Enjoy complimentary customisation on priority with our Enterprise License!
Lithium-ion Battery Market size is estimated to grow by USD 198.26 billion between 2022 and 2027 accelerating at a CAGR of 31% during the forecast period. The growth of the market depends on several factors, including the augmented demand from consumer electronics, the increased shipments of smart wearables, and battery energy storage to address the erratic nature of renewables.
This lithium market analysis report extensively covers market segmentation by type (lithium nickel manganese cobalt, lithium titanate, lithium iron phosphate, and lithium cobalt oxide), application (automotive, consumer electronics, and energy storage, and others), and geography ( APAC, Europe, North America, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges.
Lithium-ion batteries are rechargeable batteries in which carbon serves as an anode and lithium-ion acts as a cathode. The advantage of using these batteries is that they increase thermal stability, have higher current density, and have a longer shelf life than other battery technologies available in the market. Lithium-ion batteries are used in high-power applications such as HEVs, EVs, and consumer electronics devices. One of the key reasons for this significant growth is the increased adoption of EVs and HEVs worldwide.
Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
Augmented demand from consumer electronics is a major driver boosting the lithium market size. Rising urbanization and higher household incomes worldwide have resulted in increased disposable incomes. This has positively impacted consumer spending, reflecting greater consumer confidence. Global consumer expenditure is predicted to rise rapidly, driven by economic recovery in major emerging markets, particularly in Asia. Countries like Malaysia, Indonesia, and Vietnam in the Pacific Rim are expected to experience significant market growth due to higher disposable incomes.
The growing number of working women has also contributed to increased household incomes, leading to higher consumption levels. Developing economies such as China and India offer lucrative markets due to their large populations and open economies. As a result of increased consumer spending on gadgets, the consumer electronics segment is expanding rapidly, driving demand for lithium-ion batteries. The declining prices of consumer electronic products and constant technological advancements further contribute to the growth of this segment. The consumer electronics segment is projected to continue witnessing high demand, consequently driving the growth of the lithium-ion battery market size in the forecast period.
Legislative support for battery recycling is a major lithium-ion market trend. Global concerns about environmental issues and greenhouse gas emissions have prompted countries to reconsider the use of fossil fuels in transportation. Electric vehicles (EVs) are seen as the only viable alternative to traditional fuel-powered vehicles. Several countries, including France, the UK, the Netherlands, and China, have implemented measures to promote the adoption of EVs, such as setting targets and restricting the sale of diesel and petrol vehicles. China, in particular, has introduced subsidies for EVs and imposed restrictions on new ownership of conventional cars.
Government regulations also focus on recycling batteries, especially lithium-ion batteries, to prevent environmental contamination and extract valuable metals. Companies like Umicore, Stiftung GRS Batterien, and Li-Cycle are engaged in battery recycling efforts. Proper recycling not only reduces environmental impact but also provides economic benefits for battery manufacturers. Disposal of lithium-ion batteries can have harmful consequences due to their explosive nature, potential groundwater and soil contamination, and the toxicity of electrolytes. Legislative support, such as the European Union's battery directive, is essential to improve battery recycling rates. Increasing rates of lithium-ion battery recycling, coupled with the growth of EVs and other end-user segments, are expected to drive the growth in the forecast period.
The growing popularity of fuel cell solutions is a major lithium-ion market challenge. The replacement of standard lithium-ion batteries with fuel cells poses a significant challenge for end-users in industries like automotive and material handling equipment. Conventional batteries require frequent replacement or recharging, causing logistical issues in operations that span multiple shifts. To address these challenges, more end-users are opting for fuel cell systems. On the other hand, Fuel cells are a promising technology known for their high efficiency in automotive and energy storage applications. They directly convert chemical energy into electrical energy through electrochemical reactions, offering a non-polluting and efficient power generation process. Fuel cells can serve as reliable alternatives to secondary batteries due to their scalability and ability to provide backup and prime power in stationary applications.
As the automotive industry looks for next-generation energy storage solutions, major automakers like Toyota Motor and Hyundai Motor are exploring fuel cells as a means to power electric vehicles (EVs) for longer durations. This shift towards fuel cell technology in EVs reduces the demand for lithium-ion batteries and directly impacts the lithium market growth during the forecast period.
