EV Range Extender Market Growth & Trends
The global EV range extender market demand is estimated to reach 494,083 units by 2025 at a 10.2% CAGR during the forecast period, according to a new report by Grand View Research, Inc. An electric vehicle (EV) range extender is an external system that helps increase vehicle range to support long-distance travel. Robust growth in adoption of fully electric passenger and commercial vehicles to reduce CO2 emissions, coupled with extendable range and high-performance capabilities, are expected to propel market growth.
The automotive industry is considered to be the largest consumer of oil in the world, contributing to high pollution levels globally. Governments across various countries have imposed stringent regulations on automobile manufacturers to produce low/zero emission vehicles to help reduce carbon footprint.
Besides this, governments of developing countries such as China and India are providing subsidies to promote the adoption of electric vehicles. For instance, in August 2018, the Indian government announced to offer a subsidy of around 20% on purchase of new electric vehicles. However, low mileage range of EVs can be a major concern for consumers as it limits the distance traveled. To overcome this, key manufacturers such as BMW Group, General Motors, Volvo Car Corp., and Mahle Group have launched EV range extender solutions that help increase battery capacity to support long distance traveling. This has had a positive impact on market growth.
In an attempt to increase their market share and improve overall profitability, key automobile manufacturers are focused on integrating range extenders into their new EV models. For instance, BMW Group launched the BMW i3 EV integrated with a range extender solution, which enables consumers to drive longer distances. In 2016, Nissan Motors Co. Ltd. launched LEAF, an e-powered hybrid vehicle, in several APAC countries.
Key market players are also investing significant funds in R&D activities to develop innovative range extender products to extend driving range and improve battery efficiency, along with reducing overall battery price. However, increasing focus of OEMs to incorporate range extender technology in upcoming EV models, coupled with increasing trade conflicts between China and U.S., may hinder market growth over the forecast period.
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EV Range Extender Market Report
EV Range Extender Market Report Highlights
- North America accounted for the largest market share in 2017. The regional market will witness growth with some large market players such as General Motors Co. and Magna International Inc. offering ICE and fuel cell range extenders
- European governments are actively offering several rebates and subsidies to boost adoption of EVs. However, there is a lack of charging infrastructure as against rising EV sales, which is expected to propel demand for EV range extenders
- Governments across the globe are continuously investing in enhancing public transport infrastructure, thereby driving adoption of electric commercial vehicles. Deployment cost of range extenders is lower than the cost involved in setting up a charging infrastructure
- Key market players are collaborating with EV manufacturers to develop new innovative technologies that will offer alternative range extender solutions as well as incorporate range extenders in new vehicle models.
