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Lithium Ion Battery Market Growth Factors, Demand and Trends Forecast
- In recent years, the growth in the industrial automation has been highly eye-catching
- This has been particularly beneficial for the development of the global lithium ion battery market for the application of material handling equipment
- Global lithium ion battery market is driven by the growing penetration of smartphones, tablets, PCs, power tools, and digital cameras
- Also witnessing an increase from the flourishing automobile industry
By: tmrresearch
Lithium Ion Battery Market – Snapshot
Lithium ion batteries are a type of rechargeable batteries that have high energy density. These batteries have a very wide range of application. However, primarily these lithium ion batteries are used in portable devices and equipment. The global lithium ion battery market is expected to witness a considerable growth over the course of the given forecast period with a considerable rise in the use of tablets, PC, smartphones, digital camera, and other power tools. These batteries have gained immense popularity in recent years, especially in the automobile production sector as they provide a solid alternative to the nickel metal batteries that are primarily used in manufacturing of electric cars. Another reason for their growing use is because of their light weight and small size that make them an ideal fit for a wide range of applications.
In recent years, the growth in the industrial automation has been highly eye-catching. This has been particularly beneficial for the development of the global lithium ion battery market for the application of material handling equipment. Over the years, several technological advancements have brought considerable growth in the material handling equipment sector. Some of the highly popular material handling equipment are automated guided vehicles, intralogistics systems, industrial trucks, and elevating equipment. Interestingly, all of these machine handling equipment are battery operated. With lithium ion’s stronger energy density, long lasting power, compact size, and light weight, these batteries are the most preferred option to be fitted across the equipment. Naturally, this has helped in the development of the global lithium ion battery market.
Lithium-ion batteries are rechargeable batteries that have high energy density and are used extensively in portable equipment. The global lithium ion battery market is driven by the growing penetration of smartphones, tablets, PCs, power tools, and digital cameras. The demand for Li-ion batteries is also witnessing an increase from the flourishing automobile industry. The demand for electric vehicles is increasing and with it, the demand for lithium ion batteries. The popularity of these batteries is increasing among automobile manufacturers as they are small in size and light in weight as compared to nickel metal batteries.
The lithium ion battery market is greatly fragmented with a large number of domestic players. These domestic players are accounting for a high share in the lithium ion battery market. There are small, medium, and large scale players in the industry and this is the reason behind the extreme competitive environment within the global lithium-ion battery market. The introduction of innovative and new technologies will help with the growth of the market. Many players are also investing in research and development and this will trigger increased competition among existing players. Product launches are a key strategy adopted by players in the industry. The lithium ion battery market players are also adopting the strategy of mergers and acquisitions so as to gain competitive edge and increase their customer base.
Global Lithium Ion Battery Market: Overview
Lithium-ion batteries are rechargeable batteries, in which lithium ions move from positive electrode to negative electrode during charging and back when discharging. These batteries are commonly used in consumer electronics. They make use of an intercalated lithium compound as an electrode material, compared to the metallic lithium used in a non-rechargeable lithium battery. Besides that, their popularity is growing rapidly across sectors such as military, automotive, aerospace, and industrial.
Global Lithium Ion Battery Market: Key Trends
The various advantages offered by lithium ion batteries such as lightweight, rechargeable, environment-friendliness, high energy density, and no memory effect are boosting their adoption in smartphones, tablets, and automobiles. Hence, the proliferation of smartphones and tablets is providing a fillip to the global lithium ion battery market. Moreover, the escalating need for efficient and green solutions for power supply and energy storage is augmenting the market. Traditional batteries such as nickel-metal-hybrid, lead-acid, and sodium-sulfur have hazardous effects on the environment. In addition, the rising production of hybrid electric vehicles and electrical vehicles is creating a staggering volume of demand for these batteries in the automotive sector.
On the flip side, the higher cost of lithium ion batteries as compared to traditional batteries is limiting their widespread adoption. Furthermore, the risk of overheating and a subsequent fire associated with these batteries can pose a major threat to cars and other electronic devices, which in turn is restricting the lithium ion battery market from realizing its utmost potential.
Global Lithium Ion Battery Market: Market Potential
Several players in the global lithium-ion battery market are aiming at expanding their lithium ion battery facilities to enhance their visibility in the market. A case in point is Utility San Diego Gas and Electric (SDG&E) and AES Energy Storage, a subsidiary of Automotive Energy Supply Corporation, which in February 2017, inaugurated their new energy storage facility in Escondido, California, which they claim to be the world’s largest lithium-ion battery energy storage site. The capacity of this system is 30MW/120MWh and has the ability to store energy for the equivalent of 20,000 customers for four hours. Such steps taken by players are likely to scale up energy storage capacity and drive the market over the coming years.
Global Lithium Ion Battery Market: Regional Outlook
The segments covered in the lithium ion battery market report on the basis of geography are Asia Pacific, Latin America, North America, Europe, and the Middle East and Africa. Asia Pacific is expected to represent a sizeable share in the market throughout the review period. The domicile of a large number of key manufacturers is providing an edge to the region over other regions. Countries such as India, China, Singapore, Australia, and Japan will be sights of high growth in APAC. The growth of the lithium ion battery market in these countries can be attributed to the increasing regulations to reduce the carbon footprint and lead pollution.
North America will be a prominent lithium ion battery market during the same period. The increasing sales of electric vehicles along with the burgeoning demand for high-quality consumer electronics products are contributing to the growth of the region.
Global Lithium Ion Battery Market: Competitive Landscape
The global lithium ion battery market is highly consolidated in nature. Strict regulatory framework for the manufacturing of conventional batteries is attracting new players to invest in the market. The influx of new manufacturers is likely to make this market fragmented over the coming years. However, prominent players offer stiff competition to new entrants due to their competitive advantage in their terms of strong foothold and easy access to raw materials.
Research and development activities are expected to be the top priority for the majority of players to increase their shares in the market. Some of the key companies operating in the global lithium ion battery market are LG Chemical Power, Johnson Controls, Hitachi Chemical, Panasonic, Samsung, Toshiba, Sony, and AESC.
Source: https://statsflash.com/lithium-ion-battery-market-growth-factors-demand-and-trends-forecast-to-2025/420030/
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