Based on type, the market is segmented into lithium nickel manganese cobalt, lithium titanate, lithium iron phosphate, and lithium cobalt oxide. The market share growth by the lithium nickel manganese cobalt segment will be significant during the forecast period. The success of lithium nickel manganese cobalt batteries is due to the combination of nickel and manganese. Despite having low specific energy, manganese has the advantage of creating a spinel structure to produce low internal resistance. Despite having a large specific energy, nickel is unstable. The strengths of the metals are increased when they are mixed. The preferred battery is a lithium nickel manganese cobalt battery, which is used in power tools, e-bikes, and other electric drivetrains. Such factors will increase segment growth during the forecast period.
Get a glance at the market contribution of the End User segment Request Free Sample
The lithium nickel manganese cobalt segment was valued at USD 9.55 billion in 2017 and continue to grow by 2021. Batteries made of lithium nickel manganese cobalt can be made for both high-energy and high-power uses. Most electric automobiles use lithium nickel manganese cobalt batteries. Laptops, mobile phones, and other portable gadgets all employ lithium nickel manganese cobalt batteries. Battery storage power plants are another use for lithium nickel manganese cobalt batteries. The lithium nickel manganese cobalt segment holds a major share in the global lithium-ion battery industry in 2022 and is expected to remain the same during the forecast period.
Based on application, the automotive segment will hold a dominant position in the market. EV manufacturers are actively seeking unconventional energy storage systems that can enhance vehicle efficiency and performance while considering environmental impact. Among the available alternative energy storage options for EVs, lithium-ion batteries, particularly lithium iron phosphate batteries, are the preferred choice. They offer advantages such as high energy density, long cycle life, and improved safety by eliminating issues like explosion and overheating.
The demand for EVs is on the rise globally, with the US leading the market followed by China, Norway, the Netherlands, Germany, France, and the UK. China, although still in its early stages, has significant growth potential driven by government subsidies and advancements in battery technology. China has set a target of achieving 35 million EV sales by 2025, while India aims to convert all cars into EVs by 2030. However, high EV prices, primarily due to the cost of lithium-ion batteries, pose a challenge to achieving these targets. Nevertheless, with increased production volumes, battery costs are expected to decrease in the future.
APAC is estimated to contribute 51% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
For more insights on the market share of various regions Request Free Sample
Increasing penetration of renewable energy, EVs, and consumer electronics are the main contributors to the lithium-ion battery industry in APAC in 2022. However, the contribution of the renewable power sector is expected to increase during the forecast period because of the need to reduce greenhouse gas (GHG) emissions and lower the number of power outages in the region
This lithium market forecast report bases the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. COVID-19 led to an upsurge in the demand for APAC. However, the lifting of travel restrictions, the resumption of operations in the manufacturing sector, and the initiation of large-scale COVID-19 vaccination drives in 2021 increased the demand for lithium-ion batteries. The increasing penetration of renewable energy in the energy mix is expected to play a major role in the growth of the regional market during the forecast period. Renewable capacity installations are increasing owing to the supportive policies of the governments in APAC. Therefore, the growing demand for automobiles, supportive government policies to boost the adoption of EVs, and the installation of renewables will drive the growth of the regional lithium-ion battery industry during the forecast period.
The lithium ion battery market research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
|
Lithium-ion Battery Market Scope |
|
|
Report Coverage |
Details |
|
Page number |
160 |
|
Base year |
2022 |
|
Historic period |
2017-2021 |
|
Forecast period |
2023-2027 |
|
Growth momentum & CAGR |
Accelerate at a CAGR of 31% |
|
Market growth 2023-2027 |
USD 198.26 billion |
|
Market structure |
Fragmented |
|
YoY growth 2022-2023(%) |
30.34 |
|
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
|
Performing market contribution |
APAC at 51% |
|
Key countries |
US, China, Japan, Germany, and Norway |
|
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
|
Key companies profiled |
A123 Systems LLC, AT and T Inc., BAK Power, BYD Co. Ltd., Clarios, Envision Group, Exide Industries Ltd., GS Yuasa Corp., Hitachi Ltd., Johnson Controls International Plc, LG Chem, Manz AG, Panasonic Holdings Corp., Samsung SDI Co. Ltd., SK Inc., Sony Group Corp., TDK Corp., TianJin Lishen Battery Joint Stock Co. Ltd., Toshiba Corp., and Tesla Inc. |
|
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
|
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 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
Certified ISO 9001 : 2015
We are ISO 9001:2015 recognized that ensures quality services and product delivery to our clients.
We are GDPR and CCPA compliant! Your transaction & personal information is protected from unauthorized use.
Get lifetime access to our
Technavio Insights
Get the report (PDF) sent to your email within minutes.
