Global Market for Lithium Ion Battery is Anticipated to grow at a Significant Pace i.e., USD 127.7 Billion during the Forecast Period 2025 - 2030

Published Date: Jun, 2022

The global Lithium Ion Battery market is anticipated to grow at a 12.8% CAGR during the forecast period. The increased demand for lithium ion batteries in renewable energy storage systems and surge in demand for electric vehicles and hybrid vehicles will propel the growth of the lithium ion battery market. Furthermore, strong development in the consumer electronic sector in developing countries, mounting market demand for automation and battery-operated material handling equipment in industries, and implementation of strict government regulations to control pollution levels will escalate the growth of the lithium ion battery market. Based on their power ratings, lithium ion batteries provide power to a wide range of commercial, residential, and industrial applications. To diversify their revenue streams, manufacturers are boosting the output capacity of battery packs and energy storage devices.

The lithium-ion battery market has experienced significant growth and development over the past decade and continues to expand rapidly. Lithium-ion batteries are widely used in various applications, including consumer electronics, electric vehicles (EVs), renewable energy storage, and grid stabilization.

Here are some key points about the lithium-ion battery market:

Market Size: The global lithium-ion battery market was valued at around $45.6 billion in 2022 and is projected to reach over $127.7 billion by 2030, with a compound annual growth rate (CAGR) of over 12.8%.

EV Market Driving Growth: The increasing demand for electric vehicles is one of the primary factors driving the growth of the lithium-ion battery market. As governments worldwide focus on reducing greenhouse gas emissions and promoting sustainable transportation, the demand for EVs has surged. Lithium-ion batteries offer higher energy density, longer lifespan, and faster charging capabilities, making them the preferred choice for EV manufacturers.

Consumer Electronics: Lithium-ion batteries have revolutionized the consumer electronics industry, powering smartphones, laptops, tablets, wearables, and other portable devices. The growing adoption of these devices, coupled with the need for longer battery life, has contributed to the increased demand for lithium-ion batteries in this sector.

Renewable Energy Storage: Lithium-ion batteries play a crucial role in storing electricity generated from renewable energy sources such as solar and wind. They help overcome the intermittent nature of renewable energy and provide a reliable and efficient solution for energy storage. The growth of renewable energy installations and the integration of energy storage systems are driving the demand for lithium-ion batteries in this segment.

Technological Advancements: Ongoing research and development efforts are focused on enhancing the performance and safety of lithium-ion batteries. Innovations such as solid-state lithium-ion batteries, higher energy densities, improved charging speeds, and longer cycle life are being pursued to meet evolving market demands.

Supply Chain and Raw Materials: The lithium-ion battery market relies on a complex global supply chain for the production of battery components. Key raw materials include lithium, cobalt, nickel, and graphite. Ensuring a sustainable and ethical supply chain, as well as reducing dependence on critical materials like cobalt, remains a challenge for the industry.

Environmental Concerns: Although lithium-ion batteries are a popular choice, concerns exist regarding their environmental impact. The extraction and processing of raw materials, as well as end-of-life management, including recycling and disposal, pose environmental challenges. Efforts are being made to develop recycling technologies and improve the sustainability of the entire battery life cycle.

Market Competition: The lithium-ion battery market is highly competitive, with several major players dominating the industry. Companies like Panasonic, LG Chem, CATL, Samsung SDI, and BYD are among the leading manufacturers. However, the market is also witnessing increased participation from new entrants and startups, which are driving innovation and intensifying competition.

The lithium-ion battery market is expected to continue its growth trajectory, driven by the increasing demand for electric vehicles, advancements in energy storage systems, and ongoing technological advancements in battery technology.

It is frequently utilised in the automobile industry to build electric vehicles, as well as in the consumer electronics market to produce smartphones and other smart devices, in part due to its small size. Because of its high power capacity, it's ideal for industrial applications like power tools. Due to the emergence of the COVID-19 outbreak, many enterprises are shifting to cloud computing, which will enhance the implementation of SDN solutions among cloud service providers, which is beneficial for the industry.

In February 2022, Panasonic Corporation announced that its Energy Company will establish a manufacturing facility at its Wakayama Factory in western Japan to produce new "4680" lithium-ion batteries for electric vehicles (EVs) in order to expand its business globally.

The COVID-19 outbreak had just a modest influence on the lithium-ion battery industry. The majority of battery components are made in Asia Pacific. The COVID-19 scenario has revealed the region's overdependence on critical raw supplies, particularly from China. The shutdown of operations in China and other Asia Pacific countries has had a significant impact on battery makers in the United States, Germany, and Australia. The amount of government assistance, as well as the amount of corporate debt and how businesses and markets manage with lower demand, all have a role in the recovery. Following a period of recovery, the market is expected to rise at a modest pace during the forecast period.

Lithium-ion battery manufacturers are catering to on-demand delivery of products and services to satisfy unique client requirements during COVID-19 crisis.

