Market Analysis and Insights
The size of the global lithium-ion battery market was estimated at US$ 56.10 billion and is expected to increase at a CAGR of 15.05% to reach US$ 187.05 billion by 2031.
Lithium-ion battery sales have surged as a result of rising electric car usage and an expanding automotive sector. Some of the variables influencing revenue growth include the depletion of fossil fuels and the consumer trend toward battery-powered automobiles. Consumers are now more aware of electric vehicles because of rising gas and diesel prices, which is boosting the market's expansion.
Lithium Ion Battery Market Market Scope :
|Forecast Unit||Value (USD)|
|Revenue forecast in 2030||US$ 187.05 billion|
|Growth Rate||CAGR of 15.05% during 2021-2031|
|Segment Covered||By Keys, By Components, By Application, Regions|
|Regions Covered||North America, Europe, Asia Pacific, South America, Middle East and Africa|
|Key Players Profiled||A123 Systems LLC, BAK Power, BYD Company Limited, Ampere Technology Limited, Samsung SDI Co. Ltd, Tesla, Automotive Energy Supply Corporation, Clarion Power Solutions, Duracell Inc., Hitachi, Ltd, Johnson Controls, LG Chem, Ltd, Clarios, Contemporary Ampere Technology Co. Ltd, Maxell Holdings, Ltd, Panasonic Corporation, Murata Manufacturing Co. Ltd, Renault Group, Saft Group S.A., and Toshiba Corporation.|
A lithium-ion battery is a particular kind of rechargeable battery that relies heavily on lithium ions to carry out its electrochemical reaction. Electric cars, portable electronic gadgets, and energy storage systems all frequently use it.
Lithium-ion batteries are made up of a number of crucial components. For the cathode (positive electrode), lithium metal oxide is widely employed. Examples include lithium iron phosphate (LiFePO4), lithium cobalt oxide (LiCoO2), and lithium manganese oxide (LiMn2O4). Graphite, a material that can intercalate lithium ions, is frequently used as the anode (negative electrode).
A separator that separates the cathode from the anode keeps them from coming into direct contact and causing short circuits while enabling lithium ions to travel freely. Typically, the separator is a microporous membrane that allows the movement of lithium ions but prevents the transport of electrons.
Key Market Segmentation
Insights on Type
The Lithium Cobalt Oxide (LCO) Segment Accounted for the Highest Share
Due to its safety record and capacity to charge and discharge at high currents, lithium cobalt oxide batteries are predicted to have the most demand. These batteries are also 20% lighter than aluminum-cased batteries and 40.01% lighter than steel-cased batteries, which makes them suitable for applications like UAVs, telecom towers, and stationary and is anticipated to spur market expansion.
Insights on Capacity
The 3,000-10,000 mAh Segment Accounted for the Highest Share
Due to its capacity and use as a long-lasting power source, the demand for batteries between 3,000 and 10,000 mAh is anticipated to increase significantly throughout the projection period. The use of portable batteries has expanded due to quick invention and growth across many industries, which has raised battery demand. The numerous applications in the electric car, aerospace, consumer electronics, and power tools are also anticipated to fuel the segment's expansion. Additionally, it is anticipated that the market would be driven by the expanding consumer electronics industries and the growing deployment of this capacity market because of its lightweight nature and possibly long-lasting power source.
Insights on Application
The Power Segment Accounted for the Highest Share
As a result of the quick urbanization and rising energy demand, the power industry is anticipated to dominate the market throughout the forecast period. Batteries are becoming more necessary in power grid applications for power storage and release, when necessary, which is predicted to accelerate market growth. This is due to the growing need for power generation and utilization. Lithium-ion batteries can be easily integrated with renewable energy sources because of their high energy density. The integration supports market growth by assisting in grid-level energy storage, where LI-ion produces electrical energy and utilizes it at the lowest possible cost to end users when needed.
Insights on Region
The APAC Region Accounted for the Highest Share
Asia Pacific is now the world's largest market for lithium-ion batteries, and it is expected to grow faster over the course of the projected period. The expansion of electric vehicles in emerging countries like China, India, South Korea, and Japan is a result of falling battery prices, rising consumer electronics, and increased adoption of these vehicles. As the biggest manufacturer of electric cars and the country with the highest concentration of lithium-ion battery production, China is also predicted to dominate the market throughout the projection period.
