The top three companies within the global lithium-ion batteries market, Panasonic Corporation, Samsung SDI Co. Ltd., and LG Chem Power Inc., accounted for nearly 57% of the market in 2016, as per a recent research report by Transparency Market Research (TMR). Needless to say, the market for lithium-ion battery is highly consolidated. Key players within the market are offering dedicated services to their customers at competitive costs and using this as a key strategy to attract new customers and continue to lead in the market. Players are also developing new application-specific working materials, which is helping them to gain an edge above others.
There are other companies in the market such as Hitachi Chemical Corporation, Johnson Controls Inc., Toshiba Corporation, GA Yuasa Corporation, and Automotive Energy Supply Corporation (ASEC). These companies are collaborating, merging, or partnering with other companies in order to gain more market shares. It is anticipated that the degree of competition will be high throughout the forecast period till 2024.
According to TMR, the global lithium-ion battery market will be worth US$77.42 bn by 2024. By power capacity, the demand for 5–25 Wh lithium-ion battery is highest. The 5–25 Wh batteries are used in smartphones and this is the key reason behind their growing demand. The fastest growth rate will however be witnessed by the 18–28 KWh power capacity segment on account of their use in electric vehicles. By geography, Asia Pacific will continue to lead in the market. On the basis of application, the consumer electronics segment will emerge dominant on account of the growing demand and dropping prices of smartphones.
Shift to Electric Vehicles to Create Growth Opportunities for Lithium-ion Battery Market
The trend of going green and therefore the shift of the automotive industry towards clean and sustainable fuel has resulted in the trend of electric vehicles which is powered by lithium-ion battery. This in turn is anticipated to fuel the growth prospects of the market in the future. The demand for lithium-ion battery will increase in the future from EVs, HEVs, and BEVs. The growing demand for smartphones is remains a key factor boosting the demand for lithium-ion batteries.
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Safety Concerns and Recent Exploding of Samsung Note 7 to Create Negative Impact
The booming consumer electronics sector will continue to propel the demand for these batteries in the years to come. The demand for these batteries is high on account of its high energy density, less time needed for charging, low maintenance required, and light weight of these batteries. Lithium-ion batteries are therefore used in laptops, smartphones, and tablets. However, growing safety concerns regarding the use of these batteries on account of recent Samsung Galaxy Note 7 explosion incidence is likely to pose a severe damage to the market’s growth.
This review is based on the research findings of a report by Transparency Market Research titled “Lithium-ion Battery Market (Power Capacity – 5-25 Wh, 48-95 Wh, 18-28 KWh, 100-250 KWh, More than 300 KWh; Application – Consumer Electronics, Automotive, Grid Energy & Industrial) – Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2016 – 2024