The global Lithium Ion battery packaging market size was worth USD 11,412.38 million in 2019 and is estimated to reach USD YY million by 2027, at a CAGR of 11.92% during the forecast period.
Lithium-ion batteries are primarily used in electric vehicles which act as a one of the major reasons for the growth of the battery packaging market. Increasing the usage of lithium-ion batteries in numerous applications and rise in the growth of automotive and transportation industries worldwide are major factors for the growth of the market. The lithium-ion battery industry is tremendously meeting the electronics market demand globally, including cell phones, personal computers, and digital/video cameras. Most modern portable electronic devices like iPhones use lithium-ion batteries. Li-ion batteries are a more convenient choice for electronics due to their high charging back-up capacity. Lithium-ion batteries are cleaner, live longer, recycle better, and require much less maintenance. All these characteristics are playing a crucial role in adopting Li-ion batteries globally by the key electronic manufacturers. For instance, from 2001 to 2016, the value of electronics exports from Asia jumped from USD 537.3 billion to USD 1,758 billion, at an average growth rate of 8.2% each year.
Due to increasing safety concerns raised by the aviation industry, the ICAO/IATA regulations governing the shipping of Lithium Batteries have been tightened and airlines consequently have to enforce these regulations more rigorously. Asia Pacific region evolved as the largest market for lithium-ion battery packaging owing to its significant share in the global Li-ion battery manufacturing industry. China is the largest producer of Lithium-ion batteries in the world which is significantly higher than the likes of succeeding countries – the U.S., South Korea, and Poland.
Global lithium-ion battery packaging market is consolidated with 4-5 major players occupying significant market share, and the rest of a large group of companies.
The companies are focusing on improving their market presence through establishments of new subsidiaries for production and marketing of respective lithium-ion battery packaging solutions. In April 2018,Showa Denko K.K. launched its own subsidiary Showa Denko battery Materials aiming to strengthen its battery materials business in China. In June 2019, American Labelmark Company expanded its Obexion Lithium battery packaging products line offering a wide range of solutions tailor to address specific industry needs and applications.
Market Dynamics
Drivers
- Rising awareness of users towards zero-emission vehicles
- Rising penetration of LIBs in consumer electronics
Restraints
- High cost of raw materials
Rising awareness of users towards zero-emission vehicles
Rising awareness of users towards zero-emission vehicles is the major driving factor for the market growth. The development of affordable battery storage is increasingly being looked at as an indispensable component of sustainability. Clean, renewable energy sources are needed to help create a sustainable society. Wind energy is harnessed when it is windy, and solar energy creation is dependent on sunlight. Such challenges require a storage solution such as lithium-ion batteries. They enable renewable energy generation to be stored until required. Li-ion batteries are a more convenient choice for electronics and electric vehicles due to their high charging back-up capacity. They are cleaner, live longer, recycle better, and require much less maintenance. Increased demand for battery storage can be influenced by government policy, which in turn can result in increased production and falling prices. For instance, several states have adopted storage mandates and regulations, including California, Hawaii, Maryland, Massachusetts, Nevada, New Jersey, and Oregon. Federally, a 30 % Investment Tax Credit is still available for investment in energy storage, as long as it is associated with renewable power generation projects.
Geographical Analysis
The North America market for lithium-ion battery packaging valued USD 2,991.47 million in 2019 and the market is estimated to grow at a CAGR of 11.78% during the forecast period to reach a market value of USD YY million by 2027. The growth of the market can be attributed to the growth prospects of lithium-ion battery manufacturing capacity in the United States
According to Benchmark Mineral Intelligence, a leading market intelligence agency for Lithium-ion batteries and electric vehicles, the share of the U.S. in global Li-ion battery manufacturing is estimated to surge from 4% in 2016 to 22% by 2020. The joint venture formed by Tesla Inc. with Panasonic Corporation resulted in a significant boost of battery production in the region. The Gigafactory 1, coined as the world’s largest lithium-ion battery production plant is intended for production of Li-ion cells by Panasonic and later assembling into automotive batteries by Tesla
Automotive applications are leading the Li-ion battery packaging market in this region owing to the large adoption rate of batteries in vehicles. As of 2018, nearly 90% of the lithium-ion cells produced in the U.S. are used in automotive applications.
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