Lithium-Ion Battery Pack Market
Lithium-Ion Battery Pack Market Analysis By Product Type(Lithium Cobalt Oxide, Lithium Magnesium Oxide, Lithium Iron Phosphate, Lithium Nickle Manganese Cobalt, Lithium Titanate), By Cell Type (Cylindrical, Prismatic, Pouch) and by Region - Global Forecast 2021-2031
Analysis of Lithium-Ion Battery Pack market covering 30+ countries including analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
Lithium Battery Pack Market Growth Analysis
The li-ion battery market revenue totalled US$ 57.4 Billion for 2020, according to Fact.MR, a market research and competitive intelligence provider. Li-ion’s quality of being lightweight and the drop in the price for li-ion is driving the sales of the same.
In addition, the demand from electric vehicles will accelerate the sales of li-ion battery packs. Thus, the overall li-ion market is expected to reach US$ 75.3 Billion billion by 2031, witnessing a slow growth CAGR of 3% from 2021-31. in the forecast period 2021-2031.
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Li-Ion Battery Pack Revenue Analysis 2016-2020 Vs Outlook 2021-2031
As per Fact.MR’s report, over the last five years, from 2016 to 2020, sales of li-ion battery packs surged at over 2% CAGR, amid increasing requirements for consistent power and electricity supply for critical infrastructure needs across various industries.
Prospects dipped significantly amidst the COVID-19 pandemic, majorly attributed to contractions experienced in the global automotive industry. Since its onset, the pandemic induced major sluggishness in automotive output, attributed to imposition of stringent lockdowns. This led to restricted uptake of li-ion battery packs, inducing major sluggishness.
However, growth is likely to be sustained by virtue of applications across other end use industries. Manufactures of li-ion battery packs are focusing on increasing the efficiency of the batteries along with making them lightweight and durable. Thus, the market is expected to registering CAGR of 3% in the assessment period.
- Sila nanotechnologies are replacing the graphite anode and it forms a lot of bulk making about 15% of current lithium-ion batteries. These batteries are made with silicon that increases cells’ energy by 20 to 40% and also makes it faster in charging.
- Novel innovations have come up with a breakthrough technology that charges the car in 10 minutes. This design breakthrough is anticipated to increase the adoption of electric vehicles. Scientists have enhanced the performance of lithium-ion batteries in extreme cold including new anode carbon-based material. This is likely to become a lucrative research area among scientists in order to improve the functionality of batteries in lower temperatures.
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How are Burgeoning EV Sales Spurring Demand for Li-Ion Battery Packs?
Governments across the globe are focusing on reducing pollutants that are emitted by conventional vehicles. In addition, the depletion of natural resources is causing a threat to the environment. Thus consumers have shown an inclination towards using electric vehicles due to their efficiency.
Electric vehicle manufacturers have given preference to using li-ion batteries as they store energy for longer runs and can be used in hybrid vehicles too. Along with this, the hassle of maintaining engine efficiency is not needed. The sales of electric vehicles has increased. This, in turn, has upsurged the sales of li-ion battery packs.
How will Energy Storage Applications Open Growth Frontiers for Li-Ion Battery Packs?
Li-ion battery packs exhibit considerable potential for application to grid-level energy storage systems. These batteries impart high energy efficiency, have longer life cycles, and relatively higher energy density. Hence, they can be integrated with renewable energy sources in grid-energy storage systems.
Most frequently, li-ion batteries in this respect are deployed for the purpose of frequency regulation and peak shaving. Frequency regulation requires a fast response, high performance rate and enhanced power capability for the systems, for which li-ion batteries are best suited. In terms of their high round-trip efficiency and energy density, LIBs exhibit considerable potential for application.
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Why is Asia Attracting Li-Ion Battery Pack Manufacturers?
Asia has dominated the global li-ion battery pack industry since 2019, accounting for nearly 35% revenue, with China emerging at the forefront, particularly for electronics manufacturing. China contributes 27% of the world’s smartphone industry, a potential application area for li-ion batteries.
