EV Battery Pack Prices Are Expected to Decline Across All Vehicle Classes and Powertrains in the Coming Decade
As EV adoption rates and manufacturing capacity increase, new innovations are emerging to drive the EV battery technology market forward
A new report from Guidehouse Insights examines the market trends, drivers, and barriers of electric vehicle batteries (EVBs), providing global forecasts for light duty (LD) passenger EVs, medium duty (MD) and heavy duty (HD) trucks, and MD and HD buses, through 2030.
Advances in battery technology to increase energy density, widespread commercialization of HD EVs such as trucks and buses, and sustainable and efficient methods for sourcing and handling raw materials all contribute to a growing EVB market. Challenges to the market include cost and technology limitations, which remain priority concerns for consumers and automakers, but are expected to make headway during the next decade. Click to tweet: According to a new report from Guidehouse Insights, battery pack prices across all vehicle classes and powertrains are expected to experience declines by 2030, with the biggest declines observed in LD battery EVs (8.3% annual decrease) followed by LD plug-in hybrid EVs (8.1% decrease).
“As EV adoption rates and manufacturing capacity increase, new innovations are emerging that are expected to drive the EVB technology market in the coming years,” says Maria Chavez, research analyst with Guidehouse Insights. “Advances include declining battery costs, improved safety measures for advanced battery technologies, new vehicle-to-grid (V2G) applications, and an increased focus on sustainable and responsible mineral sourcing.”
Today’s battery systems may use several technologies, with chemistries demonstrating varied benefits and drawbacks. Some of the more popular Lithium ion (Li-ion) technologies continue to be prominent in the market due to their cost-effectiveness and reliability. Others, such as solid state batteries, are still in their infancy and are not yet practical for commercialization but show promise in the new decade.
The report, Market Data: EV Batteries, includes forecasts for LD passenger EVs, MD and HD trucks, and MD and HD buses. Drivetrains included in this report cover battery EVs, plug-in hybrid EVs, and traditional hybrid EVs. Forecast figures include regional segmentation of the world market. The topics examined include market trends, drivers, and barriers of the EVB market; second-life applications; and market forecasts, which extend through 2030. An Executive Summary of the report is available for free download on the Guidehouse Insights website.
*The information contained in this press release concerning the report, Market Data: EV Batteries, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.