Lithium-ion Battery Market Size, Share & Trends Report

Lithium-ion Battery Market Size, Share & Trends Analysis Report By Product (LCO, LFP, NCA, LMO, LTO, Lithium Nickel Manganese Cobalt), By Application, By Region, And Segment Forecasts, 2020 - 2027

  • Published Date: Jul, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-1-68038-601-1
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 130

Report Overview

The global lithium-ion battery market size was valued at USD 32.9 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 13.0% from 2020 to 2027. 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 U.S. lithium-ion battery market size

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. Also, inclination towards renewable energy for generating power was driven by growing apprehensions related to favorable government incentives, climate change, decreasing batteries cost, and the falling price of solar photovoltaic cells.

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 Insights

The Lithium Iron Phosphate (LFP) product type accounted for over USD 4.9 billion in 2019. 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 18.2% of the global revenue share in 2019. 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 12.3% from 2020 to 2027 in the market for lithium-ion batteries.

A wide range of research and development for the expansion of products that are of high-quality as well as cost-effective was another initiative undertaken by the producers. Supportive government regulations, coupled with subsidiaries and incentives to EVs, have driven their sales across countries. The high stability of such batteries at high temperatures has also amplified their demand across the segment. The LMO segment accounted for a revenue share of 16.2% in 2019 and is expected to witness a significant growth rate of 13.8% from 2020 to 2027 in the market for lithium-ion batteries.

Application Insights

The consumer electronics segment held the largest market share of 26.2% in 2019. 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 17.6% of the total revenue in 2019. The industrial segment is expected to dominate the lithium-ion battery market and is likely to value USD 24.8 billion by 2027. The consumer electronics application segment was valued at USD 8.6 billion in 2019 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 11.3 billion in 2019 and is expected to witness an estimated CAGR of over 10.3% from 2020 to 2027.

Global lithium-ion battery market share

Energy Storage Systems (ESS) application is projected to enhance the substantial demand and witness a CAGR of 13.8% from 2020 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 Insights

In Asia Pacific, the market for lithium-ion batteries accounted for the largest revenue share of more than 33.0% in 2019. 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.

Increasing production capacities for lithium-ion batteries in China, by numerous players such as Panasonic, Contemporary Amperex Technology Co., and LG Chem, along with growing government subsidies in EVs is expected to create an enormous market potential over the projected period. China is one of the leading manufacturers of wind energy and is expected to observe substantial growth in wind energy manufacturing in the coming years. The output of wind capacity had crossed 260 GW in 2018 and hence, driving the demand for ESSs in the country, which is expected to propel the growth of the market for lithium-ion batteries.

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 Companies & Market Share Insights

The global lithium-ion battery industry is a highly competitive owing to the presence of major small- and large-scale manufacturers in countries such as Japan, China, and the United States. Key participants depend upon strategies such as joint ventures, mergers, and acquisitions to increase their presence in the market for lithium-ion batteries. They also emphases on increasing their market profitability and share through research and development activities and product innovations. Industry rivalry is anticipated to be high over the projected period with unstable raw material prices, resulting in insignificant entry barriers for new players. Some of the prominent players in the lithium-ion battery market include:

  • GS Yuasa International Ltd.

  • BYD Company Ltd.

  • A123 Systems LLC

  • Hitachi Chemical Co., Ltd.

  • Shenzhen Huayu New Energy Technology Co., Ltd.

  • Johnson Controls

  • NEC Corporation, Panasonic Corporation

  • Samsung SDI Co., Ltd.

  • Toshiba Corporation

  • LG Chem Ltd.

  • Saft

  • Sony Corporation

  • Narada Power Source Co., Ltd.

  • Contemporary Amperex Technology Co.

Lithium-ion Battery Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 34.2 billion

Revenue forecast in 2027

USD 87.5 billion

Growth Rate

CAGR of 13.0% from 2020 to 2027

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Revenue in USD billion and CAGR from 2020 to 2027

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Product, application, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; MEA

Country scope

U.S.; Canada; Mexico; U.K.; Germany; Spain; Italy; France; Russia; China; India; Japan; South Korea; Australia; UAE; South Africa; Saudi Arabia; Egypt; Brazil; Colombia; Paraguay

Key companies profiled

GS Yuasa International Ltd.; BYD Company Ltd.; A123 Systems LLC; Hitachi Chemical Co., Ltd.; Shenzhen Huayu New Energy Technology Co. Ltd.; Johnson Controls.; NEC Corporation; Panasonic Corporation; Samsung SDI Co. Ltd.; Toshiba Corporation; LG Chem Ltd.; Saft; Sony Corporation; Narada Power Source Co., Ltd.; Contemporary Amperex Technology Co.

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global lithium-ion battery market report on the basis of product, application, and region:

  • Product Outlook (Revenue, USD Billion, 2016 - 2027)

    • Lithium cobalt oxide (LCO)

    • Lithium iron phosphate (LFP)

    • Lithium Nickel Cobalt Aluminum Oxide (NCA)

    • Lithium Manganese Oxide (LMO)

    • Lithium Titanate

    • Lithium Nickel Manganese Cobalt

  • Application Outlook (Revenue, USD Billion, 2016 - 2027)

    • Consumer Electronics

    • Automotive

    • Energy Storage System

    • Industrial

  • Regional Outlook (Revenue, USD Billion, 2016 - 2027)

    • North America

      • The U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • The U.K.

      • France

      • Russia

      • Spain

      • Italy

    • Asia Pacific

      • China

      • India

      • Japan

      • South Korea

      • Australia

    • Central and South America

      • Brazil

      • Colombia

      • Paraguay

    • MEA

      • Saudi Arabia

      • UAE

      • South Africa

      • Egypt

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