The global lithium-ion battery market was valued at USD 36.7 billion in 2019 and is projected to hit USD 129.3 billion by 2027, at a CAGR of 18.0% from 2020 to 2027.
Lithium-ion (Li-ion) batteries are high-energy-density rechargeable batteries that are commonly utilized in portable equipment. Because of the increased use of these batteries in smartphones, tablets/PCs, digital cameras, and power tools, the market for these batteries is likely to rise significantly during the forecast period.
The increasing adoption of consumer electronics which are power by Lithium-ion battery is fueling the market growth. Lithium-ion batteries are widely used in electronic devices such as tablets, laptops, mobile phones, PCs, and cameras due to their prolonged service life and high energy density.
Public and private investment in hybrid cars and electric vehicles has resulted in an increase in research and development (R&D) aimed at producing more efficient and cost-effective lithium-ion batteries. This in turn is expected to drive the growth of the Lithium-ion Battery market.
Furthermore, Lithium-ion battery potential for application to grid-level energy storage systems because of their rapid response, modularization, and flexible installation are expected to drive the market growth.
Li-ion batteries are more stable and can be recharged hundreds of times. Other rechargeable batteries appear to have a higher energy density, voltage power, and lower self-discharge rates. Because a single cell retains more charge than other types of batteries, this improves power efficiency. As a result of these features, the Li-ion battery industry is predicted to expand.
Increasing demand for plug-in vehicles is expected to drive the growth of the Lithium-ion Battery market. Electric vehicles use lithium-ion batteries as a source of power. The widespread usage of electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) has undoubtedly increased lithium-ion battery adoption, which is projected to continue to rise in the future. Consumer acceptance of EVs has aided in the growth of the market for these energy-saving, pollution-reducing vehicles. The number of electric vehicles is steadily increasing, owing to benefits such as reduced vehicle engine maintenance, reduced usage of hazardous oil waste, and reduced pollution caused by fuel combustion engines, as well as the advancement of battery technology.
Growing emphasis on renewable energy is expected to further drive the lithium-ion battery market. Rechargeable lithium-ion batteries are the perfect complement for solar panels. Low resistance charging is produced by solar panels, which is what lithium batteries require. Furthermore, lithium batteries charge quickly, allowing you to extract the most amount of solar energy from each day of sunlight.
The Asia-Pacific region is predicted to account for the highest Lithium-ion battery market share. The Asia Pacific region's dominance is due to rapid technological advancements and increased government emphasis on lowering greenhouse gas emissions. The area also has a well-established infrastructure that permits modern technology to be adopted more quickly. Another important driver of the lithium-ion battery market's growth in the region is the growing number of manufacturers supplying lithium-ion batteries at relatively cheaper prices.
Due to rising consumer electronics and vehicle sales in nations like the United States and Mexico, North America is likely to develop significantly over the forecast period. The Lithium-ion battery market size in North America is predicted to grow due to increased demand for lithium-ion batteries in cell phones due to higher performance and longer battery life. Because of the widespread knowledge of the need for energy-efficient batteries, Europe and North America are key consumer segments.
The lithium-ion battery market is highly fragmented with major players dominating the market share. Below is the list of some of the industry giants:
Panasonic has factories in Belgium (Tessenderlo) and Poland (Gniezno), which produce more than a billion batteries each year, starting from the creation of the battery can, to the labeling of finished products, packing, and automatic palletization.
Samsung SDI Co Ltd is a Korea-based company principally engaged in the manufacture and distribution of lithium-ion rechargeable batteries. The Company operates its business through two segments. The Energy Solution segment is engaged in the manufacture of lithium-ion rechargeable batteries, including small-sized mobile phone batteries, middle-sized automobile batteries, and large-sized batteries used for energy storage systems (ESS).
The cathode is the energy source in lithium-ion batteries, and it is the most important material in terms of battery performance, safety, and cost. LG Chem uses its competitiveness in battery technology to build a battery from start to finish, encompassing raw materials and finished goods.
Toshiba Group provides goods and services in the areas of energy systems and solutions, infrastructure systems and solutions, building solutions, retail and printing solutions, electronic devices and storage solutions, digital solutions, and the battery business to customers all over the world.
Tesla, Inc. is a Palo Alto, California-based electric vehicle and clean energy firm. Tesla's current offerings include electric automobiles, residential and grid-scale battery energy storage, solar panels and solar roof tiles, and other associated products and services.