Market Size of Automotive Lithium Ion Battery Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 16.00 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Automotive Lithium-Ion Battery Market Analysis
The Automotive Lithium Ion Battery Market is projected to grow with a CAGR of more than 16% during the forecast period.
- Some of the major factors driving the growth of the market are growing environmental concerns (owing to rising exhaust emissions), enactment of stringent emissions and fuel economy norms, and increasing government initiatives, in terms of subsidies and benefits for increasing the adoption rate of electric vehicles.
- Asia-Pacific is expected to witness a high growth rate during the forecast period. However, incidents such as like India lifting and reducing subsidies for the purchase of electric vehicles and US administration rolling back numerous rules related to environment and air pollution may hinder the growth of the market in the region. In India, the government in 2017, lifted subsidies on mild-hybrid vehicles under the FAME scheme (State of Karnataka lost subsidy of INR 75 crores from central government). The cost of hybrid and electric vehicles and lack of charging infrastructure may also hinder the growth rate of market in emerging economies as cost sensitive customers are finding conventional IC engine vehicles affordable.
- Research and Development in the battery technology has increased the battery density and has also brought down the costs. Battery manufacturers are partnering with OEMs and this is in-turn vehicle sales as well.
Automotive Lithium-Ion Battery Industry Segmentation
The automotive lithium ion battery market covers the latest trends and technological development in the automotive Li-ion batteries market, demand of the vehicle type (Battery Electric Vehicle, Plug in Hybrid Electric Vehicle and Hybrid Electric Vehicles), Channel Sales (OEMs and Aftermarket) and geography.
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Automotive Lithium Ion Battery Market Size Summary
The Automotive Lithium-Ion Battery Market is poised for significant expansion, driven by increasing environmental concerns and the implementation of stringent emissions and fuel economy regulations. Government initiatives, including subsidies and incentives, are further propelling the adoption of electric vehicles (EVs), which in turn boosts the demand for lithium-ion batteries. The Asia-Pacific region is anticipated to experience rapid growth, although challenges such as fluctuating subsidies and regulatory changes in countries like India and the United States could impede progress. Additionally, the high cost of hybrid and electric vehicles, coupled with insufficient charging infrastructure in emerging economies, may pose obstacles to market growth. However, advancements in battery technology, which have enhanced battery density and reduced costs, are fostering partnerships between battery manufacturers and original equipment manufacturers (OEMs), thereby supporting vehicle sales.
The demand for lithium-ion batteries is closely linked to the rising sales of electric vehicles, spurred by government grants, subsidies, and increased awareness of the environmental impact of fossil fuels. Despite previous high growth rates, the market still holds substantial potential for further expansion, particularly in countries like China and India, where income levels and environmental concerns are driving factors. The market is characterized by fragmentation, with numerous players holding significant shares. Prominent companies such as Panasonic Corporation, Hitachi Ltd., BYD Co Ltd., and LG Chem are heavily investing in research and development to innovate and enhance battery performance. Collaborative efforts, such as the joint venture between Exide batteries and Leclanch SA, exemplify the industry's commitment to advancing energy storage solutions.
Automotive Lithium Ion Battery Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.2 Market Restraints
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1.3 Porters Five Forces Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 Vehicle Type
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2.1.1 Battery Electric Vehicle
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2.1.2 Plug-in Hybrid Electric Vehicle
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2.1.3 Hybrid Electric Vehicles
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2.2 Channel Sales Type
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2.2.1 OEMs
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2.2.2 Aftermarket
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2.3 Geography
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2.3.1 North America
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2.3.1.1 United States
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2.3.1.2 Canada
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2.3.1.3 Rest of North America
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2.3.2 Europe
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2.3.2.1 Germany
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2.3.2.2 United Kingdom
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2.3.2.3 France
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2.3.2.4 Rest of Europe
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2.3.3 Asia Pacific
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2.3.3.1 India
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2.3.3.2 China
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2.3.3.3 Japan
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2.3.3.4 South Korea
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2.3.3.5 Rest of Asia-Pacific
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2.3.4 Rest of the World
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2.3.4.1 Brazil
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2.3.4.2 Mexico
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2.3.4.3 United Arab Emirates
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2.3.4.4 Other Countries
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Automotive Lithium Ion Battery Market Size FAQs
What is the current Automotive Lithium Ion Battery Market size?
The Automotive Lithium Ion Battery Market is projected to register a CAGR of greater than 16% during the forecast period (2024-2029)
Who are the key players in Automotive Lithium Ion Battery Market?
Panasonic Corporation , Hitachi Ltd., Toshiba Corporation, Samsung SDI Co. Ltd. and LG Chem Ltd. are the major companies operating in the Automotive Lithium Ion Battery Market.
