Increasing Demand for Lithium-ion Batteries from Transportation and Energy Storage Sectors
The demand for lithium-ion batteries is increasing in various growing markets, such as transportation and energy storage, and in the already expanding market of consumer electronics and devices. They are used in golf carts, buses, forklifts, wheelchair, bikes, portable solar energy storage, energy storage devices, power tools, cordless phones, toys, smartphones, wearable devices, tablets, and personal care products, such as trimmers, straighteners, etc. The development and introduction of electronic vehicles (EV), battery electric vehicle (BEV), and plug-in hybrid vehicle (PHEV) has revolutionized the transportation industry. The demand for passenger EV has been growing over the past few years. These vehicles use the lithium-ion battery pack as the energy source. In 2016, new EV sales consumed over 20 GWh, while installed capacity was five times this capacity. Demand for batteries from buses was far more than that of passenger cars. Electronic vehicle manufacturers are beginning to make their own batteries rather than relying on their suppliers for suitable prices and volumes. This, in turn, is leading battery companies to offer attractive future contracts and become more aggressive, by lowering prices for stationary storage, to have a competitive edge in the competition. Grid-storage systems have also started using lithium-ion batteries for enhanced durability and safety. It is expected that, beyond 2021, the grid storage market is likely to drive the second wave of growth for lithium-ion batteries. All these above-mentioned factors are expected to drive the growth of high-end copper foils during the forecast period.
Growing Usage in Circuit Boards
Most of the electronics products manufactured contain printed circuit boards (PCBs). High-quality PCB manufacturing technology has allowed the electronics products manufacturers to produce smaller and more complex products. It is considered to be the key to today’s dynamic and rapidly-progressing electronic innovations. The substrate used to manufacture printed circuit boards is a type of fiberglass-reinforced epoxy laminate. Epoxy resin has a copper foil bonded to one or both sides. Two main types of copper foil are used in PCBs- electrodeposited and rolled copper foil. Both these types have many possible variations, with the most choices available for ED copper. Copper foil characteristics are very important for high-frequency circuits. Rolled copper foil is used extensively for flexible circuit boards where the smooth surface is preferred. Electrodeposited copper foils are used in rigid flexible circuits. The demand for consumer gadgets, such as smartphones, PCs, tablets, and other medical electronics products is rapidly increasing across the world, with India and China expected to remain at the top of market growth. As printed circuit boards are deployed in almost all electronics products, it is likely to drive the demand for high-quality copper foil in the coming years. Over 51% of the PCBs are manufactured in China, owing to the offering of huge incentives by the government to the PCB factories. China is also producing these circuit boards at a very low cost. As a result, many companies across the world are closing their operations. As a result, the circuit boards application segment is likely to witness moderate growth in the high-end copper foil market during the forecast period.
Asia-Pacific to Dominate the Market
Asia-Pacific accounted for the largest share of over 65% of the global high-end copper foil market in 2017. The Chinese government is providing strong financial and non-financial incentives to boost electric cars sales. The exemptions from acquisition and excise taxes ranged from CNY 35,000 TO CNY 60,000 in 2016. To meet the growing demand for electric cars, the government has announced plans to consolidate battery manufacturers and increase the lithium-ion battery production. Currently, more than 50% of lithium-ion batteries are produced in China. The electronics manufacturing industry is constantly moving to China as a result of low cost and increasing demand for electronics products. Growing household income in China has led to increasing demand for electronic products, boosting demand for printed circuit boards. More than 50% of the PCBs are manufactured in China, owing to the offering of huge incentives by the government to the PCB factories. China is also producing these circuit boards at a very low cost. As a result, many companies across the world are closing their operations. The China’s local smartphones brands such as ZTE, Huawei, Lenovo have cooperative relations with the local PCB factories. So the rise in the wave of smartphones industry is likely to increase the demand for printed circuit boards. Copper foil is extensively used in the manufacturing of circuit boards and lithium-ion batteries. The increase in demand of circuit boards and batteries is anticipated to boost the demand of high-end copper foil during the forecast period.
Key Developments in the Market
- July 2017- Mitsui Mining & Smelting Co. Ltd boosted the production for an electro-deposited copper foil for flexible printed circuits.
- May 2017- Mitsui Mining & Smelting Co. Ltd increased the monthly production of its ultra-thin copper foil with carrier product, to 3.3 million m2.
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1.1 Scope of the Report
1.2 Study Assumptions
1.3 Study Deliverables
1.4 Research Phases
2. Executive Summary
3. Market Insights
3.1 Industry Value Chain Analysis
3.2 Industry Attractiveness - Porter's Five Forces Analysis
3.2.1 Bargaining Power of Suppliers
3.2.2 Bargaining Power of Consumers
3.2.3 Threat of New Entrants
3.2.4 Threat of Substitute Products and Services
3.2.5 Degree of Competition
4. Market Dynamics
4.1.1 Growing Application as a Printed Circuit Board (PCB) Material
4.1.2 Increasing Demand for Lithium-ion Batteries from Transportation and Energy Storage Sectors
4.2.1 Development of Single Crystal Graphene Sheet as a Substitute for Copper Foil
4.3.1 Copper Foils in Transformer and Grid-level Energy Storage
5. Market Segmentation and Analysis (Market Size, Growth, and Forecast)
5.1 By Type
5.1.1 Rolled Copper Foil
5.1.2 Electrodeposited (ED) Copper Foil
5.2 By Application
5.2.1 Circuit Boards
5.2.3 Solar and Alternative Energy
6. Regional Market Analysis (Market Size, Growth, and Forecast)
6.1.4 South Korea
6.1.5 Australia & New Zealand
6.1.6 Rest of Asia-Pacific
6.2 North America
6.2.1 United States
6.3.2 United Kingdom
6.3.6 Rest of Europe
6.4 South America
6.4.3 Rest of South America
6.5 Middle East & Africa
6.5.1 Saudi Arabia
6.5.2 South Africa
6.5.3 Rest of Middle East & Africa
7. Competitive Landscape
7.1 Mergers & Acquisitions, Joint Ventures, Collaborations, and Agreements
7.2 Market Share Analysis**
7.3 Strategies Adopted by Leading Players
8. Company Profiles (Overview, Financials**, Products & Services, and Recent Developments)
8.1 Mitsui Mining & Smelting Co., Ltd.
8.2 The Furukawa Electric Co., Ltd.
8.3 JX Nippon Mining & Metals Corporation
8.4 Fukuda Metal Foil & Powder Co. Ltd.
8.5 Chang Chun Petrochemical Co. Ltd.
8.6 Targray Technology International Inc.
8.7 Olin Brass (Global Brass and Copper Holdings, Inc.)
8.8 Sumitomo Metal Mining Co. Ltd.
8.9 SH Copper Products Co. Ltd.
8.10 Doosan Corporation
8.11 Civen Metal Material(Shanghai) Co., Ltd.
8.12 UACJ Foil Corporation
** Subject to availability on public domain
- Mitsui Mining & Smelting Co., Ltd.
- The Furukawa Electric Co., Ltd.
- JX Nippon Mining & Metals Corporation
- Fukuda Metal Foil & Powder Co. Ltd.
- Chang Chun Petrochemical Co. Ltd.
- Targray Technology International Inc.
- Olin Brass (Global Brass and Copper Holdings, Inc.)
- Sumitomo Metal Mining Co. Ltd.
- SH Copper Products Co. Ltd.
- Doosan Corporation
- Civen Metal Material(Shanghai) Co., Ltd.
- UACJ Foil Corporation