The lithium compounds market is estimated to garner a sizeable revenue by growing at a robust CAGR over the forecast period, i.e., 2021 – 2029. The growth of the market can be attributed to the increasing demand for energy saving devices, growing usage of devices with Li-ion batteries and rising environmental consciousness of government agencies and consumers worldwide. Furthermore, exceptional properties of lithium such as more usable capacity, safety, fast charging and superior temperature endurance are expected to further the demand of lithium based products in the near future. In addition, growing use of electric vehicles is also projected to offer lucrative opportunities to the market during the forecast period. The total number of electric vehicles sold globally from 2018 to 2019 noticed a major hike. The quantity was more than 5 million in 2018, growing up to 7 million in 2019.
The market is segmented by application into glass & ceramics, Li-ion batteries, lubricants, medical, metallurgy, polymers, and others, out of which, the segment for Li-ion batteries is anticipated to hold the largest share in the lithium compounds market as they are capable of storing more power per unit of weight as compared to other conventionally used alternatives such as nickel cadmium and nickel hydride batteries. Along with these, the increasing use of lithium batteries in laptops and electric vehicles is also assessed to drive market growth in the future. Additionally, based on compound, the lithium carbonate segment is evaluated to gather large market share owing to the high stability of this compound, and growing usage in pharmaceuticals and aluminum productions. However, the segment for lithium hydroxide is expected to grow with the highest CAGR during the forecast period in view of its ease of processing in several battery-based applications.
The chemical industry is a major component of the economy. According to the U.S. Bureau of Economic Analysis, in 2020, for the U.S., the value added by chemical products as a percentage of GDP was around 1.9%. Additionally, according to the World Bank, Chemical industry in the U.S. accounted for 16.43% to manufacturing value-added in 2018. With the growing demand from end-users, the market for chemical products is expected to grow in future. According to UNEP (United Nations Environment Programme), the sales of chemicals are projected to almost double from 2017 to 2030. In the current scenario, Asia Pacific is the largest chemical producing and consuming region. China has the world’s largest chemical industry, that accounted for annual sales of approximately more than USD 1.5 trillion, or about more than one-third of global sales, in recent years. Additionally, a vast consumer base and favourable government policies have boosted investment in China’s chemical industry. Easy availability of low-cost raw material & labour as well as government subsidies and relaxed environmental norms have served as a production base for key vendors globally. On the other hand, according to the FICCI (Federation of Indian Chambers of Commerce & Industry), the chemical industry in India was valued at 163 billion in 2019 and it contributed 3.4% to the global chemical industry. It ranks 6th in global chemical production. This statistic shows the lucrative opportunity for the investment in businesses in Asia Pacific countries in the upcoming years.
On the basis of geographical analysis, the lithium compounds market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. The market in the Asia Pacific region is estimated to grab the largest share and witness noteworthy growth over the forecast period on the back of large number of lithium reserves in Australia, and high manufacturing volume of China. Along with these, China is also one of the biggest manufacturers of batteries in the world, which in turn is anticipated to drive market growth in the APAC. The lithium ion batteries market in China is calculated to hold a revenue of more than USD 23 billion by the end of 2025. Moreover, Europe is also predicted to hold a large market share during the forecast period, which can be credited to the large production of electric vehicles in the region, especially in Germany.
The lithium compounds market is further classified on the basis of region as follows:
Our in-depth analysis of the lithium compounds market includes the following segments:
FREQUENTLY ASKED QUESTIONS
The major growth drivers for market are increasing usage of li-ion batteries worldwide and growing demand for energy saving devices around the world.
The market is anticipated to attain a robust CAGR over the forecast period, i.e., 2021 – 2029.
High operational cost of extracting lithium is estimated to hamper the market growth.
Asia Pacific region will provide more business growth opportunities on the back of large number of lithium reserves and high manufacturing capacity of the region.
The major players in the market are Albemarle Corporation, Sociedad Quimica y Minera de Chile S.A., Tianqi Lithium Industries Inc., Livent Corporation, Ganfeng Lithium Company Limited, and others.
The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
The market is segmented by application, compound, and by region.
The Li-ion batteries segment is anticipated to hold largest market size and is estimated to grow at a notable CAGR over the forecast period and display significant growth opportunities.
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