Lithium polymer (LiPo) battery or more accurately known as lithium ion polymer battery is a rechargeable battery found in a pouch format. LiPo battery uses polymer electrolyte instead of commonly used liquid electrolyte. This battery primarily works on the principle of de-intercalation and intercalation of lithium ions from positive electrode materials to negative electrode materials.
Based on power capacity, the market has been bifurcated into 5–25 Wh, 18–28 KWh, 48–95 Wh, 100–250 KWh and more than 300 KWh. On the other hand, Lithium polymer battery finds its application across various consumer electronic devices, automotive and energy grid system among others. Transparency Market Research reports that lithium polymer battery is expected to see adoption at a large scale in the hand-held electronic devices such as laptops, mobiles, and cameras among others. Any electronic devices that requires frequent burst of power for a long period of time can be powered with a lithium polymer battery. The features such as video calling, cameras, wireless communications, GPS (Global Positioning System) navigation and high-fidelity audio found in consumer electronic products today can be operated efficiently for a longer period of time with the help of lithium ion batteries. Similarly, the other industrial hand-held devices such as RFID (Radio-frequency identification) communications, bar code scanners, display refreshes, GPS chips and audio amplifiers can also be operated more efficiently with the help of Lithium polymer battery. In addition, lithium polymer battery offers competitive advantage over lithium ion battery in terms of durability, utility and flexibility. Lithium polymer battery can be shaped as per the various requirements of different end users. This in turn is also anticipated to boost the demand of lithium polymer battery from various application segments during the forecast period from 2016 to 2024.
However, high manufacturing cost is one of the primary factor predicted to deter the market growth of lithium polymer battery in the coming years. Increased manufacturing cost of battery increase the overall price of the end products, thereby affecting the demand negatively. This in turn is predict to limit the demand of lithium polymer battery from various application segments. Moreover, safety concern involved with the usage of lithium polymer batteries coupled with increasing demand of its substitute, lithium ion battery owing to high energy density and low self-discharge cycle is another important factor expected to restrain the demand of lithium polymer battery across various regions.
On the basis of power capacity, low power lithium polymer battery held the largest market share in 2015 owing to its extensive application in portable consumer electronic devices such as smart phones, tablets and smart watches among others. On the other hand, by application, consumer electronic devices held the largest market share of the global lithium polymer battery market in 2015. Increasing demand of sleek consumer electronic devices having relatively long battery life is the primary factor responsible for the accelerating demand for lithium polymer battery. However, demand for lithium polymer battery from the automotive segment is anticipated to experience the fastest growth during the forecast period. Increasing consciousness among the consumers and automotive manufacturers regarding clean fuel coupled with declining availability of natural resources and frequently fluctuating fuel prices is the key factor predicted to drive the demand of lithium polymer battery in the coming years.
Geographically, lithium polymer battery market is majorly driven by the Asia Pacific region with highest predictive growth rate. Rapid expansion of manufacturing facility in this region owing to huge capital investment by the leading lithium polymer battery manufacturer’s results a fall in the average selling price of LiPo batteries. This reduction in price in line up with increasing demand of power efficient consumer electronic devices and electric vehicles (EVs) in this region is the primary factor anticipated to trigger the demand of lithium polymer battery in the coming years.