Affected by the epidemic, the growing power tool market is suffering, and some battery suppliers have been affected. However, in the long run, the lithium battery market for electric tools is still promising.

A Jiangsu based power tool battery supplier said that the company signed a large order with a European power tool giant at the end of last year, and delivery should have started in the second quarter. However, affected by the epidemic, customers requested to postpone the delivery to may or even the end of June, which was delayed for about a quarter as a whole.

Yang Qiming, general manager of Bosch Power Tools (Chengdu) Co., Ltd., also admitted that the first quarter of each year is the peak season of BOSCH power, as the work in Europe and the United States begins a year after Christmas. The factory originally planned to start construction on January 31 this year, but affected by the epidemic, many suppliers have not set a date for resumption of work, and the entire raw material supply chain has been affected, so Bosch Pujiang factory had to postpone the commencement.

Gaogong lithium battery 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 consumption demand has declined. Therefore, the current production of electric tool enterprises is mainly based on orders received before the year, or inventory.

In the short term, affected by epidemic factors, the global power tool market will be impacted to a certain extent. However, in the long run, after entering the post epidemic era and the global economic recovery, the power tool market will still maintain a long-term stable growth trend. The cordless trend will also give the lithium battery of electric tools a vast market space.

At the same time, international power tool giants are choosing lithium batteries domestically, which means that it will bring greater market development opportunities to domestic lithium battery manufacturers.

40 billion lithium battery market scale

According to industry data, the global power tool market in 2019 was US $31.8 billion (about 225.2 billion yuan). Calculated at a compound annual growth rate of 5.5%, by 2024, the global power tool market will reach US $41.7 billion (about 295.3 billion yuan).

Among them, the penetration rate of cordless electric tools has exceeded 50%. The cost of lithium batteries accounts for 20% to 30%. Based on this rough calculation, the global lithium battery market will reach at least 29.53 billion to 44.3 billion yuan by 2024.

According to the data, Europe and the United States are the fastest growing markets for electric tools in recent years. Next, the power tool market in the Asia Pacific region will grow at the fastest compound annual growth rate during the forecast period.

At present, the application of cordless electric tools is mainly in the European and American markets, and large enterprises such as TTI, Baide, Bosch, Makita, baoshide, etc. occupy the main market share.

As one of the leading enterprises of electric tools,TTIIt has achieved revenue growth for ten consecutive years. Its performance also reflects the market demand trend of electric tools to a certain extent: 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.

Source: tti2019 Annual Report

Gaogong lithium battery learned that as the global enterprise with the largest consumption of non automotive cylindrical batteries, TTI currently consumes about 300million cylindrical batteries / year. With the evolution of cordless electric tool market trend, the company's demand for lithium batteries is also increasing.

An obvious trend is that TTI is accelerating the introduction of China's 18650 cylindrical cell supply chain. At present, domestic cell enterprises have begun mass supply, and some suppliers have entered the final audit process.

In fact, the enterprise trend of TTI is also the epitome of the changing trend of large international electric tool enterprises. In addition to TTI, at present, Baide and Bosch are accelerating the verification and introduction of cylindrical cells in China.

China's supply chain accelerates penetration

From the perspective of cell supply chain, at presentSamsung SDI, LG, Panasonic, MurataInternational battery enterprises such as Samsung SDI still occupy the main market share of global electric tools, of which Samsung SDI accounts for more than 50%.

Gaogong lithium battery learned that high power cells are mainly used for electric tools. According to the application scenario, the cell capacity covers 1ah-4ah, of which 1ah-3ah is mainly 18650 and 4ah is mainly 21700. The power requirement is 10a-30a, and the continuous discharge cycle is 600 times.

However, based on the accelerated progress of domestic cell manufacturers in the field of high magnification cylindrical cell, and with the comprehensive advantages of performance, scale, cost and so on, 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 giants' orders for the supply chain are also affecting the shipment ranking of battery enterprises.

According to the data of the Institute of lithium batteries for advanced industry and Research (GGII), the domestic lithium battery shipment of electric tools in 2019 was 5.4gwh, with a year-on-year increase of 54.8%. 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 began to supply in batches. GP is also 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 leading technology, strong R & D strength, excellent product quality and guaranteed supply capacity can have the opportunity to enter the supply system of international large-scale power tool manufacturers. Once the supply relationship is confirmed, it will not change easily in the short term. Lithium battery enterprises entering its supply chain will maintain a stable market share for a certain period of time.

Taking TTI as an example, its supplier selection needs to undergo 230 audits, which takes nearly two years. All new suppliers need to be screened by environmental and social standards, and ensure that 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 power tools, Samsung SDI is also actively exploring market segments such as bicycles and two wheel power exchanges to alleviate the "nibbling" crisis of the power tool market.

Article source:High tech lithium power grid