The global lithium-ion battery market size was estimated at USD 54.4 billion in 2023 and is projected to register a compound annual growth rate (CAGR) of 20.3% from 2024 to 2030.
Automotive sector is expected to witness significant growth owing to the low cost of lithium-ion batteries. Global registration of electric vehicles (EVs) is anticipated to increase significantly over the forecast period. The U.S. emerged as the largest market in North America in 2023. Increasing EV sales in the country owing to supportive federal policies coupled with the presence of several players in the U.S. market are expected to drive product demand. Federal policies include the American Recovery and Reinvestment Act of 2009, which established tax credits for purchasing electric vehicles.
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New Corporate Average Fuel Economy (CAFE) standards mandated fuel economy standards for passenger cars and Light Commercial Vehicles (LCVs) resulting in the expansion of electric drive technologies. Increasing product demand in smartphones owing to their extended shelf life and enhanced efficiency is expected to drive market growth. The increasing demand for EVs owing to growing consumer awareness about carbon emissions is expected to fuel market growth. A decline in the demand for lead-acid batteries, owing to EPA regulations on lead contamination and resulting environmental hazards coupled with regulations on lead-acid battery storage, disposal, and recycling, has led to an increase in the demand for Li-ion batteries in automobiles. Mexico has been a center of the global automotive industry as companies worldwide are eyeing to invest here.
Mexico is the fourth-largest exporter in automotive industry, after Germany, Japan, and South Korea. Growing automobile production in the country is anticipated to drive product demand. The COVID-19 pandemic has been a major restraint to market growth owing to several factors including reduced operational cost by end-users, coupled with disruption in the availability of spare parts due to sluggish manufacturing activities and logistics issues. Battery providers have taken subsequent steps to ensure efficient services to end-users that have signed long-term contracts with them. Vendors are opting for digital tools and are following prescribed preventative measures including social distancing norms and the use of protective kits in case of an on-site inspection and repair services required by end-users on a case-to-case basis.
Lithium-ion Battery Market Segmentation
Grand View Research has segmented the global lithium-ion battery market report based on product, application and region:
Product Outlook (Volume, GWh; Revenue, USD Billion, 2018 - 2030)
• 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)
Application Outlook (Volume, GWh; Revenue, USD Billion, 2018 - 2030)
• Automotive
• Consumer Electronics
• Industrial
• Energy Storage Systems
• Medical Devices
Regional Outlook (Volume, GWh; Revenue, USD Billion, 2018 - 2030)
• North America
o U.S.
o Canada
o Mexico
• Europe
o Russia
o Spain
o France
o U.K.
o Germany
o Italy
• Asia Pacific
o China
o India
o Japan
o South Korea
o Australia
• Central & South America
o Brazil
o Paraguay
o Columbia
• Middle East & Africa
o South Africa
o UAE
o Egypt
o Saudi Arabia
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Key Companies & Market Share Insights
The industry is extremely competitive with key participants involved in R&D and constant product innovation. Key manufactures include Samsung, BYD, LG Chem, Johnson Controls, Exide, and Saft. Several companies are engaged in new product development to improve their global market share. For instance, BYD and Panasonic hold a strong position on account of its increased manufacturing capacities and large distribution network.
Key Lithium-ion Battery Companies:
• BYD Co., Ltd.
• A123 Systems LLC
• Hitachi, Ltd.
• Johnson Controls
• LG Chem
• Panasonic Corp.
• Saft
• Samsung SDI Co., Ltd.
• Toshiba Corp.
• GS Yuasa International Ltd.
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