Lithium-ion Battery Market Size, Share, and Trends 2024 to 2034

Lithium-ion Battery Market Size and Growth 2023 to 2032

The global lithium-ion battery market size was valued at USD 70 billion in 2022 and is expected to surpass around USD 387.05 billion by 2032 with a registered CAGR of 18.70% from 2023 to 2032. The Asia-Pacific lithium-ion battery market size will reach at USD 52.65 billion by 2024.

Key Takeaways:

• Asia-Pacific region has accounted largest revenue share of over 49% in 2022.
• By Product, the LCO segment has generated largest revenue share of over 31.3% in 2022.
• By Application, the consumer electronics segment has captured largest revenue share of over 39.6% in 2022.
• In 2022, the automotive application segment has held revenue share of around 31.9%.

Lithium-ion Battery Market in Asia Pacific 2023 To 2032

The Asia Pacific lithium-ion battery market size reached USD 28.70 billion in 2022 and is predicted to hit around USD 161.38 billion by 2032 with a CAGR of 18.90% from 2023 to 2032.

Asia-Pacific dominated the lithium-ion battery market in 2022 with revenue share of 47%. During the forecast period, the Asia-Pacific lithium-ion battery market is poised to grow at a CAGR of 17.03% and will reach at USD 52.65 billion by 2024. China leads the lithium-ion battery market in Asia-Pacific region. China is considered as production hub for the lithium-ion battery. The lithium-ion battery market in Asia-Pacific region is being driven by the surge in demand for smartphones and tablets in emerging countries such as China, Japan, and India. Another factor driving the growth of the lithium-ion battery market in the region is rising disposable income and growing consumer awareness regarding lithium-ion battery in the market during the forecast period.

Technological improvements, exploitation of economies of scale through mass production, particularly in China, and increased competition between the manufacturers are the principle reasons behind the price decline. The decline in prices is leading to the widespread use of Li-ion batteries, in turn, driving the Asia-Pacific lithium-ion batteries market.

With increasing lithium-ion battery manufacturing, demand for the principal materials required for manufacturing Li-ion batteries, i.e., lithium and cobalt, is increasing. The lack of production growth and geographical concentration of production of these materials is expected to be a significant restraint for the market in the coming years.

Due to the rapid growth of the EV industry, the automobile sector has become the dominating and fastest-growing consumer of lithium-ion batteries globally, as well as in the Asia-Pacific region. China alone accounted for over 50% of the global EV sales in 2018. A similar trend is expected to continue during the forecast period. Hence, the automobile sector is expected to remain a dominating consumer sector during the forecast period.

China, India, and Malaysia are the biggest three markets for lithium-ion batteries during the forecast period. China alone, accounted for about 44.9% of the Asia-Pacific lithium-ion battery market, in 2018. Asia-Pacific accounted for around 55% market share in the global lithium-ion battery market.

North America is expected to develop at the fastest rate during the forecast period. The U.S. dominated the lithium-ion battery market in North America region. The factors such as the surge in sales of automobiles and electric vehicles all around the region and rising demand for lithium-ion battery for mobile phones are boosting the expansion and development of the lithium-ion battery market in the North America region.

Growth Factors

The lithium-ion battery is widely used in the electronics and automobiles due to their efficiency and effectiveness. The lithium-ion battery can also be charged after certain period of time. The growing adoption of electric vehicles is driving the growth of the global lithium-ion battery market over the projected period.

The lithium-ion battery has higher energy density and long shelf life, which can be easily utilized in the vehicles and automobiles. One of the key factors driving the growth of the global lithium-ion battery market is growing consumer spending on consumer electronics. Moreover, due to high cost of fossil fuels and gasolines, the people have started adopting electric vehicles on a large scale. This factor is supporting the growth of the global lithium-ion battery market.

Another factor boosting the expansion of the lithium-ion battery market is the growing renewable energy sector. The government is constantly investing in energy and infrastructural development projects which are contributing towards the lithium-ion battery market growth and development. Most of the major market players are collaborating with government agencies for the expansion of the lithium-ion battery market.

The lithium-ion battery provides wide range of benefits such as low cost and long shelf life is paving new opportunities for the lithium-ion battery market growth. The growing adoption of consumer electronics is also driving the market growth. The need and requirement for lithium-ion battery in industrial products is increasing the demand for lithium-ion battery in the global market.

Report Scope of the Lithium-ion Battery Market

In addition, the technological advancements and adoption of innovative technological products is propelling the lithium-ion battery market expansion. The key market players are focusing on the launch of products and lithium-ion batteries that can be used for long duration of time. This will help to increase the demand for electric vehicles in the global market during the forecast period. Furthermore, the stringent government regulations regarding the use of fuels and gasoline-based vehicles are supporting the growth of the global lithium-ion battery market.

