Rising demand for tablets and smartphones across countries such as India, Japan, Thailand, and China are expected to enhance industry expansion
A study conducted by Astute Analytica foresees a tremendous growth in revenue of the Global Lithium-ion Battery Market from US$ 60,385.6 Mn in 2021 to US$ 1,85,040.3 Mn by 2027. The market is expected to register a CAGR of 20.5 per cent during the forecast period 2022-2027.
The market, as per the study, is majorly driven by factors such as increasing demand for electric vehicles and rising adoption of consumer electronics. Apart from consumer electronics stream, lithium-ion battery has major applications in integration of renewable energy with grid technology, telecommunication and even in aerospace. The increasing adoption of lithium-ion battery is observed due to its capacity to hold maximum power generating capacity in small size and lighter weight. However, lithium-ion batteries have a risk of being outcompeted by other advanced technologies such as zinc batteries, flow batteries, and high temperature batteries among others.
Asia Pacific dominates the market
Asia Pacific region is expected to continue its dominance over the forecast period. China is one of the leading global automotive manufacturing hubs and therefore has significant impact on regional lithium-ion battery market. Also, the presence of several electronic manufacturers such as Panasonic (Japan), Sony Corp. (Japan), Samsung SDI (South Korea), and LG Electronics (South Korea) in the region drives the market for lithium-ion batteries.
Furthermore, rising demand for tablets and smartphones across countries such as India, Japan, Thailand, and China are expected to enhance industry expansion over the estimated period.
Automotive is the highest shareholder
In terms of application, automotive is the most lucrative segment in the Global Lithium-ion Battery Market. The majority share of automotive segment in the market is owed to the rising adoption of electric vehicles due to environmental concerns. The rise in environmental concerns regarding carbon emission in the transportation sector has resulted in an increase in research & development for electric vehicles.
Additionally, the government’s strict regulations on emission standards to protect the environment and decrease the degradation-based possibilities are likely to play a critical role in influencing the market for lithium-ion batteries. Besides, the availability of publicly accessible charging booths has also increased the popularity of these vehicles, particularly in Europe and North America.
Lithium Nickel Magnesium Cobalt (Li-NMC) batteries dominated the market in 2021 owing to high specific energy which make these batteries more common for use in power tools or electric vehicles. Li-NMC is one of the most successful cathode combinations. Cylindrical design of lithium-ion batteries holds nearly 45 per cent of market share in 2021 owing to ease in manufacturing and good mechanical stability.
