NewswireToday - /newswire/ -
Palo Alto, CA, United States, 2007/08/15 - New analysis from Frost & Sullivan, World Hybrid Electric Vehicles and Electric Vehicles Battery Markets, reveals that the market expects to produce $608.5 million in revenues in 2007, growing at a rate of 14.8 percent compounded annually.
With soaring gas prices and increasing concerns about global warming and melting of polar regions, developed countries turn to alternative, environmental friendly technologies to reduce dependency on oil and conventional fuels. This move drives demand for hybrid electric and electric vehicles (HEV/EV) and is highly conducive for growth opportunities for the world HEV/EV batteries market.
New analysis from Frost & Sullivan (batteries.frost.com), World Hybrid Electric Vehicles and Electric Vehicles Battery Markets, reveals that the market expects to produce $608.5 million in revenues in 2007, growing at a rate of 14.8 percent compounded annually.
If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the World Hybrid Electric Vehicles and Electric Vehicles Battery Markets, then send an email to Johanna Haynes, Corporate Communications at johanna.haynes[.]frost.com with the following information: your full name, company name, title, telephone number, email address, city, state, and country. We will send you the information via email upon receipt of the above information.
“In order to reduce dependency on oil and conventional fuels, governments will launch many regulations and promotional initiatives that provide various tax credits and concessions to those using zero emission, environmental friendly vehicles,” says Frost & Sullivan Research Analyst Suba Swaminathan.
Owing to such governmental endorsements and tax benefits, the battery market currently attracts increased investments in new technological developments and innovations that aim to improve the performance and efficiency of batteries.
The market faces challenges due to the lack of an ideal battery chemistry that could offer desirable performance at an affordable price. Currently batteries are highly priced and being the chief source of power in a vehicle, their high costs invariably affect the price of the vehicle. This factor decreases the affordability of vehicles and significantly diminishes market growth, placing enormous strain on the profitability of manufacturers and posing a serious challenge to some of the market participants.
Nevertheless, this impact will likely taper off in the next two to three years as affordable, high performing batteries hit the market as a result of ongoing, intense research efforts. The entry of more market participants expect to counter this challenge.
“Presently, the HEV/EV battery market is in its initial stage and witnesses steady growth patterns, resulting in the replacement of batteries in the next five years,” concludes Swaminathan. ”This cyclic trend in demand boosts market growth.”
World Hybrid Electric Vehicles and Electric Vehicles Battery Markets is part of the Power Supplies and Batteries Growth Partnership Service, which includes research in the following: world consumer secondary lithium battery market, world ultra capacitor market, world industrial secondary battery market, world micro fuel cell market and others. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants. Interviews are available to the press.
About Frost & Sullivan
Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective, and combines ongoing analysis of markets, technologies, econometrics, and demographics.