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automotive industry

On the Road to Success: What’s Driving Change in the Global Automotive Sector?

The automotive industry is changing in a big way, are you ready to cope with the transformations?

automotive industryDisruptions in the automotive industry are fast-changing and the sector is now largely dominated by changing customer expectations, accelerated adoption of modern technologies, and shifts in competitive power. The advancements in the automotive industry have not only brought about convenience to customers but the sector now majorly fuels growth in both developing and developed economies by offering better job opportunities. However, amidst the rapid changes in the sector, players in the automotive industry will have to make tough decisions to stay ahead of the curve.

In this blog, we offer perspectives on some key questions that are a top priority, especially for the C-suite.

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How is the automotive industry evolving?

Over the past couple of years, the automotive industry has recovered from the economic crisis. By the end of the next year, our automotive industry experts expect the global automotive sector’s profits to increase exponentially. Although that is good news, the benefits will not be distributed equally across all geographies or segments. Instead, some regions and segments will perform better than others. Interestingly, the growth of the automotive sector in BRIC nations have outperformed that of regions including Europe, North America, and Japan over the past decade. Not only did emerging markets including BRIC and RoW account for a good majority of the global automotive profits last year, but these regions are poised to outpace growth in established markets over the next decade as well.

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What are some of the key challenges that can be expected in the future of automotive industry?

Experts at Infiniti predict three challenges to shape the near and medium-term future of automotive companies. These challenges will be more crucial for established markets when compared to emerging ones.

Complexity cost pressure

Due to the increase in regulations in environmental and safety standards, not only will the costs increase but will also result in rising complexity. This is especially true in the case of non-domestic markets. OEMs’ will have to identify ways to address this issue while extracting economic value.

Digital demands

Research shows that currently digital channels form the number one source for customers to source primary information before buying a car. This may soon result in online sales channels to purchase a vehicle, posing threat to the existing dealership model.  

Changing industry landscape

With the changing landscape in the automotive industry, OEMs must ensure that their suppliers’ production footprints especially in emerging markets are in line with their future market demands and their own production plans.

Learn how our solutions can help you stay updated with the latest automotive industry trends

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The Real Challenge Facing the Automotive Industry and the Way Forward

Globally, the automotive industry has grown more attractive than ever before. All kinds of new and exciting technologies such as powertrain systems, mobile connectivity, advanced driver-assistance systems, maintenance monitoring, and several others are attracting more buyers in the automotive industry. In the eyes of several industry experts, this sector will grow at a steady rate, given the stable rate of oil prices and the advent of newer technologies. However, this does mean that we can completely rule out some critical automotive industry challenges. The success of automotive companies largely depends on how they take advantage of some surprising opportunities that come their way to effectively tackle some serious automotive industry challenges that they may have to face. Industry players must make huge investments in meeting tightened mpg and emissions requirements, develop new powertrains, continue to expand in markets around the world, and develop new vehicles to feed changing transportation needs.

While the feasibility of advancements such as autonomous vehicles is still in talks, many in the industry feel that the vision of self-driving vehicles populating the roads in the next decade is highly optimistic. Especially after several cases of loss to life and property reported from autonomous vehicle accidents, looks like further advances in technology and affordability are required until we are finally ready to welcome such innovations. However, focusing so much attention and resources on the captivating prospects of the self-driving world may make for good reading, marketing, and investor interest. But it could prove to be a dangerous distraction for the auto industry and the real automotive industry challenges faced.

Emissions and fuel consumption requirements

This is perhaps one of the most pressing automotive industry challenges that players in this sector are undergoing. Adhering to the increasingly restrictive emissions and fuel-consumption requirements in the western world are becoming a hurdle for automakers. One might think that the easiest solution to this can be to build a single car model that adheres to these requirements. However, In the US, an automaker’s entire model lineup, including SUVs and light trucks, has to maintain an average level of higher mpg and lower emissions. Currently, automakers are expected to have to improve fuel efficiency by at least 20 percent and this is expected to shoot up to 60 percent by 2025, depending on the company and regulation.

