Solid-state batteries are expected to be a game-changer for the growth of the electric vehicle (EV) market.
Manufacturers claim an energy density 2.5 times higher than the lithium-ion batteries that are used currently.
Frost & Sullivan published the finding in its 2018 Global Electric Vehicle Market Outlook.
“With over ten automakers announcing plans for future EV launches and over 165 models currently available, EV sales growth potential could reach 25 million units by 2025 and account for 22.4% of total passenger vehicle sales,” said Prajyot Sathe, industry manager mobility at Frost & Sullivan.
“By 2020, EVs will no longer require government support to regulate pricing, and they will cost the same as conventional cars.”
The report states that the EV market is experiencing rapid growth as a result of several global trends. Increasing city regulations, a decline in lithium-ion battery prices, and high demand in China are expected to push global EV sales to 1.6 million unit sales.
China leads the market at 49.5% market share, followed by Europe with 25.6%.
The Global Electric Vehicle Market Outlook 2018 analysis identifies growth factors, market opportunities, challenges and barriers to success across key sectors, including EV battery, EV motor, retail sales, launches, incentives and subsidies, fuel cells, charging stations infrastructure, and logistics and eCommerce.
2018 predictions, regional analysis, and critical success factors are also provided.
“Lack of standardisation is the biggest challenge for the electric vehicle charging infrastructure market along with high costs and low resale value,” added Sathe.
“Currently, charging stations are prevalent in areas or regions where EV sales are the highest. Energy and petrochemical companies have started investing heavily in establishing electric vehicle charging stations as they are likely to be the biggest beneficiaries of the electric vehicle market.”
To boost growth opportunities, Frost & Sullivan highlights key areas for OEMs to focus on:
- Launch long-range battery electric vehicles with more than 200 miles in a single charge with DC charging systems
- Acquire smaller companies that have established themselves in a specific market
- Target £75/kWh price and invest in future battery chemistries such as solid-state and lithium/zinc air
- Develop go-to-market strategies and product positioning through the SUV B-C-D segment, which has attractive and dedicated platforms
- Transform dealerships to become customer-focused with brand ambassadors to improve customer experience
- Invest in smart and connected ecosystems such as car-as-a-service, battery leasing, residential batteries, and mobility services with regional customisation