The global electric vehicle (EV) infrastructure manufacturing industry is associated with a
highly complex and interconnected transportation economy that supports the use of plug-in
electric and hybrid electric vehicles for personal and industrial use. The infrastructure
required for a sustainable EV transportation requires various EV components, such as electric
vehicle drive trains and rechargeable electric batteries. The infrastructure also includes the
access to electricity required to fuel the EVs via an interconnected electric smart grid,
centrally located and shared charging stations, personal charge points, centrally located
electric battery swapping stations. Finally, the EV infrastructure is made of the tools,
technology, and skilled personnel needed to maintain the vehicles, monitor smart grid
electricity demand, and construct the necessary EV infrastructure components.
This report examines the global activities and market value of the EV infrastructure
manufacturing industry - an industry at a crossroads in its nascent life. Vehicle companies
spent much of 2009 avidly promoting their pure plug-in EVs and plug-in hybrid (PHEV)
products at trade shows. But the growth potential of EV adoption is stagnated by the lack of
an underlying transportation support system of EV charging stations, switching stations for
rechargeable batteries, and an advanced electricity smart grid to monitor the ebb and flow of
power for vehicle consumption. Although the global economic situation appears to be
rebounding, manufacturers have indicated that EV infrastructure production will begin in
earnest in 2010. Fueling that growth will be government grants created to stimulate economic
recovery, particularly in the U.S. SBI Energy expects EV infrastructure production efforts to
accelerate by mid-2010, particularly around the manufacturing of the rechargeable batteries,
drive trains, and charging stations required to operate the vehicles. Growth also depends
heavily on the investment interests of the private sector and the adoption of PHEVs and EVs
by consumers.
Table of Contents
- 1. Executive Summary
- 2. Introduction and Overview
- a. Key topics covered in the report and experts interviewed
- b. Definitions of terminology used in the report
- 3. Electric Vehicle Infrastructure Activities
- a. Consumption of alternative vehicle fuels by type
- b. Development of electric vehicle infrastructure (i.e., manufacturing facilities, fueling stations)
- c. Adoption rates of electric vehicles affecting the infrastructure
- d. Electric vehicle manufacturing activities
- e. Battery production activities
- 4. Global Trends in Electric Vehicle Infrastructure Manufacturing
- a. Market value electric vehicle infrastructure manufacturing by nation
- b. Import and export value of electric vehicle infrastructure manufacturing
- c. Projected market value of EV infrastructure manufacturing by nation through 2014
- 5. Profiles of Electric Vehicle Infrastructure Manufacturers
- a. Johnson Controls, Exide, Coulomb, Ecotality, Better Place
- 6. Innovations and Public Policies Affecting Electric Vehicle Infrastructure Manufacturing
Additional Information
Market Insights: A Selection From The Report
Growth Trends of EV Ownership
The U.S. remains the largest vehicle market in the world. Of the 204 million personal vehicles, the average U.S. household owns 1.9 vehicles, which is slightly more than the average number of drivers per household. Most personal vehicles rely on the ICE, and burn gasoline fuel at an average rate of one gallon every 20 miles. Compare that to HEV fuel consumption and it’s a completely different picture. SBI Energy estimates that HEVs consume an estimated 6.3 million gallons (in gasoline equivalents) compared to 198 million gallons of compressed natural gas and 138 million gallons of liquefied petroleum gasoline. By 2014, SBI Energy expects electric fuel consumption in the U.S. to grow to nearly 9 million gallons, but still represent less than 1% share of the total fuel consumption pie.
Part of that stagnant growth is that despite the advancements in battery technologies, vehicle manufacturing and consumer ownership of PHEVs and HEVs has fizzled in recent years. The U.S. Energy Information Administration (EIA) estimated there would be 55,852 PHEVs in 2004, with an annual growth rate of 39.1 %. By 2007, its Annual Energy Review (AER) estimated the actual number of PHEVs on the road in 2004 as 49,536. The slower industry growth rate, SBI Energy believes, is mostly due to a lack of manufacturer incentives to mass produce PHEVs in a cost effective process. As a result it will take some time before manufacturing of PHEVs and HEVs gains significant momentum. Through 2014, we forecast the number of EVs on U.S. roads will grow at a five-year CAGR rate of 3.4% and reach in excess of 65,000 vehicles.
