NEW YORK: Global lithium–ion battery market is projected to reach $106,493 million by 2024, registering a CAGR of 21.8% during the forecast period. The demand for lithium–ion batteries is primarily driven by the growing electric vehicle market, falling battery prices, and presence of monetary and non-monetary government subsidies.
Recent advancements in consumer electronics technologies are expected to boost the lithium–ion battery market in the forthcoming years. This is due to the fact that consumer electronics manufacturers primarily use these batteries, owing to various superior properties, including high energy density, as compared to other battery types. Additionally, expanding middle-class population, changing lifestyle preferences, and growing inclination toward smart electronic devices are the key factors supporting the high demand for consumer electronic products, which in turn, will also derive the demand for lithium–ion batteries.
These batteries are also used for stationary energy storage purpose in renewable energy sector. Supportive government policies, expanding investor interest in renewable power generation, and technological advancements in solar and wind power generation segment drive the growth of the renewable energy sector, which in turn, will also strengthen the demand for lithium–ion batteries.
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 all these types, the LFP battery captured the largest market share in 2018. This can be attributed to the significant usage of this type of lithium–ion batteries in China. The country dominates the market for these batteries, globally, as it is the largest market for electric vehicles and is also a significant market for consumer electronics. As the LFP batteries are mainly used in automotive and consumer electronics, making them the largest contributor to the market.
The lithium–ion battery market in the NMC battery category is expected to register the highest growth rate during the forecast period and is also projected to capture the largest share by 2024, as this type of battery has high storage capacity, longevity, and thermal stability. Furthermore, designers and researchers are also focusing on NMC battery to reduce the cobalt content to make the battery cheaper, which will also strengthen the market for NMC batteries in the coming years.
Based on application, the lithium–ion battery market is categorized into consumer electronics, automotive, aerospace and defense, telecom, medical, industrial, and others. Among these, the consumer electronics category captured the largest market share in 2018. This can be associated to the extensive usage of lithium–ion batteries in consumer electronic devices. The lithium–ion battery has much better energy density than other battery technologies such nickel cadmium (NiCd) and nickel metal hydride (NiMH) used in consumer electronics, especially when specific energy (joule per kilogram) is considered. Furthermore, this technology is driven by consumer demands for applications that have more computing power and come in thinner and smaller packages.
Advancement in products and upcoming technologies such as internet of things and artificial intelligence will lead to increase the number of connected devices using batteries. In the present scenario, consumer electronic device manufacturers are primarily using lithium–ion batteries, so the increasing number of these devices will translate into high demand for these batteries.
Among all regions, APAC captured a significant share in the lithium–ion battery market. Booming market for electrical vehicles, rapid technological advancements, and increasing demand for smart devices in the region are some of the factors fueling the regional market growth. Furthermore, the decreasing prices of electric vehicles due to increasing government policies and subsidies are driving the demand for electric vehicles in the region, which in turn, will also drive the demand for lithium–ion batteries in the region.
Some of the major players operating in the global lithium–ion battery market are BYD Company Limited, LG Chem Ltd., GARBOLI, 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.
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