1 - Lithium-Ion battery market poised for strong growth in Europe

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Lithium-Ion battery market poised for strong growth in Europe

22 July 2019

Europe will be the fastest growing market for lithium-ion batteries, according to new research from Interact Analysis with Asian players expected to open local factories to meet demand.

Figure 1

Meanwhile, energy storage is expected to be the fastest growing lithium-ion battery market sector.

On the supply side, global lithium-ion battery production capacity reached 327.5GWh in 2018, a year-on-year increase of 35%, with production predicted to show a CAGR of 22.7% between 2018 and 2023. Production capacity for lithium-ion batteries will triple between 2018 and 2023, and the research indicates a strong possibility of unutilised capacity in the market. Supply-side changes are most notable at the EMEA level, with the region expected to show a radical production capacity CAGR of 56%, reaching 118.7GWh in 2023 (see Fig. 1). This implies growth for ancillary equipment, facilities and raw materials; while local procurement will bring huge opportunities to the EMEA industry chain. In APAC, general regional decline will be partially offset by growth in China.

From a demand perspective, in 2018, global lithium-ion battery sales reported year-on-year growth of 23.1% – to 174.5GWh (see Fig. 2). And the (currently relatively small) energy storage market is predicted radical growth with a CAGR of 40.4% over the next five years – driven by renewable energy. Transport is expected to account for 68.4% of battery sales in 2023 to become the main demand-side market driver – having first exceeded the consumer sector’s share of the market back in 2017. Saturation of demand for lithium-ion batteries in consumer applications, and a failure to establish an advantage in transport, accounts for a predicted fall in the battery sales market share of Japan and South Korea. In spite of this, however, the lithium-ion battery market remains concentrated in Asia for the short term – with the region accounting for 72.6% in 2018, of which China contributed nearly half.

Figure 2

About the lithium-ion battery report

These findings are from Interact Analysis’s new lithium-ion battery report which provides a highly detailed database and in-depth analysis of the lithium-ion battery production, manufacture and supplier base, with a focus on industrial-grade batteries for transportation, energy storage, and consumer market. The report covers the entire supply chain of lithium-ion batteries, both upstream and downstream. It is the only report of its type to offer a strong level of detail on market segments other than passenger cars, such as trucks, energy storage systems and consumer electronics; and is also unique in that it systematically reports on the battery manufacturing equipment market. Using both primary research and secondary research, the report includes a detailed database of the suppliers of batteries and planned manufacturing plants around the world. The report will also present demand forecasts for lithium-ion batteries based on in-house and third-party data.

To learn more, visit https://www.interactanalysis.com/lithium-ion-battery-production-supply-2019/

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