Rechargeable Lithium-Ion Batteries to See Strong Demand through 2022
The overall market for rechargeable Li-ion batteries is estimated to have reached $24 billion in 2017 and is projected to climb to $70 billion by 2022, with a combined annual growth rate of 24%.
Lithium-ion (Li-ion) has become the dominant rechargeable battery chemistry for consumer electronics devices and is poised to become commonplace for industrial, transportation, and power-storage applications, according to a recent report from iRAP. The overall market for rechargeable Li-ion batteries is estimated to have reached $24 billion in 2017 and is projected to climb to $70 billion by 2022, with a combined annual growth rate of 24%
Demand for lithium-ion (Li-ion) rechargeable batteries has been driven by rapid growth in the use of electronic portable equipment. It is estimated that in 2017, 66% of the batteries used in consumer products such as mobile phones, digital cameras, laptops, tablet PCs, and power tools were lithium rechargeable batteries. Lithium is fast replacing nickel-metal hydride (Ni-Mh) and nickel-cadmium (Ni-Cd) batteries for powering consumer electronics.
Growing demand for efficient and eco-friendly vehicles is linked to the depletion of fossil fuel and oil supplies combined with global warming, pollution, and greenhouse gas emissions. As a result, governments of many nations provide various incentives for utilizing electric vehicles, including reduced electric taxi fares, tax benefits, and subsidies for electric vehicle purchasers. Many parts of Europe have banned the use of vehicles operated by conventional combustion engines within the public transportation sectors and are focusing on switching to electrical or hybrid vehicles. Several commercial projects are underway as well.
A key driver of growth for the market in stationary mega-scale lithium battery energy storage is the emergence of power trading through a frequency regulation market as a mechanism for preventing instability in the power grid. Such instability results from the feed-in of renewable energy sources, such as wind power and photovoltaic generation, which are used with increasing frequency.
The largest market is for consumer electronics in 2016 and 2017, which is a matured market segment with a low growth rate. The automotive segment is the fastest-growing segment and is projected to take over the electronics consumer market by 2020. The stationary and industrial segment will have a high growth of 22.2 % from 2016 to 2022.
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