The market for North America lithium-ion Battery is expected to grow at a CAGR of approximately 9.81% during the forecast period of 2020 – 2025. 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. However, the demand-supply mismatch of raw materials is likely to hinder the market growth.
- The automotive sector is expected to be one of the major end-user segments for lithium-ion batteries. The penetration of electric vehicles is anticipated to provide a massive impetus for the lithium-ion battery industry growth.
- The shift towards lithium-ion batteries in the material handling industry is expected to create a significant amount of opportunities for the market studied.
- The Government of the United States has been encouraging investors in both EV and renewable industry, resulting in an increased demand for battery-based energy storage systems, primarily led by lithium-ion batteries.
Key Market Trends
Automotive Batteries 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 coming years. The penetration of electric vehicles is anticipated to provide a massive impetus for the lithium-ion battery industry growth in North America.
- A range of different vehicle types is 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).
- The adoption of electric vehicles is increasing at a high growth rate. The United States is already among the countries leading in the global EV sales, along with other economies like Canada, which has already begun transforming its public transportation infrastructure to electric.
- The market scenario as of 2018, describes that policy support plays 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 vehicle on a large scale.
- Falling lithium-ion battery prices and improving technology are expected to bring price-competitive electric vehicles to the market, creating demand for Lithium-ion Battery technologies in the near future.
United States to Dominate the Market
- Until 2015, the United States accounted for the largest portion of the global electric car stock. In 2016, China overcame the country with the largest electric car stock, with about a third of the global total. However, as the gap between emissions from Electric Vehicles (EVs) and conventional cars widens, and in a bid to take advantage of future electricity supplies that include more renewable sources in the country, electric vehicle sales is expected to significantly increase in the United States during the forecast period.
- The United States is one among the pioneer in the research and innovation in the global battery market, the region also remains one of the largest consumers of batteries - both primary and secondary battery types, owing to factors, such as increased electric vehicle deployment, increased spending on consumer electronics, and increased consumer and manufacturing activities.
- 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 the US is planning to ease restrictions on automakers importing the car into the country.
- The country is likely to be the dominant player in the North America lithium-ion battery market, supported by increasing urbanization and consumer spending, which is expected to ramp up the demand for technically advanced devices & vehicles, due to the benefits provided by the same. Consecutively, this is expected to result in the growth in demand for batteries.
The North America lithium-ion battery market remains moderately consolidated. Some of the major players in the market include Tesla Inc, Panasonic Corporation, LG Chem Ltd, Duracell Inc., and Samsung SDI Co. Ltd.
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