The size of the global lithium-ion battery market was worth USD 68.40 billion in 2023. The global market is anticipated to grow at a CAGR of 14% from 2024 to 2029 and be worth USD 150.14 billion by 2029 from USD 77.98 billion in 2024.
The lithium-ion battery market is experiencing unparalleled growth because of the increased application in electric vehicles and power storage facilities. In Australia, engineering experts from the University of South Australia (UniSA) have stated that emphasising the use of sustainable energy to power EV day charging can reduce the load on the electricity grid in the evening. On the other hand, Europe is lagging and is holding itself back from financially supporting the upstream battery material projects such as lithium refining in comparison to other regional industries like the United States. It is exploring the creation of a battery ecosystem to fulfil its lithium-ion battery (LIB) demand for consumer electronics, energy storage systems (ESS) and automotive and electric vehicle (EV) applications. Apart from this, China is the biggest supplier and India is also making big strides in this market.
Lithium has become a common component in most consumer electronics, EVs and energy storage facilities. This consumption pattern around the world is boosting the demand for LIBs. Its excellent charge density and capacity to stock electric energy are the prime growth factors. Also, the demand for EVs and portable electronics has surged necessitating fresh, compact and lightweight with longer service life, greater energy densities and complete enhancement of battery performance. Moreover, the usage of sustainable energy resources and the construction of power storage facilities by several countries worldwide is another propellant fuelling LIB’s market share. All the leading nations across the five regions are investing heavily as well as collaborating with private players to build an ecosystem to fulfil the ever-growing power needs.
The automotive is also a big customer of the LIB industry accounting for a significant share of total consumption. The United States is leading this market with substantial EV sales. This is due to the favourable policies and other legal benefits coupled with a large pool of private stakeholders. Europe and Asia are also catching up with elevated EV demands and governmental support.
The lack of feasible alternatives at the moment is also contributing to the expansion of the lithium-ion batteries market. The sodium-ion and hydrogen fuel cell batteries are still in their developmental phase and require further study and advancement to come to the same production and market level.
The manufacturers of Electric Commercial Vehicles (ECVs) are struggling to meet the demands because of the limited supply of these batteries. And, the absence of viable substitutes is making the matter worse for the end-user companies. Moreover, innovating modern power storage technologies which are safer and more affordable than the LIBs from the available resources like sodium and hydrogen is a feasible option but this needs further time, effort and investment to become practically applicable. Thus, all these factors are hampering the LIB’s market value.
The application of artificial intelligence is providing potential opportunities for the lithium-ion battery market. The integration of AI will enhance battery performance and protection by using data analysis and live adaptations and changes. This helps in monitoring battery condition and power level, anticipates breakdowns and improves charging cycles for durability and efficiency. Also, incorporation with LIBs strengthens the battery management system (BMS), enhances state-of-charge projection and balances voltage and heat dissipation. Thus, it is expected to boost the expansion of the lithium-ion battery market.
The growing interest in sodium-based batteries as an alternative to lithium-ion batteries (LIBs) is one of the biggest obstacles to the market players. The rising traction towards the development of sodium batteries (SBs) is due to issues with its sustainability which is present in the majority of EV batteries and laptops. As a result, various companies have started producing these SBs as greener substitutes for LIBs. The capacity degradation while fast charging is one of the main reasons behind this development. Sodium-ion batteries are more affordable because they provide dual benefits of battery chemistry by depending on low-price materials. Additionally, several car manufacturers have already announced Na-ion electric cars. For example, Seagull by BYD.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2023 to 2029 |
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Base Year |
2023 |
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Forecast Period |
2024 to 2029 |
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CAGR |
14% |
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Segments Covered |
By Type, Product Type, Capacity, Material, Application and Region. |
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Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities |
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Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Market Leaders Profiled |
BYD Company Limited (China), Panasonic Holdings Corporation (Japan), Samsung SDI Co. Ltd. (South Korea), GS Yuasa Corporation (Japan), Toshiba Corporation (Japan), Hitachi, Ltd. (Japan), LG Energy Solution (South Korea), SK Innovation Co., Ltd. (South Korea) and Others- (Total 26 players have been covered) and Others. |
The Lithium Nickel Manganese Cobalt Oxide (NMC) segment is predicted to capture a significant share of the lithium-ion battery market. Currently, it holds more than 60 per cent market share followed by lithium iron phosphate (LFP) with close to 30 per cent share. On the other hand, the Lithium Iron Phosphate segment growth is also propelling upward due to high favouritism by the Chinese OEMs. Furthermore, about 95 per cent of the LFP batteries for electric LDVs are used in Chinese automotive and of which BYD alone accounts for 50 per cent of demand.
