Li – Ions Battery
The market for lithium-ion batteries is expected to register a CAGR of 22.58%, during the forecast period (2020-2025). Major factors driving the
Li – Ions Battery market studied are the emergence of new and exciting markets, via electric vehicle and energy storage systems (ESS), for both commercial and residential applications, declining lithium-ion battery prices, and the increasing sale of consumer electronics. However, the increasing demand-supply mismatch of raw materials is likely to hinder the growth of the market studied.
- The industrial application dominated the market in 2019 and is expected to grow during the forecast period, due to its high energy density, fast recharge capability, and high discharge power, owing to which, the lithium-ion batteries are the only available technology that is capable of meeting OEM requirements.
- Recycling of Li-ion batteries is expected to secure the supply of raw materials, such as lithium and cobalt, and reduce the reliance on extracting and refining materials from mineral resources. Recycling lithium-ion batteries currently being used in electric vehicles offer an excellent opportunity for companies to utilize the refined constituent materials for manufacturing lithium-ion batteries that are to be used for Energy Storage Systems (ESS).
- Asia-Pacific dominated the market across the world, with the largest contribution coming from countries such as China and India.
Industrial Segment is Expected to Dominate the Market
- The penetration of lithium-ion batteries is growing in the industrial sector, globally, on account of expansion in industrial infrastructure, increasing economic viability of energy storage deployment, and growing need to reduce grid dependency for power supply.
- Although pumped hydro storage dominates the total installed storage power capacity, battery-based electricity storage systems are developing rapidly, decreasing costs and improving performance.
- Encouraging incentives are taken by the governments, such as net metering, have encouraged the installation of rooftop solar PV systems. Battery storage is an important part of the rooftop solar PV power generation process, as solar energy is intermittent and unavailable during the night.
- The usage of lithium-ion battery-based solar home systems, off-grid solar lighting and charging products, and solar PV mini-grids have increased in the Asia-Pacific and African regions.
- Massive investments, predominantly in lithium-ion batteries, are driving down costs, while project developers are continuously getting better at designing and building customized storage systems, which is expected further to supplement the usage of battery-based energy storage systems.