Lithium-ion Battery Market Size, Share, Growth, Trends, Production, Consumption, Revenue and Forecast 2021 to 2027

The global lithium-ion battery market size was valued $36.7 billion in 2019, and is projected to hit $129.3 billion by 2027, at a CAGR of 18.0% from 2021 to 2027. A lithium-ion (Li-ion) battery is a rechargeable battery, which utilizes lithium ions as the essential components of its electrochemistry. Lithium-ion battery find its major application in laptops, PDAs, cell phones, and iPods.

The growth of the market is attributed to the growing demand for the lithium-ion battery in Electric Vehicles (EVs) and grid storage as it offers high-energy density solutions and lightweight. The subsequent increase in the registration of EVs and a decrease in the price of the lithium-ion battery is estimated to expand market size over the forecast period. Also, a surge in sales of EVs and change in user preferences is likely to drive the market. The mounting number of photovoltaic installations and nuclear power plants, along with the beginning of the wind energy projects, is projected to propel market growth over the estimated period. Expanding off-grid installations in the U.S., India, China, and Germany, along with the growing acceptance of Li-ion batteries in equipment used in the medical sector, is expected to encourage the market for lithium-ion battery over the forecast period.

The lithium-ion battery is used in electronic devices such as smartphones, power tools, and digital cameras. Hence, the demand for the battery in the railway industries, manufacturing sectors, and solar power is likely to surge with the rising need for storage and power backup. Long life span, reduction in battery prices, and high density will drive the market for lithium-ion batteries over the forecast period.

Growing demand for other kinds of batteries such as lithium-air, flow battery, sodium nickel chloride, and lead-acid batteries in energy storage, consumer electronics, and electric vehicles is projected to restrain the market over the estimated period.

Increasing sales of electric vehicles in China is projected to drive the market for lithium-ion batteries in the upcoming years owing to government subsidies and purchase shares on non-electric vehicles in big cities. In addition, the existence of major electric vehicle companies, such as Nissan, BMW, Tesla, Chevrolet, Ford, Toyota, and Fiat mainly in the United States, United Kingdom, Germany, and China is anticipated to propel market growth.

Electric Vehicles (EV) and Hybrid Electric Vehicles (HEVs) will continue to observe growth on account of the shift from fuels to electric batteries. Additionally, the government's strict regulations on emission standards to protect the environment and decrease the degradation-based possibilities are likely to play a critical role in influencing the market for lithium-ion batteries.

The batteries having high energy density offer an excellent low temperature, load, and cycle characteristics. As a result, these energy sources rapidly became a vital source of power for video and audio equipment, laptops, mobile phones, and other portable equipment.

Product Analysis

The Lithium Iron Phosphate (LFP) product type accounted for over USD 5.3 billion in 2020. These batteries offer long -life span and excellent safety to the product. Growing demand for LFP batteries in stationary and portable devices, as they need high load currents and durability, is expected to drive the market for lithium-ion batteries.

Lithium Cobalt Oxide (LCO) was the prominent segment and accounted for 18.5% of the global revenue share in 2020. Growing adoption of Lithium Nickel Manganese Cobalt (NMC) in electric bikes, power tools, and other electric powering trains on account of their lower cost, longer cycle life, and higher energy density will fuel its demand over the projected period. This battery offers overall performance, excels on detailed energy, and holds high capacity and power. The segment is expected to witness a CAGR of 12.5% from 2021 to 2027 in the market for lithium-ion batteries.

The LMO segment accounted for a revenue share of 16.2% in 2019 and is expected to witness a significant growth rate of 14.5% from 2021 to 2027 in the market for lithium-ion batteries.

Application Analysis

The consumer electronics segment held the largest market share of 26.6% in 2020. The growth of the segment is attributed to the increasing use of lithium-ion batteries in portable consumer electronics devices due to high energy density and safety levels. 

The automotive segment accounted for 17.9% of the total revenue in 2020. The industrial segment is expected to dominate the lithium-ion battery market and is likely to value USD 24.7 billion by 2027. 

The consumer electronics application segment was valued at USD 8.9 billion in 2020 owing to the high reliability and durability of the lithium-ion battery in appliances such as smartphones and laptops. The growing electronics industry in countries like South Korea, Japan, China, and Taiwan is likely to drive the market for lithium-ion batteries over the projected period. Industrial application valued over USD 11.7 billion in 2020 and is expected to witness an estimated CAGR of over 10.5% from 2021 to 2027.

Energy Storage Systems (ESS) application is projected to enhance the substantial demand and witness a CAGR of 14% from 2021 to 2027 as a result of growing off-grid installations across regions. The growth is driven by increasing solar photovoltaic installations and government support in China, Germany, and the United States. Also, growing concerns about greenhouse gas emissions, carbon emissions, and air pollution are predicted to affect the implementation of solar power systems over the estimated period.