The components of the lithium-ion batteries segment are more prevalent and are projected to propel further during the forecast period. This can be attributable to the growing adoption of EVs, integration of renewable energy, household appliances boom and investments in grid power storage projects.
The above 60000 MAH segment is anticipated to grow at a considerable pace in the coming years. The shift towards electric vehicles and smarter technologies is contributing to this segment’s rise. Moreover, in January 2024, China’s phase 1 of the 60000 tons lithium battery recycling project commenced by the Jiangrui New Material Technology Co., Ltd. The overall investment is of around 2 billion Yuan. On the contrary, it is believed that there is a big demand for 3,001 to 10,000 mAh battery capacities. This trend is propelled by several industries like aircraft, appliances, automotive and consumer electronics.
The cathode material segment is leading the category under the lithium-ion battery market. Today almost all pure electric vehicles and plug-in hybrids need some type of LIB because this provides higher energy density, slower self-discharge and longer service life than the lead-acid batteries and nickel-metal hydrides.
The automotive segment is dominating the lithium-ion battery market and is believed to expand in the future. The surge in battery demand for EVs is driving the segment’s market growth. The consumption of vehicle LIBs has risen from around 33O GWh in 2021 to 550 GWh in 2022 which is roughly a 65 per cent rise. This can be attributed to the increased sales of electric passenger cars i.e. 55 per cent growth in 2022. Likewise, both in the United States and China the battery demand has gone up by about 80 per cent in 2022 but the EV sale has only grown by 55 per cent and 70 per cent, respectively.
North America is poised to register tremendous growth in its share of the lithium-ion battery. This is due to rising energy demand in the region. It was reported that California (USA) surpassed the 10-gigawatt battery storage limit in May 2024. It is increasing the huge volume of battery power storage. In the last five years, the state has increased its battery fleet by 1250 per cent from 770 megawatts in 2019. It is estimated to require 52 gigawatts of power storage to fulfil its aim of 100 per cent green electricity by 2045. Moreover, builders plan to add 6813 megawatts of battery programs in the California Independent System Operator's (CAISO) sector by the end of 2024 which will be led by four-hour lithium-ion systems
Europe lithium-ion battery market is expected to propel forward owing to its active engagement in the transition towards clean energy. It is projected to grow at a higher CAGR in the coming years. Like, the Hungarian Ministry of Energy in April 2024, declared that the subsidy under the 50 grid-scale energy storage initiative with a combined power of 440 MW was received via tender started in February 2024. And, has allotted HUF 62 billion for this project. However, existing problems are mainly associated with the lithium-ion battery’s (LIBs)supply chain. Also, the regional authorities are planning to invest in recycling metals in LIBs to reduce carbon dioxide emissions by 28 per cent. Hence, all these efforts will drive the regional market forward.
Asia Pacific is rapidly advancing in the lithium-ion battery market and is believed to expand at a faster rate during the forecast period. This can be attributed to the extensive application of these batteries in the consumer electronics sector. It is the biggest user among other segments. Besides this, the governments in the Central Asian states are commencing projects to improve lithium mining or to build lithium-ion battery capacities. For instance, Kazakhstan’s president asked the Geological Services to increase its examination and developmental activities for lithium deposits. It is likely to be around 50,000 to 100,000 tons.
Latin America is one of the most promising regions with the presence of 80 per cent of high-value lithium reserves worldwide. So, there are big chances for the region to attain a faster growth rate for the lithium-ion battery market. Also, the Andean salt flats in Argentina, Chile and Bolivia are called the lithium triangle. In addition, Brazil together with these three countries accelerating efforts to advance further in the electric vehicle industry by converting lithium into battery chemicals.
Middle East and Africa are predicted to experience steady expansion during the forecast period for the lithium-ion battery market. The surging demand for consumer electronics, smartphones, electric vehicles and storage of clean electricity is pushing forward the market share of the regional industry.
Companies playing a prominent role in the global lithium-ion battery market include BYD Company Limited (China), Panasonic Holdings Corporation (Japan), Samsung SDI Co. Ltd. (South Korea), GS Yuasa Corporation (Japan), Toshiba Corporation (Japan), Hitachi, Ltd. (Japan), LG Energy Solution (South Korea), SK Innovation Co., Ltd. (South Korea) and Others- (Total 26 players have been covered), and Others.
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By Product Type
By Capacity
By Material
By Application
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