Download Sample, Growing Preference for EVs is Stimulating the Lithium-Ion Battery Pack Market Expansion
Over the past few decades, every nation has been battling pollution and climate change. Pollution and global warming are caused by a variety of factors, including the use of internal combustion (IC) engine vehicles that emit toxic exhaust gases. As a result, governments all over the world are working towards lowering the amount of pollution that conventional automobiles release. Electric vehicles (EVs), which rely on electricity rather than fossil fuels as a source of energy, are an alternative to these IC-engine vehicles. When compared to cars with internal combustion engines, electric vehicles (EVs) operate very quietly and cost-effectively.
All of this has led to an increase in the popularity of EVs and interest from consumers in purchasing EVs. Additionally, the environment is at risk due to the depletion of natural resources. As a result, consumers have indicated a preference for utilizing electric vehicles because of their effectiveness. In addition to this, Li-ion batteries are preferred by producers of electric vehicles since they can store energy for longer runs and can also be utilized in hybrid vehicles. Also, it is not necessary to deal with the hassle of maintaining engine efficiency. Since the number of electric vehicle sales has grown, Li-ion battery pack sales have increased as a result.
All of this has led to an increase in the popularity of EVs and interest from consumers in purchasing EVs. Additionally, the environment is at risk due to the depletion of natural resources. As a result, consumers have indicated a preference for utilizing electric vehicles because of their effectiveness. In addition to this, Li-ion batteries are preferred by producers of electric vehicles since they can store energy for longer runs and can also be utilized in hybrid vehicles. Also, it is not necessary to deal with the hassle of maintaining engine efficiency. Since the number of electric vehicle sales has grown, Li-ion battery pack sales have increased as a result.
Rising Adoption of Li-Ion Batteries for Energy Storage is Driving the Market Growth
The companies that employ lithium-ion batteries are benefitting from stringent government regulations being implemented to control rising pollution levels. The power industry is aiming to develop renewable energy and store it for the future. As a result, Li-ion batteries are increasingly being used in smart grid and energy storage systems due to their low price, low self-discharge rate, and minimal installation space. These batteries are perfect for usage in isolated locations and thermal control applications since they are more heat resistant.
Earlier, the high costs of lithium-ion batteries were the main obstacle to the adoption of these batteries. However, the prices of these batteries have been falling recently and will continue to do so in the future owing to the recent breakthroughs by lithium-ion battery manufacturing businesses. Thus, key factors driving the increased use of lithium-ion batteries are the falling costs of component parts and the adoption of cutting-edge technology to improve battery capacity.
Earlier, the high costs of lithium-ion batteries were the main obstacle to the adoption of these batteries. However, the prices of these batteries have been falling recently and will continue to do so in the future owing to the recent breakthroughs by lithium-ion battery manufacturing businesses. Thus, key factors driving the increased use of lithium-ion batteries are the falling costs of component parts and the adoption of cutting-edge technology to improve battery capacity.
Recent Trends in the Lithium-Ion Battery Pack Industry
- Compact designs transforming lithium-ion battery pack uses.
- Smart technology integration enhances lithium-ion battery packs.
- High-performance lithium-ion battery packs fulfil growing demands.
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Technical Limitations of Li-Ion Batteries Pose Threat to the Market Expansion
As lithium-ion batteries gained popularity, accidents involving them also became more frequent, which decreased the public faith in the batteries. Despite the fact that lithium-ion batteries dominate the market for rechargeable batteries, there is a significant safety risk that has caught the attention of both researchers and the general public. The main issue with LIBs is that they are explosive and prone to fire since they are made up of high-energy density electrodes, a flammable separator, a flammable electrolyte, etc. In recent years, numerous lithium-ion battery fire and explosion accidents have been reported.
