Technavio, the global research firm, has predicted that the US market for Li-ion batteries would grow at a CAGR of almost 37% from 2015-2019.
The firm published this finding in research report on Thursday which said that the growth would primarily be driven by the growing demand for e-cigarettes.
The report stresses on the importance attached to the development of e-cigarettes. The aim of growing demand and innovations for e-cigarettes is to reduce the harmful effects of tobacco.
The e-cigarettes have gained popularity with end user as they are able to choose from several nicotine strengths that comprises of options for non-nicotine liquids and a variety of flavours.
The report also mentions that vendors are trying to popularize the use of e-cigarettes among end users by stressing on the role of e-cigarettes as means to quit smoking. The nicotine in e-cigarettes is present in the liquid form that is much less harmful than conventional cigarettes.
“The popularity of e-cigarettes is mainly because of their potential of dealing with smoking addiction in both physical and behavioral components of the human body,” says Faisal Ghaus, Vice President of Technavio.
The innovation that has happened to e-cigarettes has increased the e-cigarettes sales and thereby decreased the sales of traditional cigarettes, said Ghaus.
The report was formed on the basis of the prospect of growth of e-cigarettes and the requirement of Li-ion batteries as the powering mechanism for e-cigarettes. The overall Li-ion battery market demand as per the sales of e-cigarettes was considered while preparing an estimate of the possible market for Li-lion batteries.
The battery market was commercialized by Sony in 1991 after it commercially produced and introduced Lithium-ion batteries and helped create a reliable yet alternative power source for electronic consumerables.
At present most of the devices in the electronic consumer segment is powered by the rechargeable Li-ion batteries. This growth has of late been powered by the rapid popularization and growth of the e-cigarette and its growing demand among end users as well as the availability of various types of e-cigarettes, says that e report.
609 million units of Li-ion batteries were manufactured in 2014 and the report predicts that the number would increase more than five times to reach 3,220 million units by 2019. The growth of the segment would be nearly 40 percent within this period, driven primarily by the rise in demand and popularity of the various types of e-cigarettes.
By 2019, the revenue generated from the Li-ion battery market would reach $14.1 billion as against a total of $2.8 billion in 2014 exhibiting a percentage rise of 48.4 percent.
Though the demand in 2014 for Li-ion batteries was primarily in the disposable segment, the Technavio report predicts that the demand in the US by 2019 would shift from disposable to rechargeable ones.
The growth would be facilitated by the support to the e-cigarette manufacturers by the various governments which aim to reduce traditional materials of smoking in order to reduce the harmful effects of traditional tobacco. The US government already gives tax benefits to e-cigarette manufacturers and this dole is expected to increase further which would in turn drive the demand of Li-ion batteries for e-cigarettes.
(Source: www.technavio.com & www.businesswire.com)
The firm published this finding in research report on Thursday which said that the growth would primarily be driven by the growing demand for e-cigarettes.
The report stresses on the importance attached to the development of e-cigarettes. The aim of growing demand and innovations for e-cigarettes is to reduce the harmful effects of tobacco.
The e-cigarettes have gained popularity with end user as they are able to choose from several nicotine strengths that comprises of options for non-nicotine liquids and a variety of flavours.
The report also mentions that vendors are trying to popularize the use of e-cigarettes among end users by stressing on the role of e-cigarettes as means to quit smoking. The nicotine in e-cigarettes is present in the liquid form that is much less harmful than conventional cigarettes.
“The popularity of e-cigarettes is mainly because of their potential of dealing with smoking addiction in both physical and behavioral components of the human body,” says Faisal Ghaus, Vice President of Technavio.
The innovation that has happened to e-cigarettes has increased the e-cigarettes sales and thereby decreased the sales of traditional cigarettes, said Ghaus.
The report was formed on the basis of the prospect of growth of e-cigarettes and the requirement of Li-ion batteries as the powering mechanism for e-cigarettes. The overall Li-ion battery market demand as per the sales of e-cigarettes was considered while preparing an estimate of the possible market for Li-lion batteries.
The battery market was commercialized by Sony in 1991 after it commercially produced and introduced Lithium-ion batteries and helped create a reliable yet alternative power source for electronic consumerables.
At present most of the devices in the electronic consumer segment is powered by the rechargeable Li-ion batteries. This growth has of late been powered by the rapid popularization and growth of the e-cigarette and its growing demand among end users as well as the availability of various types of e-cigarettes, says that e report.
609 million units of Li-ion batteries were manufactured in 2014 and the report predicts that the number would increase more than five times to reach 3,220 million units by 2019. The growth of the segment would be nearly 40 percent within this period, driven primarily by the rise in demand and popularity of the various types of e-cigarettes.
By 2019, the revenue generated from the Li-ion battery market would reach $14.1 billion as against a total of $2.8 billion in 2014 exhibiting a percentage rise of 48.4 percent.
Though the demand in 2014 for Li-ion batteries was primarily in the disposable segment, the Technavio report predicts that the demand in the US by 2019 would shift from disposable to rechargeable ones.
The growth would be facilitated by the support to the e-cigarette manufacturers by the various governments which aim to reduce traditional materials of smoking in order to reduce the harmful effects of traditional tobacco. The US government already gives tax benefits to e-cigarette manufacturers and this dole is expected to increase further which would in turn drive the demand of Li-ion batteries for e-cigarettes.
(Source: www.technavio.com & www.businesswire.com)
