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Top 3 Trends Impacting the Global Li-Ion Battery Market Through 2020: TechnavioTechnavio's latest report on the global Li-ion battery market provides an analysis on the most important trends expected to impact the market outlook from 2016-2020. Technavio defines an emerging trend as a factor that has the potential to significantly impact the market and contribute to its growth or decline. Thanikachalam Chandrasekaran, a lead analyst from Technavio, specializing in research on energy storage sector, says, "The global Li-ion battery market is projected to reach USD 40 billion in 2020, growing at a CAGR of more than 15%. Li-ion batteries have proven themselves as the ideal choice of power source in the consumer electronics market. High energy density, low self-discharge, and low maintenance make Li-ion batteries more popular than other rechargeable batteries." Request a sample report: http://www.technavio.com/request-a-sample?report=53933 Technavio's sample reports are free of charge and contain multiple sections of the report including the market size and forecast, drivers, challenges, trends, and more. The top three emerging trends driving the global Li-ion battery market according to Technavio energy research analysts are:
Increased demand from Chinese EV market A significant portion of lithium battery consumption emanates from China. The reason for this high demand is the substantial increase in the usage of battery-operated vehicles in China. The rapid growth in the usage of lithium iron phosphate batteries is due to the projected long-term development and expansion in the EVs and HEVs sector to reduce carbon emissions and support alternative fuel sources In addition, China accounts for nearly 40% of the global lithium iron phosphate battery market. The country hosts approximately 95% of the rare earth lithium metals that could increase the lithium iron phosphate production in the coming years. Rising demand from China is expected to be the major trend in the global lithium iron phosphate battery market during the forecast period. Development of manufacturing hubs in South East Asia The ambiguous economic scenario in Japan, over the last five years, has obligated Li-ion manufacturing companies to change their production base from Japan to China. The Japanese economy has been registering slow economic growth because of reduced investments and declining exports. The Chinese economy, however, has been making concerted efforts and has succeeded in becoming a robust economy with a strong currency even during the recessionary phase of 2008-2009. "High sustainable growth rate, low labor costs, and favorable government policies in China are some of the reasons leading to manufacturers shifting their base from Japan to China," says Thanikachalam. In addition to China, South Korea also cashed in on this scenario. Panasonic (News - Alert), Sony, LG Chem, Samsung SDI, and TDK have shifted their Li-ion battery manufacturing plants from Japan to China to achieve cost competitiveness and gain profitability on sales. Over 3-4 years, a sharper focus on Li-ion battery production in China, South Korea, and Japan has helped to achieve cost advantages across the world. Declining Li-ion battery prices The growing EV market highly relies on the Li-ion battery dynamics. Li-ion batteries have higher energy densities than lead-acid batteries or nickel-metal hydride batteries. Having high energy density means that the battery can store more electricity in the same-sized cell. This is what makes Li-ion batteries ideal for use in electric vehicles. The Li-ion battery prices have been exhibiting a declining trend since 2007. The cost of battery packs for electric vehicles declined from about USD 1,000 per kWh in 2007 to USD 450 per kWh in 2014. The prices of Li-ion batteries are expected to further reduce by 50% during the forecast period. This decline in price for Li-ion batteries can be attributed to increasing manufacturing scale and productivity, reducing costs of battery materials and components increasing battery energy density and lifespan. Browse Related Reports:
Do you need a report on a market in a specific geographical cluster or country but can't find what you're looking for? Don't worry, Technavio also takes client requests. Please contact [email protected] with your requirements and our analysts will be happy to create a customized report just for you. About Technavio Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies. Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users. If you are interested in more information, please contact our media team at [email protected].
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