Lithium Ion Battery Market to Expand at Impressive 14% CAGR through 2030; Decreased Auto Sales Due to COVID-19 Outbreak Affecting Market Growth
Published On : Jun 19, 2020
The rapidly growing fleet of electric vehicles (EVs) is one of the most important driving factors for the lithium ion battery market. The automotive industry has been witnessing a visible shift from using nickel metal batteries to lithium ion batteries in plug-in vehicles and EVs. The beneficial physical characteristics of lithium ion batteries such as small size and light weight have bolstered their demand across the automotive industry.
The global lithium ion battery market is estimated to expand at a CAGR of around 14% by value over the next decade, and reach a valuation of US4 127 Bn by 2030.
Key Takeaways from Lithium Ion Battery Market Study
- Increasing growth of the automotive industry in developing countries has led to a substantial rise in the demand for lithium ion battery packs in emerging economies in Asia Pacific, such as India and China. In addition, South Korea, which is one of the leading lithium battery producing countries in the world, is expected to emerge as a lucrative market for lithium ion battery pack manufacturers in the coming decade.
- In recent years, lithium ion batteries have become highly prevalent in commonly used portable electronic equipment, such as smartphones, tablets/PCs, digital cameras, and power tools. Owing to their superior performance over other battery technologies, especially when space is a big concern, lithium ion batteries are witnessing sustained demand from consumer electronics manufacturers.
- Currently, Asian manufacturers are investing in additional and new production capabilities close to major demand centers, i.e. in Asia, the U.S., and Europe. This is anticipated to further open new opportunities for serving clients in these regions.
- The COVID-19 pandemic has affected all industries, including the lithium ion battery market in a big way. Plummeting auto sales and raw material procurement issues due to various restrictions will affect market growth in the near term.
“In the backdrop of a potential rise in sales, leading manufacturers in the lithium ion battery market are concentrating on reducing their prices to sustain the competition. In addition to this, incorporating innovative materials for the manufacturing of lithium ion batteries so as to slash production cost is emerging as a popular trend among manufacturers,” says a PMR analyst.
Market Landscape Moving Toward Consolidation
The global lithium ion battery market is moderately consolidated, with tier-1 manufacturers accounting for around half of the market share. Some of the key manufacturers included in the report are Panasonic Corporation, LG Chem, Samsung SDI Co. Ltd., and Contemporary Amperex Technology Co. Ltd. Manufacturers are striving to gain additional share in the lithium ion battery market by means of strategic expansion, acquisitions, and product innovation. Manufacturers are also focused on pursuing additional sales channels and partners for distribution to meet customer demand and requirements across the globe.
Lithium Ion Battery Market: Conclusion
Lithium ion batteries have gained popularity among automakers, especially EV manufacturers, as an efficient alternative to other batteries. With increasing production of EVs and plug-in vehicles across the world, the global demand for lithium ion batteries is expected to surge in the coming decade. Additionally, with the adoption of next-generation energy storage technologies, manufacturers are aiming to introduce more lithium ion batteries with extended battery life and improved efficiency of energy storing capability. Consequently, increasing applications of lithium ion batteries in most consumer electronic products, including smartphones, tablets, and wearable devices, is catalyzing the growth of the global lithium ion battery market.
Want to Know More?
Persistence Market Research has published a market research report on the lithium ion battery market that contains global industry analysis of 2015–2019 and opportunity assessment for 2020–2030. The report provides insightful analysis of the lithium ion battery market through different segments - battery type, voltage, product type, operation, application, and region. The lithium ion battery market report also provides supply and demand trends and a comprehensive list of suppliers and distributors in the market, along with a detailed overview of the parent market.
For additional insights on how the lithium ion battery market will shape up over the projection period, write to email@example.com
About PMR – Industrial Automation
The Industrial Automation team at Persistence Market Research provides expert opinions and incisive inputs about a broad array of products used extensively in the manufacturing industry. The team has compiled comprehensive market research reports on gears, valves, bearings, special purpose machinery, and other key segments in this evolving landscape. In addition to offering syndicated market research studies, the team consults clients from all across the globe on their unique, strategic needs. Need help with your next project? Feel free to reach out.
Lithium Ion Battery Market
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Global Market Study on Lithium Ion Batteries: Increasing Application being Witnessed in Electric Vehicles and Energy Storage SystemsRequest TOC