The implementation of severe government measures to limit rising pollution levels is likely to boost market development even further.
The growing demand for lithium-ion batteries in grid storage and electric vehicles (EVs) may be attributed to the market's development. The consequent growth in EV registration and a drop in the price of the lithium-ion battery are expected to boost market size during the projected period. The global market size for lithium-ion battery market is likely to exceed over 117 USD billion, registering a CAGR of 13%.
A spike in EV sales, as well as a shift in consumer preferences, is also expected to fuel the market development. The growing number of solar installations and nuclear power plants are increasing the growth of the market. Expansion of off-grid installations in the US, China, and India, as well as rising usage of lithium-ion batteries in medical equipment, are likely to boost the market during the forecast period.
Components like anode, cathode, electrolytic solution and others are included in the market's scope. The cathode industry made the greatest contribution to the market. This is due to the cathode's widespread application in the production of lithium-ion batteries. Some of the popular materials used in lithium-ion battery manufacturing are lithium-cobalt oxide, lithium-ion phosphate, and lithium-ion manganese batteries.
The lithium-ion battery is found in a variety of electronic gadgets, including cellphones, power tools, and digital cameras. As a result, with the increasing requirement for storage and power backup, demand for batteries in the railway industries, manufacturing sectors, and solar power is expected to rise. Long-life duration, lower battery costs, and high density will boost the lithium-ion battery market throughout the projected period.
Other types of batteries, such as lithium-air, flow batteries, sodium nickel chloride, and lead-acid batteries, are expected to restrict the market throughout the forecast period due to rising demand in energy storage, consumer electronics, and electric cars. Furthermore, rising concerns about favorable government subsidies, climate change, reducing battery costs, and the falling price of solar photovoltaic cells drove the trend toward renewable energy for power generation.
Lithium-ion batteries are widely used across high-capacity applications which has benefitted the industry positively. The 10,000-60,000 MAh capacity segment has been the most lucrative in the historical years.
In terms of industry, the automotive category is expected to have the highest revenue share of the lithium-ion battery market in the coming future. Electric vehicles (EVs) and hybrid electric vehicles (HEVs) will continue to increase as the world shifts away from fossil fuels and toward electric batteries. Furthermore, the government's rigorous emission rules to preserve the environment and reduce degradation-based possibilities are anticipated to have a significant impact on the lithium-ion battery industry.
In terms of region, in the next years, the APAC lithium-ion battery market is anticipated to develop at the fastest CAGR. Continuous advancements in the consumer electronics and automotive sectors have expanded the use of lithium-ion batteries, which provide various benefits such as higher power capacity, enhanced safety, and decreased pollution.
Key Segments of the Global Lithium-Ion Battery Market
Type Overview, 2018-2028 (USD Billion)
- Lithium Nickel Cobalt Aluminum Oxide (NCA)
- Lithium Nickel Manganese Cobalt (LI-NMC)
- Lithium Iron Phosphate (LFP)
- Lithium Cobalt Oxide (LCO)
- Lithium Titanate Oxide (LTO)
- Lithium Manganese Oxide (LMO)
Capacity Overview, 2018-2028 (USD Billion)
- 0 to 3,000 mAh
- 3,000 to 10,000 mAh
- 10,000 to 60,000 mAh
- 60,000 mAh and Above
Voltage Overview, 2018-2028 (USD Billion)
- Low (Below 12V)
- Medium (12V – 36V)
- High (Above 36V)
Industry Overview, 2018-2028 (USD Billion)
- Consumer Electronics
Regional Overview, 2018-2028 (USD Billion)
- Rest of Europe
- Rest of Asia Pacific
- Rest of South America
Middle East and Africa