India Lithium-ion Battery Market: Overview
India Lithium-ion Battery market is expected to grow with a CAGR over 23% during the forecast period 2018-2025. Increasing pollution concerns, rising adoption of electric vehicles, increasing income-levels and surging demand for quality and uninterrupted power are some of the key factors driving the growth of Lithium-ion batteries market in India. Further, rising usage of smartphones and other consumer electronics products is resulting in an increase in demand for higher energy density and faster-charging solutions. Additionally, growing consumer electronics market is complimenting the growth of Lithium-ion batteries market in India owing to its light-weight, high energy, and power capacity features. However, high cost and risk of fire in electronic devices may hinder the market growth in the coming years.
Moreover, increasing awareness towards portable and stationary energy storage coupled with government’s push towards solar and wind projects are expected to contribute to the growth of Lithium-ion battery market over the coming years. Furthermore, government efforts towards adoption of electric vehicles such as Faster Adoption and Manufacturing of Hybrid & Electric Vehicles (FAME) scheme as well as tax exemption on EVs are anticipated to provide much needed boost to the market.
India Lithium-ion Battery Market: Type Analysis
Lithium cobalt oxide (LCO) battery type is
expected to hold the largest share of the overall lithium-ion battery market
during the forecast period. The energy density of any LCO battery is very high,
and the cost of manufacturing these batteries is fairly reasonable owing to the
use of graphite carbon and cobalt.
Lithium Manganese Oxide segment is growing
significantly with a healthy CAGR during the forecast period. They are a
promising technology as their manganese-oxide components are earth-abundant,
inexpensive, non-toxic, and provide better thermal stability.
Lithium Iron Phosphate is growing significantly
with a healthy CAGR during the forecast period. Lithium Iron Phosphate, also
known as LFP has various features such as long cycle life, high safety, and
high temperature resistance. Lithium iron phosphate batteries find application
in power tools, electric vehicles, energy storage devices and electric bicycles
among others. But as of now, the main use of Lithium Iron Phosphate battery is
in power batteries for electric vehicles.
India Lithium-ion Battery Market: Component Analysis
Cathode segment is growing significantly with a
healthy CAGR during the forecast period. The selection of cathode material
depends on various factors such as cell voltage, capacity, energy & power
capabilities, cycle life, and operating temperature. Various materials are used
in the cathode of a lithium-ion battery such as cobalt, manganese, phosphate,
nickel cobalt manganese (NCM OR NMC), lithium iron phosphate (LFP), and others.
Enhanced reliability and compatibility of lithium-ion batteries have led to
their increase in demand, which in turn fuels the demand for cathode materials.
Furthermore, increase in applications of lithium-ion battery has driven the
Anode is growing significantly with a healthy
CAGR during the forecast period. Anode materials, one of vital raw materials,
make up 5%-15% of lithium battery cost owing to affordable, extremely light,
porous and durable nature.
Electrolyte is growing significantly with a
healthy CAGR during the forecast period. A safe and long-lasting battery needs
a robust electrolyte that can withstand existing voltage and high temperatures
and that has a long shelf life while offering a high mobility for lithium ions.
Types include liquid, polymer, and solid-state electrolytes.
India Lithium-ion Battery Market: Application Analysis
The Automotive application of Lithium-ion
Battery is growing with a significant growth during the forecast period. The
use of Lithium batteries in cars, motorcycles, heavy vehicles and off-road
equipment is increasing rapidly. Lead-acid batteries are being replaced by
Lithium batteries to improve charge/discharge performance, save weight, save
space, increase lifetime and avoid lead in the environment.
Industrial usage of Lithium-ion Battery is
growing with a healthy CAGR during the forecast period. Lithium batteries are
currently the best available energy storage technology and are exceptional for
their ratio of dimensions to weight and capacity. They are also capable of
delivering high current. Quality care for these batteries should also ensure
long battery lifespan. It is suitable for a vast majority of industrial
applications, such as in smart houses, off-grid power systems and in other
systems for storing excess electricity generated by power plants.
India Lithium-ion Battery Market: Competitive Dynamics
The India Lithium-ion Battery market is dominated by a number of players, amongst them the major players are Future Hi-Tech Batteries, Mahindra & Mahindra Limited, Reliance Industries Limited, JSW Group, Adani Enterprise Ltd, Suzuki Motor Corp., Toshiba Corp., Denso Corp., Samsung SDI Co. Ltd., Panasonic Corporation, Toshiba Corporation, Hitachi Chemical Co. Ltd, and Bharat Heavy Electricals Ltd. Companies in this industry are following different strategies to strengthen their market position.