Cylindrical Lithium-Ion Battery Market by Application and Geography - Forecast and Analysis 2022-2026

The cylindrical lithium-ion battery market share is expected to increase to USD 11.88 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 7.42%.

This cylindrical lithium-ion battery market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers cylindrical lithium-ion battery market segmentation by application (automotive, industrial, and others) and geography (APAC, North America, Europe, South America, and Middle East and Africa). The cylindrical lithium-ion battery market report also offers information on several market vendors, including AGM Batteries Ltd., Battery Industry, BorgWarner Inc., Contemporary Amperex Technology Co. Ltd., DLG Shanghai Electronic Technology Co. Ltd., Flux Power Holdings Inc., Hitachi Ltd., LG Chem Ltd., Lund Instrument Engineering Inc., Murata Manufacturing Co. Ltd., OptimumNano Energy Co. Ltd., Padre Electronics Co. Ltd., Panasonic Corp., PowerTech Systems, Samsung SDI Co. Ltd., Shanghai Electric Group Co. Ltd., Shenzhen Cham Battery Technology Co. Ltd., Shenzhen Zhuoneng New Energy Co. Ltd., Taiwan Cement Ltd., and TianJin Lishen Battery Joint Stock Co. Ltd. among others.

What will the Cylindrical Lithium-Ion Battery Market Size be During the Forecast Period?

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Cylindrical Lithium-Ion Battery Market: Key Drivers, Trends, and Challenges

Based on our research output, there has been a negative impact on the market growth during and post COVID-19 era. The shift in the automotive industry to EVs is notably driving the cylindrical lithium-ion battery market growth, although factors such as the safety concerns in li-ion batteries may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the cylindrical lithium-ion battery industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Cylindrical Lithium-Ion Battery Market Driver

• One of the key factors driving the cylindrical lithium-ion battery market growth is the shift in the automotive industry to EVs.
• Various countries have framed policies to reduce air pollution levels, as well as vehicle emissions.
• EVs are considered a green solution, which will contribute in a major way to the decarbonization of the transport sector. Li-ion batteries are a dominant power solution for EVs.
• In an EV, the battery pack consists of tens to thousands of Li-ion batteries, which are called cells. These cells are either cylindrical, prismatic, or laminate in shapes. Depending on the design of vehicles, EV manufacturers use these cells to deliver higher levels of performance.
• Tesla, one of the largest EV manufacturers globally, uses cylindrical Li-ion batteries manufactured by Panasonic in its Tesla Model S and Tesla Model X cars.
• The growing adoption of EVs owing to sustainability factors will result in increased sales volume of cylindrical Li-ion batteries, thereby driving the growth of the market.

Key Cylindrical Lithium-Ion Battery Market Trend

• Advances in cylindrical Li-ion battery capacity is one of the key cylindrical lithium-ion battery market trends that is expected to impact the industry positively in the forecast period.
• The 18650 Li-ion battery has remained the most popular cylindrical Li-ion battery, as it has applications across diverse devices. 
• Over the years, many larger and new cylindrical Li-ion batteries have come up in the market, such as 20700, 21700, and 22700.
• Vendors, such as E-ONE MOLI ENERGY, are also offering 26700 batteries that provide ease of manufacturing and optimal capacity.
• The 20700 and 21700 cylindrical Li-ion batteries are witnessing high adoption in battery packs, as they can provide the required output with a fewer number of cells, thus, relieving the pressure of manufacturing extra cells in the battery pack.
• Owing to capacity advantages, the adoption of these batteries is expected to rise further, which will boost the production of cylindrical Li-ion batteries, thereby contributing to the growth of the market during the forecast period.

Key Cylindrical Lithium-Ion Battery Market Challenge

• One of the key challenges to the global cylindrical lithium-ion battery market growth is the safety concerns in Li-ion batteries.
• Li-ion batteries are susceptible to leakage and drying out due to the rupturing of the membrane, which, in turn, may lead the battery to explode or short-circuit.
• Li-ion battery is the only mainstream battery in which a flammable substance is used as an electrolyte.
• The separators do not take part in the cell reaction but intermediate the flow of lithium ions between the electrodes through their pores during the process of charging and discharging. They serve the purpose of a fuse in Li-ion batteries, as they shut down the pores during times of overheating by melting. The uneven separators can cause battery failure due to the poor conductivity of dry areas.
• The incidents of battery failure are very low. However, they can be disastrous if and when they occur. Therefore, such incidents may limit the growth of the market in the forecast years.