Adoption of Lithium-Ion for Hybrid and Electric Vehicles
Mercedes-Benz is one of the first manufacturers to bring a lithium-ion hybrid vehicle to production with the Blue Hybrid, although Toyota has been selling a mild hybrid model called the Vitz with a lithium-ion battery option since 2003. Toyota only sells a few hundred cars with this option a year. But even with four years of experience with lithium-ion, Toyota still leverages Ni-MH battery technology in its 2009 Prius. (Note that the Tesla Roadster, which sold its 100th vehicle in late 2008, is not the first lithium-ion hybrid; it is an all electric vehicle using lithium-ion batteries. It is also not a large volume production car.) As of mid-2009 there are almost no exceptions; battery and vehicle manufacturers alike are adamant that future hybrids and upcoming PHEVs will use lithium-ion battery chemistries. Manufacturers are embracing lithium-ion’s higher energy density over Ni-MH. GM, once the bellwether American automaker, is set to introduce its Volt lithium-ion powered PHEV in late 2010.
In the News
Electric Vehicle Market Finds Growth in New Markets, EV Infrastructure Manufacturing Challenged to Step Up
New York, March 15, 2010 - For years advertising from government and car companies alike have boldly stated that it was only a matter of time before electric vehicles took over the car industry. Now, electric vehicles, in the form of hybrids that combine gas and electric motors, are finally beginning to do just that.
According to SBI Energy’s latest market study, Electric Vehicle (EV) and Plug-In Hybrid Electric Vehicle (PHEV) Markets Worldwide, the U.S. and Japan currently make up the largest segments of the hybrid electric vehicle marketplace, with 42% and 48% market share, respectively.
“SBI Energy forecasts the market to double, for a total of 1.5 million passenger hybrid vehicles sold in 2014,” says Shelley Carr, SBI Energy publisher. “The majority of growth will stem from smaller HEV markets such as Europe, Australia and South Korea, as well as new markets such as India and China. These countries, SBI Energy forecasts, will see a phenomenal 47% growth rate over the next four years.”
In the global perspective, future growth of the electric vehicle market will depend on three key motivators: Pain at the pump; Government Support; and Price differential.
- Astronomical oil prices experienced in 2007, lead to the sale of 353,000 hybrid vehicles that year. This proves that consumers purchase the most efficient vehicle possible when gasoline prices rise.
- Government incentives will continue to be the primary motivator behind consumer sales of hybrid electric vehicles. In the U.K., the British government has created a subsidy program worth 230 million pounds for electric car purchases. Furthermore, they have approved 30 million pounds to implement charging stations. Manufacturers in the U.S. will also benefit from federally funded grants, such as $5 billion available to produce energy efficient batteries and $500 million more to create the components needed for EVs.
- Just as important as government incentives and oil prices is a reduction in the price between hybrids and non-hybrids. The price for hybrid vehicles is currently $3,000 to $7,000 more than the price of a similar gasoline-only vehicle. A premium some consumers are not willing to pay.
Success of the EV market is also incumbent upon the EV infrastructure manufacturing industry. Infrastructure components include the smart grid, advanced battery research and vehicle charging stations that enable drivers to refuel their vehicles conveniently and effectively. According to SBI Energy’s market research study, Electric Vehicle Infrastructure Manufacturing, the global market value of smart grid manufacturing related to plug-in and electric vehicle deployment is $29 billion. This equates to nearly 42% of the total smart grid market value.
Energy provide an integrated, precise view of electric vehicle markets today and into the future.
Electric Vehicle (EV) and Plug-In Hybrid Electric Vehicle (PHEV) Markets Worldwide analyzes the manufacturing and sales of electric based passenger vehicles throughout the world with a particular emphasis on the United States and Japan as the leading markets for electric vehicles. The report also takes a look at technology and innovations related to the HEV, PHEV and BEV markets.
Electric Vehicle Infrastructure Manufacturing examines the market value of EV infrastructure manufacturing by country, projected deployment of EVs by type, global activities effecting development of EV and profiles of key EV infrastructure manufacturers.
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About SBI Energy
SBI Energy, a division of MarketResearch.com, publishes research reports in the industrial, energy, building/construction, and automotive/transportation markets. SBI Energy also offers a full range of custom research services.
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