Market Size of Lithium-ion Battery Industry
| 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
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
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.
