India Lithium-ion Battery Market Size
| Study Period: | 2019 - 2028 |
| CAGR: | 17.23 % |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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India Lithium-ion Battery Market Analysis
The India lithium-ion battery market was valued at USD 1.66 billion in 2020, and it is expected to reach USD 4.85 billion by 2027, registering a CAGR of 17.23% during the forecast period of 2022-2027. The COVID-19 restrictions had a negative impact on, raw materials, such as lead, which witnessed a significant demand drop in 2020, thus, adversely affecting lithium-ion battery manufacturers in India. As per the International Trade Centre, lithium-ion accumulators' import value decreased to USD 1.05 billion in 2020 from USD 1.29 billion in 2019. Factors such as the decline in lithium-ion battery prices along with the emergence of new and exciting markets, i.e., electric vehicle and energy storage systems (ESS), for both commercial and residential applications are expected to be the major drivers for the lithium-ion battery market in India. However, the lack of prominent raw material reserves required for the manufacturing of lithium-ion batteries is expected to pose a challenge for local production and the market for lithium-ion batteries in the country.
- The portable segment is expected to be the largest segment in the Indian lithium-ion battery market during the forecast period.
- The increasing recycling acitivities of lithium-ion batteries in the country is expected to secure the supply of raw materials, such as lithium and cobalt, and reduce the reliance on extracting and refining materials from mineral resources is likely to create significant opportunities for India's lithium-ion battery market in the future.
- India’s plans for increasing the adoption of electric vehicles likely to drive the lithium-ion battery market in India.
India Lithium-ion Battery Industry Segmentation
The India lithium-ion battery market report includes:
| Application | |
| Portable | |
| Automotive | |
| Other Applications |
India Lithium-ion Battery Market Trends
This section covers the major market trends shaping the India Lithium-ion Battery Market according to our research experts:
Portable Segment to Dominate the Market
- Lithium-ion batteries are commonly used in electronic devices, such as smartphones, laptops, clocks, watches, and remote controls. Sales of consumer electronics are very much dependent on the country’s population and disposable income. The increasing disposable income of India over the recent years, has led to rising living standards, driving the demand for consumer electronics.
- The lithium-ion battery technology offers much better energy density in joules of energy per kilogram than the previous battery technologies, such as nickel-cadmium (NiCd) and nickel-metal hydride (NiMH). Apart from that, the rate of self-discharge is much lower for lithium-ion cells than other rechargeable cells, which has led to its increased popularity. Therefore, the availability of smaller batteries with better charge retention has become imperative for electronic devices' energy requirements.
- In recent years, the availability of the internet at extremely cheaper rates has increased smartphone penetration drastically in India. As of January 2020, the India Smartphone market surpassed the United States for the first time on an annual level, becoming the second-largest smartphone market after China globally, reaching 158 million shipments in 2019, with 7% YoY growth. This is due to the mid-tier segment's growth, where Chinese brands aggressively introduced many flagship-grade features and capabilities to capture demand coming from users looking to upgrade from their first or second smartphone. Additionally, the online channels became the preferred selling platforms to introduce these products (Xiaomi, Realme, Vivo, etc.) faster into the market.
- According to the Telecom Regularity Authority of India (TRAI), India's overall tele-density decreased from 86.66 at the end of April-20 to 86.15 at the end of May-20. The Urban tele-density declined from 140.06 at the end of April-20 to 137.81 at the end of May-20. Rural tele-density increased from 58.85 at the end of April-20 to 59.23 at the end of May-20. The share of rural and urban subscribers in the total number of telephone subscribers at the end of May-20 was 45.19% and 54.81%, respectively.
- Additionally, the launch of favorable schemes, such as ‘’Make in India’’ and ‘’Digital India’’, is expected to significantly lower the cost of manufacturing of consumer electronics, in turn becoming more affordable for the section of the population living in rural areas of the country, where consumer electronics penetration is low.
- Therefore, owing to the above points, the portable segment is expected to dominate the India lithium-ion battery market during the forecast period.
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India’s Plans for Increasing Adoption of Electric Vehicles Likely to Drive the Market
- Though the electric vehicle market is still in its initial stages in India, it is expected to witness significant growth going forward, as the government has undertaken various initiatives to promote electric vehicles in the country. India has a vision of becoming a major EV adopting nation by 2030. In the process toward mass adoption of electric vehicles in the country, the government has announced several policies and incentives, which are expected to drive the market during the forecast period.
- India has been witnessing a surge in manufacturing batteries locally, owing to the government’s thrust on e-mobility. The Indian government aims to achieve a 30% electric fleet by 2030. Also, in July 2019, the India government announced income tax exemptions for prospective EV buyers and reduced goods and services tax (GST) on EVs from 12% to 5%. In March 2019, the country's government approved setting up a National Mission on Transformative Mobility and Battery Storage to drive clean and sustainable mobility initiatives with a 5-year phased manufacturing program (PMP) till 2024.
- Furthermore, in August 2018, the government directed an outlay of INR 5,500 crore for the second phase of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) India Scheme (which came into effect in April 2019) to encourage the adoption of EVs and local manufacturing of lithium-ion batteries. Thus, several automobile component manufacturers and power and energy solution providers in India, such as Amara Raja Batteries, have plans to manufacture lithium-ion batteries locally to leverage the booming green vehicles market in the country.
