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The size of the global lithium-ion battery market will exceed $60 billion by 2024, according to a study by Global Market Insights.

Growing adoption of electric vehicles (EVs) coupled with government initiatives to promote sustainable energy use will drive the lithium-ion battery market size.

In 2015, EV registrations witnessed a 70% increase from the previous year with 550,000 vehicles sold across the globe.

According to EIA, China and the US accounted for 336,000 and 159,000 EV sales respectively in 2016.

The Japanese lithium-ion battery market is set to record above 8% in growth by 2024. Positive outlook towards the automotive sector alongside an increase in adoption of smart devices will stimulate demand in lithium-ion battery market.

In 2016, Japan accounted for over 13 GWh of automotive lithium-ion cell manufacturing capacity representing a 237% increase from the 2014 level. Government focus to limit emissions along with a shifting trend towards renewable energy use will further augment the industry growth.

Industrial lithium-ion battery market is to surpass $9 billion by 2024. These products find wide ranging applications across defense and healthcare sector where capacity, energy density and safety are of paramount importance. Ability to provide higher current makes its adoption preferable across heavy industries including mining, oil & gas and construction.

In 2016, the US accounted for over 80% of North America lithium-ion battery market share. Ongoing digitisation of healthcare industry along with shifting trend toward IoTs has resulted increased demand for smart devices in the country. Government initiatives toward adoption of non-conventional fuel vehicles will further enhance the business outlook.

Ongoing investments toward distributed generation coupled with growing demand for off-grid generation technologies will stimulate the product penetration across the energy storage applications. Rapid expansion of micro-grid networks will further provide impetus to industry growth. Nickel manganese cobalt oxide, lithium iron phosphate, and nickel cobalt aluminum oxide are prominent secondary batteries deployed for these applications.

Lithium cobalt oxide (LCO) market is projected to witness gains over 6% on account of rising demand for portable electronic devices. These products are predominantly deployed across mobile phones, smart watches, activity tracker, digital cameras, and laptops owing to its ability to offer high specific energy. LCO consist of carbon graphite carbon anode and a lithium cobalt oxide cathode. However, low thermal stability, short life span and limited load capabilities of lithium cobalt oxide batteries may hamper the business growth.

Middle East and Africa lithium ion battery market in 2016, was valued over USD 1 billion and is projected to witness growth owing to ongoing investment towards renewable energy grid infrastructure development. Investment toward expansion of micro grid across remote areas will further stimulate the product demand.

Authors: Ankit Gupta, Aditya Singh Bais