-powered HEVs and PHEVs.

Market Sectors
Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:
By Geographic Region:
* North America – includes the U.S and Canada
* Europe – includes western, eastern and central Europe
* Asia Pacific – includes south Asia, central Asia, countries in the western border of Pacific ocean (such as Cambodia,
* Vietnam, Myanmar, Malaysia, Thailand) and Pacific islands (including Australia, Hawaii, Fiji)
* Latin America – includes the South American countries
* Rest-of-World – includes the Middle East, African countries and all other countries that are not covered in the other four regions
* Nickel metal hydride
* Lithium-ion
Key Topics Covered:
* Research Methodology
* Market Definitions
* Executive Summary
* Total HEV/PHEV Battery Market
* Total HEV/PHEV Battery Market
* HEV Battery Market
* PHEV Battery Market
* Appendix