Lithium-ion Battery Market To Reach $306.24 Billion By 2033

Lithium-ion Battery Market Growth & Trends

The global lithium-ion battery market size is expected to reach USD 306.24 billion in 2033, registering a CAGR of 21.1% from 2026 to 2033, according to a new report by Grand View Research, Inc. The 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. The rising sales of electric vehicles, along with the expanding renewable energy sector, are expected to drive the market. The emergence of integrated charging stations, green power-generation capability, eMobility providers, battery manufacturers, and energy suppliers is anticipated to stimulate market growth in the coming years.

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. Favorable government policies for infrastructural developments at the domestic level through the National Infrastructural Plan (NIP) of the U.S. are expected to promote the growth of the market in the U.S. over the forecast period. Development of the automotive industry in Indonesia, Vietnam, Mexico, Thailand, and India is expected to drive the industry. The growing inclination toward pollution-free HEVs and EVs, along with technological developments, is expected to drive the lithium-ion battery demand over the forecast period. China is expected to witness high gains in light of energy storage technologies and favorable government support to promote investments in the manufacturing sector.

The growing number of portable consumer electronics that rely on batteries has led to the increased consumption of rechargeable batteries. Portable devices including smartphones, digital cameras, MP3 players, and laptops require rechargeable batteries to provide efficient and effective power. Battery technology is evolving continuously to meet the high performance and power density requirements of devices. 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 market growth over the forecast period. However, the relatively short life span of LCO batteries, coupled with low thermal stability and limited load capabilities (specific power), is likely to act as a market restraint.

Electric and hybrid electric vehicles are projected to be the key consumers of lithium-ion batteries in the coming years. Growing awareness among the masses regarding the benefits offered by battery-operated vehicles and increasing fossil fuel prices, particularly in Asia Pacific, Europe, and North America, are projected to contribute to the growth of the automotive application segment over the forecast period. COVID-19 has been a major restraint to the market 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.

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Lithium-ion Battery Market Report Highlights

• The Lithium Cobalt Oxide (LCO) segment held the largest revenue share, accounting for approximately 29.2% in 2025, driven by its high energy density and strong performance in compact electronic applications.

• The automotive segment accounted for the largest revenue share, approximately 36.4% in 2025, driven by the rapid adoption of electric vehicles and increasing electrification of passenger and commercial transportation.

• Asia-Pacific held the largest share, accounting for approximately 47.7% of the global lithium-ion battery market in 2025, driven by strong manufacturing capacity, rapid electric vehicle adoption, and large-scale deployment of energy storage systems.

• North America is expected to register the fastest CAGR of approximately 21.8% over the forecast period, driven by accelerating EV adoption, expanding energy storage deployments, and strong policy support for domestic battery manufacturing.

Lithium-ion Battery Market Segmentation

Grand View Research has segmented the global lithium-ion battery market on the basis of product, application, and region:

Lithium-ion Battery Product Outlook (Volume, GWh; Revenue, USD Million, 2021 - 2033)

• 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)

Lithium-ion Battery Application Outlook (Volume, GWh; Revenue, USD Million, 2021 - 2033)

• Automotive

• Consumer Electronics

• Industrial

• Energy Storage Systems

• Medical Devices

Lithium-ion Battery Regional Outlook (Volume, GWh; Revenue, USD Million, 2021 - 2033)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • Germany

  • UK

  • France

  • Italy

  • Spain

• Asia Pacific

  • China

  • India

  • Japan

  • South Korea

  • Australia

• Latin America

  • Brazil

  • Paraguay

  • Columbia

• Middle East & Africa

  • Saudi Arabia

  • UAE

  • South Africa

  • Egypt

List of Key Players in Lithium-ion Battery Market

• BYD Co., Ltd.

• CALB (China Aviation Lithium Battery Co., Ltd.)

• Contemporary Amperex Technology Co., Ltd. (CATL)

• EVE Energy Co., Ltd.

• LG Energy Solution Ltd.

• Panasonic Holdings Corporation

• Samsung SDI Co., Ltd.

• SK On Co., Ltd.

• Tesla, Inc.

• Toshiba Corporation