Lithium-ion batteries expected to increase market share

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The market for advanced and post lithium-ion batteries is expected to reach $14bn in 2026, according to Franco Gonzalez, Senior Technology Analyst at IDTechEx.

In his report, Franco said that while existing battery technologies such as lead acid and lithium-ion batteries will dominate the battery market in the following 10 years, advanced and post lithium-ion batteries, given the right conditions, ‘can potentially take a considerable dent of about 10% of whole battery market by 2026.’

“This is mostly because some of them are already in use in niche segments that will present high growth in the following 10 years,” Franco said.

“One interesting point in the development of these technologies is that they are not targeting the established end-use markets as entry point, such as automotive, but emerging niche markets.

“Indeed while automotive remains one of the main markets for battery technologies, 2015 is seeing the emergence and consolidation of alternative niche markets in which new battery technologies can find spaces for development without being exposed to fierce competition from incumbent companies and their technologies.

“These niche segments are allowing these emerging technologies to mature and the incumbent companies to reach the scale and the security of supply that the automotive industry and consumer electronics require.”
Franco added: “Lithium-ion is the best battery technology we have ever seen. It has increased energy density by 5% per year and decreased its cost at 8% per year.

“However it will not achieve transformative factors of five in cost and performance and this is just because of the inherent material limitations.”