Market Definition
A Lithium-Ion (Li-Ion) battery is a kind of rechargeable battery in which lithium-ions travel from negatively charged to positively charged electrodes through the electrolyte and back when charging. The increasing inclination toward electrifying & decarbonizing the transportation sector of the UK and the mounting need to address rapid climate changes & build a clean-energy economy are driving the demand for lithium-ion batteries in the country.
Market insights
The UK Lithium-Ion Battery Market is anticipated to grow at around 15% CAGR during the forecast period, i.e., 2021-26. The growth of the market is driven principally due to the various government initiatives toward electrification of the transportation sector to curb carbon emissions. The automotive industry is the primary end-user of Lithium-Ion batteries in the United Kingdom. Besides, the mounting demand for Plug-in Hybrid Electric Vehicles (PHEVs) and the surging number of EV charging points is another crucial aspect projected to boost the market during 2021-26.
Furthermore, the mounting penetration of electronic devices, including laptops, tablets, smartphones, etc., is another crucial factor propelling the market growth. Moreover, due to benefits like the ability to support high current applications and the long life span, numerous end-users are adopting lithium-ion batteries, which, in turn, is contributing to the overall market growth.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2016-19 |
| Base Year: 2020 | |
| Forecast Period: 2021-26 | |
| CAGR (2021-2026) | 15% |
| Key Companies Profiled | Murata Electronics, Samsung SDI Co. Ltd., Panasonic Industry Europe GmbH, Envision AESC Group Ltd., BYD Co. Ltd., Exide Technologies, GS Yuasa Battery Europe Ltd., Johnson Matthey Battery Systems, LG Chem Europe GmbH, Saft Groupe S.A., etc. |
| Unit Denominations | USD Million/Billion |
Impact of Covid-19 on the UK Lithium-Ion Battery Market
Market Segmentation
By Type:
Amongst all types of Lithium-Ion batteries, Lithium Cobalt Oxide (LCO) batteries are used most extensively due to their high specific energy delivered over a relatively long period under low-load applications. As a result, it makes them ideal for mobile phones, laptops, & digital cameras.
However, LCO batteries have low thermal stability, which causes several safety concerns. Moreover, since cobalt is highly expensive & toxic, these batteries are not cost-effective. Additionally, their low specific power restrains their performance in high-load applications. Hence, these aspects associated with LCO batteries are leading to their reducing popularity in the UK market.
On the other hand, the demand for Lithium Nickel Manganese Cobalt (NMC) batteries is expected to witness the fastest growth during the forecast period due to their significantly high demand among EV manufacturers for their lower costs, higher energy density, and longer cycle life. The rapidly increasing manufacturing of EVs to cater to the burgeoning requirements of customers is projected to further augment the procurement of Lithium Nickel Manganese Cobalt batteries in the UK over the forecast years.
By Application:
Of them all, the automotive industry holds the largest share of the UK Lithium-Ion Battery Market, owing prominently to the rising penetration of electric vehicles in the UK, declining battery prices, and various technological advancements in batteries. Moreover, with the mounting need to reduce carbon emissions, the UK government is taking several initiatives toward electrifying the transportation sector, thereby promoting the adoption of electric automobiles.
Hence, the surging demand for electric vehicles will lead to a steady supply of lithium-ion batteries, which, as a result, would propel the overall market growth in the coming years. In 2018, the government of the United Kingdom launched the “Road to Zero” strategy. The prime reason behind this launch was to fuel the sales of electric vehicles that can drive a significant distance with no carbon emissions in the country. Such programs & initiatives are expected to fuel the sales of electric vehicles in the UK and encourage the demand for Lithium-Ion batteries over the forecast years.
On the other hand, Consumer Electronics is expected to hold a substantial market share during 2021-26. The increasing demand for devices with long-life batteries is the most prominent aspect fueling the market growth around the consumer electronics industry. In addition, rising competition among electronics manufacturers to offer superior products with high battery capacity is also providing lucrative growth opportunities to the market around the consumer electronics sector.
Moreover, with the introduction of new features in electronics items, more & more consumers are increasingly purchasing those products, thereby infusing the production & sales of lithium-ion batteries for them. Hence, with the growing demand for consumer electronics, the need for lithium-ion batteries is also expected to increase significantly in the coming years.
