Lithium-ion Battery Market Size, Share, and Trends 2025 to 2034

Lithium-ion Battery Market Size and Forecast 2025 to 2034

The global lithium-ion battery market size was valued at USD 97.88 billion in 2024 and is predicted to surpass around USD 499.31 billion by 2034, expanding at a CAGR of 17.69% from 2025 to 2034. The increasing demand for electric vehicles, the rising adoption of smartphones, and growing disposable income drive the lithium-ion battery market.

Lithium-ion Battery Market Key Takeaways

• Asia-Pacific dominated the global lithium-ion battery market with the largest market share of 53% in 2024.
• By product, the lithium iron phosphate segment contributed the biggest market share in 2024.
• By product, the lithium nickel manganese cobalt (NMC) segment is expanding at a solid CAGR during the forecast period.
• By application, the electric and hybrid electric vehicle segment dominated the market in 2024.
• By application, the energy storage systems segment is expected to grow at a significant CAGR during the forecast period.

Impact of AI on the Lithium-ion Battery Market

Artificial intelligence (AI) has been proven to revolutionize several sectors, including the development of lithium-ion batteries. AI can be used to detect compounds that can be mixed with lithium to enhance its efficiency and optimize its performance. AI can also be used in bulk manufacturing of lithium-ion batteries, improving reproducibility and reducing human intervention. Integrating AI and machine learning (ML) algorithms into conventional battery systems results in smart battery systems. Smart batteries can provide real-time monitoring, predictive maintenance, and adaptive control strategies. AI and ML can also be used to assess the properties of lithium-ion batteries, enhancing transparency and interpretability.

Asia Pacific Lithium-ion Battery Market Size and Growth 2025 to 2034

The Asia Pacific lithium-ion battery market size was evaluated at USD 51.88 billion in 2024 and is predicted to be worth around USD 267.13 billion by 2034, rising at a CAGR of 17.80% from 2025 to 2034.

Asia-Pacific dominated the global lithium-ion battery market with the largest market share of 53% in 2024. China leads the lithium-ion battery market in Asia-Pacific region. China is considered as production hub for the lithium-ion battery. The lithium-ion battery market in Asia-Pacific region is being driven by the surge in demand for smartphones and tablets in emerging countries such as China, Japan, and India. Another factor driving the growth of the lithium-ion battery market in the region is rising disposable income and growing consumer awareness regarding lithium-ion battery in the market during the forecast period.

Technological improvements, exploitation of economies of scale through mass production, particularly in China, and increased competition between the manufacturers are the principle reasons behind the price decline. The decline in prices is leading to the widespread use of Li-ion batteries, in turn, driving the Asia-Pacific lithium-ion batteries market.

With increasing lithium-ion battery manufacturing, demand for the principal materials required for manufacturing Li-ion batteries, i.e., lithium and cobalt, is increasing. The lack of production growth and geographical concentration of production of these materials is expected to be a significant restraint for the market in the coming years.

• In January 2025, MDIndia Health Insurance TPA Pvt Ltd announced its sponsorship of the General Insurance Agents Federation Integrated National Conclave. The incident brings together over 200 active insurance agents, manufacturing experts, and stakeholders to foster professional growth and improve the experience for both policyholders and agents.
• In January 2025, Care Health Insurance, one of the leading Health Insurers of India, announced the launch of Ultimate Care, a ground-breaking health insurance designed to set novel benchmarks in health coverage. Ultimate Care combines extensive benefits tailored to address unforeseen medical emergencies and rewards consumers for staying healthy. 

Due to the rapid growth of the EV industry, the automobile sector has become the dominating and fastest-growing consumer of lithium-ion batteries globally, as well as in the Asia-Pacific region. China alone accounted for over 50% of the global EV sales in 2018. A similar trend is expected to continue during the forecast period. Hence, the automobile sector is expected to remain a dominating consumer sector during the forecast period.