The impact of the COVID-19 pandemic on the growth of the global lithium-ion battery market was quite negative. The supply chain disruption and halt of manufacturing and production units had negative outlook on the global lithium-ion battery market growth. In addition, the automobile sector saw decline in the sales of vehicles and consumer electronics. This had directly impacted the expansion and development of the lithium-ion battery market during 2020.

Moreover, the government of established and emerging nations is providing tax rebates and subsidies for the installation of manufacturing plants of lithium-ion battery globally. This factor is driving the lithium-ion battery market growth during the forecast period. Furthermore, the stringent government regulations regarding carbon and greenhouse gases emissions as well as pollution is providing growth prospects for the lithium-ion battery market growth.

To gain a competitive advantage, the major market players are concentrating on strategic collaborations. The key market players are adopting strategies such as merger, acquisition, partnership, and joint venture to create their image in the lithium-ion battery market. These strategies are also helping to improve the production efficiency and lowering overall battery prices in order to create a dominant position in the lithium-ion battery market. For this, government are also supporting on the large scale.

Product Insights

The lithium iron phosphate (LFP) segment dominated the lithium-ion battery market in 2022. The factors such as the surge in demand for lithium iron phosphate (LFP) batteries in devices such as which are portable in nature and growing need for durable and efficient batteries are driving the growth of the segment. In addition, the advantages provided by lithium iron phosphate (LFP) batteries such as long shelf life and safest solution is also boosting the segment growth.

The lithium nickel manganese cobalt (NMC) segment is fastest growing segment of the lithium-ion battery market in 2022. The lithium nickel manganese cobalt (NMC) is widely used in various equipment such as electric powering trains and electric bikes. The benefits of lithium nickel manganese cobalt (NMC) such as long life and reduced cost is paving new ways for the growth of the segment.

Lithium Cobalt Oxide (LCO) segment is expected to reach a CAGR of around 16.5% from 2023 to 2032.

Application Insights

The electric and hybrid electric vehicle segment dominated the lithium-ion battery market in 2022. The demand for electric vehicles in developed and developing regions such as Europe, North America, and Asia-Pacific is growing at a rapid pace. The factors such as growing environmental concerns and rising prices of fossil fuels are boosting the growth of the segment.

The energy storage systems segment is expected to witness growth at a CAGR of 24% from 2023 to 2032. Due to the surge in demand for electricity, the demand for energy storage systems have increased substantially. Moreover, the growing government initiatives for the installation of energy storage systems are also contributing towards the growing demand for lithium-ion battery in the market.

Key Developments

• CATL, a lithium-ion battery manufacturer and Daimler Truck AG expanded their existing relationship in May 2021 based on their common vision of CO2-neutral electric transportation. CATL will supply li-ion battery packs for Mercedes-eActros Benz’s Longhaul battery electric vehicle which will go into series production in 2024.
• Sojitz Corporation, CBMM, and Toshiba Corporation signed a joint development agreement in September 2021 to commercialize next generation lithium-ion batteries with niobium titanium oxide as anode material.
• Barrel Energy, the U.S. based li-ion battery producer and Hyderabad based Roshan Energy Technologies linked a memorandum of understanding in February 2021 to build and develop li-ion batteries in India and the North American region.

Some of the prominent players in the global lithium-ion battery market include:

• Panasonic Corporation
• BYD Company
• Samsung SDI
• LG Chem
• Contemporary Amperex Technology Co. Ltd
• Saft Group S.A.
• Toshiba Corporation
• BAK Power
• Automotive Energy Supply Corporation
• A123 System

Segments Covered in the Report

By Product

• Lithium cobalt oxide (LCO)
• Lithium iron phosphate (LFP)
• Lithium nickel cobalt aluminum oxide (NCA)
• Lithium manganese oxide (LMO)
• Lithium titanate
• Lithium nickel manganese cobalt

By Application

• Consumer Electronics
• Smartphones & tablet/PC
• UPS
• Others
• Automotive
• Cars, Buses, & Trucks
• Scooters & Bikes
• Trains & Aircraft
• Industrial
• Energy Storage System

By Component

• Cathode
• Anode
• Electrolytic Solution
• Others

By Capacity

• 0–3,000 mAh
• 3,000–10,000 mAh
• 10,000–60,000 mAh
• 60,000 mAh and Above

By Voltage

• Low (Below 12V)
• Medium (12V – 36V)
• High (Above 36V)

By Geography

• North America
• U.S.
• Canada
• Europe
• U.K.
• Germany
• France
• Asia-Pacific
• China
• India
• Japan
• South Korea
• Malaysia
• Philippines
• Latin America
• Brazil
• Rest of Latin America
• Middle East & Africa (MEA)
• GCC
• North Africa
• South Africa
• Rest of the Middle East & Africa