Lithium-ion Battery Market - Segmented by Application and Geography - Growth, Trends, and Forecasts (2018 - 2023)
Lithium-ion Battery Market Growth
The requirement for energy storage solutions is increasing as many governments are taking policy-level initiatives, to promote renewable power generation and electric vehicles adoption. Furthermore, due to the increasing competition in lithium-ion battery market and growing demand for the same, major manufacturers have been investing heavily in R&D activities to achieve better performance and to lower the production costs of Lithium-ion batteries. Also, in the next few years, many low-cost battery production facilities are expected to come online in China, which will further help in driving the lithium-ion battery prices down. By 2023, prices are expected to hover around USD 140 per kWh from the current USD 209 per kWh.
Demand from the Automotive Sector - Driving the Lithium-ion Battery Market
Lithium-ion batteries are now increasingly being used as a power source in hybrid and the complete electric vehicle range. Owing to advantages offered, such as low environmental impact, as they do not emit any CO2, NOX, SOX, or any greenhouse gases, both manufacturing and sales of electric vehicles (EVs) have witnessed a constant increase over the past couple of years and is expected to increase even further.
Furthermore, over the past few years, China, the United States, and the European region has accounted for the maximum sale of electric vehicles, which are primilarly high-end electric vehicles. Till 2017, there are approximately 1.2 million electric cars on the roads in China, followed by 750,000 in the United States. Also, falling battery prices, coupled with rising commitments from the global automakers, are expected to bring price-competitive electric vehicles to all the major light-duty vehicle segments as well, which is expected to further augment the demand for EVs, in turn resulting in increased demand for lithium-ion batteries.
Asia-Pacific -Region with the Highest Market Share
In Asia-Pacific region, China is one of the regional hotspots for the lithium-ion battery market followed by South Korea and Japan. Furthermore, Consumer spending in emerging economies, like India and China, is expected to go up, which, when supported by a rise in urbanization and increase in earnings per household, is likely to result in an increase in disposable income. High consumer confidence is reflected by the increasing consumer spending, which is a positive economic indicator. Moreover, the rise in urbanization is expected to boost the demand for technically-advanced devices, due to the benefits provided by the devices. This will, consequently, lead to a growth in demand for lithium-ion batteries.
China -Among the Leading Countries in Lithium-Ion Batteries Market
In 2016, China led in electric vehicle adoption, with 336,000 new electric cars being registered in the year. The electric car sales in China alone was more than the number of electric vehicles sold in the United States, where there were only 160,000 new registrations of electric vehicles. Furthermore, the Chinese government has been providing both financial and nonfinancial incentives to promote the adoption of electric vehicles. The electric vehicles are exempted from acquisition and excise taxes, ranging between CNY 35,000 and CNY 60,000. Moreover, some cities in China have also been allowing total or partial waivers from license plate availability restrictions.
Notable Developments in the Lithium-ion Battery Market
February 2018: Mahindra and LG Chem announced a partnership to jointly develop a new, advanced Li-ion battery technology, which is to be used in Mahindra's range of electric vehicles. As part of this agreement, LG Chem is likely to develop lithium-ion cells based on NMC (Nickel-Manganese-Cobalt) chemistry, which has high-energy density.
December 2017: Panasonic Corporation, a leading supplier of electric-car batteries, collaborated with Toyota Motor Corp., which makes batteries for electric vehicles (EV), for the development of lithium-ion prismatic cells. This agreement is intended to address the increasing demand and expectations for electrified vehicles.
Major Players in Lithium-ion Battery Market
BYD Company Limited
Contemporary Amperex Technology Co. Limited
LG Chem Ltd
Tianjin Lishen Battery Joint-Stock Co. Ltd.
Reasons to Purchase Lithium-ion Battery Market Report
To identify the market drivers, restraints, and opportunities that are possessed by the Global Lithium-ion Battery market
To analyze the various perspectives of the market with the help of Porter’s five forces analysis
To identify the largest and fastest growing countries during the forecast period, with in-depth analysis
To identify the latest developments, market shares, and strategies that are employed by the major market players
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