China, India, and Malaysia are the biggest three markets for lithium-ion batteries during the forecast period. China alone, accounted for about 44.9% of the Asia-Pacific lithium-ion battery market, in 2018. Asia-Pacific accounted for around 55% market share in the global lithium-ion battery market.

North America is expected to develop at the fastest rate during the forecast period. The U.S. dominated the lithium-ion battery market in North America region. The factors such as the surge in sales of automobiles and electric vehicles all around the region and rising demand for lithium-ion battery for mobile phones are boosting the expansion and development of the lithium-ion battery market in the North America region.

• In March 2025, Prudential plc. Announced a partnership venture with HCL Group for Health Insurance in India. The partnership goal to address the rising healthcare requirement of the Indian consumer and contribute to the Indian Government’s vision of Insurance for All by 2047.

Lithium-ion Battery Market Growth Factors

• Burgeoning Electronics and Automobiles Sector: Lithium-ion batteries are predominantly used in the electronics and automobiles sector, boosting market growth.
• Increasing Sales of EVs: The growing demand for electric vehicles increases the demand for lithium-ion batteries.
• Rising Disposable Income: One of the key factors driving the growth of the global lithium-ion battery market is growing consumer spending on consumer electronics.
• Growing Demand for Renewable Energy: The rapidly expanding renewable energy sector due to government investments in energy and infrastructural development projects.
• Increasing Collaborations: Major market players collaborate with government agencies to expand the lithium-ion battery market.

Market Scope

Market Dynamics

Driver

Burgeoning Automobile Sector

The burgeoning automobile sector is a major growth factor for the lithium-ion battery market. The growing demand for EVs and increasing sales are responsible for rapidly expanding the automobile sector. According to the International Energy Agency, approximately 14 million electric cars were sold globally in 2023. This increases the demand for lithium-ion batteries. These batteries are highly preferred in EVs due to their high power-to-weight ratio, high energy efficiency, good high-temperature performance, and long life. The increasing investments in automobile R&D to drive the latest innovations boost the market.

Restraint

Metal Alternatives

The major challenge of the lithium-ion battery is the presence of alternatives to lithium. Several researchers are investigating the use of different metals to reduce the use of lithium due to scarcity, high prices, and safety concerns. Other metals, such as calcium and sodium, are being investigated as they are more efficient and less expensive energy storage systems.

Opportunity

Growing Demand for Environmental Sustainability

The future of the lithium-ion battery market is promising, driven by the growing demand for environmental sustainability. The use of internal combustion engines (ICE) consumes carbon-based fossil fuels, emitting significant pollutants such as carbon dioxide into the environment. This poses a significant threat to the environment. Several government organizations have released guidelines and launched initiatives to reduce the environmental burden of harmful pollutants. This increases the demand for lithium-ion batteries, replacing ICE. Additionally, lithium-ion batteries are highly recyclable. It is estimated that approximately 95% of a lithium-ion battery can be recycled into new batteries.

Product Insights

The lithium iron phosphate (LFP) segment dominated the lithium-ion battery market in 2024. The factors such as the surge in demand for lithium iron phosphate (LFP) batteries in devices such as which are portable in nature and growing need for durable and efficient batteries are driving the growth of the segment. In addition, the advantages provided by lithium iron phosphate (LFP) batteries such as long shelf life and safest solution is also boosting the segment growth.

The lithium nickel manganese cobalt (NMC) segment is fastest growing segment of the lithium-ion battery market in 2022. The lithium nickel manganese cobalt (NMC) is widely used in various equipment such as electric powering trains and electric bikes. The benefits of lithium nickel manganese cobalt (NMC) such as long life and reduced cost is paving new ways for the growth of the segment.

Application Insights

A push toward sustainability and renewable energy sources is growing, with governments providing subsidies and incentives to switch to electric and hybrid vehicles. As the climate crisis looms, the United States, China, India, and countries in the European Union are lowering taxes and building the required infrastructure to charge electric vehicles.

