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Valued at $33,720.8 million in 2018, the global lithium-ion battery market is projected to surpass $106,493.0 million by 2024, witnessing a CAGR of 21.8% between 2019 and 2024.
Asia-Pacific (APAC) is expected to witness the fastest growth in the industry, during the forecast period. This can be mainly attributed to the increasing demand for Smartphone, smartwatch, smart vacuum cleaners, laptops, smart bulbs, and other smart devices and electrical vehicles (EV) and rapid technological advancements. The decreasing prices of EVs, due to the increasing government policies and subsidies, are driving their adoption in the region, which, in turn, is raising the demand for lithium–ion batteries.
Fundamentals Governing Lithium-Ion Battery Market
Advancements in the battery cells’ electrolyte and changes in the anode material are the main trends in the lithium-ion battery market. The electrolyte acts as a limiting agent, to increase the cell power, so improving the electrolyte allows the current battery output power to extend beyond 4.2 V. For Instance, Tesla Inc. is in the process of building a massive ‘Gigafactory’ with Panasonic, to produce advanced lithium-ion batteries, which will result in their falling cost in the coming years, thereby making them popular among consumers.
In recent times, EVs have registered a significant increase in demand, owing to environmental concerns and fluctuating oil prices. In addition, governments worldwide are supporting their sale, which is leading the lithium-ion battery market to a bright future. According to the Global EV Outlook 2018, the 3.1 million electric passenger cars were sold in 2017, increasing by 57% from 2016. Thus, the rise in the sale of EVs is driving the demand for lithium-ion batteries, which act as the primary power source in such automobiles.
The increasing energy density of such energy storage devices is a key opportunity in the lithium-ion battery market, and this could facilitate the development of long-lasting batteries with advanced technologies. Companies are constantly trying to improve the properties of such energy storage devices, as the demand for them will continue to rise from the consumer electronics, automotive, and renewable energy sectors. It has been found that the use of a modified form of iron trifluoride (FeF3), as cathode material, could triple the energy density of lithium-ion batteries.
Segmentation Analysis of Lithium-Ion Battery Market
The lithium–nickel–manganese–cobalt (Li-NMC) category is expected to exhibit the fastest lithium-ion battery market revenue growth, among all types of batteries, in the forecast period. This can be attributed to the fact that an NMC battery has a high storage capacity, longevity, and high thermal stability, which make them a prime choice among automotive and consumer electronics manufacturers.
Consumer electronics was the largest category in the lithium-ion battery market, by application, in 2018, in terms of value. Lithium-ion batteries are used to power smartphones, tablets, laptops, cameras, MP3 players, handheld game consoles, and many other electrical and electronic devices of everyday use, such as electric toothbrush, electric shavers, flashlights, lamps, vacuum cleaners, and motorized toys. The lithium-ion battery has a higher energy density than other battery technologies, such nickel–cadmium (NiCd) and nickel-metal hydride (NiMH), due to which the demand for them in consumer electronics is quite high.
Geographical Analysis of Lithium-Ion Battery Market
APAC was the largest lithium-ion battery market during the historical period (2014–2018), and it is expected to maintain the trend during the forecast period. This can be mainly attributed to the presence of established players and growing demand for portable electronic devices and EVs. Additionally, APAC is expected to exhibit the fastest growth in the forecast period, mainly on account of the rapid technological advancements in such energy storage devices. Considering the future industry scenario, China is expected to lead the APAC region’s market, generating revenue worth $45,614.0 million in 2024.
Competitive Landscape of Lithium-Ion Battery Market
The lithium-ion battery market is highly fragmented in nature, as a result of the presence of a number of established companies, such as BYD Company Limited, LG Chem Ltd., Panasonic Corporation, Samsung SDI Co. Ltd., Shenzhen BAK Battery Co. Ltd., GS Yuasa Corporation, Hitachi Chemical Company Ltd., Johnson Controls International plc, Toshiba Corporation, Tesla Inc., Amperex Technology Limited, and Tianjin Lishen Battery Joint-Stock Co. Ltd.
Recent Strategic Developments of Major Lithium-Ion Battery Market Players
In recent years, the major players in the global lithium-ion battery market have taken several strategic measures, such as product launches, joint ventures, and geographical expansions, to gain a competitive edge in the industry. For instance, in April 2019, LG Chem entered into a joint venture with VinFast Trading and Production LLC (a subsidiary of Vingroup) to produce battery packs for the Vietnamese start-up’s electric scooters.
Moreover, in June 2018, Hitachi Chemical Co. Ltd. signed a license agreement with Silatronix Inc., for manufacturing electrolyte materials, by combining the electrolyte using Silatronix’s organosilicon compounds, as an additive with its anode materials, for lithium-ion batteries, which will be used to lengthen the life of lithium-ion batteries and improve their storage stability at higher temperatures.
Market Size Breakdown by Segment
The Lithium-Ion Battery Market report offers comprehensive market segmentation analysis along with market estimation for the period 2014–2024.
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Based on Application