Market Trends of Automotive Lithium Ion Battery Industry
This section covers the major market trends shaping the Automotive Lithium Ion Battery Market according to our research experts:
Government Initiatives for EVs will Drive the Market
Lithium ion batteries are used in Electric vehicles majorly, so a growth in demand of EVs is directly proportional to the growth in sale of Li-ion batteries for automobiles. After introduction of various government initiatives for grant and subsidies towards purchase of EVs and awareness about how fossil fuels are harming our environment there was considerable growth in the sale of EVs during the period 2014-19. And this growth is expected to continue because of the increasing fuel prices of gasoline and diesel and the amount of pollutants these fossil fuels release into the environment.
Most of the Governments around the globe have either lifted taxes or have given a considerable amount of tax exemption on purchase of EVs. These initiatives by the govt have attracted a lot of buyers to purchase EVs and in turn the sales of Lithium ion batteries also increased.
Asia-Pacific is Expected to be the Market Leader
During the 2012-2018 period the region witnessed an exceptional growth rate of 78% which is higher than any other part of the world by a considerable margin. Despite the already high growth, the market still has high potential for further increments. In India only 280,000 electric vehicles were sold till November 2019, according to Economic Survey. There is a lack of subsidies from government when it comes to Indian market, so it is expected that the govt will establish regulations and norms for increasing sales during the forecast period.
China which is the global leader for sales of EVs has sold about 1.26 million EVs till the end of year 2019, still the Chinese market is having a great potential for EVs. These two countries are the major growing economies of the world. Growing income levels and environmental concerns in these major countries are also major reasons which would drive the market over the forecast period. In April 2020, the Chinese government has introduced 10% service tax waiver for Electric vehicles to boost the demand due to Covid-19 impact.
