Lithium-ion Battery Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The report covers Global Lithium-ion Battery Market Size & Analysis. The market is Segmented by Application (Electronic Devices, Automobile, Stationary Energy Storage, and Other Applications) and Geography (North America, Europe, Asia-Pacific, Middle-East and Africa, and South America).

Lithium-ion Battery Market Size

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Lithium-Ion Battery Market Summary
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Study Period 2020 - 2029
Base Year For Estimation 2023
CAGR > 20.00 %
Fastest Growing Market Asia-Pacific
Largest Market Asia-Pacific
Market Concentration Low

Major Players

Lithium-Ion Battery Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Lithium-ion Battery Market Analysis

The market for lithium-ion batteries is expected to register a CAGR of around 20% during the forecast period 2022-2027 and reach a market size of USD 200 billion in 2027 from USD 57 billion in 2020. Due to the COVID-19 outbreak, companies like BYD and CATL reduced their manufacturing capacities in 2020. Moreover, decreased sales of electric vehicles amid the pandemic also resulted in the slow growth of lithium-ion batteries. Major factors driving the market studied are 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. However, the rising demand-supply mismatch of raw materials is likely to hinder the market's growth.

  • The automobile segment held the largest market share in 2021 and is expected to dominate the market during the forecast period.
  • Recycling of 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 currently being used in electric vehicles offer an excellent opportunity for companies to utilize the refined constituent materials for manufacturing lithium-ion batteries for use in Energy Storage Systems (ESS).
  • Asia-Pacific dominated the market worldwide, with the most significant contribution 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

This section covers the major market trends shaping the Lithium-ion Battery Market according to our research experts:

Automobile Segment Expected to Dominate the Market

  • In the early years of the lithium-ion battery industry, the consumer electronics sector was the major consumer of batteries. But 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 compared to 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 currently under the relevant research phase.
  • At the end of 2021, the global electric car stock reached 16.49 million units from 1.24 million units in 2015.
  • However, as of 2021, conventional fuel-fired cars cannot be banned in any country, as the EV technology and the EV industry may not be ready for such a move, which can cause significant disruptions in the market. Nonetheless, announcements for the future have encouraged EV manufacturers to invest heavily in R&D activities.
  • The EVs mainly use lithium-ion batteries. The declining lithium-ion battery costs have brought down the cost of EV manufacturing, owing to which EVs are expected to reach price parity with gasoline-fired vehicles during the forecast period.
  • Therefore, owing to the above factors, the automobile segment is expected to dominate the market during the forecast period.
Lithium-Ion Battery Market : Electric Car Stock, in million units, Global, 2015-2021

Asia-Pacific to Dominate the Market

  • The Asia-Pacific region dominated the market in 2021. With the increasing deployment of electric vehicles in countries such as China and India and the high demand for electronics with urbanization and increasing power purchase parity, the usage of lithium-ion batteries is expected to witness significant growth in the region.
  • A significant fraction of Asia-Pacific's population is estimated to be living without access to electricity and is dependent on conventional fuels, such as kerosene and diesel, for their lighting and mobile phone charging needs. Lithium-ion battery integrated energy storage solutions are likely to witness an increasing adoption rate due to the technical benefits associated with it and declining lithium-ion battery prices. This, in turn, is expected to create a significant number of opportunities for li-ion battery manufacturers in the near future.
  • China is one of the largest markets for electric vehicles, and the increasing adoption of electric vehicles in the country has been in line with the clean energy policy. Moreover, the Government of China has been providing both financial and non-financial incentives to promote the adoption of electric vehicles.
  • In February 2021, Contemporary Amperex Technology (CATL), an energy storage company headquartered in China, announced plans to build a li-ion battery production base in Guangdong, investing USD 1.9B/25 GWh in the first phase and 150 GWh by the end of 2030.
  • India is one of the fastest-growing countries globally for lithium-ion batteries. The country does not have reserves of the required raw materials for the production of the lithium-ion batteries on its own, and the cells and batteries are being imported from other countries (China, Vietnam, and Thailand). They are then either assembled or directly sold in the domestic market.
  • In order 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 2020-2030, the NITI Aayog is likely to invite bids for establishing production lines with 50 GWh of annual output capacity. Therefore, the indigenous manufacturing of lithium-ion batteries is expected to grow over the forecast period.
  • Therefore, owing to the above factors, Asia-Pacific is expected to dominate the lithium-ion battery market during the forecast period.
Lithium-Ion Battery Market : Growth Rate by Region. 2022-2027

Lithium-ion Battery Industry Overview

The lithium-ion battery market is fragmented. The major companies in the market include Panasonic Corporation, Tesla Inc., Samsung SDI, LG Chem Ltd, and Contemporary Amperex Technology Co. Ltd (CATL), among others.

