North America Lithium-ion battery Market by Type and Application Forecast and Analysis - 2024-2028

North America Lithium-ion battery Market Size 2024-2028

The North America lithium-ion battery market size is forecast to increase by USD 20.03 billion at a CAGR of 18% between 2023 and 2028.

• The market is experiencing significant growth due to several key trends. The high adoption of wearable technology and electric vehicles is driving the demand for lithium-ion batteries. Additionally, the decline in lithium-ion battery prices has made them more affordable for consumers. However, the availability of substitute products, such as nickel-cadmium and nickel-metal hydride batteries, poses a challenge to the market.
• To stay competitive, market players are focusing on improving the performance, safety, and cost-effectiveness of lithium-ion batteries. As the market continues to evolve, it is essential for businesses to stay informed about the latest trends and challenges to make informed decisions and capitalize on opportunities.

What will be the Size of the Market During the Forecast Period?

Request Free Sample

• The Lithium-Ion Battery (Li-ion) market in North America is witnessing significant growth due to the increasing demand for energy storage solutions in various sectors. This trend is driven by the shift towards renewable energy sources, energy efficiency, and sustainable energy. Energy Management and Grid Storage are key areas where Li-ion batteries are gaining popularity. The integration of renewable energy sources into the power grid requires efficient energy storage solutions to ensure a stable power supply. Li-ion batteries offer high energy density, long cycle life, and excellent power characteristics, making them an ideal choice for grid storage applications.
• Additionally, Microgrids and Off-Grid Power Systems are another growing area for Li-ion batteries. These systems are essential for energy security and are particularly useful in remote locations where access to the main power grid is limited. Li-ion batteries provide a reliable and efficient power source for these systems, enabling energy conservation and reducing the carbon footprint. Safety and Performance are critical factors in the Li-ion battery market. Industrial safety regulations and CAFE standards are driving the development of safer battery technologies. Battery Management Systems (BMS) are being used to optimize battery performance, ensure safety, and prolong battery life. Research and development in battery technology are focused on improving battery safety, increasing energy density, and reducing battery degradation.
• Moreover, electric Mobility and Material Handling Equipment are significant applications for Li-ion batteries. The increasing adoption of electric vehicles and the shift towards automated material handling systems are driving the demand for portable Li-ion batteries. These batteries offer high energy density, long cycle life, and fast charging capabilities, making them an ideal choice for these applications. Power Distribution and Power Electronics are other areas where Li-ion batteries are being used extensively. The high power density and excellent power characteristics of Li-ion batteries make them suitable for power distribution applications. In power electronics, Li-ion batteries are used for energy storage and power backup, providing a reliable power source for various applications.
• In conclusion, Wind Energy and Solar Energy are two major renewable energy sources where Li-ion batteries are being used for energy storage. The intermittent nature of these energy sources requires efficient energy storage solutions to ensure a stable power supply. Li-ion batteries offer high energy density, long cycle life, and excellent power characteristics, making them an ideal choice for renewable energy storage applications. Battery Recycling is another area of focus in the Li-ion battery market. The increasing adoption of Li-ion batteries and the need to reduce the environmental impact of battery disposal are driving the development of battery recycling technologies. These technologies aim to recover valuable materials from used batteries and reduce the carbon footprint of battery production. In conclusion, the market is witnessing significant growth due to the increasing demand for energy storage solutions in various sectors. The shift towards renewable energy sources, energy efficiency, and sustainable energy are key drivers of this growth. The focus on safety, performance, and recycling is expected to continue driving the development of Li-ion battery technology in the future.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Type
  • Lithium nickel manganese cobalt
  • Lithium iron phosphate
  • Lithium cobalt oxide
  • Others
• Application
  • Automotive
  • Consumer electronics
  • Energy storage and others
• Geography
  • North America
    • Canada
    • Mexico
    • US

By Type Insights

• The lithium nickel manganese cobalt segment is estimated to witness significant growth during the forecast period.

Lithium-ion batteries, specifically those containing nickel, manganese, and cobalt (NMC), have gained significant traction in the North American market due to their unique properties. Manganese, though having a lower energy density, forms a spinel structure in batteries, resulting in low internal resistance. The combination of nickel and manganese enhances the battery's overall performance. NMC batteries are widely adopted in various applications, including elevated equipment, battery storage for solar power plants and wind energy projects, and transportation. High-capacity NMC batteries are essential for electric vehicles, while portable devices like laptops and mobile phones utilize lower-capacity versions. The energy generation sector, particularly renewables, is a significant contributor to the increasing demand for NMC batteries.

