Global Lithium Batteries Market Report 2023:
Battery Power Continuing to Proliferate in Consumer Goods – ResearchAndMarkets.com
DUBLIN–(BUSINESS WIRE)–The “Global Lithium Batteries Market Report” report has been added to ResearchAndMarkets.com’s offering.
This report includes data from 2011-2031 in 5-year intervals and tables featuring year-by-year data for 2018-2025.
Global demand for lithium batteries is forecast to increase 17% per year to $119 billion in 2026, driven by the:
- Development of the hybrid and electric vehicle (HEV) industry, as these vehicles increasingly penetrate the motor vehicle market
- Proliferation of battery-powered options in products that historically used corded electric or gas-powered technology
ICE Vehicle Phase-Out Targets to Accelerate HEV Adoption
As part of their climate policies, governments in many higher-income nations have set targets for the full or partial phase-out of new ICE car sales. The most important of these policies is an EU-wide regulation, adopted in June 2022, that will ban the sale of new ICE cars in member nations by 2035.
This policy will fuel rapid growth in battery demand throughout Europe, as countries in the region are expected to quickly transition their existing automotive plants to make EVs. Most of the nations that had previously adopted their own deadlines for phasing out ICE vehicles are in Western Europe, where many wealthy countries have already achieved significant EV penetration.
Member states in Eastern Europe have less developed EV markets and are expected to face greater challenges, but they have the potential for very fast growth; several are also well-situated to become important manufacturers of lower-cost EVs, which will likely be an important contributor to meeting targets.
Among the other nations with important EV adoption targets are the US, China, Japan, and South Korea. China is the world’s largest EV producer, and it is expected to continue growing in importance. Meanwhile the US, Japan, and South Korea all have the financial resources to rapidly step up EV adoption.
Battery Power Continuing to Proliferate in Consumer Goods
Lithium-ion battery technology is continuing to gain market share in a wide variety of products as an alternative to gas-powered or corded electric designs.
For example, batteries are increasingly common in power tools and power lawn and garden equipment. While battery power has already gained a significant foothold in handheld consumer models, the improving cost and performance profile of battery power is allowing for increased penetration in models used by professionals. As a result, growth in battery sales in these markets is expected to continue outpacing growth in the underlying markets.
Competition From Alternative Technologies to Increase
While lithium-ion batteries currently represent the dominant technology in most of their key growth applications, concerns about cost and lithium supply are driving battery firms to invest in alternative chemistries. Most notably, CATL intends to deploy sodium-ion batteries for the EV market by the end of 2023. This technology holds significant cost advantages over lithium-ion and could pose a serious competitive threat if its performance disadvantages can be managed. Flow batteries – a technology that shares characteristics with both fuel cells and conventional batteries – could also become a source of competition in the energy storage market.
Regional Trends
Demand by Region
Global demand for lithium batteries is forecast to increase 17% per year to $119 billion in 2026. Growth will be fueled by rapid advances in the HEV market and increased electronic product manufacturing.
The Asia/Pacific region will represent the largest share of gains, accounting for 58% of global demand growth between 2021 and 2026. Sales will be supported by manufacturing industries in China, Japan, and South Korea, all of which are leading producers of HEVs and electronic products.
The fastest growth will occur in Europe, as motor vehicle industries in the region will rapidly transition to making electric vehicles as EU targets for the phase out of ICE cars approach. These EU-wide policies will drive large gains in high-income West European nations and even faster growth in less-developed East European nations that participate in the organization.
North America will continue to be a smaller market than Western Europe due to lesser adoption of electric vehicles, although rapid growth is still expected through 2026. The Africa/Mideast region and Central and South America will remain relatively minor markets due to the lack of advanced manufacturing industries in these regions.
Products Overview
Global demand for lithium batteries is projected to rise 17% per year to $119 billion in 2026. Secondary lithium batteries represent the vast majority of demand and will post faster growth, accounting for 98% of global sales gains between 2021 and 2026.
Growth for primary lithium batteries will be slower, reflecting the relative maturity of the consumer applications that these products are typically used in. However, rising income levels will support growth by allowing for increased use of higher-performance primary lithium batteries in place of alkaline and zinc-carbon models.
Pricing Trends
Price trends for secondary lithium-based batteries are far more dynamic than those for primary lithium batteries. The secondary battery market includes a number of relatively new technologies, and high levels of R&D investment are contributing to rapid production cost decreases.
Price reductions for lithium-ion batteries used in industrial applications are expected to be similar to those for automotive batteries, as industrial products tend to have similarly demanding performance needs. Prices for smaller lithium-ion batteries used in consumer devices will also continue to decline, although at relatively moderate rates.
For more information about this report visit https://www.researchandmarkets.com/r/nk04kc
About ResearchAndMarkets.com
ResearchAndMarkets.com is the world’s leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
Contacts
ResearchAndMarkets.com
Laura Wood, Senior Press Manager
press@researchandmarkets.com
For E.S.T Office Hours Call 1-917-300-0470
For U.S./ CAN Toll Free Call 1-800-526-8630
For GMT Office Hours Call +353-1-416-8900
