Lithium-Ion Battery Market With COVID-19 Impact In 2021
The global lithium-ion battery market size is projected to grow from USD 41.1 billion in 2021 to USD 16.6 billion by 2030. It's expected to grow at a CAGR of 12.3% from 2021 to 2030. The expansion of the market is majorly driven by stormy demand for continuous power offer from crucial infrastructures in wake of COVID-19, increasing demand for plug-in vehicles, growing want for battery-operated material-handling instrumentation in industries because of automation, continued development of sensible devices, and growing adoption of lithium-ion batteries in renewable energy sector.
COVID-19 Impact on the Lithium-ion Battery Market
The lithium-ion battery market was moderately wedged by the COVID-19 pandemic. Within the prevailing COVID-19 scenario, the expected growth of the market is predicted to say no because the pandemic is limiting the availability of batteries and different parts because of severe disruptions in businesses and therefore the international economy. The present scenario has wedged the availability chain of the battery trade. Key parts for batteries square measure chiefly factory-made in Asia Pacific. The COVID-19 scenario has exposed the over-dependency on the region for key raw materials, particularly China. Battery makers within the United States, Germany, and Australia square measure extremely wedged by the closing of operations in China and different Asia Pacific countries. It's additionally resulted in restricted production resulting in a heavy decline in business inputs. The recovery depends on government help, also because the level of company debt and the way the businesses and markets deal with the cut demand. Once the recovery part, the market is projected to grow at a moderate rate till 2030.
Market Dynamics
Driver: Increasing demand for plug-in vehicles.
Lithium-ion batteries square measure a supply of power for electrical vehicles. The widespread use of electrical vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) has inevitably boosted the adoption of lithium-ion batteries that is predicted to extend additional within the future. The growing adoption of EVs among customers has helped boost the marketplace for these energy-saving, pollution-reducing vehicles. The amount of electrical vehicles is consistently increasing, because of blessings aligned with them like less have to be compelled to maintain the vehicle engine, reduced use of unsafe oil waste, and reduction in pollution caused by fuel combustion engines, along the event of improved battery technologies. Electrical vehicles square measure perceived because the way forward for the auto trade and transportation systems; their magnified adoption can eventually increase the demand for lithium-ion batteries.
Restraint: issues of safety associated with storage and transportation of spent batteries.
Spent batteries contain unsafe chemicals, together with acids and serious metals, like mercury and lead. In July 2007, a fireplace incident caused by lithium-based batteries resulted in additional than 132,000 liters of chemicals being combust, inflicting the closure of two major motorways within the United Kingdom. It's obligatory to stay spent batteries in watertight containers and store them aloof from different burnable and flammable materials. It's additionally vital to keep a Class D extinguisher and sand nearby as a precautionary measure in the event of a fire. As spent batteries hold residual charge, there lies a risk of unplanned discharge, which can cause hurt to properties and folks. All batteries, unless properly labeled, ought to be treated as holding charge and hold on with care. Because of the said risks, the storage and transportation of spent batteries square measure regulated by state or national governments.
Opportunity: Declining costs of lithium-ion batteries.
The price of lithium-ion batteries has been a serious issue preventive adoption since their introduction within the Nineties. A lithium-ion battery consists of the many parts. The first element of any lithium-ion battery is that the cell, that accounts for nearly five hundredth of its cost; natural philosophy, assembly, and packaging account for the remainder. However, recent developments and claims created by lithium-ion battery producing firms and automobile firms counsel that the worth of those batteries is predicted to say no considerably. in line with General Motors Company (US), the price of a cell is predicted to drop to USD one hundred per kWh by 2021. Developments like producing on an oversized scale, declining value of parts, and adoption of advanced technologies to spice up battery capability square measure a number of the factors resulting in a decline in value. A discount within the value would turn the adoption of those batteries across varied new applications.
Challenge: Disruptions in offer chain of batteries and connected parts are caused by COVID-19.
The outbreak and the spread of the COVID-19 have impacted the energy industry supply chain, particularly renewable energy technologies and battery energy storage systems. The key parts utilized in battery energy storage systems square measure chiefly factory-made in APAC. The pandemic has exposed the over dependence of the globe on the region, particularly on China, for key raw materials. makers of energy storage systems within the United States, Germany, and Australia square measure severely wedged by the closing of operations in China and different countries of APAC.
10,000–60,000 MAh Lithium-ion battery expected to contribute the biggest share to the lithium-ion battery market throughout the forecast amount
Conclusion
Lithium-ion battery market in APAC contributed the biggest share in 2020. Lithium-ion battery market in APAC is predicted to grow at the best CAGR throughout. China and Japan square measure the world’s second-and third-largest markets, severally, for electrical vehicles. Continuous developments within the client natural philosophy and automotive verticals have light-emitting diode to a rise within the application of lithium-ion batteries as they provide varied blessings, like high power capability, magnified safety, and reduced pollution. However, the occurrence of COVID-19 has wedged the producing facilities of all verticals across the globe, forcing them to clean up. However, production has resumed in an exceedingly few facilities in China, thereby initiating the producing of some necessities. Many countries within the APAC region square measure designing off-grid electrification, particularly in remote areas. Investments in energy storage systems square measure expected to extend considerably within the region as governments in developing economies square measure formulating new policies to enhance the dependability and quality of power distribution facilities for the residential customers. If you want to know more about lithium battery, please contact Maxworld Power.