Contact: Joseph Walker, Interact Analysis, UK
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FOR IMMEDIATE RELEASE: July 2019
Lithium-Ion battery market poised for strong growth in Europe; Asian players expected to open European factories, Interact Analysis says
- Europe expected to show production capacity CAGR of 56% between 2018 and 2023
- Energy storage market will show CAGR of 40.4% over next five years, driven by renewables
- Report offers unique depth on sectors such as energy storage and battery manufacturing equipment
LONDON, UK, July 19 – Europe will be the fastest growing market for lithium-ion batteries, according to new research from Interact Analysis – a market intelligence provider for the intelligent automation sector – with Asian players expected to open local factories to meet demand. 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 327.5 GWh 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 unutilized 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 118.7 GWh 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 174.5 GWh (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.
Maya Xiao, research analyst at Interact Analysis and report author, says: “China will show steady growth, but the EMEA market is perhaps of most interest. The region will be the second-fastest growing, just after China, over the next five years. This is largely due to rapid growth in the electric truck and energy storage system markets. It is fascinating to learn, based on conversations with industry insiders, that Asian suppliers are looking to meet projected strong growth in Europe by opening local factories. From a wider perspective, political sentiment is important. In China, a desire for energy security explains much of the motivation to develop battery technology, while in Europe ambitious emissions reductions targets are key. Additionally, average battery price is predicted to drop by 30% by 2023, leading to soaring penetration in new applications.”
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.
The report includes research, data and analyst insights. Market data is offered in two formats: Excel and Microsoft PowerBI. The PowerBI dashboards are available to all customers, and offer unparalleled access to enter and manipulate the dataset, allowing the user to switch between currencies at will, and to drill down through different categories to analyze behavior at different levels of granularity with ease.
To learn more, visit https://www.interactanalysis.com/lithium-ion-battery-production-supply-2019/
About Interact Analysis
Interact Analysis is an international provider of market research for the Intelligent Automation sector. Our team of experienced industry analysts delivers research into three core sectors: industrial automation, robotics and warehouse automation, and commercial vehicles. Intelligent Automation – which is the integration of artificial intelligence and automation – will change virtually every industry imaginable. This combination enables greater efficiencies, productivity, convenience and scale. It has the potential to drastically alter the outlook for many traditional industries such as manufacturing, healthcare and automotive as well as to lead to the emergence of entirely new industries.
To learn more, visit www.interactanalysis.com