Demand for Large Electric Bus Lithium-Ion Batteries is Expected to Grow to Nearly $30 Billion by 2026

Research and Markets has announced the addition of the “Lithium-ion Batteries for Electric Buses 2016-2026 – Technologies (LFP, NMC, LMO, LFMP, NCA, Supercapacitors, Lithium Capacitors, Post Lithium and Flywheels), Market Trends, Forecasts and Key Players” report to their offering.

The battery market has come alive again as manufacturers are all rushing to address the emerging market for large-sized batteries driven largely by the rapid growth in sales of electric buses. The report says that the rush is fully justified as it sees the market growing to $30 billion in 2026, potentially making it the largest segment of overall battery market. Just to set this in context, the report expects the market for electric bus batteries to overtake the consumer electronic battery sector by 2019-2020.

These are interesting times for the battery market again. These new applications are set to alter the business landscape, at the technology, supplier and territory level. This will have major implications not only for large battery corporations but also for all those involved in the battery production value chain.

China currently dominates this market. 97 percent of electric buses and 75 percent of their batteries currently produced in China. Despite its slow charge rates, LFP is the technology of choice thanks to its higher safety levels which matters more at large battery sizes. The IP landscape for LFP is also more open and accommodating, removing one of the key non-capital barriers into this market.