Lithium: Key market research findings
- APAC dominates the market geographically
- Companies in the market are aiming to improve capacity
- Key vendors—Albemarle, SQM, and FMC
Technavio’s market research analysts estimate the global lithium market to grow at a CAGR of almost 8% in terms of volume between 2016 and 2020. The increase in demand for electronic vehicles (EVs) in China is the primary driver for the market. There is an increasing demand for lithium batteries as a result of the growth of the EV market in the country. At present, APAC holds a 48% share to dominate the global lithium market. The increasing penetration of EVs, hybrid EVs, and growth of the consumer electronics sectors are factors that will fuel the growth of the market during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the lithium segments by end-users.
“Increased capacity is the latest trend in the global lithium market. Companies are aiming to increase their capacity in an attempt to meet the increasing demand. There are also several lithium projects that are in the pipeline. For instance, Nemaska Lithium is constructing a lithium hydroxide plant. The plant will complete its Phase 1 of construction by the end of 2016,” says Chandrakumar Badala Jaganathan, Lead Analyst, Chemicals & Materials, Technavio Research.
In 2015, the batteries segment dominated the global lithium market by accounting for around 33% of the total market share. This segment of the market is flourishing owing to the high electrochemical potential of lithium which makes an ideal choice for use in batteries. The use of lithium batteries for portable devices such as laptops, tablets, and mobile phones and the growing demand from the automotive sector are factors that will boost growth in this segment over the next four years.
The key vendors in the market include Albemarle, SQM, and FMC. This market is dominated by a few major lithium companies and is considered to be oligopolistic in nature, which results in less competition and high product prices. Manufacturers are broadly divided into three levels: raw material producers, primary lithium compound producers, and deep processing lithium product and regularly compete on the basis of product differentiation, advertising, and market penetration.
A more detailed analysis is available in the Technavio report, Global Lithium Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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