The global lithium ion battery market is predicted to grow rapidly during the projected period, owing to increase in adoption in different electronic devices, along with electric & hybrid vehicles. Lithium ion batteries are rechargeable, which are commonly used as a power source in various portable electronic devices. The components present in these batteries mainly include cathode, anode, and electrolyte, out of which the cathode occupies around 30% of the overall cost of the lithium-ion battery. Various organizations across diverse industry verticals such as electronics, automotive, and industrial prefer lithium ion batteries over conventional energy storage solution owing to their enhanced energy density, lightweight, and eco-friendly nature. Further, the development of portable and sleeker digital devices is expected to foster the demand for lithium-ion batteries.
According to a new report published by Allied Market Research, titled, Lithium Ion Battery Market by Technology & End-Use Industry: Global Opportunity Analysis and Industry Forecast, 2018 - 2025, the global lithium ion battery market was valued at $30,186.8 million in 2017, and is projected to reach $100,433.7 million by 2025, growing at a CAGR of 17.1% from 2018 to 2025.
The adoption of lithium ion batteries in Asia-Pacific is currently the highest, due to increase in demand in China, Japan, and India. North America and Europe are the second and third leading regions, respectively, for the lithium ion battery market. At present, the global market is highly concentrated as about five to six major players occupy around 50% market share in the overall lithium ion battery market.
The global lithium ion battery market is driven the increasing demand for energy conservation among automotive companies by using lithium ion batteries. Moreover, stringent regulations regarding the emissions from traditional vehicles is expected to further augment the demand for electric vehicles, which in turn fuels the requirement of lithium ion batteries.
Based on region, the North America lithium ion battery market is predicted to grow on a rapid scale over the coming period, owing to the increase in production of electric and hybrid vehicles. Moreover, rise in sales of electronic products in the overall North America region is further anticipated to enhance the regional market size during the forecast period.
Based on region, the North America lithium ion battery market is projected to grow at a rapid CAGR of nearly 17.7% during the projected period.
Based on region, the Asia-Pacific lithium ion battery market is anticipated to dominate the global market during the forecast period.
The automotive segment is expected to dominate the market, with more than a half of the market share throughout the projected period.
Some of the key players operating in the global lithium ion battery market include Automotive Energy Supply Corporation, Panasonic Corporation, Samsung SDI Co. Ltd., LG Chem Power (LGCPI), LITEC Co., Ltd., A123 Systems, LLC., Toshiba Corporation, Hitachi Chemical Co., Ltd., China BAK Battery Co. Ltd., and GS Yuasa International Ltd. among others. The other players in the market (not included in the report) include Tesla, Johnson Controls International Plc., Saft Batteries, and BYD Company Ltd.
Several key players operating in the global lithium ion battery market are constantly adopting different strategical moves such as business agreements, expansion plans, company mergers & acquisitions, along with various joint ventures, to enhance their position in the market. For instance, in September 2017, Maruti Suzuki India Ltd., collaborated with Toshiba and Denso to start a lithium-ion battery production facility solely dedicated for automobiles in India.