Key Company Profiles
Some key players in the global market are A123 Systems LLC, BAK Power, BYD Company Limited, Ampere Technology Limited, Samsung SDI Co. Ltd, Tesla, Automotive Energy Supply Corporation, Clarion Power Solutions, Duracell Inc., Hitachi, Ltd, Johnson Controls, LG Chem, Ltd, Clarios, Contemporary Ampere Technology Co. Ltd, Maxell Holdings, Ltd, Panasonic Corporation, Murata Manufacturing Co. Ltd, Renault Group, Saft Group S.A., and Toshiba Corporation.
COVID-19 Impact and Market Status
Global supply networks, including those for lithium-ion batteries, were interrupted by the epidemic. The manufacture and delivery of battery components were impacted by trade restrictions, plant closures, and reduced labour availability, which resulted in supply chain delays.
The outbreak reduced demand for commodities including computers, cellphones, and electric vehicles (EVs) due to economic instability and lockdown measures. As a result, there was a short decline in demand for the lithium-ion batteries used in these gadgets and EVs. The epidemic brought to light the value of dependable energy storage systems, especially for integrating renewable energy sources and providing backup power in crucial buildings.
To boost national economies, many countries enacted economic stimulus plans. Some of these packages included funding for the renewable energy and electric vehicle industries, which can increase demand for lithium-ion batteries through infrastructure spending, subsidies, and incentives.
1. Solid-state batteries have the potential to replace traditional lithium-ion batteries, and this is getting people's attention. Instead of using liquid electrolytes, they employ solid electrolytes, which may provide benefits including increased energy density, enhanced safety, quicker charging rates, and longer cycle life. The goal of research and development is to scale up manufacturing in preparation for commercialization while overcoming technological obstacles.
2. Beyond graphite, innovative anode materials including silicon, lithium metal, and other metal alloys are being investigated by researchers. These materials can store more energy, which enables batteries with better energy densities. For broad deployment, nevertheless, issues including volume growth, cycle stability, and manufacturing costs must be resolved.
3. Lithium-sulfur (Li-S) batteries are gaining popularity due to their high theoretical energy density, which is significantly higher than that of traditional lithium-ion batteries. Sulfur is used as the cathode material in Li-S batteries, which may provide electric vehicles with a greater range as well as more energy storage for other uses. Li-S batteries' overall performance and cycle stability are being improved, according to researchers.
Significant Growth Factors
The growing demand for electric vehicles is driving growth in the lithium-ion battery industry.
The demand for lithium-ion batteries used in electric vehicles (EVs) is anticipated to increase as governments and consumers place more emphasis on lowering carbon emissions and switching to greener transportation.
The grid must have effective energy storage systems to accommodate the addition of renewable energy sources like solar and wind power. When there is a strong demand for energy or when renewable resources are not accessible, lithium-ion batteries are essential for storing surplus energy created during periods of peak production and releasing it when needed.
The demand for lithium-ion batteries is still being driven by the widespread use of mobile devices like smartphones, laptops, tablets, and other portable electronics. The need for portable, high-capacity batteries with longer endurance is driven by the growing use of mobile devices for communication, entertainment, and productivity.
Lithium, cobalt, nickel, and graphite are some of the specific raw elements needed to make lithium-ion batteries. The price and accessibility of these resources may have an effect on the market's growth.
Lithium-ion battery uptake may be hampered by supply chain interruptions, geopolitical reasons, and price swings for key raw materials. Although the safety of lithium-ion batteries has improved significantly, battery fires and thermal runaway accidents still happen sometimes. The possibility of thermal runaways raises safety issues that might impede market expansion, particularly in large-scale installations. It is essential for market growth to address safety concerns through enhanced battery designs and reliable safety measures.
Lithium-ion battery disposal and recycling present environmental issues owing to the possible discharge of toxic elements. As the number of used batteries rises, appropriate infrastructure for recycling and disposal must be put in place to reduce environmental effects and guarantee the industry's long-term viability.
Recent Developments in the Lithium-ion Battery Market: A Snapshot
• To advance the electric car sector, Tri Sakti joined forces with BYD firm and Bakrie & Brothers’ group in May 2022. In order to attain zero emissions and a sustainable environment, our alliance supports clean public transit using electric mobility.
• A novel 20Ah-HP rechargeable lithium-ion battery cell with high power and energy for enhanced performance was introduced by the Toshiba Corporation in January 2022. This device makes it simple to upgrade input and output power.