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.
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.