However, a recent report published by Pike Research indicates that annual worldwide EV sales will reach 3.8 million by 2020. “Sales of EVs have not lived up to automakers' expectations and politicians' proclamations, but the market is expanding steadily as fuel prices remain high and consumers increasingly seek alternatives to internal combustion engines,” stated Senior Research Analyst Dave Hurst in a press release. “Indeed, sales of plug-in EVs will grow at a compound annual growth rate of nearly 40 percent over the remainder of the decade, while the overall auto market will expand by only two percent a year.”
Over the next decade, significant growth in the EV market will translate into equally significant growth in the lithium-ion battery market, according to new analysis of Frost & Sullivan's Global Hybrid Electric and Electric Vehicle Lithium-ion Battery Market research, published earlier this month. The research shows that the automotive segment of the lithium-ion battery market earned revenues of $2.13 billion in 2012, with that amount likely reach $12.84 billion in 2019.
In a recent presentation, Frost & Sullivan researchers stated that they see the total global lithium battery market — including the automotive, consumer and industrial sectors — reaching $22.5 billion in 2016, nearly double what the total market was worth in 2012. While consumer applications (think laptops and cell phones) will continue to account for the highest share of revenues, the fastest growth will be seen in the automotive sector, which the research firm predicts will garner 25 percent of total revenues in 2016, up from 14 percent in 2012.
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article. Related reading: Lithium-manganese Batteries in EVs Much Safer than Dreamliner Chemistry Lithium-manganese Batteries: Powering the Future? Global Growth in EV Sales Good for Lithium Battery Market from Lithium Investing News