Lithium-ion Battery Market Leaders

  1. Samsung SDI

  2. Panasonic Corporation

  3. BYD Company

  4. Contemporary Amperex Technology Co. Ltd (CATL)

  5. Tesla Inc.

*Disclaimer: Major Players sorted in no particular order

Lithium-Ion Battery Market Concentration
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Lithium-ion Battery Market News

  • In January 2022, Nexeon Limited, a supplier of advanced silicon anode materials for next-generation lithium-ion batteries, licensed its NSP-1 technology to advanced materials giant SKC Co. Ltd. The move ensures that customers globally have fast and reliable access to these strategic materials.
  • In February 2022, Panasonic Corporation announced that its Energy Company will establish a production facility at its Wakayama Factory in western Japan to manufacture new, large 4680 (46 millimeters wide and 80 millimeters tall) cylindrical lithium-ion batteries for electric vehicles (EVs).

Lithium-ion Battery Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Scope of Study

    2. 1.2 Market Definiton

    3. 1.3 Study Assumptions

  2. 2. EXECUTIVE SUMMARY

  3. 3. RESEARCH METHODOLOGY

  4. 4. MARKET OVERVIEW

    1. 4.1 Introduction

    2. 4.2 Market Size and Demand Forecast in USD billion, till 2027

    3. 4.3 Lithium-ion Battery Price Trend Analysis, till 2027

    4. 4.4 Recent Trends and Developments

    5. 4.5 Government Policies and Regulations

    6. 4.6 Market Dynamics

      1. 4.6.1 Drivers

      2. 4.6.2 Restraints

    7. 4.7 Supply Chain Analysis

    8. 4.8 Porter's Five Forces Analysis

      1. 4.8.1 Bargaining Power of Suppliers

      2. 4.8.2 Bargaining Power of Consumers

      3. 4.8.3 Threat of New Entrants

      4. 4.8.4 Threat of Substitute Products and Services

      5. 4.8.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Application

      1. 5.1.1 Electronic Devices

      2. 5.1.2 Automobile

      3. 5.1.3 Stationary Energy Storage (UPS, Renewables, Industrial)

      4. 5.1.4 Other Applications (Power Tools, Medical Devices, and Others)

    2. 5.2 Geography

      1. 5.2.1 North America

      2. 5.2.2 Europe

      3. 5.2.3 Asia-Pacific

      4. 5.2.4 South America

      5. 5.2.5 Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Strategies Adopted by Leading Players

    3. 6.3 Company Profiles

      1. 6.3.1 BYD Company Limited

      2. 6.3.2 Contemporary Amperex Technology Co. Limited

      3. 6.3.3 LG Chem Ltd

      4. 6.3.4 Panasonic Corporation

      5. 6.3.5 Samsung SDI

      6. 6.3.6 Sony Corporation

      7. 6.3.7 Tesla Inc.

      8. 6.3.8 Tianjin Lishen Battery Joint-Stock Co. Ltd

    4. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Lithium-ion Battery Industry Segmentation

The lithium-ion battery market report includes:

Application
Electronic Devices
Automobile
Stationary Energy Storage (UPS, Renewables, Industrial)
Other Applications (Power Tools, Medical Devices, and Others)
Geography
North America
Europe
Asia-Pacific
South America
Middle-East and Africa
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Lithium-ion Battery Market Research FAQs

The Lithium-ion Battery Market is projected to register a CAGR of greater than 20% during the forecast period (2024-2029)

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.

Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the Asia-Pacific accounts for the largest market share in Lithium-ion Battery Market.

The report covers the Lithium-ion Battery Market historical market size for years: 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 Intelligenceā„¢ 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.

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Lithium-ion Battery Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)