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Lithium-ion Battery Market Size (2024 - 2029)

The Lithium-ion Battery Market is projected to experience significant growth over the forecast period, driven by the expansion of electric vehicles and energy storage systems, along with decreasing battery prices and rising consumer electronics sales. Despite challenges such as a demand-supply imbalance of raw materials, the recycling of lithium-ion batteries presents a promising solution to secure essential materials like lithium and cobalt. This recycling process, particularly in electric vehicles, offers opportunities for companies to repurpose materials for new battery production. The Asia-Pacific region, led by countries like China and India, is expected to dominate the market due to the widespread adoption of electric vehicles.

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Market Size of Lithium-ion Battery Industry

Lithium-Ion Battery Market Summary
Study Period 2019 - 2028
Base Year For Estimation 2021
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 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 Size Summary

The lithium-ion battery market is poised for substantial growth, driven by the increasing demand from electric vehicles and energy storage systems, alongside the declining costs of batteries. The market is experiencing a shift from its early reliance on consumer electronics to a more significant focus on electric vehicles, which are favored for their lower environmental impact compared to traditional internal combustion engine vehicles. This transition is supported by government incentives and policies aimed at phasing out ICE vehicles in several countries. The Asia-Pacific region, particularly China and India, is expected to lead the market due to the rapid adoption of electric vehicles and renewable energy projects, coupled with the region's growing demand for electronics.

Despite challenges such as the demand-supply mismatch of raw materials, the market is expected to benefit from advancements in battery recycling, which can secure the supply of essential materials like lithium and cobalt. This recycling process offers opportunities for companies to reuse refined materials in new battery production, particularly for energy storage systems. The market's fragmentation is evident with major players like Panasonic, Tesla, Samsung SDI, LG Chem, and CATL actively participating. Additionally, initiatives in India to establish gigafactories for lithium-ion battery production are set to bolster local manufacturing capabilities, aligning with the country's renewable energy goals and increasing energy storage needs.

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Lithium-ion Battery Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Market Size and Demand Forecast in USD billion, till 2027

    3. 1.3 Lithium-ion Battery Price Trend Analysis, till 2027

    4. 1.4 Recent Trends and Developments

    5. 1.5 Government Policies and Regulations

    6. 1.6 Market Dynamics

      1. 1.6.1 Drivers

      2. 1.6.2 Restraints

    7. 1.7 Supply Chain Analysis

    8. 1.8 Porter's Five Forces Analysis

      1. 1.8.1 Bargaining Power of Suppliers

      2. 1.8.2 Bargaining Power of Consumers

      3. 1.8.3 Threat of New Entrants

      4. 1.8.4 Threat of Substitute Products and Services

      5. 1.8.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Application

      1. 2.1.1 Electronic Devices

      2. 2.1.2 Automobile

      3. 2.1.3 Stationary Energy Storage (UPS, Renewables, Industrial)

      4. 2.1.4 Other Applications (Power Tools, Medical Devices, and Others)

    2. 2.2 Geography

      1. 2.2.1 North America

      2. 2.2.2 Europe

      3. 2.2.3 Asia-Pacific

      4. 2.2.4 South America

      5. 2.2.5 Middle-East and Africa

Lithium-ion Battery Market Size FAQs

The Lithium-ion Battery Market is projected to register a CAGR of greater than 20% during the forecast period (2023-2028).

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.

Lithium-ion Battery Market Report Snapshots