Compared to certain other rechargeable technologies, lithium-ion batteries, and cells are not as durable. They must be protected against being overcharged and discharged excessively. Additionally, they must ensure that the current is kept within safe limits. As a result, a drawback of lithium-ion batteries is that protection circuitry is necessary to keep them within their safe operating range. Furthermore, another significant issue with lithium-ion batteries for consumer electronics is that they deteriorate with time. This is based on both time and the calendar, as well as how many charge-discharges cycles the battery has gone through.
Compared to certain other rechargeable technologies, lithium-ion batteries, and cells are not as durable. They must be protected against being overcharged and discharged excessively. Additionally, they must ensure that the current is kept within safe limits. As a result, a drawback of lithium-ion batteries is that protection circuitry is necessary to keep them within their safe operating range. Furthermore, another significant issue with lithium-ion batteries for consumer electronics is that they deteriorate with time. This is based on both time and the calendar, as well as how many charge-discharges cycles the battery has gone through.
Collaborations and New Business Establishments are Fuelling the Market Development
In order to strengthen their market share globally, major market players are constantly pursuing competitive marketing strategies, such as alliances, technological advancements, investments, acquisitions, and R&D initiatives. For instance, the mass production of battery cells for the next battery-electric vehicles was announced by LG Chem and General Motors in December 2019. Through this brand-new joint venture company that will be equally owned by both businesses, the two companies planned to jointly invest up to $2.3 billion. Furthermore, in January 2020, Saft announced intentions to open a pilot factory to produce lithium-ion battery packs for electric vehicles. The project located in the Nouvelle-Aquitaine area of France is anticipated to begin producing EV batteries by 2023.
Earlier, In November 2018, Toshiba Infrastructure Systems & Solutions Corporation and Johnson Controls Power Solutions teamed together to provide low-voltage lithium-ion solutions in order to satisfy the expectations of the automotive industry for increased effectiveness, decreased expense, and decreased complexity. In accordance with the contract, Johnson Controls will work with Toshiba to create lithium-ion batteries at its Holland, Michigan, facility and integrate them into dual-battery systems with current lead-acid battery technology.
Earlier, In November 2018, Toshiba Infrastructure Systems & Solutions Corporation and Johnson Controls Power Solutions teamed together to provide low-voltage lithium-ion solutions in order to satisfy the expectations of the automotive industry for increased effectiveness, decreased expense, and decreased complexity. In accordance with the contract, Johnson Controls will work with Toshiba to create lithium-ion batteries at its Holland, Michigan, facility and integrate them into dual-battery systems with current lead-acid battery technology.
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Growing Adoption of Li-Ion Batteries is Accelerating the Market Growth
During the forecast period, Asia Pacific is anticipated to hold a significant share in the lithium-ion battery pack market expansion owing to the widespread adoption of lithium-ion batteries in the automotive sector. Countries like China and Japan are considered to be the major markets for electric vehicles. The market in the region is also anticipated to develop as a result of the rising demand for smartphones, laptops, and other electronic devices in several other nations, including China, India, Japan, and Singapore. Furthermore, the United States will be the driving force behind North America's robust expansion. The market size is impacted by the rising sales of consumer electronics and electronic vehicles in the region.
Besides this, Europe is also anticipated to experience significant growth in the lithium-ion battery pack market. The development of this sector has been aided by the increased attention that European governments are giving to greenhouse gas emissions in the environment. A number of the countries in the region, including Germany, Argentina, France, and others, plan to have zero net emissions of carbon dioxide. Due to this, Li-ion battery use in the region has increased. In addition, given that several nations are undergoing extensive development projects and that cities are expanding on a greater scale, the Middle East and Africa are projected to experience significant expansion. Li-ion battery-powered industrial and construction instruments become necessary as a result of this. All these factors are impacting the growth of the lithium-ion battery pack market during the forecast period.
