The market for lithium ion batteries is forecast to exceed a revenue of $60 billion by 2024 with a projected CAGR of 12% from 2018 to 2024, according to a new report by Global Market Insights, Inc.
Growing adoption of electric vehicles — coupled with government initiatives to promote sustainable energy utilization — will drive the lithium-ion battery market size. In 2015, electric car registrations witnessed a 70% increase from the previous year with 550,000 vehicles sold across the globe. According to the U.S. Energy Information Administration (EIA), China and the U.S accounted for 336,000 and 159,000 electric vehicle sales respectively in 2016.
Japan's lithium-ion battery market is set to witness growth over 8% by 2024. A positive outlook towards the automotive sector along with the growing adoption of smart devices will stimulate product demand. In 2016, Japan accounted for over 13 GWh of automotive lithium-ion cell manufacturing capacity representing a 237% increase from the 2014 level. Government focus to limit emissions along with shifting trend towards renewable energy utilization will further augment the industry growth.
Asia-Pacific Lithium Ion Battery Market Size, By Application, 2016 & 2024 (USD Million)
Image courtesy of Global Market Insights, Inc.
According to the report, the industrial lithium-ion battery market will surpass $9 billion by 2024. These products find wide-ranging applications across the defense and healthcare sectors, where capacity, energy density, and safety are of paramount importance. The ability to provide higher current makes its adoption preferable across heavy industries including mining, oil & gas and construction.
The U.S. in 2016, accounted for more than 80% of North America's lithium-ion battery market share. The ongoing digitization of the healthcare industry, along with the shifting trend toward IoTs, has resulted in increased demand for smart devices in the country. The report notes that government initiatives toward the adoption of non-conventional fuel vehicles will further enhance the business outlook.
Ongoing investments toward distributed generation, coupled with the growing demand for off-grid generation technologies, will stimulate product penetration across the energy storage applications. The rapid expansion of micro-grid networks will further provide impetus to industry growth. Nickel manganese cobalt oxide, lithium iron phosphate, and nickel cobalt aluminum oxide are prominent secondary batteries deployed for these applications.
The report says the lithium cobalt oxide (LCO) market is projected to witness gains of more than 6% on account of rising demand for portable electronic devices. These products are predominantly deployed across mobile phones, smartwatches, activity trackers, digital cameras and laptops owing to its ability to offer high specific energy. LCO consists of carbon graphite carbon anode and a lithium cobalt oxide cathode. However, low thermal stability, short life span and limited load capabilities of lithium cobalt oxide batteries may hamper the business growth.
The report notes that key players in lithium-ion battery market include: Tesla, Panasonic, Samsung, Hitachi Chemical, GS Yuasa, Philips, A123 Systems, Sanyo, LG Chem, EnerDel, Toshiba, Prologium, Valence, Exide, Saft Batteries, Energies Power, Roofer, Padre Electronics, Ding Tai, Johnson Controls and Duracell.
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