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The lithium-ion battery manufacturing equipment market size was projected to grow from $1.27 billion in 2017, to reach $1.92 billion by 2025, growing at a CAGR of 5.3% from 2018 to 2025.
The lithium-ion battery manufacturing equipment market experiences significant growth due to the rise in its demand. Developments in battery technology driven by advancements in consumer electronics and automotive segments fuel the demand for lithium-ion batteries. The availability of standardized and specialized equipment in the sector aims to improve industry participation and increase demand for the manufacturing equipment.
Equipment Type Witness Growth in Cell & Battery Manufacturing Assembly Technologies
The cell & battery assembly segment holds the largest market share in the equipment types available to manufacture lithium-ion batteries. The electrode manufacturing process is heavily specialized and is often conducted by a number of outsourced players. The assembly equipment has witnessed substantial growth in automation including end-to-end process solutions. There are companies providing varying degrees of automation across different functions. There are certain aspects of production that require human intervention to an extent with an aim to minimize incidents such as dismemberment and accidental fires. This leads to an improvement in production efficiency, which is a key factor to develop automated machinery.
Automotive Segment to Dominate the Equipment Market by 2025
The automotive segment is one of the dominant forces in the lithium-ion battery manufacturing equipment market. The automotive market occupied largest market share of the lithium-ion battery manufacturing equipment market in 2017. The shift to electric drivetrains is among the key factors that drive the growth in the sector. Stringent emission regulations and prospective bans on the sale of petrol and diesel-powered cars cause a paradigm shift towards electric cars. The development of specialized battery technologies and equipment is expected to bolster growth in the industry over the next decade.
Asia-Pacific Leads the Global Lithium-Ion Battery Manufacturing Equipment Market
The Asia-Pacific region holds the largest and fastest growing market for lithium-ion battery manufacturing equipment. Countries such as China and Japan are among the key contributors towards the growth in the region. The high manufacturer participation and the proximity to battery manufacturing units' further aid growth in the sector. The manufacture and sale of standardized equipment has helped improve business interests both, locally and globally.