The global lithium-ion battery market size was estimated at US$ 58.61 billion in 2021 and is expected to surpass around US$ 278.27 billion by 2030 with a registered CAGR of 18.9% from 2022 to 2030.
Growth Factors
The lithium-ion battery is widely used in the electronics and automobiles due to their efficiency and effectiveness. The lithium-ion battery can also be charged after certain period of time. The growing adoption of electric vehicles is driving the growth of the global lithium-ion battery market over the projected period.
The lithium-ion battery has higher energy density and long shelf life, which can be easily utilized in the vehicles and automobiles. One of the key factors driving the growth of the global lithium-ion battery market is growing consumer spending on consumer electronics. Moreover, due to high cost of fossil fuels and gasolines, the people have started adopting electric vehicles on a large scale. This factor is supporting the growth of the global lithium-ion battery market.
Another factor boosting the expansion of the lithium-ion battery market is the growing renewable energy sector. The government is constantly investing in energy and infrastructural development projects which are contributing towards the lithium-ion battery market growth and development. Most of the major market players are collaborating with government agencies for the expansion of the lithium-ion battery market.
The lithium-ion battery provides wide range of benefits such as low cost and long shelf life is paving new opportunities for the lithium-ion battery market growth. The growing adoption of consumer electronics is also driving the market growth. The need and requirement for lithium-ion battery in industrial products is increasing the demand for lithium-ion battery in the global market.
Report Scope of the Lithium-ion Battery Market
| Report Coverage | Details |
| Market Size by 2030 | USD 278.27 Billion |
| Growth Rate from 2022 to 2030 |
CAGR of 18.9% |
| Asia Pacific Market Share in 2021 | 47% |
| CAGR of Lithium Cobalt Oxide (LCO) Segment | 16.5% from 2022 to 2030 |
| Base Year | 2021 |
| Forecast Period | 2022 to 2030 |
| Segments Covered | Product, Application, Capacity, Voltage, Component, Region |
| Companies Mentioned | 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 |
In addition, the technological advancements and adoption of innovative technological products is propelling the lithium-ion battery market expansion. The key market players are focusing on the launch of products and lithium-ion batteries that can be used for long duration of time. This will help to increase the demand for electric vehicles in the global market during the forecast period. Furthermore, the stringent government regulations regarding the use of fuels and gasoline-based vehicles are supporting the growth of the global lithium-ion battery market.
The impact of the COVID-19 pandemic on the growth of the global lithium-ion battery market was quite negative. The supply chain disruption and halt of manufacturing and production units had negative outlook on the global lithium-ion battery market growth. In addition, the automobile sector saw decline in the sales of vehicles and consumer electronics. This had directly impacted the expansion and development of the lithium-ion battery market during 2020.
Moreover, the government of established and emerging nations is providing tax rebates and subsidies for the installation of manufacturing plants of lithium-ion battery globally. This factor is driving the lithium-ion battery market growth during the forecast period. Furthermore, the stringent government regulations regarding carbon and greenhouse gases emissions as well as pollution is providing growth prospects for the lithium-ion battery market growth.
To gain a competitive advantage, the major market players are concentrating on strategic collaborations. The key market players are adopting strategies such as merger, acquisition, partnership, and joint venture to create their image in the lithium-ion battery market. These strategies are also helping to improve the production efficiency and lowering overall battery prices in order to create a dominant position in the lithium-ion battery market. For this, government are also supporting on the large scale.
Product Insights
The lithium iron phosphate (LFP) segment dominated the lithium-ion battery market in 2021. 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 2021. 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.
Lithium Cobalt Oxide (LCO) segment is expected to reach a CAGR of around 16.5% from 2022 to 2030.
Application Insights
The electric and hybrid electric vehicle segment dominated the lithium-ion battery market in 2021. The demand for electric vehicles in developed and developing regions such as Europe, North America, and Asia-Pacific is growing at a rapid pace. The factors such as growing environmental concerns and rising prices of fossil fuels are boosting the growth of the segment.
The energy storage systems segment is expected to witness growth at a CAGR of 24% from 2022 to 2030. Due to the surge in demand for electricity, the demand for energy storage systems have increased substantially. Moreover, the growing government initiatives for the installation of energy storage systems are also contributing towards the growing demand for lithium-ion battery in the market.
Region Insights
Asia-Pacific dominated the lithium-ion battery market in 2021 with revenue share of 47%. 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.
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.
Key Developments
Some of the prominent players in the global lithium-ion battery market include:
Segments Covered in the Report
By Product
By Application
By Component
By Capacity
By Voltage
By Geography
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