The global "lithium-ion battery market" is expected to grow at a CAGR of 19.1% during the forecast period 2022-2029.
The lithium battery is also called as Li-ion Battery. Lithium-ion batteries are mostly used for portable electronics and electric vehicles. Li-ion batteries are growing in popularity for military, aerospace, and many other applications. Lithium-ion is a low-maintenance battery and has an advantage that most other chemistries cannot claim. Lithium-ion is the fastest growing and most promising battery chemistry. Lithium is the lightest of all metals, has the greatest electrochemical potential, and provides the largest energy density for weight.
Rising demand for Lithium-ion batteries, increasing usage in smart devices and also rise in demand for electric vehicles are the key drivers for the growth of the market globally.
Increasing usage and demand for electronics especially for smart devices is the foremost driver for market growth. The lithium-ion battery is turning into the preferred battery option in smart applications and devices. The lithium-ion battery industry is tremendously meeting the electronics market demand globally, including cell phones, personal computers, and digital/video cameras. Most modern portable electronic devices like iPhones use lithium-ion batteries. Li-ion batteries are a more convenient choice for electronics due to their high charging backup capacity. Lithium-ion batteries are cleaner, live longer, recycle better, and require much less maintenance. All these characteristics are playing a crucial role in adopting Li-ion batteries globally by the key electronic manufacturers. For instance, from 2001 to 2016, the value of electronics exports from Asia jumped from USD 537.3 billion to USD 1,758 billion, at an average growth rate of 8.2% each year.
Expensive to manufacture lithium-ion battery is the major market restraint hindering the market growth globally. Lithium-ion battery cost is about 40% higher than nickel-cadmium. Protection issues related to overheating are the other key restraint hampering the growth of the Lithium-ion battery market. A lithium-ion battery requires a protection circuit to maintain voltage and current within safe limits.
By material type, the Lithium-Ion Battery market is segmented into the cathode, anode, electrolyte solution, and Others. The cathode segment market is valued at USD XX Million in 2018 and is estimated to grow at a CAGR of 19.1% over the forecast period to reach a USD, XX Million, by 2026. The cathode material holds XX% of the market share in 2018 and is expected to increase to XX% by 2026 in Global Lithium-Ion Battery Market. lithium-ion uses a cathode as a positive electrode. Cathode Active Materials are the main elements dictating the differences in composition while building positive electrodes for battery cells. Cathode materials require extremely high purity levels and must be almost entirely free of unwanted metal impurities, notably iron, vanadium, and sulfur. High capacity and superior power delivery lie primarily in the cathode are the key factors for the growth of cathode segment in material type. Few manufacturers are focusing to increase their cathode materials production capacities globally to gain market share. For instance, On May 17, 2019, Japanese miner and smelter Sumitomo Metal Mining Co Ltd (SMM) announced that the company aims to more than double its production capacity of cathode materials used in batteries for automobiles by March 2028 and the increased capacity will be 4500 tons a month to 10,000 tons a month.
Based on the application type, the Lithium-Ion Battery market is segmented into electronics, automotive, industrial, and others. The electronics segment market is valued at USD XX Million in 2018 and is estimated to grow at a CAGR of XX% over the forecast period to reach USD XX Million by 2026. The electronics segment holds XX% of the market share in 2018 and is expected to increase to XX% by 2026 globally. Lithium-ion batteries, found in nearly all consumer electronics and made almost exclusively in Asia Pacific. Consistent expansion in electronics, support from government and increasing selection of lithium ion batteries by electronic manufacturers has supported the development of this market globally. The rising utilization of electronic gadgets, for example, mobile phones, workstations, MP3 players, and GPS route frameworks is driving the development of the electronics industry.
Well-established companies such as Foxconn, Flex, Wistron, and Benchmark Electronics are expanding their production facilities and investing in new countries to meet the growing supply-demand gap. For instance, in March 2018, Wistron invested USD 106.4 million to acquire additional land near Bengaluru, India. The government approved the firm’s proposed investment to make smartphones, Internet of Things products, and biotech devices in the region, including Apple iPhones.
The Asia Pacific market is valued at USD XX Million in 2018 and is estimated to grow at a CAGR of XX% over the forecast period to reach USD XX Million by 2026. Asia Pacific region holds XX% of the market share in 2018 and is expected to increase to XX% by 2026 in the global Lithium-ion battery market. The Asia Pacific is expected to hold the largest market share globally over the forecast period to 2026. Growth in the generation of electric vehicles and the utilization of li-ion batteries in vehicles is driving the market in the Asia Pacific region. The market is essentially made up of China and India, which have a massive potential for some application in the lithium-ion battery market. China being a worldwide automotive producing center holds great potential for the development of the market. Additionally, China is likely to be one of the world's prominent manufacturers of electronic gadgets.
Furthermore, the presence of various electronic makers like, LG Electronics, Panasonic, Sony Corp., and Samsung SDI is one of the key elements driving the market for lithium-particle batteries in the APAC region. For instance, Panasonic is a leading supplier of lithium-ion batteries and has around 20% market share in automotive lithium-ion batteries globally.
North American market is valued at USD XX Million in 2018 and is estimated to grow at a CAGR of XX% over the forecast period to reach USD XX Million by 2026. North America holds XX% of the market share in 2018 and is expected to increase to XX% by 2026 in Global Lithium-Ion Battery Market. North America is likely to witness a substantial development owing to rising interest in electric vehicles and development in the sales of electronic gadgets in nations like the U.S., Canada, and Mexico over the forecast period. Rising focus on the benefits of lithium-particle batteries has remains the usage of these batteries as a substitute fuel in transportation in this region. Advances in lithium-ion battery technology are driving car manufacturers to begin mass-production of electric vehicles in North America.
For instance, Huntsman is the only producer in North America and one of only a few companies in the world that produce these cyclic carbonate lithium-ion battery solvents. Huntsman’s plans to include both a near-term capacity expansion of its ULTRAPURE® solvent electrolytes production capabilities in Conroe, Texas and investigation of a new North American integrated carbonates plant to supply for the lithium-ion battery market manufacturers with increasing demand.
Key players in the industry are expanding their production capacities to meet increasing demand. Major battery producers plan to invest over USD 50Bn in expanding manufacturing capacity over the next 5 years in China, the USA and Europe, which is scheduled to increase annual battery capacity production to over 1.2 TWh by 2030.
Some of the key players in the Global lithium-ion battery market are LG Chem Ltd, Panasonic Corporation, Samsung SDI Co Ltd, BYD Co Lt, BAK Group, A123 Systems, GS Yuasa Corporation, Hitachi Ltd, Johnsons Controls Inc. and Saft Groupe S.A.
There has been significant investment by incumbent and new battery producers into constructing additional manufacturing capacity to meet demand. For instance, In September 2017, Panasonic Corporation has decided to start the production of automotive lithium-ion batteries at a factory in Himeji, Hyogo Prefecture, and expanding domestic production amid increasing demand for such batteries.
In July 2018, BYD Company signed a strategic cooperation agreement with Changan Automobile to jointly manufacture batteries for electric vehicles. The groundbreaking agreement will see both companies collaborate in the production and sale of these batteries through a new legal entity based in Chongqing, a megacity of 33 million people in central China.
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