Electric Vehicle Range Extender Market Analysis Report By Product, By Vehicle, By Component And Segment Forecasts From 2018 To 2025

Industry Insights

The demand for the global electric vehicle (EV) range extender market was estimated at 247,285 units in the year 2017. It is expected to register a CAGR of 10.2% over the forecast period. An EV range extender consists of several components including battery packs, electric motors, generators, and power converters that allow extension of range for EVs. The rising need for hybrid and electric vehicles has been the key factor propelling the market growth.

In recent years, various government bodies globally have been emphasizing providing non-financial and financial incentives, subsidies, and rebates in order to increase the use of EVs. Till 2018, automobile manufacturers globally invested above USD 90 billion in the manufacturing of EVs. The growing need to solve the problem of range anxiety is likely to drive market growth from 2018 to 2025.

Till 2017, there were above 4 million electric vehicles moving on the road, further, the count is set to reach above 100 million till 2025. Electric vehicles pose various challenges like a limitation of charging infrastructures and a minimal mileage range. In order to cater to the mileage needs, drivers choose alternative solutions to reduce battery consumption like preventing the use of internal systems and air conditioners. However, this hinders the driving experience. Immediate need to take up these problems is anticipated to surge the use of range extender methods which will further fuel the battery range of a vehicle by miles.

Various product ranges are available such as fuel cell range extenders and internal combustion engine (ICE) range extenders in the market. Governments of the U.K., Germany, and the U.S. have laid down rules for automobile manufacturers to manufacture zero-emission or low emission vehicles, thereby, minimizing carbon emission globally. Furthermore, manufacturers are aiming at strengthening the efficiency and capacity of battery technologies mainly, hybrid electric vehicles (HEVs), and battery electric vehicles (BEVs). In adherence to the same, industry players including the BMW GrOUP AND Mahle Group have launched innovative technologies like the onboard fuel converter which facilitates automatic battery charging while the vehicle is in motion.

An expensive battery is a parameter that is expected to pose a challenge for market growth during the projected period. Further, trade disputes between China and the U.S. have further resulted in the imposition of excise duties on aluminum, steel, and few other goods, which is likely to hinder the market growth.

Product Insights

The ICE segment held the highest share exceeding 70.0% in 2017 due to low cost and high demand. Companies like General Motors and BMW Group have launched ICE EV range extenders for Volt and BMW i3 models. Furthermore, the hybrid EVs held a share of over 70% based on sales of the global market in 2017.

Fuel cell vehicles are anticipated to observe relatively less adoption. The operation of these EVs depends upon the availability of methanol and hydrogen which are obtained from natural gas. This poses a challenge in their demand. However, the reduced carbon footprint unlike ICE extenders is likely to be a benefit that can boost the growth of this segment by 2025. Magna International, Inc., in 2017 introduced its fuel cell range extender in Geneva.

Component Insights

The battery packs division contributed to nearly 40.0% of the overall demand in 2017. Standard battery packs are likely to have a durability of around five years, which is more than what is provided by other components.

Manufacturers are aiming at deploying advanced battery technologies to substantially lower the prices of battery packs which are anticipated to boost the demand for this segment. For example, Nomadic Power GmbH, in 2017 manufactured towable batteries for electric vehicles that offer on-demand recharge of batteries.

Vehicle Insights

The passenger vehicles division in 2017, held above 80.0% of the total electric vehicle range extender demand. Major participants are engaged in deploying advanced fuel cell range extenders for this segment. The government in countries like the U.S., Germany, and China are providing tax incentives and other benefits for purchasing zero/low emission range extender EVs. Moreover, companies like Volvo Car Corporation, General Motor Company, and Nissan Motors Corporation are aiming on integrating range extender solutions to their models.

Increasing demand for commercial vehicles among developed nations including Canada, U.K., and the U.S. is anticipated to boost the commercial vehicle division by 2025. Range extended commercial EVs can enable reduction of costs and extra payload coupled with lowering the manufacturing of expensive charging infrastructure. For example, Tevva Motors Limited provides an additional range to electric trucks from 7.5 tons to 14 tons with onboard generators, retro-fit solutions, and long zero-emission scope.

Regional Insights

North America held the dominant electric vehicle (EV) range extender market with around 40.0% of the total market in 2017. The growth can be imputed to the subsequent adoption of pure and hybrid EVs, coupled with a scarcity of charging infrastructure in this region. Parameters including high penetration of innovative technologies like towable generators and batteries, government initiatives motivating zero affluent vehicles in the U.S., and increasing demand for improved battery range are predicted to contribute to the market growth for range extenders in the upcoming years.

Europe is anticipated to register a CAGR of 10.0% over the forecast period owing to a surge in sales of EVs in major countries like Germany, France, Norway, and the U.K. along with the presence of prominent companies in the region. Leading manufacturers like Volvo Car Corp. and BMW Group are focusing on introducing the latest Range Extended Electric Vehicle (REEV), which is anticipated to boost the growth of the regional market in the near future.

EV Range Extender Market Share Insights

The key players include Rheinmetall Automotive AG; Plug Power Inc.; Emoss Mobile Systems BV; AVL LIST GmbH; Nissan Motors Corporation; Magna International Inc.; General Motors Company; Volvo Car Corporation; and BMW Group. The companies are adopting strategies including mergers& acquisitions to strengthen R&D abilities, regional presence, and increase their product portfolio.

For example, the acquisition of American Fuel Cell LLC, the manufacturer of the technology namely, the Membrane Electrode Assembly (MEA), by Plug Power Inc., in June 2018. The acquisition was focused on strengthening the company’s abilities in creating MEA and enhancing system knowledge for road uses. Similarly, Magna International Inc. June 2018 entered into a partnership with Beijing Electric Vehicle Co. Ltd. (BJEV) to establish R& D center and an electric vehicle manufacturing plant in China.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Million Insights has segmented the global EV range extender market report based on product, vehicle, component, and region:

• Product Outlook (Volume, Units, 2015 - 2025)
    • ICE
    • Fuel cell
    • Others

• Vehicle Outlook (Volume, Units, 2015 - 2025)
    • Passenger vehicles
    • Commercial vehicles

• Component Outlook (Volume, Units, 2015 - 2025)
    • Battery pack
    • Generator
    • Power converter
    • Electric motor

• Regional Outlook (Volume, Units, 2015 - 2025)
    • North America
        • U.S.
        • Canada
    • Europe
        • U.K.
        • Germany
        • France
        • Norway
        • Netherlands
        • Italy
    • the Asia Pacific
        • China
        • Japan
        • South Korea