Lithium-ion Battery Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 64.75 Billion |
| Market Size (2029) | USD 127.23 Billion |
| CAGR (2024 - 2029) | 14.46 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Asia-Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Lithium-ion Battery Market Analysis
The Lithium-ion Battery Market size is estimated at USD 64.75 billion in 2024, and is expected to reach USD 127.23 billion by 2029, growing at a CAGR of 14.46% during the forecast period (2024-2029).
- Over the long term, the emergence of new markets via electric vehicles and energy storage systems (ESS) for both commercial and residential applications, declining lithium-ion battery prices, and the increasing sale of consumer electronics are expected to drive the market.
- On the other hand, the rising demand-supply mismatch of raw materials is likely to hinder the market's growth.
- However, recycling Li-ion batteries is expected to secure the supply of raw materials, such as lithium and cobalt, and reduce the reliance on extracting and refining materials from mineral resources. Recycling lithium-ion batteries in electric vehicles offers an excellent opportunity for companies to utilize the refined constituent materials for manufacturing lithium-ion batteries for energy storage systems (ESS).
- Asia-Pacific dominates the market worldwide, with the most significant contributions from countries such as China and India. With the large-scale acceptance of EVs, the market is further expected to grow in the region.
Lithium-ion Battery Market Trends
The Automobile Segment Expected to Dominate the Market
- n the early years of the lithium-ion battery industry, the consumer electronics sector was the major consumer of batteries. However, in recent years, electric vehicle (EV) manufacturers have become the biggest consumers of lithium-ion batteries, owing to the growing sales of EVs.
- EVs do not emit CO2, NOX, or any other greenhouse gases and, hence, have a lower environmental impact than conventional internal combustion engine (ICE) vehicles. Due to this advantage, many countries are encouraging the use of EVs by introducing subsidies and government programs.
- Several countries have announced plans to ban the sales of ICE vehicles in the future. Norway announced plans to ban the sales of ICE vehicles by 2025, France by 2040, and the United Kingdom by 2050. India also has plans to phase out ICE engines by 2030, while China's similar plan is under the relevant research phase.
- Moreover, the decline in lithium-ion battery prices will affect the battery market. In 2023, the lithium-ion battery price was noted to be around USD 139 per kWh, a decrease of around 82.17% from 2013. The plummeting cost of batteries would benefit the automotive segment and propel the growth of the lithium-ion battery market worldwide in the long term.
- Therefore, owing to the above factors, the automobile segment is expected to dominate the market during the forecast period.
Asia-Pacific to Dominate the Market
- With the increasing deployment of renewable energy projects and electric vehicles in countries such as China and India and the high demand for electronics with urbanization and increasing power purchase parity, lithium-ion batteries are expected to witness significant growth in the region.
- A significant fraction of Asia-Pacific's population is estimated to live without electricity access. It depends on conventional fuels, such as kerosene and diesel, for lighting and mobile phone charging. Due to its technical benefits and declining lithium-ion battery prices, lithium-ion battery integrated energy storage solutions are likely to witness an increasing adoption rate. This, in turn, is expected to create significant opportunities for lithium battery manufacturers in the future.
- China is one of the largest markets for electric vehicles, and the country's increasing adoption of electric vehicles has been in line with its clean energy policy. Moreover, the Government of China has been providing financial and non-financial incentives to promote the adoption of electric vehicles.
- India is one of the fastest-growing countries globally for lithium-ion batteries. To counter the manufacturing issue, the National Institution for Transforming India (NITI) Aayog rolled out proposals in February 2020 to provide subsidies for investors setting up giga-scale lithium-ion manufacturing facilities in India. Between 2020 and 2030, the NITI Aayog will likely invite bids to establish production lines with 50 GWh of annual output capacity. Therefore, the indigenous manufacturing of lithium-ion batteries is expected to grow during the forecast period.
- Under the Paris Climate Agreement, India has pledged to have 40% of its electricity generation capacity sourced from non-fossil fuels by 2030. To meet this objective, the nation aimed to establish 175,000 MW of renewable energy capacity, which includes 100,000 MW of solar power, by 2022. A target of 450,000 MW of installed renewable energy capacity by 2030 has been set. To achieve the target, India presents a vast market for energy storage solutions to address the intermittency of renewable energy sources and enhance grid stability.
- According to the International Renewable Energy Agency (IRENA), the installed capacity of clean energy sources in the region in 2023 stood at 2,025 GW, an increase from the previous year's 1,691.77 GW.
- Therefore, owing to the above factors, Asia-Pacific is expected to dominate the lithium-ion battery market during the forecast period.
Lithium-ion Battery Industry Overview
The lithium-ion battery market is fragmented. The major companies in the market (in no particular order) include Panasonic Corporation, Tesla Inc., Samsung SDI, LG Chem Ltd, and Contemporary Amperex Technology Co. Ltd (CATL).
Lithium-ion Battery Market Leaders
Samsung SDI
Panasonic Corporation
BYD Company
Contemporary Amperex Technology Co. Ltd (CATL)
Tesla Inc.
*Disclaimer: Major Players sorted in no particular order
Lithium-ion Battery Market News
- January 2024: Automotive battery maker Amara Raja Batteries Ltd announced its plans to operate a gigafactory before the end of 2025. The company laid the foundation for one of its first gigafactories in the Mahbubnagar district in Telangana, India. The plant is expected to produce lithium cells and battery packs with a capacity of up to 16 GWh and 5 GWh, respectively.
