Lithium-ion Battery Market 2023 – 2030 by Capacity, Voltage, Industry (Consumer Electronics, Automotive, Aerospace)Type (Lithium Nickel Manganese Cobalt Oxide (LI-NMC), Lithium Iron Phosphate (LFP), Lithium Cobalt Oxide (LCO)) - Partner & Customer Ecosystem (Product Services, Proposition & Key Features) Competitive Index & Regional Footprints by MarketDigits
Industry : Chemicals & Materials | Pages : 168 Pages | Published On : Jul 2023
The Lithium-ion Battery Market is anticipated to grow at a CAGR of 13.1% during the forecast period, with the market size expected to reach USD 135.1 billion by 2031 from USD 48.6 billion in 2023.
The market growth is primarily driven by the increased adoption of lithium-ion batteries in the renewable energy sector and plug-in vehicles. Furthermore, the industry's advancements in lithium-ion battery technology have led to a greater focus on research and development, while the declining prices have resulted in their wider adoption across various new applications. These factors are expected to continue driving the market's growth in the near future.
Lithium-ion Battery Market Segment Overview
Lithium cobalt oxide were the most extensively used Lithium-ion Battery in the market in 2023.
This segment held the largest share and is expected to maintain a significant market share during the forecast period.
Lithium cobalt oxide batteries are extensively utilized in consumer electronic devices such as portable electronics, personal computers, and digital cameras. They are also employed in various other applications, including automotive and stationary applications like telecom towers and home inverters, where uninterrupted power supply is crucial. The widespread adoption of these batteries in diverse sectors is contributing to their market growth.
3,000 – 10,000 mAh segment to hold highest growth rate of Li-Ion battery market during the forecast period
These batteries find applications in a wide range of industries including consumer electronics, electric vehicles, power tools, and aerospace. Typically, these batteries are grouped together to form modules that are used in high-load applications. Battery energy storage systems with high capacity and low power ratings provide a sustained supply of electricity for extended periods, making them suitable for powering essential appliances.
Medium (12V – 36V) segment to hold second-largest share of Li-Ion (Lithium Ion) Battery Market
The medium (12V–36V) segment holds the second-largest market share in 2021 and is projected to grow at a significant CAGR from 2023 to 2030. These batteries are favored over other variants due to their high energy density and lightweight characteristics. They are commonly used in electric vehicles, solar energy systems, and applications in marine, military, telecom, trolling motors, and deep-cycle sectors.
Power industry is expected to hold the largest CAGR of Lithium-ion Battery Industry during the forecast period
In terms of industry, the power sector is expected to experience the highest CAGR in the Lithium-ion Battery industry during the forecast period. The demand for lithium-ion battery energy storage systems in the power industry is driven by the need to meet peak electricity demand and address fluctuations associated with renewable energy sources such as solar and wind. These batteries provide frequency and voltage control, ensuring a stable energy supply in the face of sudden fluctuations.
Europe hold the second-largest share of Li-Ion (Lithium Ion) Battery Market
Europe holds the second-largest market share in the Li-Ion Battery industry, with Germany leading the market in 2023. Germany's position as a major automobile manufacturing country contributes to the market's growth in the region. Additionally, the governments of European countries have been actively supporting and investing in research and development (R&D) activities in the power sector. The growing demand for lithium-ion batteries in Europe is driven by factors such as increasing automobile manufacturing, the need for energy storage solutions, rising adoption of electric vehicles for environmental reasons, and substantial investments in lithium-ion battery research projects.
Top 5 Key Players in the Li-ion Battery Industry
Prominent suppliers in the lithium-ion battery industry include:
- LG Chem (South Korea)
- Samsung SDI CO. LTD. (South Korea)
- Contemporary Amperex Technology Co., Limited (China)
- BYD Company Ltd. (China)
- Panasonic Holding Corporation (Japan)
Lithium-ion Battery Industry Dynamics
DRIVERS: Growing adoption in plug-in vehicles
Lithium-ion batteries serve as a power source for electric vehicles. The widespread utilization of electric vehicles and plug-in hybrid electric vehicles has significantly contributed to the growing demand for lithium-ion batteries, a trend that is expected to continue in the future.
The rising popularity of electric vehicles among consumers has stimulated the market for these environmentally friendly and energy-efficient vehicles. Numerous automobile companies are now involved in the development of new and improved electric vehicle models. For example, Tesla Motors, Inc. (US) is a leading manufacturer of high-power electric vehicles like the Model X and Model 3. Other companies, such as General Motors Company (US), Toyota Motor Corporation (US), Ford Motor Company (US), Nissan Motor Company (Japan), and Jaguar Land Rover Limited (UK), are also actively engaged in electric vehicle production.
