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In many cases, the end of the year gives you time to step back and take stock of the last 12 months. This is when many of us take a hard look at what worked and what did not, complete performance reviews, and formulate plans for the coming year. For me, it is all of those things plus a time when I u...
Frost & Sullivan, Global Lithium-ion Market to Double Despite Recent Issues
The market was valued at $11.7 billion at the end of 2012 - Fastest growth can be witnessed in the industrial and automotive segments

LONDON, Feb. 21, 2013 /PRNewswire/ -- The global lithium-ion battery market was worth $11.7 billion in 2012 and is expected to double by 2016, according to Frost & Sullivan. This will happen despite the recent issues experienced by Boeing, and despite Airbus' decision to abandon these batteries. In fact, these incidents may affect the demand only in the short-term.

"Although consumer application accounts for the highest revenues, fastest growth can be witnessed in the industrial segment," confirms Frost & Sullivan's Research Manager Malavika Tohani. North America holds the highest share of revenues for consumer and industrial applications while Europe boasts the highest revenues for industrial lithium-ion batteries (LiBs). The highest growth in industrial battery demand is expected to come from APAC. China, Japan and South Korea account for close to 85-90% of the global LiB production.

China, in particular, has the highest concentration of LiB manufacturers: over 200 players catering especially to the consumer segment and around 30-40 companies for automotive applications. The Chinese Government is strongly promoting EVs, grid scale energy storage and smart grids. Furthermore, many of the US companies that have gone bankrupt have been acquired by Chinese firms and hence this region is expected to further strengthen itself as a leader for LiB production.

In the USA, Obama administration's ARRA funding saw many LiB companies being set up or expanding existing facilities, mainly to cater to the automotive (EV) segment. The past two years have seen many of these companies go bankrupt with the funding drying up. Moreover, the ongoing economic slowdown coupled with high cost of EVs (mainly due to high battery cost) has resulted in less demand for EVs than expected in the past 1-2 years. The number of EVs on the road is much lower than anticipated and this has affected the demand for batteries.

Germany is a strong contributor among European countries and the demand for batteries comes from all the three segments: consumer, industrial and automotive. Germany and Switzerland are the energy storage/battery R&D hubs and quite a few manufacturers are based in these two countries.

The global LiB market holds immense opportunities for growth and expansion. Although the consumer segment is mature in developed economies, this still is a growing application in Latin America, China, India and so on. The highest potential for growth however is exhibited by the industrial applications. Manufacturers that were previously involved only on producing and selling batteries for the automotive segment are now revaluating their strategies and have started to sell LiBs for cordless power tools, forklifts, and garden equipment, along with the batteries for automotive segment.

A presentation that includes some interesting market data on the global lithium-ion market is available on Slideshare here.

Furthermore, for additional information on this subject and to contact the Energy and Environment team at Frost & Sullivan please send an e-mail with your contact details to Chiara Carella, Corporate Communications, at

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organisation prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

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Chiara Carella

Corporate Communications – Europe

P: +44 (0) 20 7343 8314

M: +44 (0) 753 3017689


SOURCE Frost & Sullivan

About PR Newswire
Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

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