Living in 2021 means living in an era of technology. With the fast pace of advancement, the need and usage of technology also turned to a larger scale. Lithium-ion Batteries is the emerging trend in the use of regular batteries. Since the first design of lithium batteries, it has been in use now. Lithium-ion batteries have a wide scope in market share in the upcoming days. According to various analysis reports on the market size and share of LIB (Lithium-ion batteries), the future surge in the use of these batteries is surprisingly high.
The high amount of reliability and durability that come with Lithium-ion batteries has been turned into a great demand of various key players involving big corporations and automotive companies. Lithium batteries hold prime importance in various portable electronic devices industry due to their high energy density and low cost compared to the other batteries. The high durability and low recharge cycle upscale its affectivity and demand in the marketplace. The integration of lithium-ion batteries in the portable devices industry makes its use more popular. In this article, we summarized all the data of published reports and analysis to indicate the dominance of lithium batteries in market share.
What is Lithium Battery?
The lithium-ion batteries concept was created and came into life in 1970 and instantly became commercial in the 1980s. Ever since the first attempt at rechargeable lithium batteries production, it has been a trend to improve its working and efficiency. With the constant improvement, lithium-ion batteries offer many practical benefits to several electrical devices organizations, including smartphones, hybrid and full electronic vehicles and other portable devices. Improved safety, low hazard risk, and an effective battery management system make it a prime battery choice for the various industries requiring batteries.
Lithium-ion batteries offer a great deal of technology by using lithium-ion instead of lithium metals to provide more stability. This specific aspect of lithium made it powerful electrochemical potential and provided the largest specific energy per weight of this metal. Lithium-ion batteries have potential growth in the market, more significant in hybrid and portable electric devices. The important aspect of lithium-ion batteries is that they can have high voltage and possess a high charge storage per unit volume and per unit mass.
Market Overview of Lithium-ion Batteries
Lithium-ion batteries have a great impact on the market share. According to the published report of the forecast period of 2020 to 2025, lithium-ion batteries are expected to register about 22.58% of the Compound Annual Growth Rate (CAGR). The emergence of new and exciting markets of vehicle and energy storage system, use in commercial and residential appliances and low-cost expenses are the key driving forecast in the expected growth rate of lithium-ion batteries in the market share. According to the study, the hindrance in growth rate might be account due to the elevated rate of struggle in demand and supply match of raw materials. The global market size for lithium-ion batteries was expected to grow up to $44.2 billion in 2020 and will go to a high level of about $94.4 billion by 2025.
According to various reports, the forecast period estimate of CAGR varies due to the contributing factor involvement. The global lithium-ion batteries market size was estimated at about 36.7 $ billion in 2019. According to the forecast period of 2019 to 2027, the expected growth of market size will reach $129.3 billion by 2027. The Compound Annual Growth Rate will be expected to bear a growth of about 18.0% from 2020 to 2027. The lithium-ion battery is a rechargeable battery and uses lithium ions as an important component of its electrochemistry. The major use of lithium-ion batteries includes portable devices, i.e. laptops, PDAs, cell phone devices, and iPods. It has bigger commercial-level applications in automotive industries and full and hybrid-electric vehicles, which are likely to increase its market size.
Impact of Industrial Use on the Market Share of LIB
The industrial use of lithium-ion batteries dominates the market in 2019 and is expected to have major growth in 2020-2025. High energy densities, instant recharge capabilities, and high discharge power are the few attributes of lithium batteries that are not available in any other available battery technologies. Due to having these attributes, lithium batteries are capable of meeting the OEM requirement.
The integration of lithium batteries is increasing in the industrial sector globally in infrastructure, the economic viability of energy storage deployment, and the need to reduce grid dependency for power supply. Battery based electric storage system is getting more popular due to reduced cost and enhanced performance. Lithium-ion batteries have a great surge of growth in the rooftop solar PV power generation process. The solar home system, off-grid solar lighting, and charging products also greatly demand lithium-ion battery usage. This impacted the growth of the market share of lithium batteries in the Asia-pacific and African regions.
Lithium-ion Battery Market for Automotive Industry
According to the forecast period of 2020 to 2025, lithium-ion batteries for the automotive industry hold the largest impact on the overall market share of lithium batteries. The elevated trend of using electric vehicles (EV) has played a major role in the high-time popularity of lithium-ion batteries. Governments’ initiatives and support for adopting EVs worldwide are the contributing factors in the growing market size of lithium batteries. The market size of Electric Vehicles is soon tended to grow more in size by adopting different environmental norms and emission regulations. This has a core link with the growth of the market size and share of lithium-ion batteries.
Market Share of Lithium Nickel Manganese Cobalt Batteries
The market size of lithium nickel manganese cobalt (NMC) batteries is expected to grow higher in the forecast period 2020 to 2025. The high energy density of NMC is its primary strength. The use of the optimum ratio of nickel manganese and cobalt provides excellent stability to the function and durability of the NMC lithium battery. These attributes make it an important component in various industries, including automotive and other relevant organizations. The lightweight NMC Li batteries make it the perfect choice for slim tablets, smartphones, and laptops.
With the new advancement in portable mobile devices with a slimmer appearance, lithium batteries are expected to reach a high growth level. NMC lithium batteries hold great potential usage in the hybrid electric vehicle (HEV) and PHEV due to the high safety and reliable options. These attributes make the NMC expect a large-scale market share in the next five years from 2020-2025.
High Role of 36V segment lithium-ion battery market share
According to the various reports, the Li-battery market is expected to experience a high market share with a 36V segment in the next years from the 2020-2027 forecast period. Manufacturers opted above 36V lithium-ion batteries because of the high power support and high current applications linked with it. Lithium batteries with voltage range are high in demand due to their long life span and unmatched capabilities. Due to these properties, voltage range lithium batteries have high demand in telecom, marine, power and military appliances. Robust safety and higher power compared to lead-acid batteries make them important hence they contribute a major portion to the lithium battery market share.
Asia-Pacific Region Dominance in Lithium Battery Market Share
Lithium battery market share have a great contribution to the Asia-Pacific region. In 2018 these regions showed a great dominance in the market share. With the elevated deployment of Electric Vehicle in Asian countries like China and India and the high demand for electronic devices with urbanization, lithium batteries become prominently high, which ultimately cause a significant growth in the global market share of lithium-ion batteries. These countries are expected to emerge as the regional hotspot for the global lithium-ion battery market share due to their aspiration to achieve 100% Electric Vehicle sales by 2030.
Key Players in the Growth of Li-battery Market Share
The whole market of lithium-ion batteries has a high growth due to several global and regional players. Some many important industries and organizations have a prime role in the growth of LIB market share. These companies include;
- Tesla Inc.
- Samsung SDI
- LG Chem Ltd.
- Panasonic Corporation.
- Contemporary Amperex Technology Co. Ltd (CATL)
Advantages of Lithium-ion Batteries
The market share of lithium-ion batteries has been increased due to the high time advantages of these batteries on other rechargeable batteries. Li-ion batteries are light in weight as they have lithium and carbon electrodes. Big industries and portable devices organizations prefer lithium batteries in their products due to a good charging capability, no need to completely discharge batteries before recharging and are capable of holding hundreds of charge and discharge cycles.
With the rapid increase in using batteries in different electric storage devices, rechargeable lithium batteries hold prime importance in various industries and corporations. People prefer to have more reliable, sustainable, less costly and low risk-associated batteries. The prime technology of lithium batteries provide all the properties and hence have a great market share. With the rapid improvement in efficiency, Li-ion batteries are expected to reach a higher level on the market share scale in the next 5-7 years of short span.