Global Lithium-ion Battery Market reached US$ 52.1 billion in 2022 and is expected to reach US$ 144.0 billion by 2030 growing with a CAGR of 13.6% during the forecast period 2023-2030.
The global lithium-ion batteries market has witnessed significant expansion due to increasing demand for smart devices, declining costs, government incentives and environmental regulations promoting clean energy. The increasing penetration of EVs and the rising need for grid-level energy storage have been major growth drivers.
Asia-Pacific holds more than 65.5% of the market and particularly China, has emerged as a dominant player covering more than 2/3rd share in the regional market. The region is witnessing robust growth due to the strong presence of EV manufacturers, government support and a large consumer electronics market.
Furthermore, the presence of major players in the region such as Panasonic Corporation, Contemporary Amperex Technology Co. Ltd. (CATL), LG Chem Ltd. and Samsung SDI Co. Ltd is also creating growth prospects for the batteries market to grow in the region.
Metrics |
Details |
CAGR |
13.6% |
Size Available for Years |
2021-2030 |
Forecast Period |
2023-2030 |
Data Availability |
Value (US$) |
Segments Covered |
Type, Material, Capacity, Voltage, End-User and Region |
Regions Covered |
North America, Europe, Asia-Pacific, South America and Middle East & Africa |
Fastest Growing Region |
Asia-Pacific |
Largest Region |
Asia-Pacific |
Report Insights Covered |
Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Equipment Type Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
For more details on this report - Request for Sample
The EV market has experienced remarkable growth in recent years. According to the International Energy Agency (IEA), global EV sales surpassed 3 million units in 2020, representing a 41% increase compared to the previous year. The IEA further estimates that the number of electric cars on the road could reach 145 million by 2030.
The surge in EV sales has led to a substantial increase in the demand for battery capacity. EVs require large battery packs to provide sufficient range and performance. This increased demand for battery capacity has driven manufacturers to scale up their lithium-ion battery production to meet the growing needs of the EV market. The rising EV sales across the globe have also encouraged key players to invest in the market.
For instance, On 15 June 2023, SOLshare expanded to electric vehicle (EV) batteries and is building a network of smart distributed solar-powered storage assets. The company's smart Internet-of-Things (IoT) technology was successfully showcased at the Uttar Khan Dobadea electric three-wheeler charging station. Attendees had the chance to see firsthand how smart lithium-ion batteries could revolutionize the sustainability and efficiency of electric vehicles (EVs) in Bangladesh.
The smart device market has witnessed substantial growth in recent years. This includes smartphones, tablets, laptops, wearables (smartwatches, fitness trackers) and other portable electronic devices. For instance, around 300 million smart homes are there across the world. By 2023, there will be 60.4 million U.S. households that actively employ smart home technology.
The tremendous growth in smart homes led to improve market share for smart devices leading to create growth prospects for the global lithium-ion batteries market. Lithium-ion batteries are the preferred choice for powering smart devices due to their high energy density, lightweight nature and longer battery life compared to other battery technologies. These batteries provide the necessary power to support the advanced functionalities and features of smart devices, making them crucial components.
Excessive battery heating poses safety risks, including the potential for thermal runaway, fires, or explosions. Safety is of paramount importance in the lithium-ion batteries market and incidents related to battery overheating can lead to negative publicity and erode consumer confidence. Such safety concerns can slow down the adoption of lithium-ion batteries, especially in critical applications like electric vehicles and energy storage systems.
Furthermore, excessive battery heating necessitates the implementation of efficient cooling mechanisms, which can add complexity and cost to battery systems. Cooling systems, such as heat sinks, thermal management systems, or liquid cooling, may be required to regulate battery temperatures and prevent overheating. These additional cooling requirements can increase the overall system complexity, weight and cost, affecting the market adoption of lithium-ion batteries, particularly in space-constrained applications.
The global lithium-ion battery market is segmented based on type, material, capacity, voltage, end-user and region.
Lithium Cobalt Oxide (LiCoO2) has gained market momentum covering nearly 30.3% share across the globe. This type has gained popularity due to its high energy density, which makes it suitable for applications that require compact and lightweight battery systems. The high energy density of LiCoO2 enables the storage of a significant amount of energy per unit mass, making it desirable for portable electronics and electric vehicle applications.
Furthermore, LiCoO2 offers good cycling stability and specific capacity, allowing for multiple charge and discharge cycles without significant capacity loss. It provides high voltage output, which contributes to the high energy density of lithium-ion batteries using LiCoO2 cathodees. However, LiCoO2 has lower thermal stability compared to other cathodee materials, which can make it more susceptible to overheating and thermal runaway.
The Asia-Pacific region is a key market for lithium-ion battery, driven by factors such as rapid industrialization, urbanization and the increasing adoption of electric vehicles (EVs). China is among the highest shareholder in the market covering more than 48.4% in the region. The region is a global leader in EV adoption, accounting for the largest share of EV sales worldwide. Countries like China, Japan, South Korea and India are driving the demand for lithium-ion batteries in the EV segment.
Companies in the region are also investing in boosting the regional share of the product. For instance, on 16th March 2022, Nitin Gadkari, the Minister of Road Transport and Highways, said that India produces 81 percent of the world's lithium-ion batteries for electric vehicles. He noted in the Rajya Sabha that the electric vehicle is a success story and that there has been a significant increase in the number of electric vehicles in India from 24,600 in 2020 to over 49,500 at this time. Gadkari added that several entrepreneurs in the nation are also developing new battery technology.
The major global players include LG Chem Ltd, Panasonic Corporation, Samsung SDI Co Ltd, BYD Co Ltd, BAK Group, A123 Systems, GS Yuasa Corporation, Hitachi Ltd, Johnsons Controls Inc. and Saft Groupe S.A.
The COVID-19 pandemic had mixed effects on the global lithium-ion batteries market. Disruptions in the supply chain, the slowdown in EV sales and shifts in energy storage priorities posed challenges.
However, increased demand for portable electronics and government support for clean energy initiatives offered opportunities for market recovery and growth. The long-term impact will depend on the pace of economic recovery, EV market expansion and the adoption of sustainable energy solutions in the post-pandemic era.
Russia and Ukraine are key players in the global supply chain for critical minerals and metals used in lithium-ion battery production, such as lithium, cobalt and nickel. Any disruption or instability in the region can affect the availability and cost of these raw materials, leading to supply chain disruptions for lithium-ion battery manufacturers worldwide.
Furthermore, the conflict between Russia and Ukraine has created geopolitical uncertainty, which can impact investor confidence and decision-making in the lithium-ion batteries market. Uncertainty regarding political stability, trade relationships and sanctions can influence global market dynamics and investment patterns, potentially impacting the growth and expansion plans of lithium-ion battery manufacturers.
Scope
By Type
By Material
By Capacity
By Voltage
By End-User
By Region
The global lithium-ion batteries market report would provide approximately 78 tables, 89 figures and 220 Pages.
$4350
$4350
$4350
$4350
$4350
$4350