Reading time ( words)
The global lithium-ion battery market will reach a value of $33.11 billion by 2019 from $11.7 billion in 2012, registering a healthy CAGR of 14.4% from 2013 to 2019, according to a new report by Transparency Market Research (TMR). The TMR study states that the increasing need of alternate energy sources from automobiles, consumer electronics, and industrial sector is primarily driving the global lithium-ion battery market.
Escalating crude oil prices has significantly increased the demand for electric vehicles and hybrid electric vehicles (HEVs) powered by lithium-ion batteries in the automobiles sector, as per the study findings. Further in consumer electronics, lithium-ion batteries are highly demanded to offer high life cycle and ensure slow battery discharge in devices such as tablets, which will propel the market.
Mounting environmental concerns due to the increasing rate of carbon emissions and stringent regulations imposed by the government to control the same particularly in regions such as North America, Europe, and China are increasing the adoption of lithium-ion batteries, as per TMR findings. However, high price and inadequate awareness regarding the advantages of lithium-ion batteries will hinder growth of the market, adds the report. As such, lithium-ion batteries find lower adoption in electronics, automotive, and industrial sectors.
Moreover, lithium-ion batteries have chances of exploding when exposed to high heat and temperature conditions, which is a major factor inhibiting its market growth. To eliminate the risk, technological advancements are introduced which is expected support growth of the market, the TMR study states.
Among the application segments, consumer sector accounted for the largest market share in 2012, followed by the automotive sector. The consumer electronics segment will dominate the market during the forecast period owing to its high application in cellphones, tablet computers, smart phones, digital cameras, and other consumer electronics, as examined by the TMR study. Emerging applications in military, medical industry, and energy production will also open growth avenues for the lithium-ion battery market, as examined by the research report.
Geography wise, Asia Pacific led the lithium ion battery market in 2012 accounting for 49% market share. The robust demand for lithium-ion battery in China and Japan is driving the Asia Pacific market.