This cylindrical lithium-ion battery market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.

Parent Market Analysis

Technavio categorizes the global cylindrical lithium-ion battery market as a part of the global renewable electricity market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the market during the forecast period.

Who are the Major Cylindrical Lithium-Ion Battery Market Vendors?

The report analyzes the market's competitive landscape and offers information on several market vendors, including:

• AGM Batteries Ltd.
• Battery Industry
• BorgWarner Inc.
• Contemporary Amperex Technology Co. Ltd.
• DLG Shanghai Electronic Technology Co. Ltd.
• Flux Power Holdings Inc.
• Hitachi Ltd.
• LG Chem Ltd.
• Lund Instrument Engineering Inc.
• Murata Manufacturing Co. Ltd.
• OptimumNano Energy Co. Ltd.
• Padre Electronics Co. Ltd.
• Panasonic Corp.
• PowerTech Systems
• Samsung SDI Co. Ltd.
• Shanghai Electric Group Co. Ltd.
• Shenzhen Cham Battery Technology Co. Ltd.
• Shenzhen Zhuoneng New Energy Co. Ltd.
• Taiwan Cement Ltd.
• TianJin Lishen Battery Joint Stock Co. Ltd.

This statistical study of the market encompasses successful business strategies deployed by the key vendors. The market is fragmented and the vendors are deploying growth strategies such as R&D investments to compete in the market.

Product Insights and News

• Hitachi Ltd. - The company offers cylindrical lithium-ion batteries such as second and third-generation batteries.
• DLG (Shanghai) Electronics Technology Co. Ltd. - The company offers cylindrical lithium-ion batteries such as NCM14500-075, INR14500-095, INR18350NQ-100, and more.

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The cylindrical lithium-ion battery market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Cylindrical Lithium-Ion Battery Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the cylindrical lithium-ion battery market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

Which are the Key Regions for Cylindrical Lithium-Ion Battery Market?

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59% of the market's growth will originate from APAC during the forecast period. China, Japan, and South Korea are key markets for the cylindrical lithium-ion in APAC. Market growth in this region will be faster than the growth of the market in North America, Europe, and MEA.

The presence of the highest number of vendors operating in the market and the high demand for EVs, consumer electronics goods, and other devices will facilitate the cylindrical lithium-ion battery market growth in APAC over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

The outbreak of COVID-19 slowed down the production of cylindrical Li-ion batteries in 2020. China, which is one of the major manufacturers of cylindrical Li-ion batteries, resumed manufacturing activities on March 11, 2020. However, trade restrictions decreased the demand for cylindrical Li-ion batteries and thereby compelled manufacturers to reduce their production volumes, which hindered the regional market growth in 2020. However, companies have been increasing their sales and investing in electric vehicle (EV) production with supportive government initiatives. For instance, in 2021, India has been making plans to offer incentives for EV manufacturers as part of a broader auto sector scheme. The plan is to attract around $14 billion in investments over the next five years. All these factors will consequently boost the market in APAC during the forecast period.

What are the Revenue-generating Application Segments in the Cylindrical Lithium-Ion Battery Market?

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The market share growth in the automotive segment will be significant during the forecast period. The automotive segment includes cylindrical Li-ion batteries that are used in EVs and e-bikes. Cylindrical Li-ion batteries have reached a higher level of battery compliance and production automation and are more secure and lightweight. As a result, cylindrical Li-ion batteries are cheaper to produce than prismatic or laminate Li-ion batteries, thus, resulting in higher acceptance from leading EV manufacturers such as Tesla. The high uptake from the EVs segment will drive the segment growth in the coming years.

This report provides an accurate prediction of the contribution of all the segments to the growth of the cylindrical lithium-ion battery market size and actionable market insights on post COVID-19 impact on each segment.

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What are the Key Data Covered in this Cylindrical Lithium-Ion Battery Market Report?

• CAGR of the market during the forecast period 2022-2026
• Detailed information on factors that will drive cylindrical lithium-ion battery market growth during the next five years
• Precise estimation of the cylindrical lithium-ion battery market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the cylindrical lithium-ion battery industry across APAC, North America, Europe, South America, and Middle East and Africa
• A thorough analysis of the market's competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of cylindrical lithium-ion battery market vendors

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