The Lithium ion battery market is anticipated to reach US $71.0 billion by 2025 from US$ 26.9 billion in 2018 thereby registering a moderate CAGR growth rate of 14.9% during the forecast period.
The Lithium ion battery based on their power ratings provide power supply across significantly vast range of commercial, residential and industrial applications. Further, through the advancement in technology has facilitated in batteries with improved energy efficiencies and charging periods. Over the last few years, they have played a major role in the growth and evolution of the energy, automotive and electronic appliances sectors. While multiple technologies exist encompassing pump-hydro, compressed air, flywheels and batteries; Li-ion technologies have provided the energy and power requirements to meet the technical demands of these three sectors. The South America Lithium ion battery market region is expected to witness a CAGR growth rate of 15.7% in the coming years. Thus, the Lithium ion battery market is expected to witness significant growth opportunities in the coming years.
Exhibit: Lithium Ion Battery Market by Region
Surge in volume of consumer electronic devices globally
A lithium-ion battery is a type of rechargeable battery with greater stability and safety along with more energy capacity compared to other commercially available batteries. The production on a lithium-ion battery is ramping up owing to the surging demand from electric vehicles, consumer electronics, and energy storage systems. It is extensively used in a wide range of electronic devices such as mobile phones, laptops, iPods, and PDA's including many others. Also, uses of lithium-ion battery comprise of radio-controlled hobby vehicles, notebooks, portable vaporizer, drones, and UAV. Currently, connected and smart consumer products are much in demand as compared to simple electronic products and purely mechanical devices. However, in such smart devices battery is the key power capacity taken into consideration while designing products. As a result, Li-ion batteries are the popular choice for consumer electronic products owing to their design flexibility, recharge ability, and ease of getting fit in a custom size. Thus, the Lithium ion batteries is poised to provide numerous profitable business opportunities for the market players in the coming years.
Continuous investment towards development of improved efficiencies of Li-ion batteries
The Li-ion batteries are used in a wide range of applications such as consumer electronics, automotive, energy storage systems, aerospace & defense, and medical & healthcare. These industries highly depend on Li-ion battery for powering electronic devices, medical devices, power systems, and electric vehicles including many others. Lightweight is the major concern while choosing the batteries for the range of applications in order to reduce the product weight. Li-ion batteries are a quarter of the weight of lead-acid batteries, thus, the preferred solution for high-performance products. As a result, the continuous investment towards research & development of superior battery materials, cells, and battery recharging technologies by numerous leading market players are expected continue to provide numerous profitable opportunities for the market players in the coming years. Subsequently, the driving the growth of the lithium ion battery market in the forecast period.
Battery Type Insight
In the global Lithium ion battery market, the continuous research and development in the field of lithium cobalt oxide battery with an objective to improve the cathode and electrolyte solutions is facilitating the growth of lithium cobalt oxide (LCO) based batteries. Moreover, the high energy capacities coupled with their large scope of application in consumer electronics is further expected to boost the segment growth in the forecast period. The consumer electronics is increasing rapidly in the developed countries as well as developing economies, thereby, creating a substantial demand for lithium cobalt oxide batteries. This factor is furnishing the lithium ion battery market growth in the recent times, and the same trend is anticipated to help the lithium ion battery market to soar in the future from 2018 - 2025. Johnson Matthey Battery Systems and Nichia Corporation are globally renowned lithium cobalt oxide battery manufacturers
The production of lithium ion batteries production in Asia has witnessed surge owing to significant demand in the region along with easy availability of raw materials. Australia is considered to be the largest supplier of lithium to China, Japan and South Korea. In some of the recent developments in the Lithium Ion battery market observed in Asian region is Honda partnering with Panasonic to provide portable lithium ion batteries for cars, motorcycles, robots, and other uses. Honda is seeking to establish deeper cross domain partnerships as the lithium ion battery market in Asia Pacific for the lithium ion batteries is highly developed. Also, the two companies i.e. Honda and Panasonic have planned to develop a technology where the same lithium ion battery would be able to use in multiple ways and the testing for this project has started in Indonesia. Also, the Japanese giant automaker Mazda has announced its plans to develop small lithium ion batteries in partnership with chemical maker Ube, and storage battery startup Eliiy Power. In another development, Tesla, developed one of the world's largest lithium ion battery plant in South Australia. The Asia-Pacific Lithium ion battery market is expected to grow with a attractive CAGR growth rate of 14.6% from 2018 to 2025.
Exhibit: Lithium ion battery Market by Automotive