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Strategic Analysis Helps a Leading Automotive Service Provider Drive Effective Marketing Campaigns

After recovering from the financial crisis, the automotive industry has witnessed promising growth in their product offerings with users preferring vehicles that are geared toward their specific needs. Also, with the growing compliance issues affiliated with the vehicles, organizations in the automotive space are relying on strategic analysis to identify the ideal target audiences and penetrate across niche market segments. Also, leading automotive service providers are advocating the need for strategic analysis to improve organizational efficiency and redeploy the resources intelligently. Implementing strategic analysis also helps companies to assess how the business operates and make informed business decisions.IR_Brochure

To determine the barriers to entry and assess the demand for services, leading automotive service providers are approaching organizations such as Infiniti Research. With years of expertise in offering a plethora of services, Infiniti’s strategic analysis solutions help clients better understand the key opportunities and threats within the automotive industry. Moreover, the clients can further assess the competitive landscape in terms of the regulatory and economic developments.

The Business Challenge

Today, the automotive industry is marked by the presence of numerous competitors offering a differentiated set of products. A renowned automotive service provider with a considerable number of offices across the globe wanted to evaluate the common trends and identify the potential business opportunities in the automotive service space. Moreover, the client wanted to devise a robust strategic analysis to improve their service quality and deliver better returns on investment. The client further wanted to gain a better understanding of the market requirements, dynamics and needs, and identify effective ways to compete with their counterparts.

Our Approach

To understand the most attractive target segments and position their products, Infiniti’s strategic analysis experts carried out an extensive research comprising of interviews and discussions with leading stakeholders in the automotive service space. Additionally, to identify the potential competitors, the team further collated information across various proprietary sources such as paid industry databases, company presentations, newsletters, and industry forums in the automotive service space.

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Strategic Analysis Solution Benefits:

  • Effectively identified the macro-environmental factors in terms of political, economic, social, and technology
  • Conducted a robust SWOT analysis to evaluate the strengths, weaknesses, opportunities, and threats in the automotive service space
  • Analyzed the market landscape in terms of the competitors and their product positioning
  • Identified the right target audience and allocated resources effectively
  • Performed situation analysis, self-evaluation, and competitor analysis

Benefits of Our Integrated Approach:

With the help of Infiniti’s strategic analysis, the client gained a holistic view of the automotive service space and was able to allocate and manage sufficient resources and drive effective marketing campaigns. The client was further able to measure the effectiveness of the organizational strategy and was able to conduct a robust SWOT analysis to identify the strengths, weaknesses, and opportunities, and threats influencing the automotive service space.

A must-read case study for strategy experts and decision makers looking to develop an understanding of the automotive industry.


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autonomous vehicles market

Competitive Intelligence Engagement Helps an Automotive Manufacturer Benchmark their Product Portfolio

In today’s fast-paced environment, organizations grow at an enormous rate within the blink of an eye. To analyze the foothold of the company in the market, it becomes indispensable to know the competitors that are showing a remarkable presence in the market. To better understand the leading competitors and their offerings, organizations are relying on competitive intelligence studies. Competitive intelligence helps organizations to analyze the competitive landscape in terms of their product positioning and marketing strategy. It assists businesses in anticipating the potential challenges and face any obstacles hindering their goal. Moreover, competitive intelligence helps businesses gauge the marketplace and identify areas to compete against their counterparts.

Infiniti’s competitive intelligence engagement assists the client to analyze information in predicting competitive activity and future business operations. The engagement also helps the client devise effective marketing strategies and present valuable insights into the market landscape. With the help of such studies, the client can better prepare for the launch of new products, enter a new market, and make sound business decisions.

The Business ChallengeIR_Brochure

A global automotive manufacturer was facing challenges identifying the potential competitors and increasing their shares in the market. The primary objective of the client was to profile the key competitors and their product portfolio across the target regions. The client also wanted to understand the robust challenges that impede their overall growth in the market.

Our Research Methodology

To gain better insights into the competitive landscape, Infiniti’s industry experts conducted a blended approach comprising of telephone-based interviews and discussions, competitor analysis, and SWOT analysis. As a part of the secondary research, our experts also collated information from a wide array of proprietary sources such as company publications, industry forums, and magazines.

