Industrial Segment Of Global Lithium-Ion Battery Market Could Exceed $24 Billion By 2027
The lithium-ion batteries have become intertwined with all facets of modern life. The lithium-ion battery is used in electronic devices such as smartphones, power tools, digital cameras and especially in the ever growing Electric Vehicle (EV) marketplace. Hence, the demand for the battery in the railway industries, manufacturing sectors, and solar power is likely to surge with the rising need for storage and power backup.
A recent report the global lithium-ion battery market size was valued at USD 32.9 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 13.0% from 2020 to 2027. The report said: “The growth of the market is attributed to the growing demand for the lithium-ion battery in Electric Vehicles (EVs) and grid storage as it offers high-energy density solutions and lightweight. The subsequent increase in the registration of EVs and a decrease in the price of the lithium-ion battery is estimated to expand market size over the forecast period. Also, a surge in sales of EVs and change in user preferences is likely to drive the market. The mounting number of photovoltaic installations and nuclear power plants, along with the beginning of the wind energy projects, is projected to propel market growth over the estimated period. Expanding off-grid installations in the U.S., India, China, and Germany, along with the growing acceptance of Li-ion batteries in equipment used in the medical sector, is expected to encourage the market for lithium-ion battery over the forecast period.”
Increasing sales of electric vehicles in China is projected to drive the market for lithium-ion batteries in the upcoming years owing to government subsidies and purchase shares on non-electric vehicles in big cities. In addition, the existence of major electric vehicle companies, such as Nissan, BMW, Tesla, Chevrolet, Ford, Toyota, and Fiat mainly in the United States, United Kingdom, Germany, and China is anticipated to propel market growth. Electric Vehicles (EV) and Hybrid Electric Vehicles (HEVs) will continue to observe growth on account of the shift from fuels to electric batteries. Additionally, the government’s strict regulations on emission standards to protect the environment and decrease the degradation-based possibilities are likely to play a critical role in influencing the market for lithium-ion batteries.