Status : Published Published On : Jun, 2022 Report Code : VRSME9014 Industry : Semiconductor & Electronics Available Format : Page : 200
2015
2022

Global Lithium Ion Battery Market – Analysis and Forecast (2022-2028)
Industry Insight 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 Geography (U.S., Canada, Germany, U.K., France, China, Japan, India, and Rest of the World)

Industry Overview

The global lithium ion battery market size is anticipated to reach USD 113.7 billion by 2028 from USD 38.6 billion by 2021, registering a 12.8% CAGR during the forecast period. A rechargeable lithium-ion battery is an advanced battery technology that employs lithium ions as a main component of its electrochemistry. In comparison to other batteries, Li-ion batteries have a very high voltage and charge storage per unit mass and volume. Features such as a long life duration, lower battery prices, and high density, increased usage in consumer electronics, and growing R&D endeavors by various organisations and battery manufacturers are projected to fuel the market expansion of lithium-ion battery.

Lithium Ion Battery Market Highlights

Industry Trends

The increased prominence of internet usage will further accelerate the consumer demand for smart phones, tablets, laptops, etc. Also, the increased disposable income and changing lifestyle of consumers are the trends that may proliferate the market growth of lithium ion batteries in several industry verticals.

Russia and Ukraine have large lithium reserves that have yet to be used, and Russia is a major supplier of nickel, palladium, aluminium, platinum, steel, and copper. As a result of the crisis in Ukraine and the sanctions imposed on Russia, some industrial raw materials will undoubtedly be in short supply. Also, Li-ion battery market will be influenced to some extent, but the effects will not be significant. In terms of lithium, the most important factor to remember is that there is a vast majority of reserves in Russia and Ukraine which are unexplored. Although the war has slowed ambitions to extract it, it hasn't halted much existing production.

During the prolonged COVID-19 epidemic, lithium-ion battery manufacturers are focused on mission-critical projects in pivotal industries to keep economies functioning. To secure a steady revenue stream in the midst of the ongoing COVID-19 epidemic, lithium-ion battery manufacturers are focused on important revenue-generating businesses including grid electricity and consumer electronics.

Market Segmentation

Insight by Type

  • 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)

Lithium Iron Phosphate (LFP) contributes the largest share in the lithium ion battery market owing to rising demand of batteries having portability, durability, and efficacy. Furthermore, LFP batteries offers long shelf life and is one of the safest solution, thus driving growth of the segment.

Lithium Cobalt Oxide contributes fastest growth in the lithium ion battery market owing to ongoing research and development and ability to enhance cathode and electrolyte solutions. Thus, propelling the growth of the lithium cobalt oxide segment in several industry verticals.

Lithium Nickel Manganese Cobalt (NMC) category is anticipated to have a high CAGR during the forecast period owing to reduced cost and long life. Moreover it is extensively adopted in several equipment’s like electric bikes and electric powering trains.

Insight by Power Capacity

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

The 10,000–60,000 MAh segment accounts for the largest market share in the lithium ion battery during the forecast period. More than 10,000 mAh Li-ion batteries are used in high-capacity applications such as electric vehicles, plug-in hybrid electric vehicles, e-motorcycles, material handling equipment, marine, robots, industrial, telecommunication systems, electronic cash registers, standby power supplies, golf cart vehicles, hybrid trucks, buses, smart grid, aviation industry, automated guided vehicle, yachts, solar backup power, energy storage system (ESS) platforms, military applications, low earth orbit (LEO), medium earth orbit (MEO), and geostationary or geosynchronous orbit (GEO) satellites, and launch vehicles

Insight by End User

  • 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

The automotive industry is anticipated to have the largest share in the lithium ion battery market owing to reduced dependency on fossil fuels by the automotive sector, rising sale of electric vehicles. Furthermore, compared to nickel-based batteries, self-discharge is less than half. When a lithium-ion battery is brand new, it does not require extensive priming. Lithium-ion batteries require low-maintenance and can sustain hundreds of charge/discharge cycles. Due to their enticing features like high energy efficiency, long life cycle, high energy density, and high power density, lithium-ion batteries are currently the most ideal energy storage device for powering electric vehicles (EVs). Because lithium-ion batteries have higher energy densities than lead-acid or nickel-metal hydride batteries, they may be made smaller while maintaining the same storage capacity. Furthermore, increased government expenditure is critical in accelerating the adoption of electric vehicles.

