The global lithium ion battery market is expected to grow to $73 billion by 2025 from $33 billion in 2018 as concern for the environment grows and demand increases for electric and hybrid-electric vehicles, according to a report by Global Market Insights Inc., a market research firm based in Delaware.
Shifting trends toward the application of renewable energy sources for power generation integrated with energy storage systems (ESS) also will enhance the lithium ion battery industry landscape.
In addition, the high adoption rate of activity trackers and smart watches owing to rising concerns toward health and fitness will drive the growth of the lithium ion battery market. Stringent waste disposal norms along with increasing demand for electronic devices will boost product penetration. In addition, a low rate of self-discharge along with high charge density are some of the prominent features favoring the installation of these batteries across the consumer electronics segment.
In the U.S., the lithium ion battery market last year checked in at more than $8 billion. “It is set to witness strong growth over the forecast timeframe,” the report states. “Increasing investments toward the development of EV charging infrastructure along with declining costs of electric vehicles will enhance the industry outlook. Growing focus toward environmental emissions coupled with tax incentives associated with adoption of renewable energy technologies will further boost the product penetration.”
The size of the Europe lithium ion battery market is anticipated to grow more than 11 percent by 2025, bolstered by supportive government policies coupled with a growing automotive industry will stimulate demand for these units. According to the International Energy Agency, in 2018, the total number of EVs on the road across Europe was more than 1 million units.
The Chinese lithium ion battery market will witness growth due to rising concerns toward high emissions levels associated with the transportation sector coupled with rising demand for consumer electronics, the report states. In addition, increasing integration of ESS with renewable energy sources will further augment the business growth.
The report predicts that the lithium cobalt oxide battery market also will expand more than 2 percent by 2025. High specific energy and long run time are some significant features that will favor the deployment of these batteries across consumer electronics including tablets, mobile phones, laptops, and cameras. The growing demand of high-performance consumer electronic batteries offering longevity and rapid charging will further enhance growth of this part of the industry.
Lithium manganese oxide (LMO) battery market will gain due to this product’s strong thermal stability and high power. Enhanced safety and current handling will favor the distribution of these batteries across the transportation sector including electric cars, buses, and two-wheelers.