Global Lithium Ion Battery Market By Product (Lithium Cobalt Oxide, Lithium Iron Phosphate) By Battery Capacity (Upto 3,000 mAh, 3,001-10,000 mAh) By Application, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2023-2032

Report Overview

In 2022, the Global Lithium Ion Battery Market was valued at USD 59.8 billion and it is expected to reach USD 307.8 billion in 2032. Between 2023 and 2032, this market is estimated to register the highest CAGR of 18.3%.

Because of their efficiency and effectiveness, lithium-ion batteries are widely used in electronics and automobiles. After a certain time, the lithium-ion batteries can be recharged. Over the forecast period, the global Lithium Ion Battery will grow due to the increasing adoption of electric cars.

Lithium-ion batteries have a higher energy density and a longer shelf life. They can be used in automobiles and vehicles. The growing demand for consumer electronics is one of the main factors behind the rise in the global lithium-ion market. Due to the high price of gasoline and fossil fuels, people are now adopting electric vehicles in large numbers. This is a major factor in the rise of the global lithium-ion market. Due to the rising use of electric cars, the automobile industry is expected to experience significant growth.

Over the forecast period, electric vehicle registrations worldwide are expected to rise significantly. Additionally, due to EPA regulations regarding lead contamination and resulting hazards and the regulations on lead battery storage, disposal, and recycling, there has been a decline in the demand for lead-acid cells. This has resulted in an increase in the use of lithium-ion batteries for automobiles.

Driving Factors:

Affordable Costs and High Efficiency are Driving the Lithium Ion Batteries Market.

These batteries were not widely adopted in the 90s due to their high prices. Many components make up Li-ion batteries. The main component of any LIB is its cell. This accounts for half of its cost. Recent developments by LIB manufacturers have led to a decline in the prices of these batteries. This will continue to decrease in the future. Key factors driving the increase in lithium-ion battery adoption are the declining costs of components and advanced technologies that can increase the battery capacity.

Because of their efficiency and effectiveness, lithium-ion batteries are widely used in electronics and automobiles. After a certain time, the lithium-ion batteries can be recharged. Over the forecast period, the global Lithium Ion Battery market will grow due to the increasing adoption of electric cars. Lithium-ion batteries have a higher energy density and a longer shelf life. They can be used in automobiles and vehicles. The growing demand for consumer electronics is one of the main factors behind the rise in the global lithium-ion market. Due to the high price of gasoline and fossil fuels, people are now adopting electric vehicles in large numbers. This is a major factor in the rise of the global lithium-ion market.

The growing demand for renewable energy is another factor that has contributed to the growth of the Lithium Ion Battery market. The government continues to invest in energy and infrastructure development projects that contribute to the growth and development of the lithium-ion batteries market. Major market players have partnered with government agencies to expand the lithium-ion market.

Restraining Factors:

Safety Issues are Obstructing the Growth of the Lithium Ion Batteries Market.

Safety is a critical criterion in electric cars as well as large-scale applications. Safety is often demonstrated by stability under abuse (mechanical, electrical, and thermal). This is still a complex issue with lithium-ion batteries. The cell’s safety and electrochemical performance are also affected by the cell design. For high-energy-density lithium-ion batteries, enhancements are needed. The most effective way to resolve safety concerns about lithium batteries is the electrolyte. All batteries will lose their performance when they are exposed to cold temperatures. Charging at extremely low temperatures can make it more difficult for Li-ion batteries to charge. This is because charging is more delicate than discharging. To protect the battery from freezing temperatures, many EV batteries come with a heating blanket. Factors like these are restraining the growth of the lithium-ion batteries market.

COVID-19 Impact Analysis:

COVID-19 Pandemic Decreased the Demand for Lithium Ion Batteries.

This Lithium Ion Battery market saw a decrease in growth during 2020 due to the COVID-19 pandemic. The supply of batteries has been limited by the COVID-19 pandemic. Although the key component of a battery is found primarily in Asia Pacific, the pandemic has increased the dependence on raw materials from that region. Battery cathodes, and electrolytes, are based on lithium and cobalt. China is the world’s largest producer of elements, and it controls around 80% of the global supply chain for these materials. Travel restrictions have been imposed by many countries around the globe, which has impacted the flow and quality of raw materials. Many power plants have also been shut down, which in turn affected the global market.

Product Analysis

High Energy and Safety Factors Helped the Lithium Cobalt Oxide (LCO) Batteries to Cover the Major Share of the Lithium Ion Battery Market.

The largest revenue share was earned by the Lithium Cobalt Oxide segment (LCO). LCO batteries are high in safety and energy density, so there will be a lot of demand for them in mobile phones and tablets. This is expected to increase market growth during the forecast period.