Furthermore, due to EPA rules on lead contamination and the related environmental concerns, as well as laws on lead-acid battery storage, disposal, and recycling, demand for lithium-ion batteries in automobiles has increased.

Lithium Ion Battery Market Report Coverage

Report Metric

Details

Historical Period

2016–2021

Base Year Considered

2021

Forecast Period

By 2028

Market Size in 2021

$38.6 Billion

Revenue Forecast in 2028

$113.7 Billion

Growth Rate

CAGR 12.8%

Segments Covered in the Report

By Type, By Power Capacity, and By End User

Report Scope

Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling

Regions Covered in the Report

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

Industry Dynamics

Growth Drivers

Surge in Demand from Consumer Electronics Propelling the Market Demand for Lithium ion Batteries

The expanding market for consumer electronics and smartphones is projected to fuel demand for high-capacity batteries that allow devices to function for long periods of time while maintaining optimal device performance.  It is widely utilised in a variety of electronic devices, including smart phones, laptops, iPods, PDAs, etc.  Radio-controlled hobby vehicles, notebooks, portable vaporizers, drones, and unmanned aerial vehicles are all examples of lithium-ion battery applications.  The connected and smart consumer products are currently in high demand. However, while building smart devices, the battery is the most important power capacity to consider. As a result of its design flexibility, rechargeability, and ease of getting fit in a bespoke size, Li-ion batteries are the most preferred choice for consumer electronic items. As a result, Lithium ion batteries are expected to create a plethora of lucrative business prospects for market participants in the future years.

Other factors attributing to the growth of lithium ion battery market increased requirements for continuous power supply from critical infrastructure in the wake of COVID-19, surging demand for battery operated material handling equipment in industries as a result of automation, rising need for plug-in vehicles, incessant development of smart devices, and rapid adoption of lithium-ion batteries in the renewable energy sector. The market is expected to increase due to large-scale energy storage and stationary standby applications such as UPS and switchgear & control.

Challenges

Li-ion batteries, while their scientific potential, nonetheless have numerous flaws, particularly in terms of safety. Because they contain flammable electrolytes, so they must be handled with caution. Some of the primary factors that are predicted to stymie the market's growth include concerns about the transportation and storage of spent batteries.

The significant cost associated with lithium-ion batteries compared to lead-acid, sodium-sulfur, and nickel-metal-hydride batteries is predicted to limit their usage. As a result, market growth is being hampered by the poor acceptance rate of these batteries due to their expensive cost.

Opportunities

Over the projected period, the significant emphasis of leading manufacturers on boosting lithium ion battery manufacturing capacity is expected to provide profitable and bright prospects to the lithium-ion battery market. In the near future, the growing use of Li-ion batteries in digital cameras is expected to open up new business opportunities. Because the growing disposable waste of lithium-ion batteries is becoming a serious environmental issue, stakeholders in the lithium-ion battery sector are investing more in material recycling research to reduce their environmental impact.

Geographic Overview

  • North America
  • Europe
  • Asia Pacific (APAC)
  • Rest of the World (RoW)

Asia-Pacific contributes the largest share in the lithium ion battery market owing to rising demand for smartphones and tablets along with electric vehicles in developing countries like China, Japan, and India, an upsurge in funding from the government, increased disposable income and rising consumer awareness about environment-friendly technologies will proliferate the market growth of the lithium ion batteries in the region.

North America contributes significant share in the lithium ion battery market owing to surge in sale of electric vehicles, supportive federal policies, presence of prominent industry players, thereby propelling the market demand for lithium ion batteries in the region.

Competitive Insight

The worldwide lithium-ion battery industry is extremely fragmented owing to the presence of domestic players. For the advancement of the lithium-ion battery industry, most of the leading market players are partnering with government authorities.

