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Lithium-Ion Battery Market Overview
The global lithium-ion battery market valued at $33,720.8 million in 2018, which is projected to reach $1,06,493.0 million by 2024, with a CAGR of 21.8% during the forecast period. The growth in the market can be attributed to the growing automotive and consumer electronics applications.
Lithium-ion battery composed of lithium, the lightest metal with the highest electrochemical potential. Due to their lightness and high energy density, lithium-ion batteries are ideal for portable devices, such as notebook computers. In addition, lithium-ion batteries have no memory effect and do not use poisonous metals, such as lead, mercury, or cadmium. The increasing demand for consumer electronics and smartphones has increased the need for batteries with high power capacity that can run the devices for long hours.
Based on type, the lithium-ion battery market is classified into lithium nickel manganese cobalt oxide (NMC), lithium iron phosphate (LFP), lithium cobalt oxide (LCO), lithium manganese oxide (LMO), and lithium nickel cobalt aluminum oxide (NCA) batteries. Among these, LFP type batteries accounted for the largest market share in 2018, owing to their high usages in automotive applications, mainly in China.
However, the falling cost of NMC batteries due to greater economies of scale is projected to make this battery type the largest contributor to the market by 2024. Furthermore, the increasing manufacturing of these batteries driven by the growing demand from electric vehicles, stationary energy storage systems, and consumer electronics will lead to the cost reduction of these batteries, which in turn, will strengthen the lithium-ion battery market in the coming years.
Lithium-Ion Battery Market Dynamics
Falling prices and changing battery chemistry with introduction of new technologies are the key trends identified in the lithium-ion battery market. The increasing manufacturing of these batteries is driven by the increasing demand from electric vehicles, stationary energy storage systems, and consumer electronics, leading to greater economies of scale for lithium-ion cells and battery packs. Many automotive companies are investing heavily into pack assembly, which is leading the battery makers to offer more aggressive prices, and to enter the stationary storage market to diversify their revenue streams. Additionally, innovation will also be the most critical component of cost reductions for lithium-ion batteries in the coming years.
Advancements in electrolyte and change in the anode material to increase the energy density are also identified as the major trends in the lithium-ion battery market.
Increasing demand for lithium-ion batteries from automotive sector, growing applications for these batteries in renewable energy sector, and high adoption in consumer electronics are the major factors driving the lithium-ion battery market.
The electric vehicles have registered a significant demand in various countries, owing to environmental concerns and fluctuating oil prices. Additionally, governmental support to encourage the sales of electric vehicles is also a major factor behind the rising demand for electric vehicles, globally. Out of all the potential solutions that do not utilize petroleum, battery electric vehicles are among the widespread and most popular option. Compared to other mature battery technologies, lithium-ion batteries are now considered to be the standard for modern battery electric vehicles, as these batteries have excellent specific energy and energy density.
In addition, the recent growth in renewable energy sector, due to supportive government policies, expanding investor interest in the sector, and technological advancement in solar and wind power generation segment, is also driving the lithium-ion battery market. The falling cost of stationary lithium-ion batteries is expected to drive the demand for these batteries in renewable energy sector. The increasing demand for consumer electronic products, due to expanding middle-class population, changing lifestyle preferences, and growing inclination toward using smart electronic devices, is also expected to strengthen the demand for lithium-ion batteries in the coming years.
The safety concerns due to overheating and upcoming battery technologies are the factors hindering the growth of the lithium-ion battery market to some extent. There are a number of new technologies currently in the research and development stage, including hydrogen fuel cells, vanadium flow batteries, zinc-bromine batteries, and aluminum-air batteries, in longer term, are expected to demonstrate a threat for the market for lithium-ion batteries. Additionally, the overheating problem that can lead to battery failures is also restraining the growth of the market and this problem may affect the utilization of lithium-ion batteries across various industrial applications.
Increase in energy density of lithium-ion cells could facilitate the development of advanced technologies for long-lasting batteries, as well as the widespread use of these batteries in stationary energy storage systems in the wind and solar energy sector. Scientists have been constantly trying to improve lithium-ion batteries as the demand for these batteries is continue to rise from consumer electronics, automotive, and renewable energy sector.
It has been found that the use of a modified and engineered form of iron trifluoride (FeF3) as cathode material could triple the energy density of lithium-ion battery electrodes. The materials normally used in lithium-ion batteries are based on intercalation chemistry. This type of chemical reaction only transfers a single electron, so the cathode capacity is limited. However, some compounds like FeF3 are capable of transferring multiple electrons as a result increasing the energy density of the battery.
Lithium-Ion Battery Market Competitive Landscape
Some of the major players operating in the global lithium-ion battery market are 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, Amperex Technology Limited, Tesla Inc., Sony Corporation, Tianjin Lishen Battery Joint-Stock Co. Ltd., and Toshiba Corporation.1