Besides this, Europe is also anticipated to experience significant growth in the lithium-ion battery pack market. The development of this sector has been aided by the increased attention that European governments are giving to greenhouse gas emissions in the environment. A number of the countries in the region, including Germany, Argentina, France, and others, plan to have zero net emissions of carbon dioxide. Due to this, Li-ion battery use in the region has increased. In addition, given that several nations are undergoing extensive development projects and that cities are expanding on a greater scale, the Middle East and Africa are projected to experience significant expansion. Li-ion battery-powered industrial and construction instruments become necessary as a result of this. All these factors are impacting the growth of the lithium-ion battery pack market during the forecast period.
The report provides a detailed overview of the lithium-ion battery pack market insights in regions including North America, Latin America, Europe, Asia-Pacific, Oceania, and the Middle East and Africa. The country-specific assessment for the lithium-ion battery pack market has been offered for all regional market shares, along with forecasts, market scope estimates, price point assessment, and impact analysis of prominent countries and regions. Throughout this market research report, Y-o-Y growth and CAGR estimates are also incorporated for every country and region, to provide a detailed view of the lithium-ion battery pack market. These Y-o-Y projections on regional and country-level markets brighten the political, economic, and business environment outlook, which are anticipated to have a substantial impact on the growth of the lithium-ion battery pack market. Some key countries and regions included in the lithium-ion battery pack market report are as follows:
| North America | United States, Canada |
| Latin America | Brazil, Mexico, Argentina, Colombia, Chile, Rest of Latin America |
| Europe | Germany, United Kingdom, France, Italy, Spain, Russia, Netherlands, Switzerland, Poland, Belgium, Sweden, Austria, Norway, Denmark, Finland, Rest of Europe |
| Asia Pacific | China, India, Japan, South Korea, Australia & New Zealand, Indonesia, Malaysia, Singapore, Thailand, Vietnam, Philippines, Rest of Asia Pacific |
| Middle East and Africa | GCC Countries, South Africa, Nigeria, Egypt, Turkey, Morocco, Ethiopia, Algeria, Israel, Iran, Kenya, Rest of MEA |
Lithium-Ion Battery Pack Market Research Report Covers In-depth Analysis on:
- Lithium-ion battery pack market detailed segments and segment-wise market breakdown
- Lithium-ion battery pack market dynamics (Recent industry trends, drivers, restraints, growth potential, opportunities in lithium-ion battery pack industry)
- Current, historical, and forthcoming 10 years market valuation in terms of lithium-ion battery pack market size (US$ Mn), volume (Units), share (%), Y-o-Y growth rate, CAGR (%) analysis
- Lithium-ion battery pack market demand analysis
- Lithium-ion battery pack market pricing analysis over the forecast period (by key segment and by region)
- Lithium-ion battery pack market regional insights with region-wise market breakdown
- Competitive analysis – key companies profiling including their market share, product offerings, and competitive strategies.
- Latest developments and innovations in the lithium-ion battery pack market
- Regulatory landscape by key regions and key countries
- Supply chain and value chain analysis in the lithium-ion battery pack market
- Lithium-ion battery pack market sales and distribution strategies
- A comprehensive overview of the parent market
- A detailed viewpoint on lithium-ion battery pack market forecast by countries
- Mergers and acquisitions in the lithium-ion battery pack market
- Essential information to enhance market position
- Robust research methodology
- Frequently Asked Questions -
What factors drive the growth of the Lithium-Ion Battery Pack market?
Increasing demand for electric vehicles, renewable energy adoption, advancements in battery technologies, and consumer electronics' growing reliance on portable power sources are primary growth drivers.
What challenges are faced by the Lithium-Ion Battery Pack market?
Challenges include high manufacturing costs, raw material availability, recycling issues, safety concerns, and environmental impacts associated with lithium-ion batteries.
What are the key trends shaping the future of the Lithium-Ion Battery Pack market?
Trends include increasing focus on solid-state batteries, growing investments in battery recycling technologies, advancements in fast-charging solutions, and expanding use in grid energy storage systems.