The key industry participants are focusing on strategic collaborations to achieve a competitive advantage. To establish their brand in the lithium-ion battery market, prominent industry players are using methods such as mergers, acquisitions, partnerships, and joint ventures. In order to gain a dominant position in the lithium-ion battery market, these techniques are also assisting in improving production efficiency and lowering overall battery prices. The government is also assisting on a major scale in this regard.

Panasonic Corporation is a world pioneer in the development of breakthrough technology and services for consumer electronics, housing, automotive, and business-to-business applications (B2B).

Panasonic's specialised technologies have made batteries thinner and lighter for use in devices such as notebook computers and mobile phones. They are also used in electric vehicles (EV), backup base stations for mobile telephones, solar-powered electricity storage systems, and a variety of other industrial applications. Panasonic continues to improve battery materials and manufacturing processes, while also working to improve battery control technology, thus allowing Panasonic batteries to be used safely, particularly when layering up from cell to pack, module, and system. These activities contribute to Panasonic's batteries' high reliability.

Cylindrical, prismatic, and polymer batteries, as well as battery packaging and solutions, are among BAK Power's goods and services, which are largely employed in new energy vehicles, consumer products, and backup energy storage. They offer a complete line of BAK Lithium Ion Battery batteries ranging in size from 2200mah to 5000mAh.

Recent Development by Key Players

In April 2022, Li-Cycle Holdings Corp., a Toronto-based lithium-ion battery recycler that will recycle scrap material from Ultium Cells' electric-vehicle battery-cell production, has a commercial agreement in place for the recyclable material with South Korea's LG Energy Solution. A second agreement was reached with LG Chem Ltd. and LG Energy Solution for the sale of nickel sulphate from Li-hub Cycle's in Rochester, New York. Meanwhile, work is underway to construct a 120,000-square-foot facility adjacent to the Lordstown megafactory to recycle manufacturing scrap and materials from Ultium Cells.

Panasonic Corporation stated in February 2022 that its Energy Company will open a production plant at its Wakayama Factory in western Japan to build new "4680" lithium-ion batteries for electric vehicles (EVs) in order to expand its company globally.

Key Players Covered in the Report

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. are the major players providing lithium ion battery.

Lithium Ion Battery Market Size and Market Analysis

To explore more about this report - Request a free sample copy

The Lithium Ion Battery Market research includes a comprehensive market segmentation analysis as well as projections for the analysis period 2022-2028.

Segments Covered in the Report

By Type

  • 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)

By Power Capacity

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

 

By End User

  • 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

Region Covered in the Report

•    North America

- U.S.
- Canada
- Mexico

•    Europe

- Germany
- U.K.
- France
- Italy
- Spain
- Russia
- Rest of Europe

•    Asia-Pacific (APAC)

- China
- Japan
- India
- South Korea
- Rest of Asia-Pacific

•    Rest of the World (RoW)

- Brazil
- Saudi Arabia
- South Africa
- U.A.E.
- Other Countries

Frequently Asked Questions

Key players in the lithium ion battery market are catering the demand by collaborating with small players and investing on technologically advanced batteries across the globe.
The different types of lithium ion batteries are into lithium nickel manganese cobalt (Li-NMC), lithium titanate oxide (LTO), lithium manganese oxide (LMO), lithium cobalt oxide (LCO), lithium iron phosphate (LFP), and lithium nickel cobalt aluminum oxide (NCA)
Mounting requirement for electric vehicle, mounting need for smart devices and other consumer electronic products, mounting demand for grid storage, government directives on fuel economy and expansions toward improvement of lithium ion batteries are the primary growth drivers for lithium ion battery market.
Asia-Pacific accounted for the major share in the lithium ion battery market due to mounting funding from the government and development in automotive and consumer goods sector.
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. are the key players offering lithium ion battery.

Place an order

Research Methodology

  •  Desk Research / Pilot Interviews
  •  Build Market Size Model
  •  Research and Analysis
  •  Final Deliverabvle

CONNECT WITH OUR SALES TEAM