Lithium Ion Cell and Battery Pack Market

Global Lithium Ion Cell and Battery Pack Market Size (2024-2029):

The Global Lithium Ion Cell and Battery Pack Market was worth US$ 51.11 billion in 2023 and is anticipated to reach a valuation of US$ 137.96 billion by 2029 from US$ 60.31 billion in 2024 and is predicted to register a CAGR of 18% during 2024-2029.

MARKET SCENARIO

A lithium-ion cell or battery pack is a rechargeable battery that uses lithium ions as one of its electrochemical components. Laptops, PDAs, cell phones, and iPods all use lithium-ion batteries. Lithium-ion batteries are small, light, and low-maintenance, with a low self-discharge rate and high energy density. Furthermore, as compared to other types of batteries, lithium-ion battery packs contain low quantities of hazardous heavy metals. As a result, end consumers all over the world have a significant need for lithium-ion cells and battery packs.

Because of their rechargeability, lithium-ion batteries are becoming increasingly popular in portable electronics and electric cars. They've recently been utilized in military and aerospace applications. Growing investment in renewable energy sources is being driven by increased awareness of renewable energy and tight government regulations. Renewable energy sources do not provide continuous energy; hence energy storage is essential to ensure a steady power supply. Because of technological improvements and the rising demand for cost-effective renewable energy storage solutions, the lithium-ion battery pack market is expected to increase globally.

The number of countries signing the Paris Climate Change Agreement is rapidly expanding. By reducing their reliance on fossil fuels, the pact ensures a reduction in carbon footprint and greenhouse gas emissions. These are predicting increased demand for lithium-ion battery packs as well as new opportunities. Furthermore, modern lithium-ion cells and battery packs are lightweight, compact, and have a low stand-by rate with a high energy density thanks to advanced technology. Lithium-ion battery packs contain less hazardous heavy metals than other types of batteries, making them an environmentally beneficial way to store energy. During the forecast period, these factors are projected to boost the lithium-ion cell and battery pack market.

MARKET GROWTH

The explosion in demand for smartphones and other electronic devices, as well as the rise in electric cars, are some of the primary reasons driving the global lithium-ion cell and battery market.

MARKET DRIVERS

Lithium-ion batteries have popularity in the automotive, marine, and consumer goods industries. In comparison to the alternatives available, Li-Ion batteries have a higher energy density and voltage capacity. The price of a lithium-ion battery pack is likely to drop in the near future due to a growing number of battery technologies and increased market competition.

Automobile sales are quickly increasing, owing to the rising population and changing consumer purchasing trends. Electric vehicle demand and production are being fueled by rising environmental concerns and advancements in digitally controlled units. Because lithium-ion battery packs require less maintenance and have a lower self-discharge rate than other rechargeable batteries, they are widely employed in electric vehicles. Furthermore, the majority of ships in the marine industry operate on polluting fuel. The solution is to use hybrid and electric systems in both retrofit and new ships, and this trend is gaining traction. As a result, demand for lithium-ion battery packs in the marine and automotive industries is expected to drive the lithium-ion cell and battery packs market during the forecast period.

Government rules that encourage the use of electric vehicles are increasing the demand for full and hybrid electric vehicles around the world. In 2020, the automotive segment of the lithium-ion battery pack market accounted for 54.72% of the market. During the forecast period, the automotive market is expected to generate possibilities worth more than US$ 67 billion. Furthermore, important reasons such as expanding consumer electronics use, better research and development efforts by various organizations and battery producers, and rising demand for plug-in vehicles are all contributing to the growth of the lithium-ion cell and battery pack market.

MARKET RESTRAINTS

Lithium-ion battery packs might be substantially more expensive due to the extended charge time.

As a result, producers must concentrate on increasing battery capacity and lifespan while also reducing charging time and battery size to make them more cost-effective. Furthermore, because the cost of replacing lithium-ion batteries is considerable, and replacing them frequently raises operational costs, battery makers are currently working on increasing the number of charging cycles.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Lithium Ion Cell and Battery Pack Market Analysis By Component

The cathode category contributed the most to the market. This is because the cathode is commonly employed in lithium-ion battery manufacture. It is also utilized to construct positive electrodes for battery cells. Lithium-ion batteries are made with cathode materials such as lithium cobalt oxide, lithium iron phosphate, lithium-ion manganese oxide battery, and lithium nickel manganese cobalt oxide.

Global Lithium Ion Cell and Battery Pack Market Analysis By End Use

The electrical and electronics end-use industry is divided into cellphones, tablets/PCs, UPS, and other categories. In 2023, the smartphones & tablets/PCs category led the market, contributing to roughly 54% of total revenue. Cars, buses, and trucks; scooters and bikes; and trains and aircraft make up the automotive end-use segment. The industrial end-use segment includes cranes and forklifts, mining equipment, smart grids, and renewable energy storage.

REGIONAL ANALYSIS

Because of increased product use in the manufacturing of electric and hybrid vehicles, the lithium-ion battery market share in North America is expected to grow over the forecast period. Furthermore, increased sales of electronic items in North America are expected to fuel the regional market growth during the forecast period.

In the lithium-ion battery market analysis, Asia-Pacific is growing at a large rate. This is due to China's predicted leadership in the deployment of lithium-ion batteries to combat rising pollution levels in its cities. The Chinese government is also concentrating on hybrid vehicles with all-electric motors. Additionally, the electrification of delivery trucks and pickup trucks is likely to increase the demand for these batteries. Hybrid drive systems are a priority for major commercial vehicle manufacturers across model lines. As a result, the market for lithium-ion batteries is expected to rise in tandem with the growth of electric and plug-in hybrid vehicles.

KEY PLAYERS IN THE GLOBAL LITHIUM ION CELL AND BATTERY PACK MARKET

Companies playing a prominent role in the global lithium ion cell and battery pack market include Automotive Energy Supply Corporation, Panasonic Corporation, Samsung SDI Co. Ltd., LG Chem Power (LGCPI), LITEC Co., Ltd., A123 Systems, LLC, Toshiba Corporation, Hitachi Chemical Co., Ltd., China BAK Battery Co. Ltd., GS Yuasa International Ltd, and Others.

RECENT HAPPENINGS IN THE GLOBAL LITHIUM ION CELL AND BATTERY PACK MARKET

• Li-Cycle, the world's largest lithium-ion battery resource recovery company, and North America's premier lithium-ion battery recycler said today that its previously announced Arizona Spoke facility in Gilbert, Arizona has begun commercial operations. Arizona Spoke is the first company to use Li-unique Cycle's technology to manufacture complete electric vehicle battery packs. The plant can process the equivalent of batteries for 20,000 electric vehicles each year.
• On April 21, 2022, Log9 Materials, an advanced battery-technology, and deep-technology startup, presented India's first indigenously-developed cell production plant at their campus in Jakkuru, Bengaluru, in a significant development for India's electric mobility sector. The venture's 7th anniversary was also celebrated on that day.

DETAILED SEGMENTATION OF THE GLOBAL LITHIUM ION CELL AND BATTERY PACK MARKET INCLUDED IN THIS REPORT

This research report on the global lithium ion cell and battery pack market has been segmented and sub-segmented based on component, end use and region.

By Component

• Cathode
• Anode
• Electrolytic Solution
• Others

By End Use

• Electric & Electronics
• Automotive
• Industrial
• Others

By Region

• North America 
• Europe 
• Asia Pacific
• Latin America 
• Middle East & Africa