By 2026, Lithium Ion Battery Pack Revenue in Marine Vessels, Rail Cars, and Underground Mining Vehicles is Anticipated to Reach Nearly $6 Billion,
A new report from Navigant Research examines the emerging market for traction/propulsion energy in the marine vessel, rail car, and underground mining vehicle sectors, providing an analysis of the market issues associated with advanced batteries for non-automotive transportation markets, with global forecasts for capacity and revenue, through 2026.
A decline in the price of lithium ion (Li-ion) batteries has spurred the market for light duty plug-in electric vehicles, which help automotive manufacturers meet increasingly strict government fuel efficiency and emissions reduction mandates. As a result, stakeholders in non-automotive transportation areas are now looking to take advantage of Li-ion batteries for traction/propulsion energy as a way to displace or replace diesel fuel use to meet emerging emissions and cost reduction goals. According to a new report from @NavigantRSRCH, the annual global market for Li-ion battery energy capacity and pack revenue for traction/propulsion energy in marine vessels, rail cars, and underground mining vehicles is anticipated to reach 8,614 MWh and $5.99 billion, respectively, by 2026.
"The growth of Li-ion battery manufacturing expertise in the consumer vehicle market is now opening up new market opportunities for advanced Li-ion batteries to provide traction/propulsion energy in marine vessel, rail car and underground mining vehicle markets," says William Tokash, senior research analyst at Navigant Research. "These advances will present opportunities to displace or replace internal combustion engine (ICE) energy capacity to meet new environmental and performance requirements."
In terms of annual capacity, the marine vesel market is expected to be the largest at 4,234 MWh by 2026. The underground mining vehicle sector and the rail car sector are expected to follow with 2,531 MWh and 1,849 MWh, respectively.