Lithium-Ion Battery Sales To Boom in Asia-Pacific and North America in Future

With the increasing adoption of electric vehicles (EVs), on account of the rapid environmental deterioration and fluctuating oil prices, the demand for lithium-ion batteries is soaring all over the world. In addition, the governments of many countries are launching initiatives for augmenting the deployment of EVs in order to mitigate the escalating air pollution levels, which is also boosting the demand for lithium-ion batteries. According to the Global EV Outlook 2018 report published by the International Energy Agency (IEA), the sales of electric cars reached 3.1 million units in 2017.

This represented an increment of 57% from 2016 to 2017. Apart from this factor, the surging energy density of lithium-ion batteries is also creating immense growth opportunities for lithium-ion battery manufacturing companies across the world. Moreover, it is fueling the development of long-lasting and technologically advanced batteries. Many players operating in the lithium-ion battery market are focusing on developing enhanced devices, on account of their rising requirement in the consumer electronics, renewable energy, and automotive industries.

It has been found in many studies that the energy density of lithium-ion batteries can surge three-times when a modified form of iron trifluoride (FeF3) is used as the cathode material. Due to these factors, the value of the global lithium-ion battery market will rise from $33,720.8 million in 2018 to $106,493.0 million by 2024. Furthermore, the market is predicted to register a CAGR of 21.8% from 2019 to 2024.

Lithium-iron phosphate (LFP), lithium-nickel-manganese-cobalt (Li-NMC), lithium-cobalt oxide (LCO), lithium-manganese oxide (LMO), and lithium-nickel-cobalt-aluminum oxide (NCA) are the major types of lithium-ion batteries used across the world. Out of these, the demand for LFP batteries was found to be the highest during the last few years. This was because of the extensive usage of these batteries in China. Moreover, the country is the world’s largest consumer of lithium-ion batteries, including LFP batteries, as it is the largest producer of consumer electronics and electric vehicles, which are the two major application areas of these batteries.

Geographically, North America and the Asia-Pacific (APAC) region will dominate the lithium-ion battery market in the coming years, as per the estimates of the market research company, P&S Intelligence. This is credited to the existence of several established market players and the growing use of lithium-ion batteries in various portable electronic devices, uninterrupted power supply (UPS) systems, and electric vehicles in the region. Middle East & Africa, Latin America, and Europe will also hold major shares in the market in the upcoming years, mainly because of the increasing implementation of government incentives aimed at encouraging power production from renewable sources in these regions.

Thus, the sales of lithium-ion batteries are certain to shoot up in the coming years, mainly because of the growing deployment of electric vehicles, rapid technological advancements in the lithium-ion battery industry, and the mushrooming use of consumer electronics, such as smartphones, tablets, and laptops across the world.

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