Regional Analysis

In Asia Pacific, the market for lithium-ion batteries accounted for the largest revenue share of more than 33.3% in 2020. The region is expected to continue its dominance over the forecast period. Thus, it has led to high awareness among customers regarding the importance of an eco-friendly environment. The customers in this region can afford the product as they have high disposable earnings. Rising demand for tablets and smartphones across countries such as India, Japan, Thailand, and China is expected to enhance industry expansion over the estimated period.

North America is likely to observe a substantial growth rate over the estimated period due to the growing consumer electronics and automotive sales across countries like the United States and Mexico. The growing demand for lithium-ion batteries in mobile phones owing to enhanced efficiency and extended battery life is expected to drive the market in the coming years. Europe and North America are significant market segments on account of high consciousness regarding the need for energy-efficient batteries.

Key Players

Some of the key players operating in the global lithium-ion battery industry 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., and GS Yuasa International Ltd.

Market Segmentation

By Product Type

• Lithium cobalt oxide (LCO)
• Lithium iron phosphate (LFP)
• Lithium Nickel Cobalt Aluminum Oxide (NCA)
• Lithium Manganese Oxide (LMO)
• Lithium Titanate
• Lithium Nickel Manganese Cobalt

By End-use Industry

• Electrical & Electronics
  • Smartphones &Tablet/PC
  • UPS
  • Others
• Automotive
  • Cars, Buses, &Trucks
  • Scooters & Bikes
  • Trains & Aircraft
• Industrial
  • Cranes & Forklift
  • Mining Equipment
  • Smart Grid & Renewable Energy Storage

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Russia
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia-Pacific
• LAMEA
  • Brazil
  • Saudi Arabia
  • South Africa
  • Rest of LAMEA

The Lithium-ion Battery market research report covers definition, classification, product classification, product application, development trend, product technology, competitive landscape, industrial chain structure, industry overview, national policy and planning analysis of the industry, the latest dynamic analysis, etc., and also includes major. The study includes drivers and restraints of the global market. It covers the impact of these drivers and restraints on the demand during the forecast period. The report also highlights opportunities in the market at the global level.

The report provides size (in terms of volume and value) of Lithium-ion Battery market for the base year 2021 and the forecast between 2021 and 2027. Market numbers have been estimated based on form and application. Market size and forecast for each application segment have been provided for the global and regional market.

This report focuses on the global Lithium-ion Battery market status, future forecast, growth opportunity, key market and key players. The study objectives are to present the Lithium-ion Battery market development in United States, Europe and China.

It is pertinent to consider that in a volatile global economy, we haven’t just conducted Lithium-ion Battery market forecasts in terms of CAGR, but also studied the market based on key parameters, including Year-on-Year (Y-o-Y) growth, to comprehend the certainty of the market and to find and present the lucrative opportunities in market.

In terms of production side, this report researches the Lithium-ion Battery capacity, production, value, ex-factory price, growth rate, market share for major manufacturers, regions (or countries) and type.

In terms of consumption side, this report focuses on the consumption of Lithium-ion Battery by regions (countries) and application.

Buyers of the report will have access to verified market figures, including global market size in terms of revenue and volume. As part of production analysis, the authors of the report have provided reliable estimations and calculations for global revenue and volume by Type segment of the global Lithium-ion Battery market. These figures have been provided in terms of both revenue and volume for the period 2016 to 2027. Additionally, the report provides accurate figures for production by region in terms of revenue as well as volume for the same period. The report also includes production capacity statistics for the same period.

With regard to production bases and technologies, the research in this report covers the production time, base distribution, technical parameters, research and development trends, technology sources, and sources of raw materials of major Lithium-ion Battery market companies.

Regarding the analysis of the industry chain, the research of this report covers the raw materials and equipment of Lithium-ion Battery market upstream, downstream customers, marketing channels, industry development trends and investment strategy recommendations. The more specific analysis also includes the main application areas of market and consumption, major regions and Consumption, major Chinese producers, distributors, raw material suppliers, equipment providers and their contact information, industry chain relationship analysis.

The research in this report also includes product parameters, production process, cost structure, and data information classified by region, technology and application. Finally, the paper model new project SWOT analysis and investment feasibility study of the case model.

Overall, this is an in-depth research report specifically for the Lithium-ion Battery industry. The research center uses an objective and fair way to conduct an in-depth analysis of the development trend of the industry, providing support and evidence for customer competition analysis, development planning, and investment decision-making. In the course of operation, the project has received support and assistance from technicians and marketing personnel in various links of the industry chain.

Lithium-ion Battery market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies’ focus related to Lithium-ion Battery market.

