Global Lithium-ion Battery Market 2020-2026
Global Lithium-ion Battery Market Size, Share & Trends Analysis Report by Type (Lithium Cobalt Oxide (LCO), Lithium Manganese Oxide (LMO), Lithium Nickel Manganese Cobalt Oxide (LI-NMC), Lithium Iron Phosphate (LFP), and Other), By End-User (Automotive, Consumer Electronics, Industrial, and Others) Forecast 2020-2026
The global market for lithium-ion battery is projected to have a considerable CAGR of around 14.6% during the forecast period. Lithium-ion batteries are rechargeable batteries in which lithium ions move from cathode to anode during discharge and back through an electrolytic solution when recharged. Lithium-ion batteries gained popularity due to their usage in major applications which include automotive, consumer, and industrial owing to their additional features such as high-open circuit voltage, low self-discharge, and low maintenance, and longer shelf life. Lithium-ion batteries are majorly used in consumer electronics such as laptops, smartphones, smartwatches, activity trackers, and many more. The increasing demand for these applications augmented the growth of the market.
Moreover, the other application of these batteries gaining ground in recent years is their use in military, aerospace, and electric vehicles including BEVs, PHEVs, HEVs. The supportive government initiatives for the adoption of electric vehicles to curb the environmental pollution generated by ICE vehicles is the major factor that accelerates the growth of electric vehicles which, in turn, further increases the demand for lithium-ion batteries as its main component. However, the main concern associated with the production of lithium-ion batteries is its cost. The high cost of batteries is anticipated to restrain the market growth. The technology innovations to reduce the cost of these batteries with high power capacity can generate more opportunities in the lithium-ion battery market.
The global lithium-ion battery market is segmented based on end-user into automotive applications, consumer electronics, industrial. The lithium-ion battery for consumer electronics holds the major market share owing to the increasing demand for these batteries in consumer appliances such as laptops, and mobiles due to portability, and high energy density.
Global Lithium-Ion Battery Market Share by End-User, 2020 (%)
Source: OMR Global
Global Lithium-Ion Battery Market to be Driven by Automotive End-User Segment
The lithium-ion battery in the automotive segment is projected to have significant growth during the forecast period. The lithium-ion batteries are better in terms of greater stability and safety than Nickel-Cadmium batteries, which is mainly used in electric bikes, power tools, and electric energy storage system. Compared to traditional batteries, lithium-ion batteries are preferred due to various features such as fast charging, durability, and have a higher power density for more battery life in a lighter package.
The factor that augmented the growth of this segment is the increasing passenger vehicles, growing demand for electric vehicles owing to the stringent government rules and regulations to curb environmental pollution. Besides, the R&D activities, increasing adoption and awareness of electric vehicles, and rising investments by the government for the adoption of electric vehicles, and low-cost lithium-ion battery production further increase the demand for these batteries which, in turn, will boost the growth of this market.
Geographically, the global lithium-ion battery market is classified into four major regions including North America (the US and Canada), Europe (UK, Germany, France, Italy, Spain, and Rest of Europe), Asia-Pacific (India, China, Japan, and Rest of Asia-Pacific), and Rest of the World (Latin America and the Middle East and Africa (MEA)). Among these, North America is anticipated to grow at significant CAGR during the forecast period due to the growing demand for consumer electronics and the automotive industry. The presence of automotive market players, heavy investment for R&D activities for battery production, a large number of automotive sectors, are propelling the growth of the market in the region.
Global Lithium-ion Battery Market Growth by Region, 2020-2026
Source: OMR Global
Asia-Pacific- A Force to Reckon with in the Global Lithium-Ion Battery Market
Geographically, Asia-Pacific region holds a prominent share in the lithium-ion battery market. The market growth is mainly due to the increasing consumer electronics, R&D activities for the production of cost-effective batteries, declining lithium-ion battery cost, adoption of electric vehicles, and growing renewable sectors. China is dominating in the Asia-Pacific lithium-ion battery market by producing and selling a large number of electric vehicles and developing large battery manufacturing plants in the region. Besides, the presence of key market players such as BYD, BMW, and Nissan also boosting the market growth as these companies investing high in the production of cost-effective lithium-ion batteries. China also generates wind energy on large scale, for this energy storage systems required which, in turn, increases the production of batteries in the region that drives the market.
Market Players Outlook
Some of the key players in the lithium-ion battery market contributing significantly by providing different types of products and increasing their geographical presence across the globe. The key players of the market include BYD Company Ltd., LG Chem., Panasonic Corp., SAMSUNG SDI CO. LTD, LITHIUMWERKS, GS Yuasa International Ltd., and other marketing players. These market players adopt various strategies such as product launches, partnerships, collaborations, mergers, and acquisitions to sustain a strong position in the market. For instance, in October 2019, Contemporary Amperex Technology Co. Ltd had started the construction of its first overseas factory for lithium-ion battery production in Thuringia, Germany. The production unit in Germany by the company has accelerated the electrification of the automotive industry in Europe to provide clean and reliable power for electro-mobility.
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