Lithium Iron Phosphate (LFP) batteries are extremely safe and have a long life expectancy. These batteries will be more popular in fixed and portable applications that require high endurance and load currents. These batteries are extremely safe and have a long lifespan. The lithium-ion batteries market is forecast to grow due to the growing demand for LFP batteries in both stationary and mobile devices. These batteries require high load currents and durability.

Market growth is expected to be boosted by rising demand for Lithium Nickel Cobalt Aluminium Oxide (NCA). This is due to its high specific energy and specific power as well as long life expectancy. NCA is used in EV vehicles, medical devices, as well as industrial applications. The segment will see a rise in lithium titanate consumption in various applications, including electric powertrains and streetlights. LTO has many properties, including safety, low-temperature performance, and long life expectancy. This will fuel segment growth in the future.

Battery Capacity Analysis

Lithium Ion Batteries having 3,001-10,000 mAh Battery Capacity are in High Demand for Many Industries.

The 3,001-10,000 mAh segment dominates the market and is expected to be the fastest-growing segment during the forecast period of 2023-2032. Various industries, including consumer electronics, automotive, appliances, and aircraft, use these batteries. These batteries are often assembled into modules and used in applications requiring heavy loads. High-capacity, low-rated battery energy storage systems can provide small amounts of power for long periods of time while still operating some critical equipment. Therefore, market growth is increasing for this segment.

As the world moves to more connected and smarter technology, there is a growing demand for lithium-ion battery storage capacities greater than 60,000 mAh. These batteries can be used in a variety of applications, including electric cars and AI-powered electronic devices, as well as other uses. India’s lithium-ion battery market is expected to grow at 26% CAGR between 2023 and 2032. This growth will be driven by factors like the growing popularity of electric cars, advances in the automotive industry, rising demand for electronic devices, and greater emphasis on renewable energy sources.

Application Analysis

The Extensive Use of Lithium Ion Batteries in Portable Devices is Driving the Consumer Electronics Segment in Lithium Ion Batteries Market.

In 2021, the consumer electronics segment accounted for the highest revenue share. In portable electronics and consumer electronic products, batteries can be found in portable devices. Mobile phones, tablets, computers, smartphones, flashlights, torches, flashlights, and LED lighting. The consumer electronics segment is expected to show a high CAGR during the forecast period.

This segment of the automobile is projected to grow at the fastest CAGR over the forecast period. This is due to growing awareness about the advantages of battery-powered cars and rising fossil fuel prices in North America, Asia Pacific, and Europe. Electric vehicle usage has increased worldwide due to growing concerns about carbon emissions from the automotive industry. Electric vehicles are also much cheaper to a certain extent. Publicly accessible charging stations have helped increase the popularity of electric vehicles, particularly in North America and Europe.

The forecast period will see a significant increase in the energy storage systems market. The demand for energy storage has increased significantly due to an increase in electricity demand. For backup power supply to commercial buildings, data centers, and institutions, lithium-ion batteries can also be used. Additionally, lithium-ion batteries are preferred for energy storage in residential PV systems. The growing market demand for lithium-ion batteries is also being driven by the increasing government initiatives to install energy storage systems. These factors will increase the growth rate of the energy storage system application segment over the forecast period.

Global Lithium Ion Battery Market Key Segments:

Product

• Lithium Cobalt Oxide (LCO)
• Lithium Iron Phosphate (LFP)
• Lithium Nickel Cobalt Aluminium Oxide (NCA)
• Lithium Manganese Oxide (LMO)
• Lithium Titanate (LTO)
• Lithium Nickel Manganese Cobalt (LMC)

Battery Capacity

• Upto 3,000 mAh
• 3,001-10,000 mAh
• 10,001-60,000 mAh
• Above 60,000 mAh

Application

• Automobile
• Consumer Electronics
• Industrial
• Energy Storage Systems
• Medical Devices
• Other Applications

Growth Opportunities:

Rising Environmental Awareness and Government Support are Creating Opportunities in the Lithium Ion Market.

A wide variety of advantages, such as long shelf life and low cost, are paving the way for new growth in the Lithium Ion Battery market. Market growth is also driven by the increasing adoption of consumer electronics. Globally, the market is seeing an increase in demand for lithium-ion batteries because of the increasing use and necessity for industrial products.

Diesel generators are being restricted by the unregulated diesel price and carbon dioxide emissions. Telecom companies are always looking for energy-efficient solutions as fuel costs account for 30% of the operating cost of a telecom tower. Telecom companies combine high-efficiency Lithium batteries with renewable energy sources at many locations. Due to rising concerns about the environment and increasing electricity demand, the world is moving towards renewable energy. Renewable power generates power using natural resources. It is, therefore, a reliable and clean way to produce power. There are many opportunities for lithium-ion batteries, thanks to supportive government policies and increasing investor interest.

