Lithium-ion Battery Market To Raise At Rapid Pace With 18.1% CAGR Till 2030, Due To Rising Adoption And Increasing Sales Of Electric Vehicles Globally | Grand View Research, Inc.

May 18 05:38 2022
Lithium-ion Battery Market To Raise At Rapid Pace With 18.1% CAGR Till 2030, Due To Rising Adoption And Increasing Sales Of Electric Vehicles Globally | Grand View Research, Inc.
Grand View Research, Inc. – Market Research And Consulting
According to new report available with Grand View Research, the Lithium-ion Battery market is expected to witness significant growth over the forecast period on account of the increasing consumption of rechargeable batteries in consumer electronics and a rise in the adoption of electric vehicles.

Lithium-ion Battery Industry Overview

The global lithium-ion battery market size was valued at USD 41.97 billion in 2021 and is expected to reach USD 182.53 billion by 2030, at a CAGR of 18.1% from 2022 to 2030.

The automobile sector is expected to witness significant growth owing to the rising adoption of electric vehicles. The worldwide registration of electric vehicles is anticipated to increase significantly over the forecast period. The U.S. emerged as the largest market in North America with a revenue share of over 75.0% in 2021. Increasing sales of electric vehicles in the U.S. owing to supportive federal policies, coupled with the presence of market players in the country, are expected to drive the demand for lithium-ion batteries in the U.S. over the forecast period.

Gather more insights about the market drivers, restrains and growth of the Global Lithium-ion Battery Market

The federal policies include the American Recovery and Reinvestment Act of 2009, which offer tax credits to consumers for purchasing electric vehicles. The new Corporate Average Fuel Economy standards (CAFE) mandate the fuel economy of passenger cars and light commercial vehicles plying on roads in the U.S., resulting in the surged adoption of electric vehicles in the country. Increasing demand for lithium-ion batteries in smartphones owing to their extended shelf life and enhanced efficiency is expected to drive the market. In addition, increasing demand for electric vehicles owing to growing consumer awareness regarding reducing global carbon emissions is expected to fuel market growth.

                           U.S. lithium-ion battery market size, by product, 2020 - 2030 (USD Billion)

In addition, the decline in demand for lead-acid batteries owing to EPA regulations on lead contamination and resulting environmental hazards, coupled with the regulations on lead-acid battery storage, disposal, and recycling, has led to an increase in the demand for lithium-ion batteries in automobiles.  Mexico has been the primary focus of the global automobile industry as companies worldwide are eyeing to invest in the country. It is the fourth-largest exporter in the automobile industry, after Germany, Japan, and South Korea. Growing automobile production in the country is anticipated to drive the demand for lithium-ion batteries.

COVID-19 has been a major restraint to the market growth owing to several factors including reducing operational costs by end-users, coupled with disruption in the availability of spare parts due to sluggish manufacturing activities and logistics issues. Battery providers have taken subsequent steps to ensure their services to end-users who have signed long-term contracts with them. Vendors are opting for digital tools and are following prescribed preventative measures including social distancing norms and the use of protective kits in case of on-site inspection and repair services required by end-users on a case-to-case basis.

Lithium-ion Battery Market Segmentation

Based on the Product Insights, the market is segmented into Lithium Cobalt Oxide (LCO), Lithium Iron Phosphate (LFP), Lithium Nickel Cobalt Aluminum Oxide (NCA), Lithium Manganese Oxide (LMO), Lithium Titanate and Lithium Nickel Manganese Cobalt (LMC).

  • The LCO segment accounted for the largest revenue share of over 30.0% in 2021.
  • Rising demand for NCA on account of its high specific energy, specific power, and long lifespan is expected to augment the market growth over the forecast period.

Based on the Application Insights, the market is segmented into Automobile, Consumer Electronics, Industrial, Energy Storage Systems and Medical Devices.

  • The consumer electronics segment held the largest revenue share of over 40.0% in 2021. 
  • Lithium-ion batteries are also utilized for providing backup power supply for commercial buildings, data centers, and institutions. In addition, lithium-ion battery is preferred for energy storage in residential solar PV systems. These factors will boost the growth of the energy storage systems application segment in the forecast period.

Based on the Lithium-ion Battery Regional Insights, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa

  • The Asia Pacific led the market with a revenue share of over 40.0% in 2021.
  • The market in Germany is expected to witness reasonable growth over the forecast period owing to the increasing use of lithium-ion batteries in energy storage systems, electric vehicles, and consumer electronics. Germany is the world’s leading market for energy storage systems as well as the development of renewable energies.

Market Share Insights:

  • September 2021: The Toshiba Corporation, Sojitz Corporation, and CBMM have entered into JDA (Joint Development Agreement) to commercially the next-generation lithium-ion batteries by using niobium titanium oxide for anode material.
  • May 2021: The commercial vehicle manufacturer, Daimler Truck AG, and lithium-ion battery manufacturer, CATL, extended their existing partnership based on their shared vision of CO2 neutral electrified trucking. CATL will be a supplier of Li-ion battery packs for the Mercedes-Benz eActros Longhaul battery-electric truck, which will be ready for series production in 2024.

Key Companies Profile:

The market is extremely competitive with key participants involved in R&D and constant product innovation. Several companies are engaged in new product development to improve their global market share.

Some prominent players in the global lithium-ion battery market include

  • BYD Company Ltd.
  • Duracell Inc.
  • Hitachi, Ltd.
  • Johnson Controls
  • LG Chem
  • Panasonic Corporation
  • Renault Group
  • Samsung SDI Co., Ltd.
  • Tesla

Order a free sample PDF of the Lithium-ion Battery Market Intelligence Study, published by Grand View Research.

About Grand View Research

Grand View Research is a full-time market research and consulting company registered in San Francisco, California. The company fully offers market reports, both customized and syndicates, based on intense data analysis. It also offers consulting services to business communities and academic institutions and helps them understand the global and business scenario to a significant extent. The company operates across multitude of domains such as Chemicals, Materials, Food and Beverages, Consumer Goods, Healthcare, and Information Technology to offer consulting services.


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