The automotive world is undergoing a massive change, with several factors coming into play to form a new need of the hour: the electric vehicle. After all, the shift to clean energy and high-powered vehicles is a matter of evolution for the expanding automotive market, which has created a new space for investors to examine it.
The vital component driving these cars is undoubtedly at the forefront of gains from the upward trend in electric vehicles in the United States and abroad. Therefore, investors looking to consider a new scenario for future investments can analyze the global automotive battery market.
According to the report released by Fior Markets, the global automotive battery market is expected to reach $ 49.05 billion in 2017 to $ 85.41 billion by 2025, at a compound annual rate of 7.02%.
As more auto companies are flexing their muscles in the area of electric vehicles, features like lighting, numerous automotive entertainment and information devices and systems require more power to operate. Therefore, the demand for car batteries has increased significantly in recent years.
Furthermore, strict emission regulatory standards set by various government agencies are also driving demand for relevant electric vehicles and batteries.
While one may note that electric vehicle sales may not outpace conventional combustion engines until at least 2025 or 2030, the change that has already started is unlikely to diminish.
Three main factors are driving this trend.
Above all, it is the demand for clean emissions. With the growing awareness of greenhouse gases and their effect on the global climate, more consumers are turning to vehicles that do not require fossil fuel and can instead be powered by electricity. This equates to zero waste and therefore clean emission.
Second, as more cars are equipped with high-performance entertainment and information systems, the need for energy is greater, which can be much better offset in the case of an electrically powered vehicle. Lithium-ion batteries are a good option for electric vehicles, whose demand is expected to increase in the coming years. Batteries offer longevity and increased performance for electric vehicles, which are on sale.
Finally, the increasing profitability of lithium-ion batteries is a major factor in increasing demand for electric vehicles. A major reason behind this is the use of these batteries in PHEV, HEV, BEV, uninterruptible power supply systems and other non-automotive electronic devices, which has greatly reduced their cost. This decrease in cost of lithium ion batteries is configured to be the ideal source of power for long-range electric vehicles.
Tesla has expected earnings growth of more than 100% for the current year. Zacks’ consensus estimate for the company’s current year earnings has moved 12% north in the past 60 days. The company carries a Zacks Rank # 2.
Energizer expects earnings growth of 18.7% for next year. Zacks’ consensus estimate for the company’s current-year earnings has moved 1.1% north in the past 60 days. The company carries a Zacks Rank # 3