Latest Trends:

Increasing Sales of Electric Vehicles to Mitigate Climate Change

The climate impact of electric vehicles is less than internal combustion engines. The trend for future transportation is changing with the introduction of passenger and commercial electric cars. This will encourage the growth and development of the lithium-ion batteries industry. Tesla is one of the leading electric vehicle manufacturers. Europe has established stringent pollution standards and restrictions as well as significant public electric mobility transit projects.

A growing concern for the preservation of a clean environment has led to the development and operation of photovoltaic plants, nuclear power plants, and wind energy projects. This, in turn, has encouraged the development of lithium-ion battery technology. The growing acceptance of lithium-ion batteries by the medical sector is also supporting this expansion.

The EPA’s regulations regarding lead contamination and the resulting environmental dangers have decreased the demand for lead acid and made it more difficult to find lithium-ion batteries for automobiles. The main focus of the global automotive industry has been Mexico because many firms are interested in investing there. It is fourth in the automotive industry’s top four exporters, after South Korea, Japan, and Germany. With rising automobile production, the country’s demand for lithium-ion batteries is expected to rise. These factors have all contributed to a global CAGR of Lithium Ion Battery in recent years.

Regional Analysis:

Countries like China and India are Making the Asia Pacific Region Dominant in Lithium Ion Batteries Market.

With a revenue share exceeding 36.4%, Asia Pacific dominated the market. China banned conventional fossil fuel-powered scooters in all major cities in order to reduce its carbon emissions. This has led to an increase in e-scooter sales in the country. As Asia Pacific has become a major manufacturing region, more people are adopting tools powered by lithium-ion battery technology. The region also has the highest population in the world. The Asia Pacific region is home to a large number of lithium-ion battery-powered consumer electronics, such as laptops and mobiles. One of the main factors that are positively impacting the demand for lithium-ion batteries is the growing market for electric vehicles in Asia Pacific countries like India and China.

The rising sales of consumer electronics and automobiles are helping the North American Lithium-Ion Battery Market to hold the second-largest share. The largest market share was held by the US Lithium Ion Battery market, while the Canada Lithium Ion Battery market was the fastest-growing market in North America.

This market has grown because of the increasing attention given by European governments to greenhouse gas emissions in Europe. Many countries in the region, such as France, Argentina, France, and others, have set a goal to zero CO emissions by 2050. This has led to a rise in the use of Li-ion battery technology in the region. To encourage research in smart battery technology in Europe, the European Commission and Batteries European Partnership Association launched a public-private partnership.

Key Regions and Countries Covered in this Report:

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Market Share and Key Player Analysis:

Market leaders are investing a lot in R&D to improve their product lines. This will allow the Lithium Ion Battery market to grow even further. Market players are also taking key market initiatives to expand their global footprint. These include new product launches, contract agreements, mergers, acquisitions, increased investment, collaboration with other organizations, and contractual agreements. To survive and expand in a highly competitive market, competitors in the Lithium Ion Battery industry need to offer cost-effective products.

To benefit customers and grow the Lithium Ion Battery market, one of the main business strategies used by global Lithium Ion Battery manufacturers is to produce locally in order to lower operating costs. The Lithium Ion Battery industry has shown some remarkable benefits in recent years. Major players in the Lithium-Ion Battery market, such as Panasonic Holdings Corp and LG Energy Solution, are working to increase market demand through research and development.

BYD Company Ltd., LG Chem, Contemporary Amperex Technology Co. Ltd, Samsung SDI Co. Ltd., and Panasonic Corporation are some of the major players in the lithium-ion batteries market.

Market Key Players:

• BYD Company Ltd.
• LG Chem
• Contemporary Amperex Technology Co. Ltd
• Samsung SDI Co. Ltd.
• Panasonic Corporation
• BAK Power
• Clarios
• Toshiba Corporation
• Hitachi Ltd.
• Automotive Energy Supply Corporation
• Duracell Inc
• Saft Group S.A.
• Other Key Players

Recent Developments:

• In June 2021, Forsee Power, a French manufacturer of battery systems, began its series production for EV Scooters in Pune (Chakan Industrial Area), 35 km from Pune Airport.
• In May 2021, The partnership between the commercial vehicle manufacturer Daimler Truck AG (commercial vehicle maker) and CATL (lithium-ion battery producer) was based on their common vision of CO2-neutral electric transport. The Mercedes-Benz eActros longhaul battery-electric truck will use Li-ion batteries from CATL as a source. It will be available for serial production in 2024.

Report Scope: