The global lithium market size is projected to reach USD 8.24 billion by the end of 2027. The increasing investments in lithium extraction methods have opened up a flexible applications scope. According to a report published by Fortune Business Insights, titled “Lithium Market Size, Share & Industry Analysis, By Product (Carbonate, Hydroxide, Others), By Application (Batteries, Glass & Ceramics, Lubricant, Medical, Polymers, Metallurgy, Others), and Geography Forecast, 2020-2027,” the market was worth USD 4.09 billion in 2019 and will exhibit a CAGR of 9.2% during the forecast period, 2020-2027.
Lithium is a chemical element that is present in natural substances such as rocks. The material is approved for use in several industry verticals, including chemical, electrical, healthcare, and automotive. Accounting for the exceptional properties of lithium, it has been excessively used in applications that require high efficiency as well as durability. The properties such as resistance to external factors and low cost of the product cater to flexible applications. The increasing applications and subsequently rising demand for the product across the world will bode well for the growth of the overall lithium market in the coming years. Moreover, the presence of several large-scale companies in several countries across the world will emerge in favor of the growth of the global market.
Covid-19 Pandemic Proving Damaging for Lithium Manufacturing Sectors
The recent coronavirus outbreak has had a damaging impact on several businesses across the world, with SMEs amongst the categories the worst-hit sectors. As several businesses have come to a complete halt, it is evident that the measures taken to minimize the spread of the disease have ultimately affected several industries across the world. The shortage of manual labor and workforce has been daunting to manufacturers in the lithium market in the past few months. Due to the lack of available laborers, production units have been put on hold. This has resulted in severe economic losses across the world. Having said that the resumptions in business operations, although within constrained boundaries, will provide hope to the companies that have hugely suffered at the hands of the pandemic.
Accounting to Massive Potential for Growth, Companies turn to Strategic Collaborations
The report encompasses several factors that have contributed to the growth of the market in recent years. The rising demand for lithium and lithium derivatives has resulted in strong competition on the global stage. This makes it even more difficult for the companies that are essentially under the SME bracket. As a result, several mid-scale companies are looking to collaborate with other businesses in the mid-range as well as large-scale sectors.
Information source: https://www.fortunebusinessinsights.com/lithium-market-104052