Mordor Intelligence has published a new report on the Lithium-ion Battery Market, offering a comprehensive analysis of trends, growth drivers, and future projections.
The global lithium-ion battery market, valued at USD 64.75 billion in 2024, is projected to nearly double, reaching USD 127.23 billion by 2029 at a robust CAGR of 14.46%. According to Mordor Intelligence, factors propelling this growth include the exponential rise in electric vehicle (EV) adoption, expanding renewable energy storage needs, and continuous advancements in lithium-ion battery technology. As demand for sustainable energy sources rises worldwide, lithium-ion batteries are positioned as essential in powering the transition to a cleaner, greener energy landscape.
Key Trends in the Lithium-Ion Battery Market
1. Electric Vehicle Adoption as a Primary Growth Driver
Electric vehicles have transformed from niche products to mainstream options, with lithium-ion batteries at the core of this shift. Leading automotive markets globally, including the United States, Europe, and China, have implemented policies encouraging EV adoption through subsidies and incentives. With governments setting timelines to phase out internal combustion engines, demand for lithium-ion batteries is soaring. For instance, countries like Norway plan to ban fossil-fuel-powered vehicle sales by 2025, and several others, including France and the UK, have set similar goals for the coming decades. This regulatory support, combined with the decreasing cost of lithium-ion batteries, is anticipated to maintain the automotive sector’s dominance within the market.
2. Falling Lithium-Ion Battery Prices
The cost of lithium-ion batteries has dropped significantly, from approximately USD 800 per kWh in 2013 to USD 139 per kWh in 2023. This decline has made battery-powered applications more economically viable across various sectors, including automotive and stationary energy storage. Cost reductions are largely driven by advancements in production techniques, economies of scale, and continued research into more efficient battery chemistries. As prices continue to decline, lithium-ion battery adoption is expected to accelerate, especially in cost-sensitive markets.
3. Demand for Stationary Energy Storage Solutions
With the global shift towards renewable energy sources, lithium-ion batteries are increasingly used for grid storage solutions to address the intermittent nature of solar and wind power. Energy storage systems (ESS) help stabilize electricity grids and support the reliable integration of renewable energy sources. Several countries, including the United States, China, and Germany, are investing heavily in ESS to meet their climate goals. This trend is fueling lithium-ion battery demand, particularly in large-scale projects, and creating new growth avenues in the energy storage market.
4. Asia-Pacific’s Dominance in Production and Demand
Asia-Pacific is expected to lead both in production and consumption of lithium-ion batteries, driven by growing EV adoption, significant government support for clean energy, and high demand for consumer electronics. China, Japan, and South Korea are major manufacturers, with China as a global hub for lithium-ion battery production due to its substantial investment in EVs and renewable energy. India, too, is emerging as a key player, with government initiatives aimed at establishing large-scale lithium-ion battery manufacturing capabilities.
Report Overview – https://www.mordorintelligence.com/industry-reports/lithium-ion-battery-market
Market Segmentation
The lithium-ion battery market is segmented by type, application, and geography.
By Type:
- Lithium Nickel Manganese Cobalt (NMC): Known for high energy density, widely used in EVs.
- Lithium Iron Phosphate (LFP): Offers thermal stability, popular in energy storage applications.
- Lithium Cobalt Oxide (LCO): Primarily used in consumer electronics for high energy density.
- Lithium Manganese Oxide (LMO): Features safety advantages, used in hybrid vehicles and power tools.
- Others: Include newer chemistries in experimental and niche applications.
By Application:
- Automotive: Largest segment, dominated by electric vehicles and hybrid vehicles.
- Consumer Electronics: High demand due to usage in smartphones, laptops, and other portable devices.
- Stationary Energy Storage: Growing segment, catering to grid storage for renewable energy sources.
- Industrial: Utilized in applications such as forklifts, UPS systems, and mining equipment.
By Geography:
- Asia-Pacific: Leading region, with China as the primary manufacturer and consumer.
- North America: High demand in EVs and renewable energy storage, driven by technological advancements.
- Europe: Rapidly expanding due to EU’s stringent emission regulations and climate targets.
- Middle East & Africa, and South America: Emerging regions, increasingly adopting lithium-ion technology in EVs and energy storage.
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Lithium-Ion Battery Market Key Players
Prominent companies in the lithium-ion battery market include Panasonic Corporation, LG Chem, Contemporary Amperex Technology Co. Limited (CATL), Samsung SDI Co., Ltd., and BYD Company Ltd. These players are instrumental in shaping the industry through innovations in battery technology, expanding production capacities, and strategic partnerships. For instance, CATL, a Chinese giant, has invested heavily in scaling up battery production, especially for EV manufacturers. LG Chem and Samsung SDI are known for their advanced battery solutions, supplying to automotive and electronics sectors globally. With continuous research and development, these companies aim to improve battery efficiency, safety, and cost-effectiveness, meeting the rising global demand.
Industry Related Reports
Bangladesh Lithium-Ion Battery Market: A lithium-ion (Li-ion) battery is a rechargeable power source made up of lithium-ion cells, where lithium ions travel between the negative electrode and positive electrode through an electrolyte. This movement occurs from the negative to the positive electrode during discharge and reverses when charging. In Bangladesh, the lithium-ion battery market is categorized by application, segmented into automotive, telecommunication, and other uses.
Southeast Asia Lithium Battery Market: The Southeast Asia lithium battery market is organized by application, covering segments such as automotive, industrial, consumer electronics, and other applications, which include medical devices and power tools. Additionally, the market is segmented geographically across several countries: Indonesia, Malaysia, the Philippines, Singapore, Thailand, Vietnam, Laos, and the rest of Southeast Asia.
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