PUBLISHER: Prescient & Strategic Intelligence | PRODUCT CODE: 1484673
PUBLISHER: Prescient & Strategic Intelligence | PRODUCT CODE: 1484673
Market Overview
In 2023, the worldwide cathode material for automotive lithium-ion battery industry was valued at 2,303.3 million in, the market is projected to advance at a CAGR of 7.6% over the forecast period, to attain 3,818.6 million by the end of the decade.
The forecast of its spread is largely going to depend on expansion in electric vehicles, as companies are steadily decreasing battery prices per kWh, and the energy storage market is facing growth.
The significant increase in the utilization of electric vehicles worldwide is the most dominant factor out there, which is expected to impact positively the value chain of these types of vehicles and in the long run, increase consumer demand for electric vehicle batteries. As we continue to become more conscious of environmental protection, especially due to a constantly wiping ozone layer, electric vehicle sales become a growing popular way around the world.
As of now the division of greenhouse gases by vehicles contributes to 43% of the total amount of CO2 emitted worldwide. More pollution from ICE vehicles and respiratory problems are of great concern to governmental institutions, so they take amending measures in this regard. The issue of air pollution in greenhouse gases from urban cars has provoked governments to create tough environmental regulations.
The global community is coming to terms with the hazardous emissions caused by fuel-based transportation. Consequently, the governments are introducing fuel-saving schemes. With their non-emission features, electric vehicles are a marvelous solution to thwart the burden that pollution exerts on the environment.
Key Insights
In 2023, the lithium-ferro phosphate category had a 35% industry share, both in value and size.
Supremacy because of advanced energy density and lesser self-heating rate in comparison to other materials.
The category is projected to witness greater acceptance of electric vehicle lithium-ion batteries because of low cost.
Lithium-nickel-cobalt-aluminum oxide (NCA) category is rapidly growing with an 8.2% CAGR during the projection period.
NCA batteries provide advanced energy density and quicker charging abilities.
In 2023, the passenger car category had a 50% income share and the category is also projected to witness the fastest growth.
The leading position is driven by government steps in major auto-selling nations such as China and the U.S.
Increasing need for fully electric passenger cars with high range per charge features.
Substantial monetary incentives are provided to EV makers and end users to fuel adoption.
The battery electric vehicle category held a 55% revenue share in 2023 and is the fastest-growing.
Lithium-ion battery a major contributor to BEV dominance due to their high integration rate.
On average, the energy-carrying capacity of BEV (Battery Electric Vehicles) batteries is higher than those of HEVs and PHEVs.
In 2023, the APAC region led the cathode material industry with a 45% revenue share, projected to continue dominating over the projection period.
Primarily propelled by high production and sales of EVs in China, contributing to more than 50% of APAC's industry share.
Chinese industry is projected to stay the largest worldwide for automotive lithium-ion batteries.
LATAM is the fastest developing regional industry, with a CAGR of 8.0% from 2024 to 2030.
This development can be credited to the growing need for electric cars in nations such as Brazil and Mexico.