Key Trends in the UK Lithium-Ion Battery Market:
The prices of Lithium-Ion batteries used in phones, tablets, electric vehicles, and laptops have declined dramatically over the past three decades. It is majorly due to various R&D activities that led to the adoption of advanced technologies to increase the cell charge densities entwined with the rapid increase in their production at lower costs. Among all components of lithium-ion batteries, the cell accounts for the maximum costs of batteries. However, innovations by lithium-ion battery manufacturers and automotive companies cite that the prices of these batteries shall decline substantially in the coming years, which, in turn, would increase their adoption & drive the market.
The battery recycling process is gaining a rapid pace in the UK's EV sector market. It is expected that a few EV battery components like lithium & cobalt will be under short supply after 2024. Since the demand for EVs is expected to surge significantly in the coming years, mainly due to the increasing inclination toward transitioning into a low-carbon future, the production & sales of battery materials would also soar dramatically. This projected boost in the demand for batteries presents a lucrative opportunity for the recycling industry to enter the lithium-ion battery supply chain.
Regional Landscape:
Here, England captured the largest market share in the UK Lithium-Ion Battery Market, principally due to the surging adoption of Lithium-Ion batteries in automobiles since the transportation sector is the largest source of carbon emissions in England. The establishment of a new plant in England is expected to boost the EV industry in the country. A 235-acre Power Station site purchased in Blyth will produce Lithium-Ion batteries for EVs, i.e., expected to begin in 2023.
The new gigafactory will help meet the desired expectation of EV batteries and achieve the target of net-zero carbons by 2050. Further, substantial investments in making technologically advanced consumer electronics, including laptops & smartphones, is another crucial factor fueling the overall growth of the Lithium-Ion Battery Market in England.
Market Dynamics:
Key Driver: Burgeoning Adoption of Electric Vehicles
Lithium-Ion batteries are used widely as a power source for electric vehicles, the adoption of which is rapidly increasing to attain a long-term transition to a low-carbon economy in the country. EVs run on lithium-ion batteries that help reduce the Green House Gases (GHG) and air pollutants, which emit from road transportation. Hence, the increasing inclination toward EVs is expected to significantly increase the demand for Lithium-ion batteries and, in turn, would drive the overall market during 2021-26.
Possible Challenge: Safety Concerns Related to the Transportation & Storage of Lithium-Ion Batteries
Transportation, storage, & safety issues associated with used lithium-ion batteries are the major factors that can hamper the growth of the Lithium-Ion Battery Market in the UK. The battery includes hazardous chemicals & heavy metals, which is why they must be stored safely in water-tight containers and kept away from flammable materials to avoid any fire incidence. Lithium-Ion batteries pose excellent performance, owing to which they are used extensively in electronics items & Electric Vehicles (EVs). However, frequent explosions & fires limit their further applications.
Competitive Landscape
According to MarkNtel Advisors’, the leading players with a considerable share in the UK Lithium-Ion Battery Market are Murata Electronics, Samsung SDI Co. Ltd., Panasonic Industry Europe GmbH, Envision AESC Group Ltd., BYD Co. Ltd., Exide Technologies, GS Yuasa Battery Europe Ltd., Johnson Matthey Battery Systems, LG Chem Europe GmbH, Saft Groupe S.A., etc.
Key Questions Answered in the Market Research Report
Market Outlook, Segmentation and Statistics
Frequently Asked Questions
A. The UK Lithium-Ion Battery Market is expected to grow at a CAGR of around 15% during 2021-26.
A. The rapidly increasing demand for Lithium Nickel Manganese Cobalt (NMC) batteries is expected to emerge as an area of lucrative opportunities for the leading players in the UK Lithium-Ion Battery Market during 2021-26.
A. The increasing demand for EVs, mounting investments in the EV infrastructure, and the surging adoption of smart devices in the UK are the prime factors projected to drive the Lithium-Ion Battery Market in the country during 2021-26.
A. In the coming years, the UK Lithium-Ion Battery Market is projected to grow astronomically owing to the resumption of manufacturing operations, ever-increasing sales of EVs, and surging usage of Lithium-Ion batteries in medical devices.
