A new report by Allied Market Research has unveiled promising prospects for the global lithium-ion battery market, projecting it to reach a staggering $18.8 billion by the year 2032. With a Compound Annual Growth Rate (CAGR) of 14.5 per cent, the market is set to undergo substantial growth in the coming decade.
The research firm’s report attributes this remarkable growth to the rising demand for lithium-ion batteries in the consumer electronics sector. In 2022, the market for these batteries in consumer electronics was valued at $4.9 billion. This growth is driven by the unique advantages offered by lithium-ion batteries, including their high energy density and safer, more sustainable chemistry.
However, amidst this positive outlook, the report also highlights the impact of the ongoing Russia-Ukraine war on the lithium-ion battery market. The conflict has sent shockwaves across various sectors, including consumer electronics, and has reverberated through global financial markets. Solar cables and related industries have faced heightened uncertainty and volatility due to the geopolitical turmoil.
Ukraine and Russia hold pivotal positions in the European lithium-ion battery market, linked to their industrial emissions profiles. Any disruptions to Ukraine’s industries or energy infrastructure stemming from the war have the potential to disrupt production and demand for lithium-ion batteries in consumer applications.
The report also underscores the impact of geopolitical instability on investor confidence, which could affect the energy storage sector as a whole. Extended conflict could dampen enthusiasm for consumer electronics, a key driver of lithium-ion battery demand, casting an uncertain shadow on the market’s future.
Furthermore, the geopolitical repercussions of the Russia-Ukraine war have extended into climate change cooperation, influencing global emissions reduction efforts.
Economic downturns are also identified as potential disruptors of the lithium-ion battery market. During such crises, market instability can lead to heightened price volatility for raw materials used in lithium-ion battery production. Fluctuating demand amplifies price swings in the sector and may prompt market consolidation among lithium-ion battery manufacturers. Additionally, government interventions for economic revival can alter environmental policies, directly impacting the market.
The report delves into market segments, highlighting the dominance of the cathode segment, which accounted for nearly half of the global lithium-ion battery market revenue in 2022. This dominance is expected to persist due to the expanding use of lithium-ion batteries in various electronic devices.
The electrolyte segment, essential in lithium-ion battery production, is projected to manifest a remarkable CAGR of 15.7% from 2023 to 2032, reflecting the growth in the size and models of lithium-ion batteries used across different end-use applications.
In terms of applications, the tablet/PC segment held the highest market share in 2022, contributing to nearly one-third of the global market revenue. It is projected to maintain its leadership status throughout the forecast period, driven by the rapid expansion of consumer electronics and the thriving IT sector, especially in the Asia-Pacific region.
Asia-Pacific is identified as a dominant player in the lithium-ion battery market, accounting for more than two-fifths of the market revenue in 2022. The region is expected to witness the fastest CAGR of 15.0 per cent from 2023 to 2032. Emerging markets in Asia-Pacific, such as India, China, and Southeast Asian countries, have experienced robust industrial growth, leading to increased demand for lithium-ion batteries.
Key players in the global lithium-ion battery for consumer electronics market include Contemporary Amperex Technology Co., Ltd. (SHE:300750) (SZSE:300750) Lithium Werks, EVE Energy Co. (SHE:300014) (SZSE:300014), Johnson Controls, Panasonic (TYO:6752) (NYSE: PCRFY), LG Chem (KRX:051910), Samsung SDI (KRX:006400), Toshiba (TYO:6502) (OTCMKTS: TOSYY), Lishen Battery and Hitachi (TYO:6501) (NYSE: HTHIY).
The report identifies these companies as having adopted various strategies, such as new product launches, collaborations, expansions, joint ventures, and agreements, to maintain their market dominance and competitiveness.