The global lithium-ion battery market size was valued at USD 40 billion in 2021. It is projected to reach USD 170.77 billion by 2030, growing at a CAGR of 17.5% during the forecast period (2022-2030).
A collection of one or more electrochemical cells based on conversion or intercalation makes up a lithium-ion or lithium-ion battery (LIB). Depending on the application, different lithium chemistries are available in various format types. Primary LIB batteries are not rechargeable, while secondary LIB batteries can be recharged and reused. Currently, the cathode active material (CAM), also known as the positive electrode, in most commercial Li-ion cells is composed of intercalated lithium. Graphite, hard carbon or some other type of carbon often serves as the anode or negative electrode (Silicon-Carbon). Although a modest memory effect seen in LFP cells has been linked to subpar-produced cells, lithium-ion batteries have a high energy density, negligible self-discharge, and no memory effect.
Rechargeable batteries are being used more frequently due to the rise in portable consumer electronics that run on batteries. Rechargeable batteries are necessary for portable electronics like cellphones, digital cameras, MP3 players, and laptops to offer practical and efficient power. In order to meet the high performance and power density needs of gadgets, battery technology is constantly changing. Supercapacitors and other emerging high-energy-density technologies are replacing the current lithium and nickel-based batteries. Rechargeable battery usage is anticipated to rise due to technological developments such as fuel cell batteries, solid-state lithium-ion, sodium-ion batteries, gold nanowire batteries, magnesium batteries, and solid-state lithium-ion batteries.
Due to their energy density, chemical volatility, memory effect, discharge current, maintenance required, charge storage life, and environmentally favorable attributes, nickel- and lithium-based batteries are primarily used in electronics. Wearable technology, virtual and augmented reality, 4K televisions, 3D printers, drones, and communication robots are just a few of the products that the advancement of technology is making available to consumers. These products will likely gain popularity among tech-savvy consumers, which is expected to drive market growth over the forecast period.
The growth of the lithium-ion battery market is anticipated to be constrained by the rising demand for replacements, such as lead acid batteries, lithium-air flow batteries, solid-state batteries, and sodium nickel chloride batteries, in electric vehicles, energy storage, and consumer electronics. The term "lithium air" describes using oxygen as an oxidizer instead of a substance. As a result, batteries can extend the life of phones and cars by five times and are five times lighter and cheaper than lithium-ion batteries. The rising flow of battery demand is likely to restrain the growth of the lithium-ion battery market over the forecast period. As alumina, sodium chloride, and nickel are more readily available on the market and less expensive to produce than lithium-ion batteries, the demand for sodium-nickel chloride batteries is rising.
The expansion of production facilities by businesses like Samsung, LG Chem, Tesla, BYD, BAK Battery, Guoxuan, Shandong Wina Battery, and Zhejiang Tianneng in China is expected to lower the price of lithium-ion batteries during the next seven years. Lithium's low weight and good energy-to-weight ratio are expected to drive demand during the projected period. The need for the product is expected to increase shortly due to significant technological developments in lithium-ion batteries, including electrolytes, silicon anode material modifications that dramatically increase the voltage capacity, and the Li-S & Li-air technologies exhibiting high energy density.
The global lithium-ion battery market is segmented by product and application.
Based on Product Type, the global market is bifurcated into lithium cobalt oxide (LCO), lithium iron phosphate (LFP), lithium nickel cobalt aluminum oxide (NCA), lithium manganese oxide (LMO), lithium titanate (LTO), and lithium nickel manganese cobalt.
The lithium cobalt oxide (LCO) segment is the highest contributor to the market and is expected to grow at a CAGR of 16.2% during the forecast period. Due to their high energy density and high level of safety, LCO batteries are expected to see significant demand in mobile phones, tablets, laptops, and cameras over the forecast period. However, the market is likely constrained by the LCO batteries' relatively short lifespan, poor thermal stability, and constrained load capabilities (specific power). In addition, cobalt demand is anticipated to decline due to its high cost and scarcity. The market for LCO battery chemistry is driven by the fact that LCO batteries are the most popular for consumer electronics.
Regarding specific energy, NMC excels and delivers high capacity and power. Due to NMC's high energy density, low cost, and long cycle life, it is expected that its use in power tools, e-bikes, and electric powertrains will increase over the projected period. Additionally, NMC battery chemistry has become one of the favored battery types for electric car applications. These elements will cause an increase in NMC battery chemistry during the projection period.
Based on Application, the global market is bifurcated into automotive, consumer electronics, industrial, and energy storage.
