With the escalating proliferation of electric vehicles in the automotive space, lithium ion battery market has witnessed extensive momentum since the last decade. Being one of most principal components of EVs, it comes as no surprise that the soaring production of these vehicles has had a transformative influence on lithium ion battery industry trends. Say for instance, in Europe alone, plug-in vehicle sales for the first two quarters of 2018 crossed 195,000 units – over 40% higher than that of the same period in 2017. This indicates that sales of EVs are expected to surge in not only Europe but across myriad other geographies, augmenting the overall lithium ion battery industry share.
Asia-Pacific Lithium Ion Battery Market Size, By Application, 2016 & 2024 (USD Million)
The rising popularity of this business space can also be attributed to the application of the product across electronic devices such as smartphones, laptops, and myriad other consumer electronic goods. Indeed, estimates claim that consumer electronics held around 35% of the overall lithium ion battery market share in 2016, driven by the fact that these batteries provide a portable power source, reduced charging times, and high energy density. By 2024, global consumer electronics market is anticipated to hit the USD 1.5 trillion benchmark, thereby strengthening the scenario for the expansion of lithium ion battery industry from consumer electronics. Not to mention, the appreciable efforts undertaken by manufacturers to concentrate on bettering product parameters like discharge time, battery life and charging capabilities, to attract consumers will further impel the revenue graph of this vertical.
The United States to emerge as a prominent revenue pocket for lithium ion battery market
The United States, being one of the pioneers of electric vehicle manufacturing and a globally acknowledged hub for technological advancements across myriad verticals, will evolve as one of the most reliable regional markets for lithium ion battery industry. The growth of this business sphere in this region can be credited to the rapidly expanding automotive, consumer electronics, and defense sectors in the region.
As per estimates, the U.S. was responsible for a surge of 11% in EV sales in 2015 from the sales in 2014. The U.S. government has also recently introduced a federal income tax credit for promoting the adoption of hybrid and electric vehicles. According to the federal initiative, on the purchase of hybrid and electric vehicles, buyers will be awarded with USD 7,500 tax credit, which will eventually encourage customers to purchase EV vehicles. With the rising EV production and sales, both of which are interdependent, Li-ion battery demand is certain to witness an upsurge, stimulating the regional lithium ion battery market outlook.
The U.S. lithium ion battery market has also gained traction on account of the presence of a large number of regional players that have been pulling all the stops to advance battery technology and extend their business beyond domestic borders. Tesla for instance, the renowned U.S. lithium ion battery industry contender, has had a long-standing collaboration with Panasonic, one of the leading players of Japan lithium ion battery market. Recently at the 2018 Consumer Electronics Show, Panasonic unveiled some information about its partnership with Tesla, claiming that its Li-ion battery factory within Tesla’s Gigafactory is equipped to handle the production of 2170-size cylindrical battery cells for the latter’s energy storage system. Tesla also revealed plans of establishing another Gigafactory and is likely to extend its collaboration with Panasonic for Li-ion battery production and supply.
The involvement of established magnates is likely to add a profound growth dimension for U.S. lithium ion battery market to expand in the ensuing years. Additionally, the regional industry is expected to be driven by the robust shift toward digitization in the healthcare sector and the growing adoption of smart products.
In the years to come, lithium ion battery market is likely to face a multitude of challenges, especially with regards to the cobalt content present in the product, that has become controversial due to numerous reasons, prime among them being the increasing costs of the rare mineral. Renowned industry contenders such as Panasonic, Samsung, and Apple plan to tackle this issue by reducing the amount of cobalt in Li-ion batteries, replacing it with other materials, while simultaneously striving to maintain the inherent characteristics of these batteries. Driven by the unending efforts of prominent contenders, lithium ion battery market is forecast to attain a valuation of USD 60 billion by 2024.