The global lithium carbonate market is expected to witness a promising rate of growth in the coming years of the forecast period. However, due to the outbreak of the COVID-19 pandemic, the market growth has slowed down in 2020, but is showing signs of recovery. The staggered opening of global economy is expected to help the lithium carbonate market to reach its normal pace by the second quarter of 2021.
The competitive landscape of the global lithium carbonate market is highly consolidated in nature. There are only three leading companies that dominate the majority of the market space. These three companies are Livent, Albemarle, and SQM. These companies cumulatively account for over 70% of the overall market share. The overall entry barrier to get in the market are quite high. This is difficult because of limited access to lithium carbonate and the overall high cost of production.
There are several different factors that are projected to drive the overall development of the global lithium carbonate market in the coming years of the forecast period. One of the biggest driving factor for the market growth has been the increasing consumption from the automotive industry. In recent years, the trend of electronic vehicles has picked up massively. This is mainly because of the consistent environmental degradation and depleting natural resources. Lithium carbonate is used in the EV manufacturing and with growing momentum in the EV industry will certainly push the development of the global lithium carbonate market in the coming years of the forecast period.
Another important factor for the development of the global market growth has been the use of lithium carbonate in the pharmaceutical industry. The pharma companies use lithium carbonate in small amounts for manufacturing medicines to treat patients suffering from mental disorders. This too is projected to fuel the market growth in the near future.
However, there are some factors that are expected to impede the development of the global lithium carbonate market in the coming years of the forecast period ranging from 2020 to 2030. The outbreak of the COVID-19 pandemic has had a huge impact on the development of the global market. Due to the enforced lockdowns across the globe, the demand for lithium carbonate from end user industries dwindled. However, with things moving to normalcy, the demand is expected to pick up pace in the near future.
In terms of geographical segmentation, the global lithium carbonate market is mainly divided into six key regions. These regions are North America, East Asia, South Asia and Oceania, Latin America, Europe, and the Middle East and Africa. Of these, the East Asia segment is expected to dominate the global market in the near future. Traditionally, the regional segment of Europe has been the dominant market. Increasing consumption of lithium carbonate because of the growing demand from the automotive industry is the key factor for the dominance of the Europe market.
On the other hand, the regional segment of North America is projected to have a promising rate of growth in the coming years of the forecast period ranging from 2020 to 2030. Increasing production as well as adoption of electric vehicles has been the key factor for the development of the North America market in recent years. The region is witnessing a sluggish growth due to the effect of the COVID-19 pandemic, but it expected regain momen