The market for Asia-Pacific Lithium-ion Battery is expected to grow at a CAGR of approximately 16% during the forecast period. Major factors driving the market include declining lithium-ion battery prices, rapid adoption of electric vehicles, growing renewable sector, and increased sale of consumer electronics. On the other hand, the demand-supply mismatch of raw materials is likely to hinder the market growth in the coming years.
- The automotive sector is expected to be one of the major end-user segments for lithium-ion batteries in the near future. The penetration of electric vehicles is anticipated to provide a massive impetus for the lithium-ion battery industry growth.
- A significant fraction of Asia-Pacific’s population is estimated to be living without access to electricity and are dependent on conventional fuels, such as kerosene and diesel, for their lighting and mobile phone charging needs. Lithium-ion battery integrated energy storage solutions are likely to witness an increasing rate of adoption due to the technical benefits associated with it and declining lithium-ion battery prices. This, in turn, is expected to create a significant number of opportunities to the li-ion battery manufacturers in the near future.
- China is likely to be the dominant player in the Asia-Pacific Lithium-ion Battery market, supported by increasing urbanization, consumer spending, and electric vehicle (EV) market growth.
Key Market Trends
Automotive Batteries Segment Set to be the Fastest Growing Segment
- The automotive sector is expected to be one of the major end-user segments for lithium-ion batteries in the near future. The penetration of electric vehicles is anticipated to provide a massive impetus for the lithium-ion battery industry growth in Asia-Pacific.
- A range of different vehicle types are now available, featuring increasing degrees of hybridization and electrification. There are various types of vehicles, including hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles, and electric vehicles (EVs).
- In developed and developing economies, both alike, the adoption of electric vehicles is increasing at a high growth rate. As of 2019, China is already among the countries leading in global EV sales, along with other developing economies like India, which has already begun transforming its public transportation infrastructure for EVs.
- In the current market scenario, policy support is expected to play a crucial role in driving the adoption of electric vehicles. Policy support enables market growth by making vehicles appealing to consumers, reducing risks for investors, and encouraging manufacturers to develop electric vehicles on a large scale. This, in turn, is expected to boost the demand for lithium-ion batteries in Asia-Pacific region during the forecast period.
China Driving the Market Demand
- The growth rate in China’s economy accelerated in 2017 for the first time in the last seven years and registered a growth rate of 6.9%. The growth is mainly due to increase in export, construction, and consumer spending.
- China is currently one of the largest markets for the electric vehicle and has registered ~30 times faster growth than the electric vehicle market in 2018 when compared to 2017.
- The increasing adoption of electric vehicles is in line with the clean energy policy. In order to reduce the demand-supply gap, the government of China is planning to ease restriction on automakers importing car into the country.
- Therefore, it is expected to ramp up the demand for technically advanced devices & vehicles, due to the benefits provided by the same. Consecutively, leading to a growth in demand for lithium-ion batteries.
The Asia-Pacific lithium-ion battery market is fragmented. Some of the key players in this market are Contemporary Amperex Technology Co. Limited, BYD Co. Ltd, Duracell Inc., Panasonic Corporation, LG Chem Ltd and Sony Corporation among others.
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