However, it is now grappling with a slow down due to the coronavirus outbreak. Production in the region was almost dormant for last couple of months due to the lockdown imposed amid the pandemic.
Fortunately, as restrictions ease, companies are resuming their operations. For instance, in March 2020, Leoch- a leading manufacturer of batteries resumed production of li ion battery pack in China. According to Fact.MR, Asia is set to expand at a value CAGR of 3% by the end of forecast period.
What Growth Prospects Abound across the U.S Market?
According to Pew Research Centre, around 97% of people own a cell phone. Thus, the dependency on electronic devices in countries like U.S. and Mexico has increased over time. Phones instilled with li-ion offer longer battery life. This, in turn, has increased the sales for li-ion batteries.
Furthermore, growing preference for electric mobility is widening popularity of hybrid and electric vehicles, a trend which is likely to open up significant growth prospects for the market in forthcoming years.
As of 2021, national sales of EVs will likely amount to 310,272 units. Thus, according to Fact.MR, the li-ion battery pack market is expected to possess 40% of market share in the assessment period.
Why are Lithium Iron Phosphate Batteries Gaining Popularity?
Lithium Iron phosphate batteries provide longer life span in comparison to other batteries. In addition, these batteries need no maintenance and are extremely safe to use.
Adoption of lithium phosphate batteries has increased in portable devices over time. Thus, according to Fact.MR, lithium iron phosphate batteries are expected to reach over US$ 16 Bn by the end of the forecast period.
Will the Automotive Industry Remain the Primary End User?
According to Fact.MR, automotive applications are likely to account for bulk of the li-ion battery pack demand in forthcoming years, expanding at a CAGR of 4% until 2031. Widening popularity of EVs, e-bikes and automated guided vehicles are spurring usage.
Amongst all vehicle types, demand across BEVs and PHEVs are expected to be the strongest, as they offer a high degree of convenience to automobile users. Although, uptake in the short-run will remain restricted as the pandemic induced recession will fade gradually.
Prominent manufacturers are emphasizing on launching advanced battery packs equipped with high-grade conducting material, besides relying on such initiatives as strategic collaborations, acquisitions and capacity expansion measures.
- In March 2021, GS Yuasa International Limited won the Toyota Technology and Development award for lithium-ion battery for hybrid vehicles.
- In November 2018, Johnson Controls and Toshiba Corporation joined hands to deliver low-voltage lithium-ion solutions to increase the efficiency of the same.
- In December 2019, LG Chem Ltd., a leading li ion battery pack player, collaborated with General Motors (GM) to produce li ion batteries for its electric vehicles.
Key Segments Covered
- Lithium Cobalt Oxide Battery Pack
- Lithium Magnesium Oxide Battery Pack
- Lithium Iron Phosphate Battery Pack
- Lithium Nickle Manganese Cobalt Oxide Battery Pack
- Lithium Nickle Cobalt Aluminium Oxide Battery Pack
- Lithium Titanate Battery Pack
- Less than 12V
- More than 24V
- >20 kWh
- 30-60 kWh
- 60-80 kWh
- More than 80 kWh
- Automotive Li-Ion Battery Pack
- Consumer Electronics Li-Ion Battery Pack
- Digital Camera
- Medical Devices
- Industrial & Grid Energy
- Automotive Li-Ion Battery Pack
- FAQs -
The li-ion battery pack is expected to surpass a CAGR of 3% from 2021-2031.
The li-ion battery pack market is expected to reach nearly US$ 75.3 Billion by 2031
Adaptability of li-ion batteries in electronic gadgets along with the use of li-ion battery pack in electric vehicles are the key trends driving li-ion battery pack sales.
Demand for li-ion batteries in the U.S will account for 40% of the global revenue
BYD Company, GS Yuasa International Limited, Toshiba Corporation, Sony Corporation, Showa Denko Materials Co., Ltd, A123 Systems LLC, Saft, Johnson Controls, Clarios and LG Chem Ltd are some prominent manufacturers
Lithium Iron Phosphate is expected to hold the highest share for sales, expanding at more than US$ 16 Bn market value.
Asia is expected to surge at a CAGR of 3% across the 2021-2031 forecast period