Browse 55 market data Tables and 35 Figures spread through 200 Pages and in-depth TOC on " Lithium Ion Battery Market by Type (Lithium Nickel Manganese Cobalt, Lithium Titanate Oxide, Lithium Manganese Oxide, Lithium Cobalt Oxide, Lithium Iron Phosphate, and Lithium Nickel Cobalt Aluminum Oxide), by Power Capacity (0 to 3,000 mAh, 3,000 mAh to 10,000 mAh, 10,000 mAh to 60,000 mAh and More than 60,000 mAh ), by End User (Consumer Electronics, Automotive, Industrial, Power, Medical, Aerospace And Defense, And Marine), and Region - Global Forecast to 2030"

By end-user, the consumer electronics is anticipated to have significant growth during the forecast period in Lithium Ion Battery Market.

Lithium-ion batteries currently have a significant market share in consumer electronics' owing to its portability and long operational life. The encapsulation of a significant amount of energy into a small space and weight of a wearable's tiny pocket will rely on a lithium-ion battery in the near future. Consumer electronics is expected to have a robust uptake of lithium-ion batteries in the search of new inventions.

Global Lithium Ion Battery Market Segmentation Analysis

Segment

Categorization

Leading Category

Type

Lithium Nickel Manganese Cobalt, Lithium Titanate Oxide, Lithium Manganese Oxide, Lithium Cobalt Oxide, Lithium Iron Phosphate, and Lithium Nickel Cobalt Aluminum Oxide

Lithium Iron Phosphate (Largest)

Lithium Cobalt Oxide (Fastest)

Lithium Nickel Manganese Cobalt (High CAGR)

 

Power Capacity

0 to 3,000 mAh, 3,000 mAh to 10,000 mAh, 10,000 mAh to 60,000 mAh and More than 60,000 mAh

10,000 mAh to 60,000 mAh

(Largest)

 

End-User

Consumer Electronics, Automotive, Industrial, Power, Medical, Aerospace and Defense, And Marine

Automotive (Largest)

Consumer Electronics (Significant Growth)

 

Region

North America, Europe, Asia-Pacific, and Rest of the World

Asia-Pacific

(Largest)

 North America

(Fastest)

 

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“Asia-Pacific is anticipated to have the largest market share in the Lithium Ion Battery market during the forecast period.”

Asia-Pacific is anticipated to contribute the largest market share during the forecast period as China might lead in the adoption of lithium ion batteries to control pollution. Moreover, China is emphasizing in adopting hybrid vehicles with pure electric drives, thereby propelling the market demand for lithium ion batteries.

Some of the major players in the global Lithium Ion Battery industry include BAK Group, Panasonic Corporation, BYD Company Ltd., Saft Groupe SA, GS Yuasa Corporation, LG Chem, Ltd., Johnson Controls Inc., Samsung SDI Co., Ltd., Lithium Werks, Hitachi Ltd., Toshiba Corporation and Valence Technology, Inc.

Scope of the Report

Report Metric

Details

Market Size Available for the Years in the Study

2018–2030

Historical Period

2018–2022

Base Year

2022

Forecast Period

2022–2030

Segments Covered in the Study

Type, Power Capacity, End User, and Region

Geographies Covered in the Study

North America (U.S., Canada, Mexico), Europe (Germany, U.K., France, Italy, Spain, Russia), Asia-Pacific (China, Japan, India, South Korea), and Rest of the World (Brazil, Saudi Arabia, South Africa, U.A.E.)

Companies Covered in the Study

BAK Group, Panasonic Corporation, Saft Groupe SA, BYD Company Ltd., Johnson Controls Inc., GS Yuasa Corporation, LG Chem, Ltd., Samsung SDI Co., Ltd., Lithium Werks, Hitachi Ltd., Toshiba Corporation and Valence Technology, Inc.

Global Lithium Ion Battery Market Coverage

Type Insight and Forecast 2018-2030

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

Power Capacity Insight and Forecast 2018-2030

  • 0 to 3,000 mAh
  • 3,000 mAh to 10,000 mAh
  • 10,000 mAh to 60,000 mAh
  • More than 60,000 mAh

End-User Insight and Forecast 2018-2030

  • Consumer Electronics
    • Smartphones
    • Laptops
    • UPS
    • Others
  • Automotive
    • Battery Electric Vehicles
    • Plug-In Hybrid Electric Vehicles
  • Industrial
    • Construction Equipment
    • Mining Equipment
  • Power
  • Medical
  • Aerospace and Defense
  • Marine

Geographical Segmentation

Lithium Ion Battery Market by Region

North America

  • By Type
  • By Power Capacity
  • By End User
  • By Country – U.S., Canada, and Mexico

Europe

  • By Type
  • By Power Capacity
  • By End User
  • By Country – Germany, U.K., France, Italy, Spain, Russia, and Rest of Europe

Asia-Pacific (APAC)

  • By Type
  • By Power Capacity
  • By End User
  • By Country – China, Japan, India, South Korea, and Rest of Asia-Pacific

Rest of the World (RoW)

  • By Type
  • By Power Capacity
  • By End User
  • By Country – Brazil, Saudi Arabia, South Africa, U.A.E., and Other Countries