- August 2023: Reliance Industries Limited planned to establish a lithium-ion battery gigafactory in India by 2026. The battery manufacturing plant is expected to be within the Dhirubhai Green Energy Giga Complex in Jamnagar, Gujarat. It will likely be designed to produce battery chemicals, cells, packs, containerized energy storage solutions, etc.
Lithium-ion Battery Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of Study
1.2 Market Definiton
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in USD billion, till 2029
4.3 Lithium-ion Battery Price Trend Analysis, till 2029
4.4 Recent Trends and Developments
4.5 Government Policies and Regulations
4.6 Market Dynamics
4.6.1 Drivers
4.6.1.1 Supportive Government Initiatives And Policies To Adopt Renewable Energy
4.6.1.2 Declining Cost Of Lithium-ion Batteries
4.6.2 Restraints
4.6.2.1 Demand-Supply Mismatch of Raw Materials
4.7 Supply Chain Analysis
4.8 Porter's Five Forces Analysis
4.8.1 Bargaining Power of Suppliers
4.8.2 Bargaining Power of Consumers
4.8.3 Threat of New Entrants
4.8.4 Threat of Substitute Products and Services
4.8.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Application
5.1.1 Electronic Devices
5.1.2 Automobile
5.1.3 Stationary Energy Storage (UPS, Renewables, and Industrial)
5.1.4 Other Applications (Power Tools, Medical Devices, and Other Applications)
5.2 Geography
5.2.1 North America
5.2.1.1 United States
5.2.1.2 Canada
5.2.1.3 Rest of the North America
5.2.2 Europe
5.2.2.1 Spain
5.2.2.2 Nordic
5.2.2.3 United Kingdom
5.2.2.4 Russia
5.2.2.5 Turkey
5.2.2.6 Germany
5.2.2.7 Italy
5.2.2.8 Rest of the Europe
5.2.3 Asia-Pacific
5.2.3.1 China
5.2.3.2 India
5.2.3.3 Japan
5.2.3.4 Malaysia
5.2.3.5 Thailand
5.2.3.6 Indonesia
5.2.3.7 Vietnam
5.2.3.8 Rest of Asia-Pacific
5.2.4 South America
5.2.4.1 Brazil
5.2.4.2 Argentina
5.2.4.3 Colmbia
5.2.4.4 Rest of South America
5.2.5 Middle East and Africa
5.2.5.1 United Arab Emirates
5.2.5.2 Saudi Arabia
5.2.5.3 South Africa
5.2.5.4 Nigeria
5.2.5.5 Qatar
5.2.5.6 Egypt
5.2.5.7 Rest of the Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 BYD Company Limited
6.3.2 Contemporary Amperex Technology Co. Limited
6.3.3 LG Chem Ltd
6.3.4 Panasonic Corporation
6.3.5 Samsung SDI
6.3.6 Sony Corporation
6.3.7 Tesla Inc.
6.3.8 Tianjin Lishen Battery Joint-Stock Co. Ltd
- *List Not Exhaustive
6.4 Market Ranking/Share Analysis
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Growing Demand for Recycled Lithium-ion Batteries
Lithium-ion Battery Industry Segmentation
A lithium-ion battery is a rechargeable battery that consists of an anode, cathode, and electrolyte. Different types of anode and cathode materials allow designers to design batteries depending on their applications. Lithium-ion batteries are preferred over other batteries mainly due to their high energy density.
The lithium-ion battery market is segmented by application and geography. By application, the market is segmented into electronic devices, automobiles, stationary energy storage, and other applications. The report also covers the market size and forecasts for the lithium-ion batteries market across major regions, such as Asia-Pacific, North America, Europe, South America, the Middle East, and Africa. For each segment, the market sizes and forecasts have been done based on revenue (USD).
| Application | |
| Electronic Devices | |
| Automobile | |
| Stationary Energy Storage (UPS, Renewables, and Industrial) | |
| Other Applications (Power Tools, Medical Devices, and Other Applications) |
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Lithium-ion Battery Market Research FAQs
How big is the Lithium-ion Battery Market?
The Lithium-ion Battery Market size is expected to reach USD 64.75 billion in 2024 and grow at a CAGR of 14.46% to reach USD 127.23 billion by 2029.
What is the current Lithium-ion Battery Market size?
In 2024, the Lithium-ion Battery Market size is expected to reach USD 64.75 billion.
Who are the key players in Lithium-ion Battery Market?
Samsung SDI, Panasonic Corporation, BYD Company, Contemporary Amperex Technology Co. Ltd (CATL) and Tesla Inc. are the major companies operating in the Lithium-ion Battery Market.
Which is the fastest growing region in Lithium-ion Battery Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Lithium-ion Battery Market?
In 2024, the Asia-Pacific accounts for the largest market share in Lithium-ion Battery Market.
What years does this Lithium-ion Battery Market cover, and what was the market size in 2023?
In 2023, the Lithium-ion Battery Market size was estimated at USD 55.39 billion. The report covers the Lithium-ion Battery Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Lithium-ion Battery Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Lithium-ion Battery Industry Report
Statistics for the 2024 Lithium-ion Battery market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Lithium-ion Battery analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
