40 billion lithium battery market for electric tools
Affected by the epidemic, the power tool market with sustained growth is suffering, and some battery suppliers have been affected. But in the long run, the lithium battery market for power tools is still promising.
A Jiangsu based power tool battery supplier said the company signed a large order with a European power tool giant at the end of last year, and should have released the delivery in the second quarter. However, affected by the epidemic situation, customers asked to postpone the delivery to may or even the end of June, and the overall delay was about a quarter.
Yang Qiming, general manager of Bosch electric tools (Chengdu) Co., Ltd., also said frankly that the first quarter of every year is the peak season of Bosch electric, as Europe and the United States begin to work after Christmas. The factory originally planned to start operation on January 31 this year, but affected by the epidemic, many suppliers' resumption dates have not been set, the whole raw material supply chain has been affected, and Bosch Pujiang factory has to postpone the start of operation.
Gaogong lithium learned that up to now, the factories of international power tool giants in China have basically resumed work. However, due to the continuous spread of the epidemic in Europe and the United States, the market demand has declined. Therefore, the current production of electric tool enterprises is mainly based on orders received years ago, or inventory.
In the short term, affected by the epidemic situation, the global power tool market will be impacted to a certain extent. But in the long run, after entering the post epidemic era, the global economy recovers, and the power tool market will still maintain a long-term stable growth trend. Cordless trend will also give power tools lithium battery a broad market space.
At the same time, the choice of lithium battery by international power tool giants is tending to domestic, which means that it will bring greater market development opportunities for domestic lithium battery manufacturers.
40 billion lithium battery market scale
According to the industry data, the global power tool market will reach US $31.8 billion (about RMB 225.2 billion) in 2019. According to the annual compound growth rate of 5.5%, the global power tool market will reach US $41.7 billion (about RMB 295.3 billion) by 2024.
Among them, the penetration rate of cordless electric tools has exceeded 50%. The cost of lithium battery accounts for 20% - 30%. Based on this rough calculation, the global lithium battery market will reach at least 29.53-44.3 billion yuan by 2024.
From the data, Europe and the United States are the fastest growing markets of electric tools in recent years. Next, the Asia Pacific power tool market will grow at the fastest compound annual growth rate in the forecast period.
At present, cordless electric tools are mainly used in European and American markets, and large enterprises such as TTI, Baide, Bosch, Mutian and baoside occupy the main market share.
As one of the leading enterprises of electric tools, TTI has achieved revenue growth for ten consecutive years. To a certain extent, its performance also reflects the market demand trend of electric tools: large scale and stable growth. It is worth mentioning that the application demand of TTI cordless power tools for lithium batteries is also second to none.
Gaogong lithium learned that as the largest global enterprise in the consumption of non vehicle cylindrical batteries, TTI currently uses about 300 million cylindrical cells per year. With the evolution of the market trend of cordless power tools, the company's demand for lithium batteries is also increasing.
An obvious trend is that TTI is accelerating the introduction of 18650 cylindrical cell supply chain in China. At present, domestic cell enterprises have begun to supply in batches, and some suppliers have entered the final audit stage.
In fact, the enterprise trend of TTI is also the epitome of the change trend of large international power tool enterprises. In addition to TTI, the introduction of cylindrical cells in China is currently being accelerated, including Patek and Bosch.
China's supply chain penetration accelerated
From the perspective of cell supply chain, Samsung SDI, LG, Panasonic, Murata and other international battery companies still occupy the main market share of global power tools, of which Samsung SDI accounts for more than 50%.
High tech lithium learned that high rate cells are mainly used for power tools. According to the application scenarios, the capacity of cells ranges from 1Ah to 4ah, of which the capacity of 1ah-3ah is 18650 and that of 4ah is 21700. The power requirement is 10a-30a, and the continuous discharge cycle is 600 times.
However, due to the rapid development of domestic cell manufacturers in the field of high rate cylindrical cell, with the comprehensive advantages of performance, scale and cost, the choice of power tool giants for cell supply chain has obviously turned to China.
Due to the huge amount of orders, the international power tool giant's orders for the supply chain are also affecting the battery company's shipment ranking.
According to the data of GGII, the domestic lithium battery shipment of electric tools in 2019 was 5.4gwh, up 54.8% year on year. Among them, Tianpeng power, Yiwei lithium energy and haisida ranked in the top three.
At present, Yiwei lithium energy and haisida have successfully entered the TTI supply chain and started to supply in batches. Penghui energy is about to enter the final stage of supply chain audit.
According to Aoyang Shunchang, the parent company of Tianpeng power supply, Baide has become one of the company's important customers in 2019.
GGII believes that only lithium battery enterprises with advanced technology, strong R & D strength, excellent product quality and guaranteed supply capacity can have the opportunity to enter the supply system of large international power tool manufacturers. Once the supply relationship is confirmed, it will not change easily in the short term, and the lithium battery enterprises entering its supply chain will maintain a stable market share in a certain period of time.
Taking TTI as an example, its supplier selection needs 230 audits, which takes nearly two years. All new suppliers are screened by environmental and social standards, and no major violations are found.
It is worth mentioning that in the face of the offensive of domestic cylindrical battery enterprises, Samsung SDI's market pressure has increased sharply. In addition to maintaining its position as the first supplier of electric tools, Samsung SDI is also actively exploring the bicycle, two wheel power exchange and other market segments to alleviate the "nibbling" crisis in the electric tools market.