Lithium-Ion Battery Market Size, Share, Growth Report 2032

Lithium-Ion Battery Market Size Overview

The global lithium-ion battery market size was valued at USD 40.9 billion in 2021 and is projected to attain a value of USD 115.1 billion by 2028, growing at about 11.9% CAGR during the forecast period. The report analyzes the lithium-ion battery market's drivers, restraints, and the impact it has on demand during the forecast period. Additionally, it will also help navigate and explore the arising opportunities in the lithium-ion battery market.

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Lithium-Ion Battery Market: Overview

The lithium-ion battery is a rechargeable battery that utilizes lithium ions as a core component of electrochemistry. Lithium-ion batteries hold high energy density, low self-discharge, and a high extending lifetime with improved charging speed. Lithium-ion batteries find a range of applications in electronic consumer equipment like cell phones, iPods, and PDAs. However, it is further utilized in different sectors like aerospace, military, automatic, and other sectors. Lithium-ion batteries gained immense momentum in recent years due to the requirement for a constant power supply.

High adoption of consumer electronics coupled with increasing research and development initiatives by leading market players is likely to impact the growth trajectory of the global lithium-ion battery market positively over the forecast period. Additionally, lithium-ion batteries are light in weight and offer a high energy density. Thereby, it is adopted massively in electric vehicles.

The global market is projected to grow tremendously due to the ongoing advancements in technology and the high production rate of electric plug-in vehicles. GM, Tesla, and other automotive companies are concentrating on manufacturing more durable and long-range battery cells. Therefore, constant research and development activities are likely to create several lucrative growth opportunities in the global market during the forecast period.

Report Scope:

COVID-19 Impact:

The outbreak of the Covid-19 pandemic has significantly impacted the industry supply chain, in particular lithium-ion battery energy storage and renewable energy technologies systems. Companies manufacture different component systems in different areas; for example, the crucial components utilized in battery energy storage systems are majorly manufactured in the Asia Pacific region. Therefore, the outbreak of Covid-19 has significantly disrupted the companies' capabilities to transport elements like raw material and others from different regions, thereby limiting the production capabilities.

Lithium-Ion Battery Market: Growth Drivers

Low prices of LIB and high registration rate of EVs propel the global market growth

The subsequent decline in the prices of lithium-ion batteries and increase in the registration of electric vehicles globally is projected to expand the global lithium-ion battery market size exponentially during the forecast period. There has been a significant surge in the sale of electric vehicles in the last few years. Simultaneously, consumer preferences are rapidly changing. Besides this, leading initiatives by the government and big organizations to open more power stations will expand the scope of lithium-ion batteries.

The surging trend of mounting photovoltaic installations and establishing power plants is projected to grow the market in the forthcoming years. The expanding wind energy projects and off-grid installations in leading economies like Germany, China, India, and the US are further likely to propel the demand for lithium-ion batteries globally.

Global Lithium-Ion Battery Market: Restraints

Safety issues associated with the transportation & storage of spent batteries hamper the market growth.

Spent batteries comprise hazardous chemicals like heavy metals, mercury, lead, and acids. As a result, it is difficult to manage the growing number of spent batteries to avoid harm to people and properties. Additionally, they contain flammable material; therefore, these are required to store in water-tight containers. However, it also restrains the growth of the global lithium-ion battery market.

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Lithium-Ion Battery Market: Opportunities

Increasing demand for EVs and HEVs to pave way for market expansion

The growing demand for hybrid electric vehicles and electric vehicles will create huge scope for the growth of the global lithium-ion battery market. The growing government regulations on vehicle emissions will offer an immense opportunity for the global market to grow indefinitely in the forthcoming years.

Global Lithium-Ion Battery Market Size: Challenges

Growing demand for other types of batteries creates hurdles for market growth

The demand for lead-acid, sodium nickel chloride, flow batteries, and lithium-air is growing massively. Therefore, it is likely to create challenges for the growth of the global lithium-ion battery market in the forthcoming years.

Segmentation Analysis

The global lithium-ion battery market can be segmented into type, industry, and region.

By industry, the market can be segmented into industrial, energy, solar system, automotive, consumer electronics, and others. The automotive segment is expected to be the fastest-growing segment in the global market due to the growing awareness among people regarding the advantages of battery-operated vehicles along with surging fossil fuel prices.

By type, the market can be segmented into lithium nickel manganese cobalt, lithium titanate, lithium manganese oxide, lithium nickel cobalt aluminum oxide, lithium iron phosphate, lithium cobalt oxide, and others. The lithium-ion phosphate product accounts for the largest share in the global market. The segment alone accounted for $12 billion in 2020. The product is much in demand due to the unique features offered by lithium-ion phosphates, like enhanced safety and a long lifespan of the product.

Recent Developments

• In the Batteries, European Partnership Association (BEPA) and the European Commission in June 2021 signed the Memorandum of Understanding (MoU) as a part of the lithium-ion battery investment project.
• Exide Industries, in September 2021, unveiled its plan to set up a multi-gigawatt lithium-ion cell manufacturing plant in India.

Regional Landscape

The Asia Pacific accounts for the largest share in the global lithium-ion battery market due to the growing dominance of the region in the automotive sector. Also, the growing awareness among people regarding the importance of eco-friendly vehicles is further likely to strengthen the growth of the regional market. Furthermore, the growing disposable income of people in the region, along with the high demand for electronic gadgets like smartphones and tablets, will also expand the industry scope in the forthcoming years.

Lithium-Ion Battery Market: Competitive Landscape

Some of the significant players in the global lithium-ion battery market include Contemporary Amperex Technology Co., Narada Power Source Co., Ltd., NEC Corporation, Panasonic Corporation, Shenzhen Huayu New Energy Technology Co., Ltd., Hitachi Chemical Co., Ltd., A123 Systems LLC, and GS Yuasa International Ltd.

The global lithium-ion battery market is segmented as follows-

By Type

• Lithium Nickel Manganese Cobalt (LI-NMC)
• Lithium Iron Phosphate (LFP)
• Lithium Cobalt Oxide (LCO)
• Lithium Titanate Oxide (LTO)
• Lithium Manganese Oxide (LMO)
• Lithium Nickel Cobalt Aluminum Oxide (NCA)

By Industry

• Consumer Electronics
• Automotive
• Aerospace
• Marine
• Medical
• Industrial
• Power
• Telecommunication

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of the Middle East & Africa