Monday 8 February 2016

Lithium Ion Battery Market to Register Increasing Demand from Industries


According to a report published by Transparency Market Research (TMR), the global lithium ion battery market, which stood at US$11.7 bn in 2012, is expected to reach US$33.1 bn by 2019. If the estimates hold true, the global market for lithium ion batteries will exhibit a CAGR of 14.40% between 2013 and 2019. The report is titled “Global Lithium Ion Battery Market - Industry Analysis, Size, Share, Growth, Trends, and Forecast 2013 - 2019” and is available for sale on the company website.

In the last few years, the demand for electric and hybrid electric vehicles (HEVs) has increased significantly owing to the rising crude oil prices. Since these vehicles are powered by lithium ion batteries, growth of the market for HEVs will subsequently boost the market for lithium ion batteries. Apart from the automotive industry, the report also cites lucrative prospects for lithium ion batteries in the consumer electronics sector. Lithium ion batteries are nowadays increasingly being used in devices such as tablets and smartphones, since they ensure slow battery discharge and high lifespan. This is expected to significantly propel the global market for lithium ion batteries.

Governments of several nations are implementing stringent regulations to curb the carbon footprint. Stringent regulations imposed in countries such as China and in countries across Europe and North America aid the increasing adoption of lithium ion batteries, as per the TMR report. However, lack of awareness regarding the benefits of lithium ion batteries and their high price will hamper the growth of the market to some extent. This is also the primary reason behind low adoption of these batteries in the automotive, electronics, and other industrial sectors. The chances of lithium ion batteries exploding when exposed to high temperature also inhibits their adoption across industries. However, many technological advances have been introduced to eliminate the risks associated with Li-ion batteries, which, according to the TMR study, may provide lucrative growth opportunities for the global lithium ion batteries market in the near future.


For the purpose of the study, the report segments the lithium ion battery market on the basis of application, material types, and geography. The consumer electronics sector emerged as the largest application segment in 2012, trailed by the automotive sector. The report stated that high demand for smart gadgets, electronic devices, and electric vehicles fuels the demand for lithium ion batteries. Lithium ion batteries will also witness rising demand from emerging application segments such as the medical industry, energy production, and military, as per the report’s findings.



Among the key regional markets, Asia Pacific led the global market for lithium ion batteries in 2012, with a 42% share in the global market. Increasing demand for lithium ion batteries in Japan and China aided the growth of the market in the region. Furthermore, the launch of hybrid buses in China is also expected to give a boost to the lithium ion battery market in the Asia Pacific region.

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