RESTRAINT: Increasing concern in transportation and storage of spent batteries
The transportation and storage of spent batteries have become a pressing concern due to their hazardous nature, as they contain acids and heavy metals like mercury and lead. According to a July 2021 report from the Environmental Protection Agency, there have been 254 fire incidents at 64 waste facilities caused by lithium metal or lithium-ion batteries. To mitigate risks, it is mandatory to store spent batteries in watertight containers, separate from flammable materials. Additionally, having a Class D extinguisher and sand nearby is crucial as a precautionary measure in case of a fire outbreak.
OPPORTUNITIES: Increasing R&D for advancements
Battery manufacturers are actively undertaking research and development efforts to enhance the durability and safety of lithium-ion batteries. With the world shifting towards clean energy adoption, there has been a significant surge in R&D initiatives aimed at developing different battery chemistries.
For example, notable players like Amprius Inc. (US) and Nexeon Corporation (UK) are involved in the development of silicon anode batteries with improved features. These advanced silicon anode batteries are expected to find diverse applications in the coming years. Tesla (US) and Panasonic Corporation (Japan) are also engaged in research and development activities focused on silicon anode and lithium-air batteries to power electric vehicles.
CHALLENGES: Excessive heating of batteries
Lithium-ion batteries find applications in various sectors such as consumer electronics, automotive, electrical systems, commercial aviation, automated guided vehicles, forklifts, pallet trucks, and material-handling equipment.
While lithium-ion batteries offer the advantage of storing significant energy in compact spaces, they are prone to quick overheating, which can lead to fires in case of malfunctions. Excessive heating usually occurs due to high-rate discharge or abnormal discharge rates, such as short circuits. A recent example is the Moss Landing Energy storage facility in California, which experienced an outage in September 2021 due to the overheating of lithium-ion batteries.
Based on Material, the Lithium-ion Battery Market been Segmented as follows:
- Cathode Material
- Cathode Material for Lithium-Ion Batteries
- Lithium iron phosphate
- Lithium iron cobalt oxide
- Lithium nickel manganese cobalt
- Lithium nickel cobalt aluminum
- Lithium manganese oxide
- Cathode Material for Lithium-Ion Batteries
- Anode Materials
- Anode Material for Lithium-Ion Batteries
- Natural graphite
- Artificial graphite
- Another anode material
- Anode Material for Lithium-Ion Batteries
- Electrolyte Material
- Separator Material
- Current collector Materials
- Other Materials
Based on Product Type, the Lithium-ion Battery Market been Segmented as follows:
- Components of Lithium-ion Battery
- Battery Packs
Based on Type, the Lithium-ion Battery Market been Segmented as follows:
- Lithium Nickel Manganese Cobalt oxide
- Lithium Iron Phosphate
- Lithium Cobalt Oxide
- Lithium Titanate Oxide
- Lithium Manganese Oxide
- Lithium Nickel Cobalt Aluminum Oxide
Based on Capacity, the Lithium-ion Battery Market been Segmented as follows:
- 0 to 3,000 mAh
- 3,000 to 10,000 mAh
- 10,000 to 60,000 mAh
- 60,000 mAh and Above
Based on Voltage, the Lithium-ion Battery Market been Segmented as follows:
- Low (Below 12 V)
- Medium (12 V-36 V)
- High (Above 36 V)
Based on Industry, the Lithium-ion Battery Market been Segmented as follows:
- Consumer Electronics
- Plug-in Hybrid Vehicles
- Commercial Aircraft
- Mining Equipment
- Construction Equipment
- Forklifts, automated guided vehicles (AGV), and automated mobile robots (AMR)
Based on Region, the Lithium-ion Battery Market been Segmented as follows:
- North America
- Asia Pacific (APAC)
- Rest of the World (RoW)
Recent Developments in Lithium-Ion Battery Market
- Panasonic Holdings Corporation announced in February 2022 its plans to establish a production facility at the Wakayama Factory in western Japan. The purpose of this facility is to manufacture new ""4680"" lithium-ion batteries for electric vehicles, with the aim of expanding their business globally. Productivity verification and mass production of these batteries are expected to commence by the end of the fiscal year 2024.
- LG Energy Solution, a subsidiary of LG Chem, signed a memorandum of understanding with Stellantis N.V. in October 2021 to establish a joint venture for the production of battery cells and modules in North America. This partnership will support Stellantis N.V.'s goal of achieving a 40% market share in the United States for electrified vehicles by 2030. The batteries manufactured through this joint venture will be supplied to Stellantis N.V.'s assembly plants in the US, Canada, and Mexico for installation in next-generation electric vehicles.
- In January 2021, BYD Company Ltd. formed a partnership with Chinese lithium-ion recycling start-up Pandpower Co., Ltd. and Japanese trading house Itochu. The purpose of this collaboration is to transform old batteries into energy storage systems. Used battery packs from buses, taxis, and other vehicles are collected from BYD Company Ltd. dealerships across China and converted into ship-container-sized power units for renewable energy applications and industrial use.
Table and Figures
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