The growing adoption of electric vehicles across the world and the constant reduction in anode material prices are the major growth drivers for the global anode material for automotive lithium-ion battery market. As a result of these factors, the industry is projected to generate $1,348.6 million revenue by 2030, advancing at a CAGR of 5.7% during the forecast period (2020–2030).
However, the COVID-19 pandemic is having a negative impact on the anode material for automotive lithium-ion battery market, restricting its growth significantly. The manufacturing industry around the world is witnessing several challenges owing to the government mandates for lockdowns, smaller workforce, and reduced product demand from consumers. Moreover, the pandemic negatively impacted the supply chain of numerous sectors across the world during the first two quarters of 2020. This has led to the reduced trade of a number of products, including anode material for automotive lithium-ion batteries, as a consequence of the reduced demand and logistical challenges.
Lithium–Titanate Oxide (LTO) To Be Fastest-Growing Category during Forecast Period
On the basis of type, the anode material for automotive lithium-ion battery market is categorized into artificial graphite, natural graphite, amorphous carbon, LTO, and silicon compound. Among these, during the forecast period, the LTO category is expected to experience the fastest growth in the industry, buoyed by the fact that LTO enables faster charging of lithium-ion batteries, at a lower temperature compared to the other materials. Furthermore, LTO prevents the alloying of aluminum, which, in turn, permits the aluminum current collector to produce a considerably improved gravimetric capacity compared to the other materials.
Furthermore, on the basis of vehicle type, the anode material for automotive lithium-ion battery market is categorized into two-wheeler, passenger car, and commercial vehicle. Out of these, passenger car is projected to remain the largest category in the forecast period. This is attributed to the fact that most of the countries are providing incentives and developing supportive policies focusing on the fast adoption of electric cars, which, in turn, is leading to a high demand for lithium-ion batteries and, subsequently, anode material, for passenger cars.
Geographically, Asia-Pacific (APAC) held the largest share in the anode material for automotive lithium-ion battery market in the historical period (2014–2019), and it is expected to remain the largest market in the forecast period. This is ascribed to the high adoption of electric vehicles on account of the strong support from the government in China in recent years. Moreover, the rising environmental concerns and lower total cost of ownership (TCO) compared to conventional automobiles are the major factors driving the demand for electric vehicles in the region, which, in turn, is positively affecting the growth of the anode material for automotive lithium-ion battery market.
Mergers and Acquisitions Are Most-Prominent Strategic Measures Taken by Players in Market
Players in the anode material for automotive lithium-ion battery market are involved in mergers and acquisitions to expand their market presence. Some of the major players operating in the global anode material for automotive lithium-ion battery market are Nippon Carbon Co. Ltd., Targray Technology International Inc., NEXEON Limited, Ningbo Shanshan Co. Ltd., Jiangxi Zichen Technology Co. Ltd., JFE Chemical Corporation, XG Sciences Inc., Bertree New Materials Group Co. Ltd., Hunan Zhongke Shinzoom Technology Co. Ltd., Jiangxi Zhengtuo New Energy Technology Co. Ltd., Shin-Etsu Chemical Co. Ltd., Mitsubishi Chemical Corporation, Showa Denko Materials Co. Ltd., Kureha Corporation, and Umicore Group.