• In November 2024, the Indian government unveiled Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI), in a bid to promote the adoption of electric cars and vehicles in the country by reducing tariffs on their imports.

Lithium-ion Battery Market Companies

• Panasonic Corporation
• BYD Company
• Samsung SDI
• LG Chem
• Contemporary Amperex Technology Co. Ltd
• Saft Group S.A.
• Toshiba Corporation
• BAK Power
• Automotive Energy Supply Corporation
• A123 System

Latest Announcement by Industry Leaders

• Avik Roy, Managing Director and CEO of Exide Industries, stated that the company is constructing a 12 GWh lithium-ion plant in two phases of 6 GWh each, and the first phase is expected to be completed by March 2025. He envisioned that the demand for lithium-ion batteries would be near 150 GWh by 2030. Around 70% of it will be driven by the mobility sector and 30% from industries.

Key Developments

• In March 2025, Life Insurance Corporation of India (LIC) is set to enter the health insurance sector, with the acquisition of a health insurer in the final stages, CEO Siddhartha Mohanty told CNBC-TV18, marking a significant expansion into the growing health insurance market.
• In March 2025, The Doctors Company, the nation’s largest physician-owned medical malpractice insurer, and ProAssurance Corporation, an industry-leading specialty insurer with extensive expertise in medical liability, products liability for medical technology and life sciences, and workers’ compensation insurance, announced that they have entered into a agreement under which ProAssurance acquired by The Doctors Company.
• In January 2024, HCSC signed to acquisition agreement with Cigna Group for its Medicare Advantage, Medicare Supplemental Benefits, Medicare Part D, and CareAllies businesses. The acquisition benefits HCSC’s present and future members by improving the company’s capabilities and reach, specifically in the growing Medicare sector.
• In April 2025, Transcarent announced the effective completion of its merger with Accolade, the leading health advocacy, expert healthcare opinion, and virtual primary care company in the market. The combined organization serves over 20 million members and more than 1,700 workers and health plan clients in one place for health and care.
• In January 2025, a research team in Paul Scherrer Institute announced the development of a new process that improves the performance of lithium-ion batteries while still remaining sustainable. This process also improves the operational voltage on the batteries and is poised to substantially improve the efficiency of these lithium-ion batteries.
• In January 2025, Mazda Motor Corporation announced its plan to build a new module pack plant for automotive cylindrical lithium-ion battery cells in Iwakuni, Japan. The new plant is developed to manufacture automotive cylindrical lithium-ion battery cells procured from Panasonic Energy.
•  In September 2024, Imec announced the development of a lithium-metal solid-state battery with an energy density of 1070 watt-hours per litre. The new battery can save more energy compared to conventional ones, leading to longer-lasting and more powerful electric vehicles.

Segments Covered in the Report

By Product

• Lithium cobalt oxide (LCO)
• Lithium iron phosphate (LFP)
• Lithium nickel cobalt aluminum Oxide (NCA)
• Lithium manganese oxide (LMO)
• Lithium titanate
• Lithium nickel manganese cobalt

By Application

• Consumer Electronics
• Smartphones & tablet/PC
• UPS
• Others
• Automotive
• Cars, Buses, & Trucks
• Scooters & Bikes
• Trains & Aircraft
• Industrial
• Energy Storage System

By Component

• Cathode
• Anode
• Electrolytic Solution
• Others

By Capacity

• 0–3,000 mAh
• 3,000–10,000 mAh
• 10,000–60,000 mAh
• 60,000 mAh and Above

By Voltage

• Low (Below 12V)
• Medium (12V – 36V)
• High (Above 36V)

By Geography

• North America
• U.S.
• Canada
• Europe
• U.K.
• Germany
• France
• Asia-Pacific
• China
• India
• Japan
• South Korea
• Malaysia
• Philippines
• Latin America
• Brazil
• Rest of Latin America
• Middle East & Africa (MEA)
• GCC
• North Africa
• South Africa
• Rest of the Middle East & Africa