Li-ion battery is a rechargeable battery used in consumer electronic products such as laptops, smartphones, tablets, etc. Li-ion battery has high energy density and low self-discharge property. Li-ion battery is one of the most efficient types of batteries and is used to power mostly all types of electronic appliances including electric vehicles.
The global lithium-ion battery market is estimated to be valued at US$ 46.5billion in 2021 and is expected to exhibit a CAGR of 17.0%over the forecast period (2021-2028).
In September 2019, BAK Partners with Lithium-ion Battery Technology Company Cadenza Innovation to Introduce the Startup's "Supercell" Platform to China.
In April 2020, Toshiba Corporation announced that its SCiB lithium-ion battery modules and related components for building a battery system are the first to win approval for use in marine vessels from Nippon Kaiji Kyokai (ClassNK), the international ship classification society that promotes protection of life and property at sea, and protection of the marine environment.
Figure 1. Global Lithium-Ion Battery Market Value (US$ bn), by Region, 2020
Asia Pacific held dominant position in the global lithium-ion battery market in 2020, accounting for 48.3% share in terms of volume, followed by North America and Europe, respectively.
Strong growth in the consumer electronic market across developing countries is propelling the market growth of the Li-ion battery. According to India Brand Equity Foundation, the Indian appliance, and consumer electronics (ACE) market reached US$ 10.93 billion in 2019. Moreover, the appliances and consumer the electronics industry is expected to double to reach US$ 21.18 billion by 2025. Thus increasing use of electronic products such as smartphones and tablets is propelling market growth.
The increasing use of Li-ion Battery electric vehicles is propelling market growth. Also, the growing adoption of the electric vehicle due to rising environmental concerns are again expected to foster the market growth of lithium-ion batteries. According to the International Energy Agency, the global sale of the the electric vehicle reaches 2.1 million in 2019. Electric cars, which accounted for 2.6% of global car sales and about 1% of global car stock in 2019, registered a 40% year-on-year increase.
|Base Year:||2020||Market Size in 2021:||US$ 46.5 Mn|
|Historical Data for:||2017 to 2020||Forecast Period:||2021 to 2028|
|Forecast Period 2021 to 2028 CAGR:||17.0%||2028 Value Projection:||US$ 139.3 Mn|
Sony, LLC, Automotive Energy Supply Corporation (AESC), China BAK Battery, Inc, GS Yuasa Corporation, Hitachi Chemical Co. Ltd., Johnson Controls, Inc., LG Chem Power, Inc., Panasonic Corporation, Samsung SDI Co. Ltd., and Toshiba Corporation
|Restraints & Challenges:||
The growing focus of key manufacturers on increasing the production capacity of the lithium-ion batteries is expected to serve profitable and bright opportunities to the market of lithium-ion batteries over the forecast timeframe. For instance, in June 2018, Exide Industries, manufacturer of batteries, and Leclanché announce the launch of a new joint venture to build lithium-ion batteries and energy storage solutions to power the growth of India's electric vehicle market.
The increasing use of Li-ion batteries in digital cameras is projected to offer potential market opportunities in the near future. For instance, In December 2017, Digitek has launched its new Platinum Extra Power Li-ion F-980 battery for Sony Video Cameras (Compatible with Sony NP-F960/970). Platinum Extra Power Li-ion F- 980 battery has a greater capacity than the original Sony battery and lasts longer during the shoots. Thus, the growing use of Li-ion batteries in digital cameras will favor market growth.
Consumer demand for consumer electronic product such as cellphones and laptop has emerged as the largest market for lithium-ion batteries. The increasing use of smartphones and laptops due to the growing penetration of the internet is expected to foster market growth. Moreover, increasing disposable income coupled with the improving lifestyle of the consumer is again driving the sale of consumer electronic products such as a smartphone. This is further propelling the market growth of the Li-ion batteries over the forecast period
Growing collaboration and partnership among key manufacturers for business expansion is one of the growing trends in the market. For instance, in February 2018, Mahindra & Mahindra Ltd., and LG Chem, announced a partnership in the field of advanced Li-ion battery technology. Under this collaboration, LG Chem is going to develop a unique cell for India application and also supply Li-ion cells based on NMC (nickel-manganese-cobalt) chemistry with high energy density.
Figure 2. Global Lithium-Ion Battery Market Share, By Application, 2020
Key Takeaways of the Graph:
The high cost of lithium-ion batteries as compared to other batteries such as lead-acid, sodium-sulfur, and nickel-metal-hydride is expected to restrict its adoption rate. Thus, the slow adoption rate due to the high cost of these batteries is hampering market growth.
Issues associated with the storage and transportation of spent batteries is another major factor acting as a challenge for the market growth of the lithium-ion batteries. This is expected to hamper the market growth over the forecast period.