The automotive segment owns the highest market share and is expected to grow at a CAGR of 24.1% during the forecast period. The market for electric and hybrid electric vehicles is anticipated to develop the fastest over the forecast period. The application category is expected to rise due to rising fossil fuel prices and growing public awareness of the advantages of battery-operated vehicles, particularly in developing Asia Pacific, Europe, and North American areas. The usage of fossil fuels in the transportation industry has increased environmental worries about carbon emissions, leading to increased research and development for electric vehicles. Additionally, government incentives and subsidies to promote the adoption of electric vehicles have significantly lowered their cost. The accessibility of public charging stations has raised the popularity of these vehicles, especially in Europe and North America. These factors will accelerate the expansion of the automotive application segment over the forecast period.
Consumer electronics items and portable devices both need portable batteries. Mobile phones, laptops, desktops, tablets, torches or lanterns, LED lighting, vacuum cleaners, digital cameras, wristwatches, calculators, hearing aids, and other wearable technology are just a few things that portable batteries can power. The most popular portable batteries are lithium-ion and nickel metal hydride. Due to their high energy densities and numerous charge/discharge cycles, which lead to a long lifespan, these battery products are extensively used in portable devices. Form and weight are the main factors for properly using portable gadgets.
The global lithium-ion battery market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.
Asia-Pacific is the most significant global lithium-ion battery market shareholder and is expected to grow at a CAGR of 17.2% during the forecast period. China has established a goal for the Electric Vehicle Initiative's Clean Energy Ministerial that calls for electric vehicles to make up 30% of all vehicles by 2030. This includes buses, lorries, vans, and cars. In addition, the nation has made steps to create a more sophisticated charging infrastructure than other industrialized nations, and the government is currently investing in constructing an additional 12,000 charging stations. Over the projection period, this is anticipated to increase demand for lithium-ion batteries by stoking the market for electric vehicles.
Additionally, Japan has long been at the forefront of technology. Due to favorable government support for promoting investments and R&D activities for high-end technology manufacturing, it is anticipated to be one of the promising markets. The Indian government has also made significant efforts to support the development of the renewable energy sector in the nation. For instance, by 2022, the government wants to install 175 GW of renewable energy plants. In addition, the government is focusing on deploying battery energy storage projects alongside solar and wind power projects to ensure that they supply power continuously. Maruti Suzuki India Ltd. also collaborated with Denso Corporation, Toshiba Corporation, and others to create lithium-ion batteries for electric vehicles. To promote the use of EVs in India, the government of India's Make in India initiative launched and funded this joint venture. These elements will accelerate the nation's lithium-ion battery market expansion during the projected period.
North America is expected to grow at a CAGR of 15.2% over the forecast period. The North American construction industry is expected to witness considerable growth owing to the high demand for non-residential construction projects such as hospitals, schools, and colleges over the coming years. It is anticipated that the "Affordable Care Act" will encourage building of hospitals and healthcare facilities in the United States. Favorable demographic trends, including an increasing population, are anticipated to build more businesses, factories, schools, and colleges, which is projected to increase demand for UPS in the construction industry. Due to rising consumer electronics and electric vehicle sales in nations like the United States and Mexico, the North American lithium-ion battery market is anticipated to develop moderately over the projected period. The market is expected to be driven by rising demand for lithium-ion smartphone batteries due to their longer shelf life and increased efficiency. In addition, growing consumer interest in decreasing global carbon emissions is anticipated to increase demand for electric vehicles, supporting market expansion.
Europe is anticipated to grow significantly over the forecast period. The market is expected to be driven by the introduction of the ELIBAMA project (European Li-Ion Battery Advanced Manufacturing for Electric Vehicles), which aims to promote mass production of Li-ion batteries and cells for electric vehicles in response to fierce competition from Asia and the U.S. In order to enable competitive pricing for electric vehicles, the project intends to develop environmentally friendly procedures for producing electrolytes, electrodes, cells, and electrolyte-filling processes and assembly. Developing renewable energies and energy storage technologies are prominent industries in Germany. Germany currently gets about 33% of its electricity from renewable sources, and by 2050, that percentage is anticipated to rise to 80%. Over the projected period, this is expected to present growth prospects for the nation's lithium-ion battery producers.
Brazil's automotive industry has shifted toward using sugar beet-derived ethanol instead of diesel and gasoline. Due to a lack of infrastructure for charging vehicles, there are currently fewer prospective customers for electric vehicles than there are in the country. However, the Brazilian government is taking several steps to assist the market for electric vehicles, including exempting these vehicles from annual car ownership taxes and import duties. The world is aware of Saudi Arabia's vast oil reserves and fields. The authorities in this area are looking at sustainable and renewable energy storage options like lithium-ion batteries, as these reserves cannot last indefinitely. The main factor propelling the market in this region is the rising public awareness of the advantages of renewable energy sources. Additionally, government actions are being taken during the projection period to improve sustainable mobility in the nation.
The global lithium-ion battery market’s major key players are
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