The automotive Lithium-ion battery market is predicted to expand 28% from 2022 to 2030. The expansion of the market is driven by rising rates of electric vehicle (EV) adoption and public awareness. Original equipment manufacturers (OEM) of automobiles and other participants in the mobility business are among those who have been impacted the most severely by the COVID-19 epidemic. Just-in-time production is becoming an increasingly important factor for original equipment manufacturers of automobiles; yet, supply chain disruptions are now limiting their production capacity and overall exports. Because of the interruptions in the worldwide supply chain that have been caused by lockdowns, automobile manufacturing factories are only making and supplying a limited number of autos. Plug-in automobiles are the biggest market driver. Asia-Pacific makes most battery parts. The commercial suspension in China, other Asia Pacific nations hurts U.S., German, and Australian battery makers due to pandemic reduced production and impacted on the market revenues.
Though the global automobile sales were reduced by 15% in 2020 due to the pandemic the electric car registrations rose 40% in 2020 that led to sales of 3 million electric cars globally. Electric vehicles run on lithium-ion batteries. Electric cars (EVs) and plug-in hybrid electric vehicles (PHEVs) increased the use of lithium-ion batteries, and this trend is expected to continue. The rising popularity of electric cars (EVs) has boosted the demand for low-energy, low-emission vehicles. Due to the many benefits of electric vehicles, such as decreased engine maintenance, less oil waste, and less pollution from fuel combustion engines, and improved battery technology, the number of electric vehicles is expanding.
Several governments are cooperating with automobile manufacturers to address environmental safety issues. For instance, France and the UK have committed not to sell diesel cars. Such decisions will boost EV sales, reducing pollution. Governments are offering financial incentives and tax credits to encourage electric vehicle adoption, which will raise demand for lithium-ion batteries. The European Commission (EC) has imposed strict fuel economy and emission rules to address challenges caused by urbanisation and population growth.
Since the 1990s, the expensive expense of lithium-ion batteries has hindered their use. A lithium-ion battery has many pieces. The lithium-ion battery cell accounts for nearly half of the entire cost. Recent advances and declarations by lithium-ion battery manufacturers and automakers show that the price of these batteries will drop in the near future. Large-scale manufacturing, reducing component costs, and new battery technologies all contribute to the price decline. A price drop would boost the use of these batteries in new applications.
The market share of 10,000 to 60,000 MAh in 2021. The 10,000–60,000 MAh lithium-ion battery sector is expected to lead the market during the forecast period. Electric cars, plug-in hybrid electric vehicles, e-motorcycles, golf carts, hybrid trucks, buses, and autonomous guided vehicles are examples where this capacity battery is applied.
Asia Pacific contributed to 40% of revenue share in 2021. thereby dominating the global market. To reduce emissions, China has banned fossil fuel-powered scooters. More electric scooters have been bought. Asia Pacific’s rise as an industrial hub has expanded lithium-ion tool use. Continued trend possible. In Asia Pacific, sales of lithium-ion phones and laptops have surged. The ARRA grants electric car buyers tax breaks. New CAFE rules govern passenger car and light truck fuel economy on U.S. highways. Electric vehicle adoption has increased. Decreased demand for lead-acid batteries due to EPA rules on lead contamination and environmental risks has led to a rise in demand for lithium-ion batteries in automobiles. Mexico has become the global auto industry’s focus as companies from around the world therefore opening opportunities for business investors.
The market for automotive Li-ion batteries is very fragmented, thus producers pursue organic and inorganic growth strategies. The BYD Company in China, LG Chem in South Korea, Contemporary Amperex Technology Co. Ltd. in China, Samsung SDI in South Korea, Panasonic Corporation in Japan, BAK Group in China, GS Yuasa Corporation in Japan, Hitachi in Japan, Clarios in Germany, and Toshiba Corporation are major lithium-ion battery manufacturers that are dominant in this market.
Key Market Trends
- The automotive Lithium-ion battery market is predicted to expand 28% from 2022 to 2030.
- The market share of 10,000 to 60,000 MAh in 2021. The 10,000–60,000 MAh lithium-ion battery sector is expected to lead the market during the forecast period.
- Asia Pacific contributed to 40% of revenue share in 2021.
- The market for automotive Li-ion batteries is very fragmented
- The BYD Company in China, LG Chem in South Korea, Contemporary Amperex Technology Co. Ltd. in China, Samsung SDI in South Korea, Panasonic Corporation in Japan, BAK Group in China, GS Yuasa Corporation in Japan, Hitachi in Japan, Clarios in Germany, and Toshiba Corporation are major lithium-ion battery manufacturers that are dominant in this market.
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