Moreover, these batteries' ability to store excess energy produced during peak generation hours makes them indispensable in addressing intermittency issues. As the focus on sustainable energy sources continues to grow, the demand for NMC batteries is expected to escalate further. Battery cathodes, a crucial component of lithium-ion batteries, are primarily manufactured using NMC. The versatility of NMC batteries in various applications, coupled with their high energy density and power output, makes them a preferred choice for numerous industries. In summary, the North American lithium-ion battery market, with a significant focus on NMC batteries, is experiencing substantial growth due to their role in energy generation, transportation, and other applications. The demand for these batteries is driven by the need for high-capacity energy storage solutions, particularly in the renewable energy sector.

Get a glance at the market share of various segments Request Free Sample

The lithium nickel manganese cobalt segment was valued at USD 3.42 billion in 2018 and showed a gradual increase during the forecast period.

Market Dynamics

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers leading to the rise in adoption of North America Lithium-ion battery Market?

High adoption of wearable technology is the key driver of the market.

• The market is witnessing substantial growth due to the increasing adoption of lithium-ion batteries in various sectors. These batteries find extensive applications in power tools, industrial automation systems, aviation, energy storage systems, and consumer electronics such as mobile phones, laptops, digital cameras, and vacuum cleaners. In the aviation industry, lithium-ion batteries are used as backup power supplies for critical systems and in energy storage systems for renewable energy sources like solar photovoltaic and wind energy projects. Moreover, the military & defense sector utilizes lithium-ion batteries for power backup in communication systems and for powering electric mobility in military vehicles.
• Moreover, preventative measures, such as overcharge protection and residual charge management, ensure the safe usage of these batteries. The battery industry is also focusing on developing advanced batteries like lithium-sulfur batteries for repowering applications. In the commercial building sector, lithium-ion batteries are used for energy storage in smart grids and as backup power supplies. Marine equipment, solar power plants, wind energy projects, and transportation are other significant sectors that are adopting lithium-ion batteries for energy storage and backup power. The demand for high-capacity batteries is increasing due to the electrification of mobility and the energy crisis. The battery cathodes, primarily made of NMC (Nickel Manganese Cobalt) and Lithium Iron Phosphate, are crucial components of lithium-ion batteries.
• In conclusion, the intermittency of renewable energy sources necessitates the need for efficient energy storage and the ability to deliver megawatts of power when required. Lithium-ion batteries offer high energy density, specific energy density, and long battery life, making them an ideal choice for various applications. However, the environmental hazards associated with lithium-ion batteries, such as self-heating rates, emissions, and the use of raw materials like cobalt, are concerns that need to be addressed. Regulations and initiatives are being put in place to ensure the safe disposal and recycling of these batteries. The supply chain for lithium-ion batteries is also evolving, with a focus on securing raw materials and optimizing the production process.

What are the market trends shaping the North America Lithium-ion battery Market?

The decline in lithium-ion battery prices is the upcoming trend in the market.

• The market is experiencing significant growth, surpassing traditional lead-acid batteries in various applications. This shift is driven by the increasing demand for high-capacity batteries in industries such as aviation, industrial automation systems, power tools, and energy storage systems. Lithium-ion batteries are increasingly used in consumer electronics like mobile phones, laptops, digital cameras, and vacuum cleaners, as well as in military & defense, commercial buildings, marine equipment, and backup power supplies. The higher cost of lithium-ion batteries compared to lead-acid batteries is a challenge, but leading manufacturers in North America are investing in technological advancements to reduce prices. NMC batteries, lithium-sulfur batteries, and repurposed batteries are some of the technologies being explored to make lithium-ion batteries more affordable.
• Moreover, the prices of lithium-ion batteries are projected to decrease further during the forecast period, making them increasingly competitive. Lithium-ion batteries offer several advantages over lead-acid batteries, including longer life, higher energy density, and better environmental performance. However, concerns over environmental hazards, such as self-heating rates and emissions, require preventative measures like on-site inspections and overcharge protection. Lithium-ion batteries are also being used in renewable energy sources like solar photovoltaic and wind energy projects for energy storage and power backup. The battery industry is focusing on improving battery life, capacity, and energy density to meet the demands of various sectors.
• Additionally, the electrification of mobility, including electric vehicles and elevating equipment, is a major growth area for lithium-ion batteries. The energy crisis and increasing emissions regulations are also driving the adoption of lithium-ion batteries as a cleaner alternative to internal combustion engines and power plants. The supply chain for lithium-ion batteries relies on raw materials like lithium, cobalt, and other materials. The sustainability and ethical sourcing of these materials are becoming increasingly important to consumers and institutions. The market dynamics for lithium-ion batteries are complex, with factors like intermittency, battery cathodes, and megawatts influencing the growth trajectory. The market is expected to continue growing, driven by the increasing demand for cleaner and more efficient energy solutions.

What challenges does North America Lithium-ion battery Market face during the growth?

Availability of substitute products is a key challenge affecting the market growth.

• Lithium-ion batteries have gained significant traction in various industries across North America due to their high energy density, long cycle life, and low self-discharge rate. These batteries are extensively used in consumer electronics such as mobile phones, laptops, digital cameras, and wristwatches, as well as in power tools and industrial automation systems. In the aviation sector, lithium-ion batteries are employed in energy storage systems for backup power supply and in electric mobility applications. Beyond consumer and industrial applications, lithium-ion batteries find extensive use in military & defense, marine equipment, commercial buildings, and renewable energy sources like solar photovoltaic and wind energy projects.
• However, they serve as battery storage for power backup and provide residual charge during power outages. Lithium-ion batteries are also integral to the electrification of mobility, including electric vehicles and elevating equipment. Alternatives to lithium-ion batteries include lead-acid batteries, nickel-cadmium batteries, and sodium-ion batteries. Lead-acid batteries are popular due to their low cost and long life in applications with low discharge rates, such as wheelchairs, hospital equipment, and automobiles. Nickel-cadmium batteries are preferred for applications requiring long life and high discharge rates, such as biomedical equipment, power tools, and professional video cameras. Despite their advantages, lithium-ion batteries pose environmental hazards due to their material composition, including lithium, cobalt, and nickel.
• In conclusion, preventative measures like on-site inspections, overcharge protection, and recycling initiatives are crucial to mitigate potential risks. The battery industry is continually innovating, with advancements in NMC batteries, lithium-sulfur batteries, and repurposing of used batteries through repower projects. The energy crisis and increasing emissions regulations have fueled the demand for energy storage solutions, including lithium-ion batteries. As the market continues to evolve, the focus on improving battery life, capacity, energy density, and reducing environmental impact remains a priority. The supply chain for raw materials, particularly cobalt, is under scrutiny, and efforts to diversify sources and improve recycling processes are ongoing.

Exclusive North America Lithium-ion battery Market Customer Landscape

The 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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, market forecast partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• A123 Systems LLC
• AT and T Inc.
• BYD Co. Ltd.
• CLARIOS LLC
• Enphase Energy Inc.
• General Electric Co.
• GS Yuasa International Ltd.
• Hitachi Ltd.
• Johnson Controls International Plc
• Koninklijke Philips N.V.
• LG Chem Ltd.
• Maxell Ltd.
• Panasonic Holdings Corp.
• Samsung SDI Co. Ltd.
• Sony Group Corp.
• TDK Corp.
• Tesla Inc.
• The Duracell Co.
• Toshiba Corp.
• TRU Group Inc.

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 market 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.

Research Analyst Overview

The market is witnessing significant growth due to the increasing demand for these batteries in various sectors. Lithium-ion batteries have become a preferred choice for numerous applications, including wristwatches, power tools, industrial automation systems, aviation, energy storage systems, mobile phones, laptops, digital cameras, military & defense, vacuum cleaners, and more. Lithium-ion batteries have revolutionized the power tool industry, offering high power density, long cycle life, and improved efficiency. In the aviation sector, these batteries are used in various applications, such as auxiliary power units and emergency power systems.

Additionally, aviation companies are increasingly adopting lithium-ion batteries due to their lightweight and high energy density. The energy storage market is another significant contributor to the growth of the market. Lithium-ion batteries are used in energy storage systems for commercial buildings, backup power supplies, and renewable energy projects, such as solar power plants and wind energy projects. The integration of renewable energy sources into the power grid requires efficient energy storage solutions, making lithium-ion batteries an attractive option. The transportation sector, particularly electric vehicles, is a major consumer of lithium-ion batteries. The electrification of mobility is gaining momentum, and lithium-ion batteries are the preferred choice for electric cars due to their high energy density and long cycle life.

Furthermore, the growing demand for electric vehicles is expected to drive the growth of the market. The battery industry is also focusing on developing new technologies, such as lithium-sulfur batteries, to improve the performance and efficiency of lithium-ion batteries. Repowering existing batteries through battery cathode replacement is another trend gaining popularity in the market. Despite the numerous benefits of lithium-ion batteries, there are challenges associated with their production and disposal. Environmental hazards, such as the use of raw materials like lithium and cobalt, and the disposal of used batteries, are concerns that need to be addressed. Preventative measures, such as on-site inspections and regulatory compliance, are essential to mitigate these risks.

In conclusion, the market is expected to continue growing due to the increasing demand for these batteries in various applications. The market dynamics, including the growing demand for renewable energy, electrification of mobility, and the need for efficient energy storage solutions, are driving the growth of the market. In conclusion, the market is a dynamic and growing market, driven by the increasing demand for these batteries in various sectors, including power tools, aviation, energy storage, transportation, and renewable energy. The market is expected to continue growing due to the numerous benefits of lithium-ion batteries, such as high energy density, long cycle life, and improved efficiency. However, challenges associated with the production and disposal of lithium-ion batteries need to be addressed to ensure sustainable growth in the market.

Request Free Sample

What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across North America
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

We can help! Our analysts can customize this market research report to meet your requirements Get in touch