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The global lithium-ion battery market is expected to reach $93.1 billion by 2025, growing at a CAGR of 17%, according to a new report by Grand View Research Inc. Increased usage of lithium-ion batteries in electric vehicles, portable consumer electronics and grid storage systems owing to its high energy density and high safety level is expected to drive market demand.
Lithium-ion batteries are used in applications that require lightweight and high-energy density solutions. These batteries provide the highest energy density per weight and are mostly used in cellular phones, notebook computers, and hybrid automobiles.
Technological advancements to reduce the weight of batteries, cost and increase their power output, is expected to augment industry expansion. In addition, competent distribution channels are likely to be an important way to gain a competitive advantage.
Energy storage system is expected to witness the fastest growth over the forecast period at a CAGR of 21% from 2017 to 2025 owing to the developments in wind and solar PV in countries including Germany, China and U.S.
Asia Pacific was the dominant market and accounted for 48.3% of the global share in 2016. The region is expected to show substantial rise on account of implementation of government policies to promote electric vehicles in India & China.
Moreover, presence of key energy generation companies in China including China Guangdong Nuclear Power Group, China National Nuclear Corporation, Shenergy Group, and Shenhua Group is expected to propel industry growth.
Further key findings from the report suggest:
- Lithium cobalt oxide (LCO) was the dominant product segment and was valued at $7.15 billion in 2016 on account of its high usage in mobile phones, tablets, laptops, cameras as it offers high energy density and high safety level. However, its relatively short life span, low thermal stability and limited load capabilities is likely to act as restrain to demand.
- Growing adoption of solar power systems and e-bikes in UK, Germany, and Netherlands will stimulate industry growth. Growing lithium-ion battery demand in Germany, Spain, Italy, France and the UK is expected to have a positive impact over the forecast period.
- Consumer electronics was the largest application segment and accounted for 52.3% of the overall share in 2016. The increasing demand for portable devices including mobiles, and tablets in China and India is expected to drive demand.
- North America was the second largest market and accounted for 25.9% of the overall revenue in 2016 and is anticipated to show substantial growth considering increasing sales of electric vehicles and smart phones.
- The industry is highly competitive with the presence of major players including Panasonic Corp., Hitachi Chemical Co. Ltd, GS Yuasa International Ltd, Samsung SDI Co. Ltd, LG Chem, and BYD.
- In March 2016, Daimler AG invested USD 586.7 million to install second lithium-ion batteries facility in Germany for electric vehicles and hybrids under the Mercedes-Benz brand
- In January 2016, Nissan invested $31 million to manufacture future-generation electric vehicle batteries at its advanced lithium-ion battery plant in Sunderland
For more information on the report, click here.