Lithium-Ion Battery Market

Lithium-Ion Battery Market

Growth Factors of Lithium-Ion Battery Market

The lithium-ion battery market size was valued at USD 64.84 billion in 2023, and the market is now projected to grow from USD 79.44 billion in 2024 to USD 446.85 billion by 2032, exhibiting a CAGR of 23.33% during the forecast period of 2024-2032.

The COVID-19 outbreak threatened the lithium-ion battery market growth with limitations in the supply chain affecting essential materials, including lithium and cobalt, mainly imported from Asia Pacific. Currently, China accounts for 80% of the global production affected by the lockdown measures seen in travel restrictions and power plant closures. This revealed a high reliance on the region for raw materials that impacted the market dynamics 2020.

The increased usage of lithium-ion batteries in power grids and energy storage systems is evidenced by their lower cost, lower installation area requirement and lower self-discharge rate. The demand for energy storage systems, high capital costs and stringent government emissions standards help drive lithium-ion battery market share. These batteries are intended for renewable energy storage and are well suited for high-temperature use, making them suitable for use in remote locations and thermal regulation applications.

Also, the increased sales of electric vehicles are contributing towards climate change impact reduction since they operationalize fewer carbon dioxide emissions than conventional combustion engines. Governments across the globe are adopting policies on environmental friendliness hence enhancing lithium-ion battery usage. Such batteries are widely employed in electric cars with leading automobile companies such as Tesla at the frontline. Europe for example has implemented stringent emission standards for vehicles and is actively supporting the development of electric transportation systems thus catalyzing market development even further.

Comprehensive Analysis of Lithium-Ion Battery Market

The power & energy industry together with the lithium-ion battery market is increasing at a faster growth slope as a result of applying the concept of market segmentation. This market expansion offers an elaborate regional analysis taking into account the strength of the supply and demand forces that define the power industry. These segmentations are systematically separated by types and by applications. The type include, Lithium Cobalt Oxide, Lithium Iron Phosphate, Lithium Nickel Cobalt Aluminum Oxide, Lithium Manganese Oxide, Lithium Nickel Manganese Cobalt and Lithium Titanate Oxide. The applications include, Consumer Electronics, Automotive, Energy Storage System, Industrial and Others.

Asia Pacific has emerged as the prominent region for the market throughout the forecast period. China is said to be the world's largest market for electric vehicles, with Japan coming second. Li-ion batteries are specially incorporated widely into the automotive industry. Furthermore, the increasing global need for smartphones, laptops and other related products in other countries including China, India, Japan and Singapore is expected to boost the market in the region.

The market leaders significantly influence the power & energy industry to ensure industrial prospectus growth while establishing market benchmarks. These players include, BYD Company (China), LG Chem (South Korea), Contemporary Amperex Technology Co. Ltd (CATL) (China), Samsung SDI (South Korea), Panasonic Corporation (Japan), BAK Power (China), Clarios (Germany), Toshiba Corporation (Japan), Hitachi (Japan), Automotive Energy Supply Corporation (Japan), A123 System (U.S.) and Saft Group S.A. (France). These market players give a level-playing field competitive environment.

In February 2024, Panasonic Energy Co. Ltd., a Panasonic Group Company, announced it has recently made safe EV batteries and has entered into a long-term business partnership with H&T Recharge, a leading battery component manufacturer in North America for lithium-ion battery cans.

Segmentation Table

Global Lithium-Ion Battery Market Scope

Study Period 2019-2032

Base Year 2023

Forecast Period 2024-2032

Growth Rate CAGR of 23.33% from 2024 to 2032

Historical Period 2019-2022

Unit Value (USD Billion) and Volume (GWh)

Segmentation By Type, Application, and Region

By Type

Lithium Cobalt Oxide

• Lithium Iron Phosphate
• Lithium Nickel Cobalt Aluminum Oxide
• Lithium Manganese Oxide
• Lithium Nickel Manganese Cobalt
• Lithium Titanate Oxide

By Application

Automotive

• Consumer Electronics
• Energy Storage System
• Industrial
• Others

By Region

North America (By Type, By Application, By Country)

• U.S. (By Application)
• Canada (By Application)
• Europe (By Type, By Application, By Country)
• U.K. (By Application)
• Germany (By Application)
• France (By Application)
• Italy (By Application)
• Spain (By Application)
• Russia (By Application)
• Rest of Europe (By Application)
• Asia Pacific (By Type, By Application, By Country)
• China (By Application)
• India (By Application)
• Japan (By Application)
• Australia (By Application)
• Southeast Asia (By Application)
• Rest of Asia Pacific (By Application)
• Latin America (By Type, By Application, By Country)
• Brazil (By Application)
• Mexico (By Application)
• Rest of Latin America (By Application)
• Middle East and Africa (By Type, By Application, By Country)
• GCC (By Application)
• South Africa (By Application)
• Rest of Middle East & Africa (By Application)

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