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Our Solution Helped the Client

  • Identify the key countries and verticals posing high level of competition
  • Assess the future acquisition targets
  • Devise robust strategies to increase their market expansion and make informed decisions
  • Identify the key personnel influencing competitor strategy
  • Analyze the level of investment estimated for the current expansion

Benefits of Our Integrated Approach

In a very short period, Infiniti’s competitive intelligence assessment helped the client gain a comprehensive overview of the market, products and stakeholders. In addition, the client also gained actionable insights into product attribute analysis, product forecast, and pricing for key competitors in the automotive manufacturing market.

A must-read competitive intelligence case study for strategy experts and decision makers looking to assess the market landscape for the automotive industry.


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Competitive Intelligence Study Assists a Beverage Supplier to Analyze the Penetration Level of Their Products

With the introduction of high tensile strength advanced polymers in the market, plastics have shown a considerable increase in its adoption, especially for material handling purposes. Material handling equipment is used to store, lift, and transport materials to different places. Plastics find application across industries such as agriculture, chemical, textile, pharmaceutical, retail, and automotive for storing and material transportation purposes.capture In the plastic material handling industry, products are in the form of pallets, trays, and containers. Although the market for plastic material handling is witnessing an exponential growth, it is expected to face several challenges. Bulk material handling, dusting, batching, cleanability, and segregation are some of the factors, which are anticipated to hamper the growth of the market. With years of expertise in carrying out effective market analysis for various Fortune 500 companies, Infiniti’s experts offer strategic insights into the market space for plastic material handling products in terms of the competitors, product portfolio, and challenges.

The Business Challenge

A global conglomerate in beverage and retail was facing challenges understanding the product lines similar to pallets. The client wanted to better understand the plastic material handling products market in the US. The key objective of the engagement was to understand, evaluate, and provide insights on the market and the competitive and customer landscape for plastic material handling products (pallets, trays, and containers).

Want to learn more about Infiniti’s market analysis methodology?


Our Research Methodology

To gain actionable insights into the market landscape, Infiniti’s industry experts followed a blended research approach comprising of semi-structured interviews and discussions with market leading experts, product managers, procurement experts, decision makers, analysts, researchers, consultants, and members of trade associations. To identify the stakeholders for primary research, experts conducted robust secondary research through proprietary and open data sources, market research reports, white papers, magazines, and publications.

Our Solution Helped the Client

  • Identify the potential competitors in the market in terms of their product portfolio and the average selling price
  • Assess the market size by volume (units) and revenue (USD)
  • Understand the major demand drivers and estimate the industry level margins
  • Assess the competitive and customer landscape of the market

Benefits of Our Integrated Approach

In a span of eight weeks, the competitive intelligence study helped the client analyze the penetration level of products into pallets, crates, and containers. The engagement also helped the client assess the value chain in terms of the supply chain and distribution channel.

A must-read market analysis case study for strategy experts and decision makers looking to understand the market landscape for plastic material handling products.


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Cosmetic packaging

Used Cars Market – An Important Segment of the Automotive Industry

An action-packed industry, the automotive sector is always on a look out for ways in which it can innovate and reach out to its customers. And the market for used cars is perhaps one of its most sought-after segments. Even though there are several challenges in the used cars market, a thorough understanding of the industry will go a long way in better procurement processes.

Useful details on used car market

Contrary to popular belief, the demand for used cars is rather huge. The reason for such a growing demand is rather simple. Cars are no longer seen just as a means of transport; rather they are now a status symbol. This explains how frequently the cars are being brought and sold. Five years back, the ownership cycle of a car was around 7 years. Today the ownership cycle has come down to 4 years, and market analysts believe that by 2021 the period might come down to 3 years. Decreasing ownership cycle also means that quality of used cars is rather good, and buying it is a total value for money.

The overall quality of the cars which are being produced, has also improved drastically. Customers find the used cars to be far more reliable, making it easier for them to invest on it. The third and perhaps the most vital factor behind the growing market for used cars is the emergence of an organized group of players who see a lot of potential in this area of the automotive industry. Major names like eBay Motors, TrueCar, and Alibaba Group have made it easier for customers to buy used cars and thereby contributed to the overall growth of this market.

Lastly, today, there is a growing acceptance for used cars that is driving this industry.

Important place for used cars in the automotive industry

Despite being dominated by small dealers, the used cars vertical has emerged as a very strong segment in the global automotive industry. Though the United States is the leading the market of pre-owned cars, the demand for used cars is gradually catching up in Europe and APAC regions as well.

natural polymers

Market Intelligence Study on the Automotive Industry – Seamless Supply Chain Systems to Double Business Growth

The recent market intelligence study by Infiniti Research on supply chain and competitor landscape for the automotive industry helps manufacturers of electric wire and optical fiber cables gain a better understanding of supply chain through which wires and cables are supplied to the automotive manufacturing companies. The study also identifies the key market players involved in the supply chain of the automotive industry.

Understanding the supply chain in the automotive sector

The leading OEMs in the automotive sectors are offering a wide range of vehicle choices that cater to end-users’ demands. Manufacturers are shipping vehicle components instead of an entire vehicle to save costs. Since supply chain landscape of the automotive industry is mostly affected by rapid globalization, the vendors are investing in reliable logistic chains to sustain the competition in the market. Keeping inventories well-stocked but not overstocked and adapting to changes will help manufacturers to maintain an equilibrium in their supply chain facilities. Moreover, better planning, increased visibility, and a focus on continuous improvement in the supply chain will be a key to business success for OEMs.

The market intelligence assessment led to the understanding that with accurate supply chain systems, vendors can meet the innumerable demands of the consumers and launch various brands based on their requirements. The vendors are using innovative technologies like IoT and cloud computing for efficient operations planning and inventory optimizations. These new technologies will help the OEMs to establish robust supply chain systems.

Vendors to offer assorted components

The intensity of the competition in the automotive market is encouraging suppliers to offer a different variety of wires and cables through various supply chains. Identifying key players involved in the supply chain and offering new products will help the manufacturers gain consumers and increase their market share. Furthermore, developing and investing in new technologies will boost the demand and sale of these components in the global market.


Is online retailing and e-commerce the new wave

The emergence of online retailing and e-commerce is slowly gaining a foothold in the automotive industry. This channel of supply helps vendors to communicate with target audience directly and analyze the consumer behavior pattern. Additionally, manufacturers are offering value-added services such as same-day-delivery to attract more consumers and sustain the competition in the market.

Solutions and recommendations

The market intelligence team at Infiniti Research offers various solutions that identify the key market players involved in the supply chain and provides strategies that foster market growth. Some of the solutions offered include:

  • Conduct secondary and primary checks to identify suppliers that provide high-temperature cables
  • Gather data by calculating total wire requirement and supplier shares for each segment
  • Assess the current and emerging market trends and study the supply chain landscape for the target region
  • To provide a better understanding of supply chain through which wires and cables are supplied to various multinational automotive manufacturing companies
  • Offer an overview of the various delivery channels, current market trends, the supply chain map, market size, details of additional suppliers, and the key player’s operators in different levels of the supply chain
  • Identify the applications other than the main harness for which target cables are required

Read our comprehensive case study on how we helped a leading client to assess the supply chain and competitor landscape for the automotive industry. 



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Top 5 Trends in the Automotive Industry for 2017

To view an updated and a more comprehensive version of this blog on the automotive industry, read our latest article. 

Since the dawn of smartphones, it has become clear that customers are quick to adopt expensive and complex technologies if it makes their lives easier. In other words, individuals value ease and convenience. These core values have turned the automotive industry into one of the defining technical cultural elements of the 21st century. Now it is time to decode these properties into the context of today’s – and tomorrow’s – society and technology.

With constant changes in consumer preferences, technological advancements and the rapid development in the emerging markets, the world economy is evolving. This evolution can be attributed to the increasing need for automation, digitization, and new business models across all industries, including the automotive industry.

The automotive industry is one of the world’s most important sectors in terms of revenue and includes a wide range of companies that are involved in activities right from designing to selling the motor vehicles and everything in between. The automotive industry is set to witness a perfect storm of change with five disruptive technology driven trends in the future – electrification, connectivity, autonomous driving, customer-centricity, and shared mobility.

Business Forecasting

Market Landscape and Supply Chain Assessment Study on the Aluminum Propeller Shaft and Yoke Market

In recent years, OEMs have been focusing extensively on enhancing operational performance and drivability and ensuring safe transportation of cargo and passengers. Moreover, the growing acceptance of electric and hybrid vehicles and incorporation of smart and connected technologies in automobiles have encouraged manufacturers to improve power and drivetrain systems that comprise of components such as a clutch, transmission, propeller shaft, propeller shaft yoke, and rear axle. While the axle serves different functions of steering and transmission, a propeller shaft and yoke transmits torque and ensures rotation of drive train components.

