Global Lithium-Ion Battery Market Set for Rapid Growth, to Reach around USD 67.70 Billion by 2022
The global lithium-ion battery market is predicted to increase at a CAGR of 12.3 percent from 2021 to 2030, rising from USD 41.1 billion in 2021 to USD 116.6 billion in 2030.
The surge in demand for continuous power supply from critical infrastructures in the wake of COVID-19, rising demand for plug-in vehicles, rising demand for battery-operated material-handling equipment in industries due to automation, continued development of smart devices, and growing adoption of lithium-ion batteries in the renewable energy sector are all driving the market forward.
The influence of COVID-19 on the lithium-ion battery market
The COVID-19 epidemic had a minor impact on the lithium-ion battery market. The predicted growth of the market is expected to slow under the current COVID-19 condition, since the pandemic is limiting the supply of batteries and other components due to severe disruptions in enterprises and the global economy. The battery industry’s supply chain has been influenced by the current scenario. The majority of battery components are made in Asia Pacific. The COVID-19 scenario has revealed the region’s overdependence on critical raw supplies, particularly China. The shutdown of operations in China and other Asia Pacific countries has had a significant impact on battery makers in the United States, Germany, and Australia. Limited output has also resulted, resulting in a significant drop in company inputs. Government aid, as well as the degree of corporate debt and how companies and markets deal with reduced demand, all play a role in the recovery. Following a period of recovery, the market is expected to rise at a modest pace through 2030.
Increased demand for plug-in vehicles is a driving force.
Electric vehicles use lithium-ion batteries as a source of power. The widespread usage of electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) has undoubtedly increased lithium-ion battery adoption, which is projected to continue to rise in the future. Consumer acceptance of EVs has aided in the growth of the market for these energy-saving, pollution-reducing vehicles. The number of electric vehicles is steadily increasing, owing to benefits such as reduced vehicle engine maintenance, reduced usage of hazardous oil waste, and reduced pollution caused by fuel combustion engines, as well as the advancement of battery technology. Electric vehicles are seen as the future of the automobile industry and transportation networks, and as their use grows, so will the demand for lithium-ion batteries.
Restraint: Concerns about the safety of spent battery storage and transportation.
Hazardous substances, such as acids and heavy metals like mercury and lead, can be found in spent batteries. In July 2007, a fire sparked by lithium-based batteries resulted in the igniting of more than 132,000 gallons of chemicals, forcing the closure of two major roads in the United Kingdom. It is required to store expended batteries in watertight containers and away from flammable and combustible items. A Class D extinguisher and sand should also be kept nearby as a preventive measure in the event of a fire. Because used batteries retain charge, there is a risk of unintentional discharge, which could cause damage to property and people. Unless otherwise specified, all batteries should be viewed as holding charge and stored with caution. Because of the aforementioned dangers, state and national governments restrict the storage and transportation of expended batteries.
Lithium-ion battery prices are falling, which presents an opportunity.
Since their introduction in the 1990s, the cost of lithium-ion batteries has been a major barrier to adoption. A lithium-ion battery is made up of several different parts. The cell is the most expensive part of any lithium-ion battery, accounting for over half of the total cost; electronics, assembly, and packaging make up the remainder. However, recent discoveries and claims made by lithium-ion battery manufacturers and automotive manufacturers predict that the price of these batteries will drop significantly. The cost of a cell is predicted to reduce to USD 100 per kWh by 2021, according to General Motors Company (US). Manufacturing on a big scale, falling component prices, and the use of sophisticated technologies to increase battery capacity are just a few of the drivers driving down prices. A lower price would encourage the use of these batteries in a variety of new applications.
COVID-19 has created supply chain disruptions in batteries and related components.
The COVID-19 outbreak and dissemination have had an impact on the energy industry supply chain, particularly in the areas of renewable energy and battery energy storage systems. APAC produces the majority of the key components for battery energy storage systems. The pandemic has revealed the world’s overdependence on the area, particularly China, for crucial raw commodities. The closure of operations in China and other APAC countries has had a significant impact on energy storage system manufacturers in the United States, Germany, and Australia.
During the forecast period, the lithium-ion battery with a capacity of 10,000–60,000 MAh is predicted to account for the biggest proportion of the lithium-ion battery market.
In 2020, the 10,000–60,000 MAh segment had the biggest market share. Electric vehicles, plug-in hybrid electric vehicles, e-motorcycles, material handling equipment, marine, robots, industrial, telecommunication systems, electronic cash registers, standby power supplies, golf cart vehicles, hybrid trucks, buses, smart grid, aviation industry, automated guided vehicle, yachts, solar backup power, energy storage system (ESS) p
In 2020, the automotive sector is predicted to lead the lithium-ion battery industry.
During the forecast period, the automotive category is estimated to have the greatest share of the lithium-ion battery market. Lithium-ion batteries are used extensively in battery-powered vehicles such as electric automobiles, e-bikes, and automated guided vehicles. EVs are classed as battery electric vehicles (BEVs), hybrid electric vehicles (HEVs), or plug-in hybrid electric vehicles (PHEVs) depending on their power source and use (PHEVs). The market’s growth is aided by increased use and awareness of electric vehicles. The COVID-19pandemic has wreaked havoc on automobile original equipment manufacturers (OEMs) and mobility industry stakeholders. Automobile manufacturers are increasingly relying on just-in-time manufacturing, which is impacting their production capacities and overall exports as a result of supply chain interruptions. Due to global supply chain interruptions caused by lockdowns, automobile manufacturing factories are only making and supplying a few vehicles. Until COVID-19 cases normalise globally, this could have an impact on the lithium-ion battery market’s growth.