Tariff Line: 85076000 • The global automotive lithium-ion battery market was valued at US$ 37.4 billion in 2019 and is expected to reach US$ 95.3 billion by 2026, growing at an estimated CAGR of 17.1 % during the forecast period. • Top exporting countries of this product are China, South Korea, Hong Kong, Japan, USA and Germany. On the other hand, India is the 7th largest importer of lithium ion batteries importing worth of US$ 1.13 billion. • The lithium-ion battery market in the automotive sector is projected to increase at a tremendous CAGR of 20-24% during the aforementioned forecast period (2019-2026). • India’s import of lithium ion batteries escalated by a staggering 50% in past five years due to massive surge in domestic demand. China, Hong Kong, Vietnam and USA are the major sources of our imports with more than 65% coming from China itself.
Introduction
The global automotive lithium-ion battery market was valued at US$ 37.4 billion in 2019 and is expected to reach US$ 95.3 billion by 2026, growing at an estimated CAGR of 17.1% during the forecast period. From 2015 to 2018, the global trade of lithium ion batteries escalated by a whopping 23.5% CAGR. Top exporting countries of this product are China, South Korea, Hong Kong, Japan, USA and Germany. On the other hand, India is the 7th largest importer of lithium ion batteries importing worth of US$ 1.13 billion, and is also a net importer of this product.
Source: ITC Trade Map
The lithium-ion battery market is segmented by industry into consumer electronics, automotive, aerospace & defence, medical, power, marine and industrial. Demand for Li-ion batteries is burgeoning massively because of the growing need for miniature and lightweight source of power in EVs, portable devices, and industrial equipment. Li-ion batteries can deliver adequate power while managing manufacturing costs and the weight and size of products, which are the major factors for manufacturing specific products according to the requirements.
Market growth is fuelled by rising demand for energy storage across the globe, growing electric vehicles (EV) adoption, and the demand for industrial power tools and electric forklifts in developed regions. Also, the development of new technologies has led to the increased usage of various electronic devices worldwide, such as digital cameras, smartphones and tablets. These devices are being embedded with unique features that consume more energy, owing to which the devices require to be recharged frequently. Such advancements have given rise to the demand for high-quality rechargeable batteries.
The Asia-Pacific region is the most lucrative lithium-ion battery marketplace, grabbing around 35-40% of the total demand share as of 2018. Despite of a wide range of applications in electrical, manufacturing, renewable energy storage, healthcare, and industrial sectors, the automotive sector is the key application for the lithium-ion battery.
However, safety concerns surrounding Li-ion batteries will challenge the growth of the market in the short term. Technological advancements are directed towards addressing this challenge, which includes alternate chemistries and solid-state batteries research.
Lithium Ion Battery Market by Type
Lithium cobalt oxide (LCO) batteries are one of the most commonly used batteries in a range of applications, including mobile phones, laptops, and digital cameras, among more. LCO dominated the global lithium-ion battery market share in 2018.
Lithium Ion Battery Market by Power Capacity:
Lithium Ion Battery Market by Industry:
Focusing on EVs
Growing demand for electric vehicles, compact size, less charging time and low maintenance cost are some of the factors that are driving the global automotive lithium-ion battery market. The lithium-ion battery market in the automotive sector is projected to increase at a tremendous CAGR of 20% to 24% during the aforementioned forecast period (2019-2026).
In addition, the push by governments towards the adoption of electric vehicles (green vehicles), in order to, reduce the carbon footprint, is further, propelling the growth for the automotive lithium-ion market. However, factors such as high cost, due to the limited number of automotive lithium-ion battery manufacturing players and the limited number of charging stations are restricting the growth of the market.
Specifically, in 2019, the automotive lithium nickel manganese cobalt batteries (NMC) are anticipated to capture the highest share of about 35.3% in the global automotive lithium-ion battery market; these batteries are likely to continue leading throughout the forecast period as well. NMC chemistries are known to increase the energy density and lifespan of lithium-ion batteries. Hence, players are investing in NMC batteries
Indian Market Scenario
India is seen as a major consumer market for lithium ion batteries which influences Asia’s demand scenario. India’s import of lithium ion batteries escalated by a staggering 50% in the past five years due to massive surge in domestic demand. China, Hong Kong, Vietnam and USA are the major sources of our imports with more than 65% coming from China itself.
Growing pollution concerns, rising adoption of electric vehicles, increasing income-levels and surging demand for quality and uninterrupted power are some of the key factors catalysing the growth of Lithium ion batteries market in India. Further, proliferating usage of smartphones and other consumer electronics products are resulting in an increase in demand for higher energy density and faster charging solutions. Among various Li-ion chemistries, Lithium Cobalt Oxide (LCO) dominated the market owing to its high usage in consumer electronics. The India lithium-ion battery market is moderately concentrated. Some of the major companies include Exide Industries Ltd., Amara Raja Batteries Ltd, and Toshiba Corporation.
Augmenting awareness towards portable and stationary energy storage coupled with government’s push towards solar and wind projects are expected to contribute to the growth of India Li-ion battery market share over the coming years. Apart from this, government efforts towards adoption of electric vehicles such as Faster Adoption and Manufacturing of Hybrid & Electric Vehicles (FAME) scheme as well as tax exemption on EVs are anticipated to provide much needed boost to the market.
May I know the name of the company which import lithium cobalt battery from China
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