Globally, there has been a significant increase in vehicle production to meet the demands of the population. However, since the economic crisis in 2008, the automotive industry has been in a state of recovery. This is one of the critical factors affecting the revenue sales of the propeller shaft and propeller shaft yoke. Moreover, growinga2 concern for fuel efficiency and strict norms imposed by the international emission control authorities have encouraged the OEMs and automotive component suppliers to develop lightweight propeller shaft without compromising on the performance. Also, a booming aftermarket demand for automotive propeller shaft and yoke from emerging countries is anticipated to spur the production of lightweight propeller shaft and yoke for the automotive industry. However, several challenges including a changing demand-supply landscape and constant fluctuation in global oil prices are expected to have an impact on the automobile manufacturing market.

Stringent government regulations and increasing consumer demands have propelled OEMs and suppliers to improve the efficiency of vehicles by reducing the overall weight. Suppliers are presently focusing on using lightweight materials, such as aluminum, with high tensile strength and durability while designing drivetrain components, including propeller shafts and yoke.

The Business Challenge

To get a holistic outlook of the market and assess the market dynamics of the aluminum propeller shaft and yoke market, the client – a leading chemical engineering firm well-known for its high-quality products– approached Infiniti to engage in a market landscape and supply chain assessment across North America. The scope of this market assessment engagement was to assess the market size, trends, growth prospects, and identify and evaluate key players including OEMs, Tier 1, Tier 2, and Tier 3 companies in the target region.

This market assessment study was carried out to help the client gain objective insights on the market potential ofcapture aluminum propeller shaft and aluminum propeller shaft yoke and to strategize the company’s growth plans across the target segments. Additionally, this market assessment also aimed at helping the client gain a better understanding of the production location and current market shares, and identification and deep-dive assessment of the identified key players at different levels of the supply chain.

Infiniti’s dedicated market assessment team ensured quick execution and smooth process flow as the study progressed. The market assessment team had prior experience in working with the client and were familiar with the requirements and expectations during the various stages of the engagement. Furthermore, recent developments and innovations in the market were tracked through white papers and annual reports. The market assessment specialists also reached out to key stakeholders, including channel partners, business executives, dealers, traders, and suppliers to understand their views on the market. Our market assessment experts also engaged in discussions with industry experts to develop an in-depth understanding of market dynamics in each region or country under focus.


Why Infiniti Research is the preferred partner for more than 55 Fortune 500 Companies


Solution Offered and Business Impact

A dedicated market assessment team with substantial experience in meeting the various information and analysis needs of leading global companies was assigned to this engagement to help the client understand the future growthCapture2 prospects of their products. To address the challenges faced by the client, Infiniti’s market assessment team built market modeling methods for current and futuristic market forecasts after speaking to industry experts. The market sizing model was built on both top-down and bottom-up data to make robust estimations.

The market assessment experts also used a blend of multiple research methodologies to make initial hypotheses, develop an information and data points repository, and identify market stakeholders and business executives for primary research. Moreover, a scrupulous assessment was conducted through proprietary and open data sources, market research reports, white papers, magazines and publications, publications of traders and distributors, case-studies, journals/magazines, news aggregators, and industry forums. Additionally, to assess the current and emerging market trends and analyze the company’s growth prospects, our experts engaged in semi-structured interviews and discussions with business executives, industry specialists, and stakeholders from the automotive sector.

By the end of 11 weeks, the client – a globally recognized engineering company – was able to gain a better understanding of the aluminum propeller shaft and yoke market across North America. Additionally, the client saw several benefits in terms of understanding the overall aluminum propeller shaft and aluminum propeller yoke market size, the key vendors, and the contact details of the key stakeholders of each Tier 1 and OEMs under focus across the target region.

Benefits of Our Integrated Approach

In a relatively short period of 11 weeks, the client saw clear advantages from this engagement. The client gained a complete overview of the current market trends, market size, and the key players operating in different levels of the supply chain – OEMs, Tier 1, Tier2, and Tier 3 players. Additionally, an account intelligence study conducted by the experts also provided the client with the contact details of the key stakeholders of the Tier 1 operators and OEMs under focus, which benefitted the clients in terms of ROI.

