According to the Goldstein Market Intelligence Smartwatch unit sales increased from 5.20 million in 2014 to 142 million in 2018, according to the Consumer Technology Association. Further, there is a growth in connected wearable devices, from 326 million devices in 2016 to 595 million devices in 2018, according to the Cisco Systems, which holds a great deal of promise, specifically in healthcare applications.
Lithium-ion battery technology is widely embraced and adopted for portable electronics, power tools, and hybrid/electric vehicles across the globe. In recent years, the electric vehicles industry has witnessed significant growth in its sales volume owing to government initiative to replace the majority of IC engine powered vehicles and boosted the demand for lithium-ion batteries.
Increasing demand for mobiles and tablets in various countries including India, China, Japan, and Thailand would drive the demand for lithium-ion batteries during the forecast period. China is currently one of the largest markets for the electric vehicle and has registered ~30 times faster growth than the electric vehicle market in 2018 when compared to 2017. The increasing adoption of electric vehicles is in line with the clean energy policy. In order to reduce the demand-supply gap, the government of China is planning to ease restrictions on automakers importing cars into the country.
As of 2019, Panasonic is the largest producer of lithium-ion batteries with the sales revenue came to around USD 72.5 billion U.S. dollars. Panasonic produces lithium batteries for electric mobility at 23G Wh, followed by Contemporary Amperex Technology (CATL) with a capacity of 12 GWh, and BYD.
The high energy efficiency and power density of LI-ion batteries allowed their use in various electric grid applications and to improve quality of energy harvested from wind, solar and other renewable sources, thus contributing in building energy-sustainable environment which is one of the key factors driving the growth of Asia Pacific lithium-ion battery.
How could the Asia Pacific Lithium-Ion Battery Market address the COVID-19 concern?
The novel coronavirus (Covid-19) crisis has caused a slowdown of China’s economic growth, and with China being a global manufacturing powerhouse, is having a negative impact on global economic growth as well. The majority of the production facilities remain closed or are not able to attain full production capacity due to a shortage of staff and raw materials. These actions have adversely impacted stock markets worldwide. Corresponding to the spread of this coronavirus outbreak, uncertainties are on the rise.
China, a battery manufacturing powerhouse in the world, is now dealing with a slow down with the coronavirus outbreak. China’s major Li-ion manufacturing players, CATL and BYD, are faced with a high probability of additional production delays. China’s attempt to fight with the coronavirus outbreak has led to delayed production across a number of battery production facilities located in key coronavirus hit provinces.
Even Tesla’s (TSLA) giga-factory in Shanghai is hinting of possible supply shortages for the US, UK, and Australia. The limitations on the labor movement will hit hard battery production facilities located in the coronavirus-hit provinces, which are expected to contribute to battery cell production this year. This coronavirus outbreak is expected to lower the output of Chinese battery manufacturers by around 26GWh in 2020.
Asia Pacific Lithium-Ion Battery Market Landscape
Goldstein Market Intelligence analysts forecast the Asia Pacific lithium-ion battery market to grow at a CAGR of 13% through the period 2017-2030.
On the basis of end-users, the consumer electronics industry accounted for the highest revenue share of 52% in Asia Pacific lithium-ion battery. Moreover, the consumer electronics segment is anticipated to dominate the market with a CAGR of 10.9% over the forecast period.
Geographically, the China region dominated the Asia Pacific lithium-ion battery market, with more than 48% revenue share in the Asia Pacific market owing to huge consumer electronics and electric vehicles market in the country.
By 2025, global revenues in the lithium-ion market are expected to exceed 70 billion U.S. dollars.
Comments
Log in or sign up to join the conversation.