Lithium Ion Battery Market Report

Market Insights

"The global lithium-ion battery market size was estimated at USD 47.83 billion in 2022 and is likely to grow at a CAGR of 15.19% during 2023-2028 to reach USD 111.79 billion in 2028."

Want to know more about the market scope? Register Here

A lithium-ion (Li-ion) battery is abbreviated as LIB. It is a type of rechargeable battery. Such batteries have utility in portable electronics and electric vehicles. They have a growing demand as they are used in plug-in devices.

Market Dynamics

COVID-19 Impact

The COVID-19 pandemic has caused major disruptions in the supply chain, adversely affecting the lithium-ion battery market. This has led to a rapid shortage of raw materials, including cobalt and nickel, which are key ingredients used to make lithium-ion batteries. Due to strict restrictions to prevent the spread of coronaviruses, the production of cars across the world has decreased significantly, affecting the demand for battery metals.

According to the report of the Ministry of Energy and Mobility of India, in the post-COVID-19 scenario, the production of electric vehicles in India may face a delay due to the increased demand for BS-VI production. Meanwhile, restrictions on imports of Chinese equipment have also introduced new challenges to electric vehicle manufacturing.

Market Drivers

These factors are expected to boost the demand for the market in the coming years:

• The increasing demand for consumer electronic products: Lithium-ion batteries are widely used in consumer electronics such as smartphones, laptops, tablets, and cameras due to their high energy density and long battery life.
• Increasing adoption of lithium-ion batteries in the renewable energy sector: The increasing adoption of renewable energy sources such as wind and solar power requires efficient energy storage solutions. Lithium-ion batteries are a popular choice for energy storage due to their high energy density and low self-discharge rate.
• Increasing adoption of lithium-ion batteries in plug-in vehicles: With the increasing concern over the environment and the depletion of fossil fuels, the demand for electric vehicles (EVs) is on the rise. Lithium-ion batteries are the preferred choice for EVs as they provide high energy density and longer battery life.

Opportunities

Various manufacturers are into research and development to create long-lasting and safe lithium-ion batteries. As the world continuously adopts clean energy, there has been a significant increase in R&D initiatives by battery manufacturers to develop different battery chemistries.

For example, major players (like Panasonic Corporation, Hitachi and Toshiba Corporation etc.) are working on the production of silicon anode batteries with better performance. These silicon anode batteries are expected to be widely adopted in the coming years.

Challenges

Lithium-ion batteries are used in consumer electronics, electrical systems, commercial aircraft, automobiles, pallet trucks, automated vehicles, forklifts, and material handling equipment. Although lithium-ion batteries can store a relatively large amount of energy in a small space, they heat up quickly and can catch fire if they are not working properly. Lithium-ion battery overheating occurs due to high voltage or different voltages, such as a short circuit.

Segment Analysis

Material Trends

"The lithium nickel manganese cobalt oxide segment accounted for the largest market share."

The lithium-ion battery market is segmented as lithium nickel manganese cobalt oxide, lithium iron phosphate, lithium cobalt oxide, lithium titanate oxide, lithium manganese oxide, and lithium nickel cobalt aluminum oxide. The lithium nickel manganese cobalt oxide segment held the largest share of the market in 2022 and is expected to remain dominant during the forecast period. The higher share of the segment is attributed to the growing demand for lithium nickel manganese cobalt oxide used in batteries of mobile phones, laptops, automotive, tablets, power tools, and electrical storage systems.

Want to get more details about the segmentations? Register Here

Voltage Trends

"The high (above 36V) segment accounted for the largest market share."

The market is segmented as low (below 12V); medium (12-36V); and high (above 36V). The high (above 36V) segment is estimated to remain the largest segment over the forecast period, owing to properties such as longer life and safety. Also, the largest contribution is attributed to the rising requirement for this voltage type in marine, electric vehicles, military, power, telecom, etc.

Power Capacity Trends

"The 3,000 to 10,000 MAH segment accounted for the largest market share."

The market is segmented as 0 to 3,000 MAH; 3,000 to 10,000 MAH; 10,000 to 60,000 MAH; and above 60,000 MAH. The 3,000 to 10,000 MAH segment contributed to the highest share in 2022, owing to the growing need for batteries with higher power capacity that can keep the device running for long hours. The segment is expected to maintain its dominance during the forecast period as well.

Industry Trends

"The automotive segment accounted for the largest market share."

The market is segmented as consumer electronics, automotive, aerospace & defense, marine, medical, industrial, power, and telecommunication. The automotive segment is likely to remain the largest segment during the forecast period driven by the growing adoption of electric vehicles.

Regional Insights

"Asia-Pacific accounted for the largest market share."

The Asia-Pacific market accounted for nearly 40% share in 2022 and is estimated to be the largest market for lithium-ion batteries during the forecast period. The Asia-Pacific market is expected to expand with a lucrative CAGR owing to the well-established consumer electronics market in the region, especially in China. Further, the demand from the automotive industry in the region will also augment the regional growth. North America and Europe are also expected to offer considerable growth opportunities during the forecast period.

Know the high-growth countries in this report. Register Here.

Key Players

The following are the key players in the Li-Ion Battery Market (arranged alphabetically).

• BAK Group
• BYD Company
• GS Yuasa Corporation
• Hitachi
• Johnson Controls
• LG Chem
• Lithium Werks
• Panasonic Corporation
• Samsung SDI
• Toshiba Corporation

Note: The above list does not necessarily include all the top players in the market.

Are you the leading player in this market? We would love to include your name. Write to us at sales@stratviewresearch.com.

Recent Development

June 2023, Leading global conglomerate Tata Group in India has signed a preliminary agreement to build a lithium-ion cell facility in Gujarat, India. As India's first gigafactory to produce lithium-ion cells, the projected facility is supported by an initial investment of $1.6 billion. The local manufacturing of batteries which is a vital component for electric cars, will be possible by this huge step.

June 2023, China's CBAK Energy Technology, Inc., a leading producer of lithium-ion batteries and a supplier of electric energy solutions has announced that the Viessmann Group has placed an order for lithium-ion batteries for EUR116.5 from the company, delivery in 2024.

Report Features

This report provides intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the dynamics and will enable strategic decision-making for the existing players as well as those willing to enter the global Li-ion battery market.

What Deliverables Will You Get in this Report?

Research Methodology

This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s lithium-ion battery market realities and future market possibilities for the forecast period. The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for the market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate the growth strategies to expedite their growth process.

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to 3 players)
• SWOT analysis of key players (up to 3 players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances.

Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com.