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.
Increasing purchasing power of consumers coupled with continuous decline in the price of electrical vehicles will propel the market growth. In addition, implementation of stringent regulations to limit carbon emissions across transportation sector will positively impact the industry growth. For instance, in 2019 European Union has revised the Clean Vehicles Directive under which the national procurement target for green buses is set between 24% to 45% depending on the population and GDP of the respective countries.
Increasing adoption of clean energy technologies along with growing demand for energy storage systems (ESS) will boost the lithium ion battery market growth. ESS mitigates concerns toward energy security and provides a cost effective & sustainable solution to meet the increasing energy demand. Multiple countries across the globe have announced targets aimed toward curbing carbon emissions and promote clean energy technologies which in turn will drive the product penetration.
The lithium-ion battery market is expected to experience a boom in the forecast period due to recent advancements in consumer electronics technologies. Owing to the many remarkable properties of Li-ion batteries such as high energy density, consumer electronics manufacturers prefer these over other batteries. The high demand for consumer electronics is a result of the changing lifestyle, expanding middle-class population, and a shift to smart electronic devices. This, in turn, is expected to drive the demand for lithium-ion batteries.
These batteries also find application in the renewable energy sector for the stationary energy storage purpose. The demand for such batteries is set to increase as the renewable energy sector is growing owing to the increasing technological advancements in solar and wind power segments, supportive government policies, and increasing interest of investors in renewable power.
Affordability Playing a Crucial Role in the Growth of the Lithium-Ion Battery Market
Intense research and development activities have contributed extensively to the growth of the lithium-ion battery market. In the past 10 years, the cost of lithium-ion batteries has been lowered by almost 80 percent. This factor helps in the speedy adoption of lithium-ion batteries on a massive scale, ultimately sowing the seeds of growth.
Hybrid Vehicles to Boost the Growth Prospects of the Lithium-Ion Battery Market
With the rising awareness among many individuals about reducing carbon emissions, the sales of electric vehicles and hybrid electric vehicles are increasing at a rapid rate. The popularity of hybrid cars is thriving, especially among the Gen-Z and the millennial category. This vehicle type powers the electric motor through batteries and uses fuel or gasoline for the internal combustion engine. The prominence of these vehicles is accelerating the growth of the lithium-ion battery market substantially.
Profitable Government Initiatives to Lay the Foundation of Growth
The government bodies of numerous countries are promoting various initiatives linked to decarbonization and curbing of pollution levels. Developing economies like India and China, with rich natural resources and vast spaces for setting up manufacturing capacities, are focusing on switching reliability from fuel-powered vehicles to electric vehicles and the components linked to them. These factors will help in increasing the growth rate of the lithium-ion battery market.
Some Prominent Government Initiatives that will Impact the Growth of the Lithium-Ion Battery Market
Recommended Steps to Propel the Growth of the Lithium-Ion Battery Market
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.
|Market Size||US$ 129.3 Billion by 2027|
|Growth Rate||CAGR of 18.0% from 2021 to 2027|
|Segments Covered||Product, End-User, Region|
|Companies Mentioned||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.|
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.
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.
Some of the key players operating in the global lithium ion battery 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., and GS Yuasa International Ltd. The other players in the market (not included in the report) include Tesla, Johnson Controls International Plc., Saft Batteries, and BYD Company Ltd.
By Product Type
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.
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:
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- 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
In-depth interviews and discussions were conducted with several key market participants and opinion leaders to compile the research report.
Primary research represents a bulk of research efforts, supplemented by extensive secondary research. Annual reports, press releases, and relevant documents of key players operating in various application areas have been reviewed for competition analysis and market understanding.
Secondary research also includes recent trends, technical writing, Internet sources, and statistical data from government websites, trade associations, and agencies. These have proved to be reliable, effective, and successful approaches for obtaining precise market data, capturing market participants’ insights, and recognizing business opportunities.
The study objectives of this report are:
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