- However, the FAME India Scheme (which started in April 2019) was supposed to end by 2022. However, with the approval of competent authorities, the Union government, in June 2021, decided that the FAME India Phase II Scheme will be extended for two years, i.e., up to March 2024. Also, in Q1 of 2021, the Union government increased incentives on electric two- and three-wheelers to help boost broad-based adoption. According to some industry experts, the government was desperate to utilize the funds earmarked for the FAME scheme, with the sale of EVs remaining muted for the past two years.
- Further, with the FAME II program's backing, the deployment of electric buses in India increased rapidly in 2019. Electric bus fleets now operate in cities such as Kolkata, Mumbai, Pune, and Bengaluru. New registrations have doubled over a year, reaching 450 units, bringing India’s electric bus fleet to more than 800 vehicles in 2019.
- Moreover, as of March 2021, Ola Electric, a subsidiary of Ola Cabs, plans to set up a cell manufacturing unit for its lithium-Ion battery to be used in Ola’s soon-to-be-launched two-wheeler electric vehicles. Furthermore, in June 2021, the French battery system maker Forsee Power started its series production of lithium-ion batteries for electric two-wheelers (E2W) and electric three-wheelers (E3W) in Pune (Chakan Industrial Area, 35 km from Pune Airport).
- On a similar note, in June 2021, the French battery system maker Forsee Power started its series production of lithium-ion batteries for electric two-wheelers (E2W) and electric three-wheelers (E3W) in Pune. The battery production plant has furnished assembly lines and laboratories and testing capabilities. Further, the company has committed to extend its range to high voltage systems for bus, marine, rail, industrial, and commercial vehicles by 2023.
- Therefore, owing to the above points, India's plan for increasing adoption of electric vehices is expected to drive the lithium-ion battery market in the country during the forecast period.
India Lithium-ion Battery Industry Overview
The India lithium-ion battery market is fragmented. Some of the major players operating in the market include TDS Lithium-Ion Battery Gujarat Private Limited (TDSG), Bharat Electronics Limited (BEL), Okaya Power Group, Telemax India Industries Pvt Ltd, and Toshiba Corporation.
India Lithium-ion Battery Market Leaders
TDS Lithium-Ion Battery Gujarat Private Limited (TDSG)
Bharat Electronics Limited (BEL)
Telemax India Industries Pvt. Ltd.
Toshiba Corporation
Okaya Power Group
*Disclaimer: Major Players sorted in no particular order
India Lithium-ion Battery Market News
- In June 2021, the French battery system maker Forsee Power started its series production of lithium-ion batteries for electric two-wheelers (E2W) and electric three-wheelers (E3W) in Pune (Chakan Industrial Area, 35 km from Pune Airport).
- In February 2021, Barrel Energy (Li-ion battery manufacturer based in the United States) signed a memorandum of understanding (MoU) with Hyderabad-based Roshan Energy Technologies to develop and manufacture Li-ion batteries in India and the North American region.
India Lithium-ion Battery Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in USD billion, till 2027
4.3 Lithium-ion Battery Price Trend Analysis, Global, till 2027
4.4 Recent Trends and Developments
4.5 Government Policies and Regulations
4.6 Investment Opportunities
4.7 Market Dynamics
4.7.1 Drivers
4.7.2 Restraints
4.8 Supply Chain Analysis
4.9 PESTLE Analysis
4.10 Cost Analysis
4.11 Price Analysis
4.12 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 Application
5.1.1 Portable
5.1.2 Automotive
5.1.3 Other Applications
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 TDS Lithium-Ion Battery Gujarat Private Limited (TDSG)
6.3.2 Bharat Electronics Limited (BEL)
6.3.3 Telemax India Industries Pvt. Ltd
6.3.4 Future Hi-Tech Batteries
6.3.5 Amperex Technology Limited
6.3.6 Nexcharge (JV: Leclanché and Exide Industries)
6.3.7 Exicom Tele-Systems Limited
6.3.8 Inverted Energy Private Limited
6.3.9 Vision Mechatronics Pvt. Ltd
6.3.10 Toshiba Corporation
6.3.11 Trontek Group
6.3.12 Okaya Power Group
6.3.13 iPower Batteries Pvt. Ltd
*List Not Exhaustive7. MARKET OPPORTUNITIES AND FUTURE TRENDS
India Lithium-ion Battery Market Research FAQs
What is the study period of this market?
The India Lithium-ion Battery Market is studied from 2019 - 2028.
What is the growth rate of India Lithium-ion Battery Market?
The India Lithium-ion Battery Market is growing at a CAGR of 17.23% over the next 5 years.
What is India Lithium-ion Battery Market size in 2019?
The India Lithium-ion Battery Market is valued at 1.66 Billion USD in 2019.
What is India Lithium-ion Battery Market size in 2028?
The India Lithium-ion Battery Market is valued at 4.85 Billion USD in 2028.
Who are the key players in India Lithium-ion Battery Market?
TDS Lithium-Ion Battery Gujarat Private Limited (TDSG), Bharat Electronics Limited (BEL), Telemax India Industries Pvt. Ltd., Toshiba Corporation, Okaya Power Group are the major companies operating in India Lithium-ion Battery Market.
India Lithium-ion Battery Industry Report
Statistics for the 2023 India Lithium-ion Battery market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. India Lithium-ion Battery analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
