Our-in depth analysis of the global Lithium Ion Battery market includes the following segments:
By Material Type:
By Application Type:
By End User Industries:
Global Lithium Ion Battery Market is further classified on the basis of region as follows:
Many multi-national companies are concentrating towards new product applications by the advancement in Lithium Ion Battery. Moreover, the many advantageous properties of Lithium Ion Battery for instance, its low cost, durability, battery- life, zero maintenance and more is projected to aid the market grow substantially during the forecast period. Uses of Lithium Ion Batteries have been discovered at regular intervals in the past since 1991 and consecutively till date which is expected to drive the Lithium Ion Battery market rapidly in the future. The global Lithium Ion Battery market is observing vibrant growth on account of increasing demand of energy storage applications in e-bikes, e-vehicles, smartphones, laptops etc. Technological advancement and new application introduction in automotive and electronic industry in the past few years is projected to drive Lithium Ion Battery market besides the wide range of functions of Lithium Ion Battery in an immense range of daily use products.
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For instance, the electronic devices accounted for net new connections of television by 22%, mobile phones by 24%, smart phones by 20%, tablets of 14% and computer of 20% share in household across Finland as per Statistics Finland which is expected to expand the growth of lithium ion battery market in electronics sector during the forecast period. Lithium Ion Battery Market is anticipated to record a CAGR of 16.2% over the forecast period. The Lithium Ion Battery market is expected to reach a value of USD 72.3 billion at the end of the forecast period.On the basis of regional platform, global Lithium Ion Battery market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
As a precursor to automotive and electronic industry, Asia Pacific is estimated to observe a substantial growth in Lithium Ion Battery market on the back of increasing Lithium Ion Battery usage. On account of Lithium Ion Battery usage in growing end-use industries such as electronic portable devices, e-vehicles, etc. the growth will showcase an exponential growth by the end of the forecast period.
Growing adoption of hybrid and e-vehicles with promising government laws toward sustainable and eco-friendly technologies will drive the market growth. In past few years, China, U.S., UK and Germany have witnessed a significant rise in e-vehicles demand because of emission rules and cost effectiveness. China is one of the regional hotspots for the lithium-ion battery market succeeded by South Korea, and Japan.
Asia Pacific is expected to drive demand curve positively and pose a positive influence on the growth of Lithium Ion Battery market over the forecast period owing to increasing Lithium Ion Battery application in automotive industries. North America is expected to grow with the highest CAGR during the forecast period.
The rising demand for Lithium Ion Battery for various applications majorly in automotive and electronic industries are expected to drive the market rapidly over the forecast period. Rapid economic development with thriving automotive sector is expected to boost the Lithium Ion Battery market in the developing regions.
Restriction on Lead
Stringent government laws toward the disposal of lead batteries along with growing demand for electronic devices will fuel up the lithium ion battery market. Rising demand for smartphones, activity tracking devices, laptops and smart watches from developing countries will positively enhance the lithium ion battery demand over the forecast period. Longer discharge cycles along with improved shelf life of Lithium Ion Batteries, are some of the prime features which will further provide push towards the market growth.
However, the extraction of lithium harms the environment due to water pollution. Also chemicals that are used to purify lithium are toxic and can harm environment, food chain and surrounding communities due to spills. That is why the mass production of lithium ion batteries for Green Cars will instead cause serious problems for the environment. These serious environment issues are anticipated to play as key restraints in the market growth over the forecast period.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.