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The cylindrical lithium-ion battery market size is forecast to increase by USD 12.79 billion, at a CAGR of 6.8% between 2024 and 2029. The market is experiencing significant shifts due to the automotive industry's transition towards electric vehicles (EVs). This trend is driving the demand for cylindrical lithium-ion batteries, as they are the preferred battery type for EV applications.
The market continues to evolve, driven by advancements in technology and increasing demand across various sectors. Fast charging standards are a key focus, with prismatic lithium-ion batteries gaining popularity due to their ability to support faster charging times. This trend is particularly notable in the electric scooter and e-bike industries, where convenience and quick turnaround are essential. Cathode material innovation is another significant market dynamic. New materials, such as lithium nickel manganese cobalt oxide (NMC) and lithium iron phosphate (LFP), offer improved energy density and longer cycle life. However, battery aging and failure modes remain concerns, with battery swapping and cell chemistry optimization being explored as potential solutions.
Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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Battery testing, thermal management, and safety standards are crucial aspects of the manufacturing process. Cost analysis and supply chain optimization are also essential for market competitiveness. The integration of renewable energy sources and grid-scale energy storage is a growing trend, with power density and performance degradation being key considerations. The market's ongoing evolution is further influenced by regulatory compliance, energy density, and battery pack design. Machine learning and artificial intelligence are being employed to enhance battery performance and optimize charging infrastructure. The manufacturing process, from raw materials sourcing to battery pack assembly, is under constant scrutiny for quality control and carbon footprint reduction.
The continuous unfolding of market activities and evolving patterns in the market demonstrate its dynamic nature. From electric vehicles to electric scooters and renewable energy integration, the applications are diverse, and the challenges are numerous. The market's continuous evolution underscores the importance of staying informed and adaptable.
The market continues to evolve in various sectors. However, this growth comes with challenges. Safety concerns are at the forefront, with revisions in lithium-ion battery safety standards becoming increasingly stringent. These regulations aim to mitigate risks associated with battery fires and explosions. The challenges posed by these safety concerns necessitate continuous research and development efforts to ensure the production of safer and more reliable batteries. Additionally, ensuring compliance with these standards adds to the manufacturing costs, potentially impacting market competitiveness. Companies must navigate these challenges while also capitalizing on the market opportunities presented by the growing EV market.
The cylindrical lithium-ion battery industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.
The automotive segment is estimated to witness significant growth during the forecast period. The segment was valued at USD 15.31 billion in 2023. It continued to the largest segment at a CAGR of 6.04%.
The market is witnessing significant growth, particularly in the automotive segment, which encompasses applications in electric vehicles (EVs) and electric bicycles (e-bikes). This expansion is driven by the advantages of cylindrical lithium-ion batteries over other chemistries, such as lead-acid and traditional batteries. These batteries offer higher energy density, superior performance, and longer cycle life, making them a more attractive choice for the electric transportation sector. Cylindrical lithium-ion batteries have achieved higher levels of regulatory compliance and production automation, ensuring greater security and weight reduction. Consequently, their production costs are lower than those of prismatic or laminate lithium-ion batteries, making them a preferred option for leading EV manufacturers like Tesla.
Raw materials sourcing and sustainability are essential considerations in the market. The industry is focusing on reducing the carbon footprint of battery production through the use of renewable energy integration and life cycle assessments. Data analytics and machine learning are also playing a crucial role in optimizing battery performance, managing thermal management, and predicting battery aging and failure modes. Fast charging standards and battery swapping are essential for the widespread adoption of EVs. Manufacturers are investing in charging infrastructure and developing advanced battery pack designs to accommodate these requirements. The market is also witnessing advancements in cell chemistry, anode and cathode materials, and current collectors to improve power density, energy efficiency, and safety standards.
The supply chain is a critical aspect of the market, with a focus on ensuring quality control and maintaining a reliable and sustainable source of raw materials. The market is also subject to various regulatory compliance requirements and safety standards to ensure the safety and reliability of the batteries. In conclusion, the market is experiencing robust growth, driven by the advantages of lithium-ion batteries over traditional chemistries and the increasing demand for electric transportation. Manufacturers are focusing on optimizing production processes, improving battery performance, and ensuring regulatory compliance to meet the evolving needs of the market.
