The rapid growth, says the firm, is due to the rising demand for lead-acid and lithium-ion batteries in applications such as consumer electronics, automotive, and grid storage, among others. The demand for lithium-ion (Li-ion) batteries has witnessed significant growth, owing to a surge in demand for laptops and smart devices, such as smartphones and tablets, in recent years. The global increase in shipment of smartphones is fueling the sale of Li-ion battery materials, primarily due to the battery's rechargeability features.
The growing demand for Li-ion batteries for energy storage and renewable energy is a significant factor in driving the battery materials market growth. Battery energy storage systems are deployed for storage of generated electrical power in power plants, mostly renewable power plants.
The report offers the following key highlights:
- By battery type, lead-acid battery, in terms of market size, held the largest market share in 2019. These batteries are used by several end-users owing to the offering of advantages, including better corrosion & gassing resistance, overcharging, and self-discharge protection, as well as cost and energy efficiency.
- By material type, metal & metal oxides contributed to the largest battery materials market share in 2019 and are likely to grow at a rate of 8.1% in the forecast period. These materials are primarily used in making cathode and anode, both of which are required to possess good electrical conductivity, as well as oxidizing or reducing property, respectively.
- By application, consumer electronics contributed to the largest market share in 2019. Growing demand for laptops, UPS, and smart devices, among other consumer electronics devices that require batteries for operation and or portability, is driving the demand for battery materials.
- North America held the second-largest battery materials market share in 2019 and is estimated to grow at a rate of 7.1% in the forecast period. The high demand in the region is due to the growing adoption of electric vehicles, especially in the U.S. Further,