LONDON, UK (GlobalData), 16 July 2013 – A strong manufacturing base and incentives for the purchase of Electric Vehicles (EVs) will push France to the fore of the global EV battery market, says research and consulting firm GlobalData.
According to the company’s latest report, EV battery market revenue in France will increase exponentially in the coming years, from a modest $380m in 2012 to $7.2 billion in 2020, representing a dramatic Compound Annual Growth Rate (CAGR) of 44%.
Such explosive growth will make France a major figure in the global electric vehicle battery market, with only Japan ($10.3 billion) and China ($8.5 billion) forecast to have more valuable markets by 2020.
France is home to a number of significant battery and EV manufacturers, with Renault in particular expected to play a key role in the development of the country’s battery industry. The French car maker, in collaboration with Nissan and the French Atomic Energy and Alternative Energies Commission (CEA), is currently building a factory outside Paris with an annual production capacity of 100,000 to 350,000 EV batteries.
Furthermore, France has improved tax incentives aimed at popularizing EVs that will correspondingly boost the country’s battery market. In August 2012, the government increased the bonus for those purchasing low-carbon emission vehicles from up to €5,000 to €7,000 – a move expected to help France meet its target of 2 million electric cars on its roads by the end of the decade.
Taking into account the country’s commitment to the promotion and adoption of electric vehicles, GlobalData expects France’s share of the global EV battery market to surge from a modest 3.7% in 2012 to 16.2% in 2020.