The Automotive segment was valued at USD 13.48 billion in 2019 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 56% to the growth of the global market during the forecast period. Data suggests that the future opportunities for growth in the APAC region estimates to be around USD 16.12 billion. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The market is significantly influenced by several factors, with APAC leading the global scene due to its status as the primary manufacturing hub for these batteries. The region's dominance is further bolstered by the presence of a vast number of companies and end-users, including electric vehicle (EV) manufacturers, consumer electronics companies, and others. The automotive sector is the largest consumer of cylindrical lithium-ion batteries, contributing significantly to the market's growth. In the APAC region, rising living standards have led to increased consumer spending on premium items. Environmental concerns and regulatory compliance are crucial factors shaping the market.
Raw materials sourcing and life cycle assessment are essential aspects of manufacturing, with efforts underway to ensure sustainable sourcing and reduce the carbon footprint. Energy density, fast charging, and wireless charging are key features driving consumer demand. Prismatic lithium-ion batteries and electric scooters are emerging applications for this technology. Battery aging, battery swapping, and cell chemistry are critical elements of battery performance. Cost analysis, artificial intelligence (AI), and machine learning are essential tools for optimizing battery design, manufacturing, and performance. Safety standards, renewable energy integration, and power density are essential considerations for grid-scale energy storage. Quality control, supply chain, and fast charging standards are vital for maintaining consistency and efficiency in production.
Failure modes, thermal management, and battery pack design are essential aspects of battery performance and longevity. Anode and cathode materials, current collectors, and battery testing are crucial components of the manufacturing process. Performance degradation and power density are critical factors affecting battery efficiency and lifespan. The market is also witnessing advancements in battery technology, such as improvements in charging infrastructure and the integration of AI for predictive maintenance and optimization. In conclusion, the market is a dynamic and evolving landscape, driven by various factors, including technological advancements, consumer demand, and regulatory requirements. The market's future growth is expected to be influenced by factors such as the integration of renewable energy, advancements in battery chemistry, and the increasing adoption of electric vehicles and consumer electronics.
"The global Cylindrical Lithium-Ion Battery Market is driven by surging electric vehicle adoption, with Asia-Pacific leading due to its 56% market share in 2024."
- Rahul Somnath, Assistant Research Manager, Technavio
The market is a dynamic and growing sector in the global energy storage industry. These batteries, recognized for their cylindrical shape, offer several advantages over other battery types. Cylindrical lithium-ion batteries provide excellent energy density, enabling longer runtimes and lighter weight. Their design allows for efficient manufacturing processes and cost-effective production. Manufacturers prioritize safety in the market, implementing advanced safety features such as thermal runaway protection and pressure relief systems. These batteries are widely used in various applications, including electric vehicles, portable devices, and grid energy storage. The market benefits from ongoing research and development, driving innovation and improvements in performance, cost, and safety. Key players in the market invest in R&D to expand their product offerings and meet the evolving demands of consumers and industries. Advancements in materials science, such as the use of silicon anodes and solid-state electrolytes, contribute to the growth of the market. Additionally, government initiatives and incentives support the adoption of these batteries for sustainable energy solutions. The market is expected to experience significant growth due to its versatility, efficiency, and increasing demand for clean energy technologies. As the world transitions towards renewable energy sources and electric mobility, the role of cylindrical lithium-ion batteries becomes increasingly crucial.
The cylindrical lithium-ion battery market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the cylindrical lithium-ion battery market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, cylindrical lithium-ion battery market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.
Altertek Ltd. - The company specializes in advanced cylindrical lithium-ion battery solutions, featuring the innovative AKM CYC ultra high energy battery system.
The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Dive into Technavio's robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Cylindrical Lithium-Ion Battery Market insights. See full methodology.
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Market Scope |
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Report Coverage |
Details |
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Page number |
207 |
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Base year |
2024 |
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Historic period |
2019-2023 |
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Forecast period |
2025-2029 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.8% |
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Market growth 2025-2029 |
USD 12793.1 million |
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Market structure |
Fragmented |
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YoY growth 2024-2025(%) |
6.4 |
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Key countries |
China, US, Japan, Germany, South Korea, Canada, India, France, Australia, UAE, and Brazil |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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1 Executive Summary
2 Technavio Analysis
3 Market Landscape
4 Market Sizing
5 Historic Market Size
6 Qualitative Analysis
7 Five Forces Analysis
8 Market Segmentation by Application
9 Market Segmentation by Type
10 Customer Landscape
11 Geographic Landscape
12 Drivers, Challenges, and Opportunity/Restraints
13 Competitive Landscape
14 Competitive Analysis
15 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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