| E |
|
|
| News |
Volatile Gas Prices, Environmental Concerns Spur Demand
Hybrid electric vehicles (HEVs) and electric vehicles (EVs) are part of the new breed of environmentally-friendly vehicles that accelerate the transition from complete dependency on oil-based fuels to advanced EV technology. Skyrocketing oil prices combined with concerns over tailpipe emissions increase the demand of HEV/EV vehicles and HEV/EV batteries..
New analysis from Frost & Sullivan (http://www.powersupplies.frost.com), World Hybrid/Electric Vehicle Battery Markets, finds that the market earned revenues of over $710.9 million with a growth rate of 31 percent in 2007.
As climate change is a dominant theme, a radical shift to new technologies such as EVs is needed. The steady progression toward zero emission, pollution-free vehicles will augment conservation strategies to mitigate the impact of global warming.
"To reduce the dependency on oil, governments of various developed countries offer promotional initiatives and legislative regulations that provide tax credits and concessions to users of environmentally-friendly vehicles," says Frost & Sullivan Industry Analyst Suba Arunkumar. "Battery manufacturers have also stepped up efforts to roll out an impressive array of new technologies to deliver more efficient, high-performance batteries in the future."
As these vehicles are predominantly battery powered, batteries play a major role in pricing. The HEV segment is more dynamic compared to the EV segment, as HEVs prove more cost efficient. While EVs are constrained by their heavy dependence on batteries, HEVs combine a conventional propulsion system with an on-board rechargeable energy storage system.
The challenge for battery manufacturers is to provide the right battery chemistry that delivers superior performance while maintaining cost efficiency. With an intense focus on research, high-performance and affordable batteries will soon be a reality. The market is still in the growth phase and will take a few more years to achieve higher volumes. For now, there is great possibility for battery replacements in the next five years. This results in the cyclic behavior in demand pattern, augmenting market growth.
|
|
| |
|
|
|
