Lithium-ion Battery Market Size, Share & Trends Analysis Report By Product (LCO, LFP, NCA, LMO, LTO, NMC), By Application (Automotive, Consumer Electronics), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global lithium-ion battery market size was valued at USD 48.19 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 18.9% from 2023 to 2030. The automotive sector is expected to witness significant growth owing to the low cost of lithium-ion batteries. The global registration of electric vehicles (EVs) is anticipated to increase significantly over the forecast period. The U.S. emerged as the largest market in North America in 2022. Increasing EV sales in the country owing to supportive federal policies coupled with the presence of several players in the U.S. market are expected to drive the product demand. The federal policies include the American Recovery and Reinvestment Act of 2009, which established tax credits for purchasing electric vehicles.

The new Corporate Average Fuel Economy (CAFE) standards mandated fuel economy standards for passenger cars and Light Commercial Vehicles (LCVs) resulting in the expansion of electric drive technologies. Increasing product demand in smartphones owing to their extended shelf life and enhanced efficiency is expected to drive the market. In addition, increasing demand for EVs owing to growing consumer awareness about reducing global carbon emissions is expected to fuel market growth. 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 Li-ion batteries in automobiles. Mexico has been the primary focus of the global automotive industry as companies worldwide are eyeing to invest in the country.

It is the fourth-largest exporter in the automotive industry, after Germany, Japan, and South Korea. Growing automobile production in the country is anticipated to drive product demand. The COVID-19 pandemic 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 efficient services to end-users that 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 an on-site inspection and repair services required by end-users on a case-to-case basis.

Product Insights

Based on products, the industry has been segregated 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 (NMC). In terms of revenue, the LCO segment accounted for the largest share of 31.17% of the global revenue in 2022. High demand for LCO batteries in mobile phones, tablets, laptops, and cameras, on account of their high energy density and high safety level, is expected to augment the segment growth over the forecast period. LFP batteries offer excellent safety and a long-life span to the product.

Rising demand for lithium iron phosphate batteries in portable and stationary applications as they require high load currents and endurance is expected to augment the industry growth. Rising demand for NCA on account of its high specific energy, specific power, and long-life span is expected to augment the segment growth over the forecast period. NCA finds use in EV vehicles, medical devices, and industrial applications. Increasing consumption of lithium titanate in various applications including electric powertrains, streetlights, UPS, and solar-powered street lighting is likely to fuel segment growth over the coming years. LTO offers various properties including safety, low-temperature performance, and high life-span, which is expected to increase its share over the forecast period.

Application Insights

Based on end-uses, the market has been segmented into automotive, consumer electronics, industrial, medical devices and energy storage systems. In terms of revenue, the consumer electronics segment led the industry in 2022 and accounted for the largest share of 39.13% of the overall revenue. Portable batteries are incorporated in portable devices and consumer electronic products. The applications of portable batteries range from mobile phones, laptops, computers, tablets, torches or flashlights, LED lighting, vacuum cleaners, digital cameras, wristwatches, calculators, hearing aids, and other wearable devices. The electric & hybrid EV market is projected to be the fastest-growing application segment over the forecast period.

The growing awareness about the benefits of battery-operated vehicles and increasing fossil fuel prices, particularly in emerging regions like Asia Pacific, Europe, and North America, are projected to favor the segment growth. Li-ion batteries are also utilized for providing a backup power supply for commercial buildings, data centers, and institutions. Also, lithium-ion battery is preferred for energy storage in residential solar PV systems. These factors will boost the growth of energy storage applications over the forecast period. Li-ion batteries are used in numerous industrial applications, such as power tools, cordless tools, marine equipment & machinery, agricultural machinery, industrial automation systems, aviation, military & defense, electronics, civil infrastructure, and oil & gas.

Regional Insights

Asia Pacific is expected to account for the largest share of 47.59% of the overall revenue in 2022. The market in Europe is expected to witness steady growth over the forecast period owing to the increasing use of Li-ion batteries in various sectors including medical, aerospace & defense, automotive, energy storage, and data communication & telecom. The market in Germany is expected to witness steady growth over the forecast period owing to the increasing use of Li-ion batteries in energy storage systems, EVs, and consumer electronics.

Germany is the world’s leading market for energy storage systems as well as the development of renewable energies. The rapidly growing market for electric vehicles in Asia Pacific countries, such as India and China, is one of the major factors that is positively influencing the demand for Li-ion batteries. The rise in environmental concerns in China has resulted in a ban on conventional fossil fuel-powered scooters from all its major cities to reduce emissions, leading to an increase in the sales of e-scooters.

Key Companies & Market Share Insights

The industry is extremely competitive with key participants involved in R&D and constant product innovation. Key manufacturers include Samsung, BYD, LG Chem, Johnson Controls, Exide, and Saft. Several companies are engaged in new product development to improve their global market share. For instance, BYD and Panasonic hold a strong position on account of its increased manufacturing capacities and large distribution network. Some of the prominent players in the global lithium-ion battery market include:

• BYD Co., Ltd.

• A123 Systems LLC

• Hitachi, Ltd.

• Johnson Controls

• LG Chem

• Panasonic Corp.

• Saft

• Samsung SDI Co., Ltd.

• Toshiba Corp.

• GS Yuasa International Ltd.

Lithium-ion Battery Market Report Scope

Global Lithium-ion Battery Market Report Segmentation

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 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global lithium-ion battery market report on the basis of product, end-use, and region:

• Product Outlook (Volume, GWh; Revenue, USD Billion, 2018 - 2030)

  • Lithium Cobalt Oxide (LCO)

  • Lithium Iron Phosphate (LFP)

  • Lithium Nickel Cobalt Aluminum Oxide (NCA)

  • Lithium Manganese Oxide (LMO)

  • Lithium Titanate

  • Lithium Nickel Manganese Cobalt (LMC)

• Application Outlook (Volume, GWh; Revenue, USD Billion, 2018 - 2030)

  • Automotive

  • Consumer Electronics

  • Industrial

  • Energy Storage Systems

  • Medical Devices

• Regional Outlook (Volume, GWh; Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Russia

    • Spain

    • France

    • U.K.

    • Germany

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

  • Central & South America

    • Brazil

    • Paraguay

    • Columbia

  • Middle East & Africa

    • South Africa

    • UAE

    • Egypt

    • Saudi Arabia