Here are some of the key points appreciated by our clients

  • Dedicated Market Assessment Portal. A centralized platform for the collection, storing, processing, reporting, and dissemination of information with the specific purpose of assisting the decision-making process and developing actionable insights. This portal includes comprehensive information on quantitative and qualitative aspects on target markets, competitors and end-users.
  • Collaborative learning. We leveraged the experience of our healthcare team and our technical capabilities to enable report-sharing and other collaborative features appreciated by client teams.
  • Database Access. Access to a patient database containing information about 60+ medical diseases and conditions, such as patients undergoing treatment, untreated patients, and patients with chronic conditions.
  • Interactive Dashboard. Using our portal based solution for healthcare professionals, we took a design-first approach to problem-solving and helped break through previously held assertions.
  • Value for Money. Infiniti’s dedicated client management team customizes reports to suit business requirements and offers the best insights for every dollar spent.


A must-read market assessment study for strategy experts and decision makers looking to develop effective market entry strategies for the aluminum propeller shaft and aluminum propeller yoke market.


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Is Lithium-Ion Battery Ideal for the Automotive Industry?

The global lithium-ion battery market is a fast-growing market space and was valued at over USD 18 billion in 2015. According to our industry experts, this market is envisaged to grow at a CAGR of over 8% by the end of 2020. With the growing focus on electric vehicles, the lithium-ion battery market is sure to charge ahead. Lithium-ion, the most promising battery chemistry, came in the limelight in the early 1970s. Due to its low maintenance cost, these types of batteries have an edge over the other chemistries.

At Infiniti Research, we recently engaged in a market intelligence study on automotive lithium-ion batteries for a global automotive manufacturer and here are the key excerpts of that engagement.

The Forecast of Lithium-Ion Batteries in the Automotive Industry

Infiniti’s experienced automotive team performed a market intelligence study to understand the lithium-ion battery market and its industry demand. During the course of the research, it was noted that the industry is poised to witness significant growth in the coming years with the automotive segment exhibiting faster progress. The recent increase in the incidence of global warming causing has led to a decline in natural resources and has warranted the need for alternate sources in the automotive industry. Not just that, the soaring prices of fossil fuels have helped the lithium-ion battery market to flourish. Manufacturers in the automotive industry are looking for sustainable clean fuels, and this is a key factor driving the lithium-ion battery industry.


Lithium-Ion Batteries and its Automotive Applications

With the growing pressure on various countries to reduce their carbon emissions, the automotive industry is turning towards electric vehicles. Lithium-ion is the preferred battery technology when it comes to electric or hybrid vehicles. Its higher energy density, ability to churn out more charge cycles are just a few of the many reasons to treat lithium-ion batteries with respect. Much of these can be attributed to the rising demand for automotive Lithium-ion batteries from the motorsports industry and its ability to supplement the 12V net for high-power applications such as electric power steering (EPS), brake-by-capture wire (BBW) and heating, ventilation and air-conditioning (HVAC) systems.

The Market Drivers and Challenges

Many market players have entered the lithium-ion market due to its high growth potential. The current scenario is chaotic as many end-users are still not aware of the risks and challenges in the lithium-ion battery market. According to our automotive industry experts, one of the key drivers for this market is the fact that all lithium-ion batteries are equipped with individual electronic protections to avoid electrical mishaps (minimum and maximum voltage protection, current protection, etc.).


One of the major challenges that has been identified by our analysts is its restriction during transportation, especially by air, as batteries transported by air must be protected against short circuits using protective covers. Also, the total product cost of this battery is around 40% higher than its former counterpart nickel-metal hydride batteries.

battery 2

Our industry specialists conducted a detailed market and competitive analysis on the 12V Lithium-Ion Battery market and 48V Lithium-ion Battery market. As part of this market intelligence study, we segmented the market by application, qualification, and the assembly. Additionally, an overview of the value chain for lithium-ion battery systems and lithium-ion battery components was also offered to the client. In 2015, Europe accounted for around 18% of the Global Lithium-ion Battery market.


To gain more insights on the latest trends and challenges

read our complete case study here.

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