Prominent players in the market are predicted to face tough competition from the new entrants. However, some of the key players are targeting to acquire the startup companies in order to maintain their dominance in the global market. For a detailed analysis of key companies, their strengths, weaknesses, threats, and opportunities are measured in the report by using industry-standard tools such as the SWOT analysis. Regional coverage of key companies is covered in the report to measure their dominance. Key manufacturers of Lithium-ion Battery market are focusing on introducing new products to meet the needs of the patrons. The feasibility of new products is also measured by using industry-standard tools.

Key companies are increasing their investments in research and development activities for the discovery of new products. There has also been a rise in the government funding for the introduction of new Lithium-ion Battery market. These factors have benefited the growth of the global market for Lithium-ion Battery. Going forward, key companies are predicted to benefit from the new product launches and the adoption of technological advancements. Technical advancements have benefited many industries and the global industry is not an exception.

New product launches and the expansion of already existing business are predicted to benefit the key players in maintaining their dominance in the global market for Lithium-ion Battery. The global market is segmented on the basis of region, application, en-users and product type. Based on region, the market is divided into North America, Europe, Asia-Pacific, Latin America and Middle East and Africa (MEA).

In this study, the years considered to estimate the market size of Lithium-ion Battery are as follows:

• History Year: 2017-2020
• Base Year: 2021
• Forecast Year 2021 to 2027

Reasons to Purchase this Report:

- Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and policy aspects
- Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market.
- Market value USD Million and volume Units Million data for each segment and sub-segment
- Competitive landscape involving the market share of major players, along with the new projects and strategies adopted by players in the past five years
- Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players

Research Methodology:

In-depth interviews and discussions were conducted with several key market participants and opinion leaders to compile the research report.

This research study involved the extensive usage of both primary and secondary data sources. The research process involved the study of various factors affecting the industry, including the government policy, market environment, competitive landscape, historical data, present trends in the market, technological innovation, upcoming technologies and the technical progress in related industry, and market risks, opportunities, market barriers and challenges. The following illustrative figure shows the market research methodology applied in this report.

Market Size Estimation

Top-down and bottom-up approaches are used to estimate and validate the global market size for company, regional division, product type and application (end users).

The market estimations in this report are based on the selling price (excluding any discounts provided by the manufacturer, distributor, wholesaler or traders). Market share analysis, assigned to each of the segments and regions are achieved through product utilization rate and average selling price.

Major manufacturers & their revenues, percentage splits, market shares, growth rates and breakdowns of the product markets are determined through secondary sources and verified through the primary sources.

All possible factors that influence the markets included in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. The market size for top-level markets and sub-segments is normalized, and the effect of inflation, economic downturns, and regulatory & policy changes or others factors are accounted for in the market forecast. This data is combined and added with detailed inputs and analysis from Vision Research Reports and presented in this report.

Market Breakdown and Data Triangulation

After complete market engineering with calculations for market statistics; market size estimations; market forecasting; market breakdown; and data triangulation. Extensive primary research was conducted to gather information and verify and validate the critical numbers arrived at. In the complete market engineering process, both top-down and bottom-up approaches were extensively used, along with several data triangulation methods, to perform market estimation and market forecasting for the overall market segments and sub-segments listed in this report.

Secondary Sources

Secondary Sources occupies approximately 25% of data sources, such as press releases, annual reports, Non-Profit organizations, industry associations, governmental agencies and customs data, and so on. This research study includes secondary sources; directories; databases such as Bloomberg Business, Wind Info, Hoovers, Factiva (Dow Jones & Company), TRADING ECONOMICS, and avention; Investing News Network; statista; Federal Reserve Economic Data; annual reports; investor presentations; and SEC filings of companies.

Primary Sources

 In the primary research process, various sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information for this report. The primary sources from the supply side include product manufacturers (and their competitors), opinion leaders, industry experts, research institutions, distributors, dealer and traders, as well as the raw materials suppliers and producers, etc.

The primary sources from the demand side include industry experts such as business leaders, marketing and sales directors, technology and innovation directors, supply chain executive, end users (product buyers), and related key executives from various key companies and organizations operating in the global market.

The study objectives of this report are:

• To analyze and study the global market capacity, production, value, consumption, status (2016-2019) and forecast (2020-2027);
• Focuses on the key manufacturers, to study the capacity, production, value, market share and development plans in future.
• Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players
• To define, describe and forecast the market by type, application and region.
• To analyze the global and key regions market potential and advantage, opportunity and challenge, restraints and risks.
• To identify significant trends and factors driving or inhibiting the market growth.
• To analyze the opportunities in the market for stakeholders by identifying the high growth segments.
• To strategically analyze each submarket with respect to individual growth trend and their contribution to the market
• To analyze competitive developments such as expansions, agreements, new product launches, and acquisitions in the market
• To strategically profile the key players and comprehensively analyze their growth strategies.