The U.S. lightning product market has seen tremendous growth over the past few years owing to the increasing adoption of electric vehicles. Lightning products such as lithium-ion batteries are an integral part of most electric vehicles as they power the vehicles. These batteries provide clean and sustainable energy storage solutions as compared to gasoline-powered vehicles. The lithium-ion batteries have higher power-to-weight ratio and energy density which helps electric vehicles achieve longer driving ranges on a single charge. The rising environmental concerns and stringent emission norms have prompted automakers to shift their focus towards manufacturing electric vehicles which has significantly boosted the demand for lighting products in the country.
The Global U.S. Lightning Product Market is estimated to be valued at US$ 294.57 Bn in 2024 and is expected to exhibit a CAGR of 18.% over the forecast period 2024 To 2031.
Key Takeaways
Key players operating in the U.S. lightning product market are BYD Company Limited, Panasonic Corporation, Contemporary Amperex Technology Co. Limited, Samsung SDI Co. Ltd, TianJin Lishen Battery Joint-Stock CO. LTD, GS Yuasa Corporation, Duracell Inc., Clarios (Formerly Johnson Controls International PLC), VARTA AG, LG Chem Ltd, Tesla Inc. and EnerSys. These players are investing heavily in ramping up their production capacities to cater to the growing demand for lithium-ion batteries.
The demand for lighting products especially lithium-ion batteries is expected to grow significantly during the forecast period. This can be attributed to the rising sales of plug-in hybrid electric vehicles and all-electric vehicles in the country. Government subsidies and tax rebates on electric vehicles are encouraging customers to go electric.
The U.S. Lightning Product Market Demand players are also exploring opportunities in other countries and regions. They are actively setting up manufacturing plants outside the U.S. to leverage the growing demand for electric vehicles globally. Asia Pacific remains one of the most lucrative markets owing to the presence of top automotive markets of China and Japan.
Market Key Trends
Electric vehicle adaptation is one of the major trends witnessed in the U.S. lightning product market. OEMs are focused on developing affordable long range and high performance electric vehicles which is boosting the sales. Moreover, the establishment of vast public EV charging infrastructure is making electric mobility more convenient. Such factors are favoring the market growth of lightning products.
Porter’s Analysis
Threat of new entrants: Battery technology requires significant R&D investments and established distribution networks which pose entry barriers for new companies.
Bargaining power of buyers: Large OEM buyers can negotiate lower prices from manufacturers due to their high purchase volumes.
Bargaining power of suppliers: A few battery cell producers dominate the global market, giving them some control over pricing and supply.
Threat of new substitutes: Rapid developments in battery chemistries pose a potential threat as newer technologies could displace conventional lithium-ion batteries.
Competitive rivalry: The US market has many international battery manufacturers competing aggressively on performance, longevity and price to gain market share.
Geographical Regions
Currently, the largest market for US lightning products by value is California due to the concentration of electric vehicle manufacturing and technology companies in the state.
The Southeast region spanning states like Florida, Georgia and Texas is projected to become the fastest growing market for US lightning products between 2024-2031 supported by rising EV adoption and infrastructure investments in these states.