PUBLISHER: UnivDatos Market Insights Pvt Ltd | PRODUCT CODE: 1346763
PUBLISHER: UnivDatos Market Insights Pvt Ltd | PRODUCT CODE: 1346763
Lithium-ion batteries and lead-acid batteries are two types of batteries that are commonly used in various applications. Lithium-ion batteries are known for their high energy density, long cycle life, and low self-discharge rate, making them popular in portable electronics and electric vehicles. On the other hand, lead-acid batteries are more affordable and widely used in renewable energy systems, automotive applications, and backup power systems. The market for both types of batteries is expected to grow in the future, driven by the increasing demand for portable electronics, electric vehicles, and renewable energy systems. However, the growth of the lithium-ion battery market is expected to outpace that of the lead-acid battery market due to the superior performance of lithium-ion batteries.
The lithium-ion and lead acid batteries market is expected to grow at a steady rate of around 17.3% owing to rising renewable energy integration and a rise in government initiatives in developing countries. Moreover, the increasing demand for energy storage solutions for grid-connected renewable energy systems is also expected to boost the market for lithium-ion batteries globally. Furthermore, rising government support for the adoption of an electric vehicle in the form of subsidies and tax incentives is further pushing the demand for EVs. For instance, according to the international energy agency(IEA), Governments across the world spent USD 14 billion on direct purchase incentives and tax deductions for electric cars in 2020, a 25% rise year-on-year.
Based on battery type, the market is segmented into lithium-ion battery (lithium cobalt oxide, lithium iron phosphate, lithium nickel manganese cobalt, and others) and lead acid battery (SLI batteries, stationary, and motive). The lithium-ion battery category is to witness a higher CAGR during the forecast period. This is mainly due to the lithium-ion batteries (lithium cobalt oxide) particularly used in the electric vehicle and energy storage sectors. As demand for these applications continues to grow, it is likely that the use of lithium cobalt oxide batteries will continue to play an important role in the development of energy infrastructure.
On the basis of construction type, the market is categorized into lithium-ion battery (cylindrical lithium-ion cell, prismatic lithium-ion cell, and lithium pouch cell) and lead acid battery (flooded battery and VRLA battery). Among these, the lithium-ion battery is to witness a higher CAGR during the forecast period. Prismatic batteries are commonly used in electric vehicles (EVs) because they offer several advantages like they have a higher energy density, which means they can store more energy in a smaller space than other types of batteries. This makes them ideal for EVs, which require a lot of energy to power their electric motors but have limited space to store large batteries. Moreover, prismatic batteries are also easier to manufacture and assemble than other types of batteries, which can lower their cost and make them more accessible to consumers. Further, the market players are producing prismatic cells to reach a larger customer base. For instance, in 2022, BEL established a pilot plant for Li-Ion prismatic cell development and manufacturing in India (Gujarat). Using raw materials such as Anode, Cathode, Electrolyte, Solvents, Binder, etc, BEL has developed and realized 3 types of Li-Ion prismatic cells namely 3.2V, 10 Ah / 25 Ah.
Based on power capacity, the lithium-ion and lead acid batteries market has been classified into lithium-ion battery (low voltage, medium voltage, and high voltage) and lead acid battery (low voltage and high voltage). The lithium-ion battery category is to witness higher adoption of lithium-ion and lead acid batteries during the forecast period. This is mainly due to its ability to provide sufficient power for a range of devices and its growing popularity among consumers has contributed to the increasing demand for high-capacity batteries.
Based on application, the lithium-ion and lead acid batteries market has been classified into lithium-ion battery (consumer electronics, electric vehicles, energy storage, and others) and lead acid battery (automotive, ups, telecom, and others). The lithium-ion battery category is to witness higher adoption of lithium-ion and lead acid batteries during the forecast period. This is mainly due to several growth factors such as government incentives, environmental concerns, and the need to reduce dependency on fossil fuels. Lithium-ion batteries play a crucial role in powering electric cars, e-rickshaws, and electric buses. Also, the demand for high-capacity, long-lasting batteries for electric vehicles has led to significant investments in battery manufacturing facilities globally. For instance, in May 2021, Daimler Truck AG and lithium-ion battery manufacturer, CATL, extended their partnership based on their shared vision of CO2-neutral electrified trucking. CATL will be a supplier of Li-ion battery packs for the Mercedes-Benz eActros Longhaul battery-electric truck, which will be ready for series production in 2024.
For a better understanding of the market adoption of the lithium-ion and lead acid batteries industry, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, Rest of North America), Europe (Germany, U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. Europe is anticipated to grow at a considerable CAGR during the forecast period. Lithium-ion batteries have become increasingly popular in recent years due to their high energy density, long cycle life, and relatively low self-discharge rate. They are widely used in portable electronic devices, electric vehicles, and renewable energy systems. Also, the increasing demand for EVs and the growth of renewable energy sources contribute to the growth. For instance, as per Germany's environment-friendly power act (EEG) (German: Erneuerbare-Energien-Gesetz), the nation has set a target of accomplishing a share of 40-45% of renewable energy sources out of the total energy utilization in the country by 2025. Furthermore, lead-acid batteries have been the traditional choice for stationary energy storage applications, such as backup power systems and renewable energy systems. They are relatively inexpensive and have a long service life, but they have lower energy density and shorter cycle life compared to lithium-ion batteries. The lead-acid battery market in Europe is expected to grow at a slower pace than lithium-ion batteries, but it still holds a significant share of the market due to its low cost and established technology.
Some of the major players operating in the market include: Lithium-Ion Battery (SAMSUNG SDI CO., LTD.; Panasonic Industry Co., Ltd.; BYD Company Ltd.; TOSHIBA CORPORATION; A123 Systems LLC; and LG Chem) Lead Acid Battery (Amara Raja Group; Zhejiang Fengfan NC Machinery Co., Ltd.; East Penn Manufacturing Company; Luminous India; GS Yuasa International Ltd.; and Others (Combined Manufacturers and Startups).