Simultaneous search for mobility and prolonged operating life in consumer gadgets is currently spearheaded by lithium-ion batteries and this process drives the global lithium-ion battery market to reach $ 64.83 billion by 2031.
According to the recent report by the global market intelligence company Transparency Market Research, the global lithium-ion battery market was valued at $ 19.98 billion in 2020 and is likely to rise at a CAGR of 11.8% during 2021 - 2031.
Manufacturers are focusing on the lowered cost of lithium-ion batteries as they rebuild EVs and customise battery size, laying the groundwork for lithium-ion batteries to be integrated into autonomous vehicles (AVs)
As electric vehicles become industry standard, automakers who have traditionally relied on fossil fuels are forging alliances with lithium-ion battery producers. They are forming joint ventures with companies in China's lithium-ion battery industry for electric vehicles.
As the rising disposable waste of lithium-ion batteries becomes a serious environmental concern, stakeholders in the global lithium-ion battery market are investing more in material recycling research to reduce their environmental impact. Lithium-ion battery makers benefit from the growing popularity of hybrid and electric vehicles. As a result, companies are boosting their output capabilities in battery packs and energy storage systems simultaneously to diversify their revenue sources. Lithium-nickel-manganese-cobalt (NMC) and lithium-nickel-cobalt-aluminum (NCA) are two of the most common lithium-ion batteries utilised in the automobile industry, the report said.
In the near future, a lithium-ion battery is likely to be used to encapsulate a huge quantity of energy into significantly less space and weight, such as a wearable's tiny pocket. Furthermore, due to the increasing demand for consumer electronics, lithium-ion batteries are projected to witness substantial adoption. Lithium-ion batteries for consumer electronic gadgets are estimated to be responsible for half of the global sales in the years to come.
The global lithium-ion battery market, on the other hand, is expected to experience demand from the automobile industry in the near future. These batteries have a high discharge power, high energy density, and minimal time impact, which is essential in electric vehicles. Furthermore, higher government spending is likely to be a key driver for electric vehicle uptake. Leading electric mobility markets, such as Europe and the US, are using a variety of measures, such as fuel economy regulations and rewards for zero or low-emission cars, as economic tools to encourage the usage of electric vehicles (EVs).
Key Findings
Technological advancements have resulted in the recycling of lithium-ion batteries, which is expected to develop as a common practice in the industry. Isolation of different elements has become simpler due to automation meeting recycling procedures. Besides, producers can benefit from lower overhead costs and lower raw material needs in this regard.
Companies are using various online shopping apps and eCommerce to generate revenue to improve battery sales. Lithium-ion battery makers respond to an on-demand supply of products and services to satisfy individual client requirements. Due to China's raw material, supply chain, and various other product interruptions, stakeholders are likely to depend on local manufacturing abilities to maintain continuity of operations.
Governments in major regions of the world are increasing public knowledge about the benefits of utilising electric vehicles. In addition, many regions significantly emphasise the usage of zero- or low-emission automobiles by providing incentives for their adoption. As a result, a significant rise in the uptake of electric vehicles is likely to open up attractive opportunities for companies in the global lithium-ion battery market, Transparency Market Research said.
As the demand for smartphones rises worldwide, the need for lithium-ion batteries will also rise. As a result, lithium-ion battery consumption in consumer electronic items such as laptops, smartphones, and other digital devices is predicted to increase from 26 GWh in 2015 to 37 GWh in 2020 and then to 74 GWh in 2031. The continuous drop in lithium-ion battery prices is a pattern in the global lithium-ion battery market, the report said.
Courtesy: Transparency Market Research. NB: Photo is representational; courtesy: BYD.