Increased Demand for EVs, Hybrid EVs and Consumer Electronics to Drive the Global Lithium Market Through 2020, Says Technavio

LONDON--()--The global lithium market is expected to grow at a CAGR of almost 8% by volume during the forecast period, according to Technavio’s latest report.

In this report, Technavio covers the market outlook and growth prospects of the global lithium market for 2016-2020. The report also presents the vendor landscape and a corresponding detailed analysis of the top four vendors operating in the market. In addition, the report discusses the major drivers influencing market growth and examines the key emerging trends and their influence on current and future market scenarios.

“The global lithium market will grow at a steady pace during the forecast period driven by the use of lithium compounds in manufacturing high-performance lithium-ion batteries. The increased global demand for lithium has resulted in inflation, and many countries worldwide are undertaking projects to explore and develop more lithium resources,” says Chandrakumar Badala Jaganathan, a lead analyst at Technavio for metals and minerals research.

Technavio’s research study segments the global lithium market into the following regions:

  • APAC
  • Americas
  • EMEA

APAC: largest market for the global lithium battery

APAC, with a share of 90%, accounted for the largest share of the global lithium battery market. Japan was the largest market for lithium batteries and accounted for 65% of the total market share in 2015. The electric vehicle (EVs), hybrid EVs, and consumer electronics sectors were the major revenue contributors to the lithium battery market in APAC in 2015. However, the contribution from the renewable power sector will increase during the forecast period because of increased focus on reducing the carbon footprint and the increasing number of power outages in the region.

The market is expected to grow significantly because of the availability of large manufacturers that provide lithium batteries at relatively low prices because of the availability of cheap labor and mass production. The key leading countries in the lithium battery market in APAC are Japan, China, South Korea, and Taiwan.

The growth of lithium iron phosphate batteries in China will increase significantly during the forecast period due to the growing adoption of EVs and hybrid EVs. China became the largest market for EV in 2015, followed by Western Europe, and will grow at a CAGR of 27% during the forecast period. Japan is the second largest market for EV in APAC.

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Americas: demand from the consumer electronics and industrial sectors to boost growth

The Americas has the world's largest lithium reserves, primarily in Chile and Argentina. Due to environmental concerns and volatile petroleum prices, consumers are shifting toward EVs. Lithium is used to make lithium-ion batteries that are used in EVs. Battery manufacturers are looking for new lithium sources that can provide a long-term supply of high-quality lithium carbonate and are scalable to keep pace with the growing demand. The US EV market is becoming mature, and the growth rate has slowed down post-2014. However, the EV market in Canada will pick up pace during the forecast period.

The US is the largest revenue contributor in this region because of increased renewable power generation and growing adoption of EVs. “Demand for lithium-ion batteries from the consumer electronics and industrial sectors will also increase during the forecast period because of growing demand for portable and high-power-capacity storage systems in the Americas,” says Chandrakumar.

EMEA: demand from the automotive sector due to growing adoption of EV to boost growth

This region is experiencing a lot of demand for lithium-ion batteries from the automotive sector due to the growing adoption of EVs and plug-in hybrid EVs in the region. Western Europe became the second largest market for EV in 2015 after China. Germany and Switzerland were the major contributors in this region.

Germany, Italy, Spain, Russia, and France also account for high demand for lithium-ion batteries for consumer electronics devices. These countries have started extensive installations of renewable energy plants to reduce carbon emissions. The lithium market in EMEA is expected to reach 77,100 metric tons by 2020, growing at a CAGR of over 7%.

Some of the top vendors in the global lithium market as highlighted in the report are:

  • Albemarle
  • SQM
  • Sichuan Tianqi Lithium Industries
  • FMC

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About Technavio

Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

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Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770
www.technavio.com

Release Summary

The global lithium market is expected grow at a CAGR of almost 8% by volume during the forecast period, according to Technavio’s latest report.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770
www.technavio.com