Lithium-ion Battery Market to Surpass US$ 387.05 Bn by 2032

The global lithium-ion battery market size is expected to hit around US$ 387.05 billion by 2032 from USD 70 billion in 2022 with a CAGR of 18.70% from 2023 to 2032.

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Key Takeaways:

Asia-Pacific region has accounted largest revenue share of over 49% in 2022.
By Product, the LCO segment has generated largest revenue share of over 31.3% in 2022.
By Application, the consumer electronics segment has captured largest revenue share of over 39.6% in 2022.
In 2022, the automotive application segment has held revenue share of around 31.9%.

The lithium-ion batteries numerous advantages, such as low cost and long shelf life, are creating new opportunities for the lithium-ion battery market to flourish. The market is also developing due to the increasing adoption of consumer electronics. Lithium-ion battery demand is expanding in the global market due to the need and necessity for lithium-ion battery in industrial items.

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The increasing renewable energy sector is another element driving the lithium-ion battery market forward. The government is continually investing in energy and infrastructure development projects, which is assisting in the growth and development of the lithium-ion battery market. For the advancement of the lithium-ion battery industry, most of the leading market players are partnering with government bodies.

Regional Snapshot

Asia-Pacific is the largest segment for lithium-ion battery market in terms of region. The spike in demand for tablets and smartphones in rising nations like as Japan, China, and India is driving the Asia-Pacific lithium-ion battery market. The increased disposable income and increased consumer knowledge about lithium-ion batteries in the market are two major factors driving the growth of the lithium-ion battery market in Asia-Pacific region.

North America region is the fastest growing region in the lithium-ion battery market. The U.S. is dominating the lithium-ion battery market in the North America region. The factors such as increased sales of electric vehicles and automobiles throughout the area as well as rising demand for lithium-ion batteries for mobile phones are propelling the lithium-ion battery market in North America region.

Report Scope of the Lithium-ion Battery Market

Report Coverage	Details
Market Size by 2032	USD 387.05 Billion
Growth Rate from 2023 to 2032	CAGR of 18.9%
Asia Pacific Market Share in 2022	47%
CAGR of Lithium Cobalt Oxide (LCO) Segment	16.5% from 2023 to 2032
Base Year	2022
Forecast Period	2023 to 2032
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

Report Highlights

The lithium cobalt oxide (LCO), lithium nickel cobalt aluminum oxide (NCA), lithium iron phosphate (LFP), lithium manganese oxide (LMO), lithium titanate, and lithium nickel manganese cobalt are the different sources of lithium-ion batteries. The expansion of the segment is being fueled by factors such as an increase in demand for lithium iron phosphate (LFP) batteries in portable devices and growing desire for long lasting and efficient batteries. Furthermore, the benefits of lithium iron phosphate (LFP) batteries such as safest option and long shelf life are driving the segment’s growth.
On the basis of application, electric and hybrid electric vehicles segment holds the largest market share in the global lithium-ion battery market. The electric vehicle demand is rapidly increasing in both developed and developing regions like North America, Europe, and Asia-Pacific. The rising fossil fuel prices and environmental concerns are driving the segment’s growth.

Market Dynamics

Drivers

Reduced cost of lithium-ion batteries

The price of lithium-ion battery is quite low as compared to other types of batteries. The lithium-ion battery is efficient in nature. There is surge in adoption of lithium-ion battery due to technological developments. Thus, this has resulted in the growing adoption of lithium-ion batteries in every vertical of industries. As a result, the reduced cost of lithium-ion batteries is driving the growth of the global lithium-ion battery market.

Restraints

High production demand

The demand for lithium-ion battery is increasing at a rapid pace. The demand for lithium-ion battery has resulted into growing need for supply of lithium-ion battery in the market on a large scale. But due to high demand, the production of lithium-ion battery is also becoming crucial. Thus, high production demand is restricting the expansion of the global lithium-ion battery market over the projected period.

Opportunities

Growing demand for electric vehicles

The demand for electric vehicles is increasing at a large scale due to the surge in the cost of the fossil fuels. The lithium-ion battery is used to run electric vehicles. The electric vehicles help in the reduction of pollution level and greenhouse gases emissions. Thus, the growing adoption of electric vehicles resulted in growing demand for lithium-ion battery in the market. As a result, this factor is creating lucrative opportunities for the growth of the lithium-ion battery market.

Challenges

Surge in demand for other types of batteries

The other types of batteries which are used instead of lithium-ion batteries are sodium nickel chloride, lead acid batteries, flow batteries, and lithium-air batteries. These batteries are largely used in the vehicles and consumer electronics. Several key market players have started adopting these kinds of batteries. Thus, surge in demand for other type of batteries is a major challenge for the growth of the lithium-ion battery market.

Recent Developments

The LIM30HL line of industrial lithium-ion battery modules from GS Yuasa Corporation will be available in December 2020. The battery modules in the LIM30HL series are laterally compatible and have a larger rated capacity and lower internal resistance than those in the previous LIM25H series, while maintaining the same dimensions.
Daimler Truck AG and CATL declared in May 2021 that their existing collaboration would be strengthened based on their shared vision of CO2 neutral electric trucking. CATL is going to supply lithium-ion battery packs for Mercedes-eActros Benz’s longhaul battery electric vehicle which is expected to enter production in the coming years.