Japan Lithium Ion Battery Market – Industry Analysis, Forecasts and Opportunity Assessment (2017-2023)

Report on Japan Lithium Ion Battery Market – Industry Analysis, Forecasts and Opportunity Assessment (2017-2023)

Introduction to Japan Lithium Ion Battery Market

The Japanese electronics giant Sony introduced the world’s first lithium ion battery in 1991. A revolution at the time, it has gone on to become the lifeblood of the booming electric vehicle market around the world. The lithium ion battery market outlook estimates the industry exceeding $60 billion in 2024. However, the it has just scratched the surface in terms of the usage of such batteries and the technological possibilities therein. Portable power packs, solar power storage and powering remote alarm systems are some of these. Many countries of the world have begun research and development of these batteries to solve their energy woes in the coming future and hence, the lithium ion industry is at an exciting place now. At the forefront is Japan.

End-User/Technology

Given the conventional nature of most of the current fuels used for powering man-made machines and systems, the development of alternate energy sources has been of paramount importance throughout the world. In the automotive sector, this is spearheaded by the electric vehicle. Major automakers have embraced lithium ion batteries as the power source of the future. These are employed in most products in the EV space while research is extending their range and capability. These battery packs are now the base of the mobile phone, laptop and other electronic systems in production. The lead acid battery is truly on its way out of the market.

Market Dynamics

Still a major electronics producer, Japan, has been superseded by China in the world lithium ion battery market share. While China (with over 200 manufacturers) controls over 60% of the world Li-ion battery market, Japan accounts for a little over 20% and South Korea stands third with approximately 10% of the market. USA accounts for 80% of the North American market, a chief driver of Li-ion battery development in the western world.

While the 2020 estimate for the automotive figure stands at $10.2 billion (55% of the total market), it stands at $7 billion for the smaller handset battery market. Both of these industries are growing exponentially and therefore offer ample scope for gains once the market matures to these advancements. The lithium ion battery market size is poised to witness similar trends in other industries as well.

Market Segmentation

The Japanese lithium ion battery market analysis can begin with the following segmentation.

  • Consumer Electronics
  • Automotive
  • Aerospace and Defence
  • Power applications
  • Other industrial uses

Alternatively, device capacity can also be used for segmentation, as follows.

  • 5–25 Wh (Mobiles)
  • 48-95 Wh
  • 18–28 KWh
  • 28-100 KWh (Electric vehicles)
  • 100–250 KWh
  • More than 300 KWh (Heavy industrial usage)

 

Regional/Geographic Analysis

Japan has been a pioneer of the world’s industrial revolution since the mid-20th century, especially in the field of automobiles and electronic systems. Naturally they were erstwhile leaders in the battery production space as well. Japanese automakers like Toyota and Nissan produce Li-Ion batteries at their EV/Hybrid vehicle facilities across the country and the world. Panasonic and Sanyo are the major producers of exported battery packs to international automakers like Tesla and others.

Nearby, China, with its manufacturing superiority leads the overall production and thereby the overall market. However, Japan’s innovation is slowly wresting back this top spot. South Korea’s LG is another major producer in these parts.

Opportunities

The Japanese lithium ion battery market growth is forecast at eight percent by 2024. In addition to the automotive sector, this will be driven by the proliferation of smart devices, developed in Japan and around the world.

While contributing to robust lithium ion battery market trends, innovative Japanese companies hold more than half the world patents in solid-state battery systems. Capable of holding more electricity and recharging more quickly than their lithium-ion counterparts, they could do to lithium-ion power cells what transistors did to vacuum tubes: render them obsolete.

Key Players

Japanese companies Sanyo and Panasonic are the market leaders in the automotive Li-Ion battery market. Toshiba and Hitachi Chemical are other major Japanese producers.

China’s Contemporary Amperex Technology (CATL) and BYD, South Korea’s LG Chem and Samsung SDI and the American A123 Systems and Johnson Controls are the other main manufacturers in the world.

Major Trade Partners

Japan exports large quantities of Li-Ion batteries to the USA through the Panasonic-Tesla partnership. Its Li-Ion batteries accounted for $203.3 million in 2017, 7.2% of the value exported around the world. The growing demand for these batteries, thanks to the growth in EVs and mobile devices has given rise to supplier lock-ins between world industries and battery suppliers. This will have a significant impact on future trade of these power systems.

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