Lithium-ion Battery Market Forecasts to 2030 - Global Analysis By Type, Form Factor, Cycle Life, Voltage, Application, End User and By Geography

According to Stratistics MRC, the Global Lithium-ion Battery Market is accounted for $66.00 billion in 2024 and is expected to reach $162.47 billion by 2030 growing at a CAGR of 16.2% during the forecast period. A lithium-ion battery is a rechargeable energy storage device that uses lithium ions to move between the anode and cathode during charging and discharging cycles. Known for its high energy density, lightweight nature, and long cycle life, it powers various applications, including electric vehicles (EVs), consumer electronics, and renewable energy systems. Lithium-ion batteries are favoured for their efficiency and ability to store large amounts of energy in a compact size, making them essential in modern technologies like smartphones and electric cars.

Market Dynamics:

Driver:

Growing electric vehicle (EV) demand

The growing demand for electric vehicles offer high energy density, lightweight design, and long cycle life, making them ideal for EV applications. As governments push for greener transportation and stricter emission regulations, the shift from internal combustion engines to EVs accelerates. Moreover, this increases the need for advanced, efficient lithium-ion batteries to enhance vehicle range and performance, driving technological innovations and market growth in this sector.

Restraint:

High production costs

High production costs from expensive raw materials like lithium, cobalt, and nickel, which can fluctuate due to market demand and geopolitical factors. Additionally, complex manufacturing processes and the need for advanced technology contribute to overall expenses. These high costs can deter manufacturers from scaling production and investing in new technologies, ultimately slowing down the adoption of lithium-ion batteries in electric vehicles, consumer electronics, and renewable energy applications. This limits market growth and reduces competitiveness against alternative energy storage solutions.

Opportunity:

Energy storage in grid applications

Energy storage in grid applications, such as solar and wind, into the power grid, lithium-ion batteries offer efficient and scalable energy storage solutions that help stabilize the grid, manage peak loads, and provide backup power. As governments and utilities prioritize decarbonisation and energy resilience, the demand for large-scale battery storage systems has increased. Moreover, the ability of lithium-ion batteries to store and discharge energy rapidly makes them ideal for balancing supply and demand, driving their adoption in grid applications.

Threat:

Stringent environmental regulations

Stringent environmental regulations like lithium, cobalt, and nickel can have adverse environmental effects, such as habitat destruction, water pollution, and high carbon emissions. Governments and regulatory bodies are increasingly setting stricter guidelines on sustainable mining practices, waste management, and battery recycling. Compliance with these regulations raises production costs and limits material availability. Additionally, environmental concerns are pushing the industry toward developing alternative, eco-friendlier battery technologies, potentially slowing market growth.

Covid-19 Impact

The COVID-19 pandemic had a mixed impact on the lithium-ion battery market. Initially, the market faced disruptions due to factory shutdowns, supply chain interruptions, and reduced production of electric vehicles (EVs) and consumer electronics. Delays in mining operations also caused shortages in key raw materials like lithium and cobalt, further hindering production. However, the post-pandemic recovery saw a surge in demand driven by the accelerated shift to renewable energy, increased EV adoption, and growing interest in energy storage systems.

The cylindrical segment is expected to be the largest during the forecast period

The cylindrical segment is estimated to have a lucrative growth, due to its widespread use in high-performance applications and consumer electronics. Their uniform shape facilitates easy stacking and modular design, enhancing scalability for manufacturers. Additionally, advancements in manufacturing processes and materials have improved their performance and reduced costs, driving increased adoption across various sectors. This segment's growth is essential for meeting the rising demand for reliable and efficient energy storage solutions.

The industrial segment is expected to have the highest CAGR during the forecast period

The industrial segment is anticipated to witness the highest CAGR growth during the forecast period, due to reliable energy storage solutions across various applications. Industries such as manufacturing and material handling increasingly utilize lithium-ion batteries for their superior energy density, longer cycle life, and reduced maintenance compared to traditional battery technologies. As industries strive for sustainability and energy efficiency, the adoption of lithium-ion batteries in industrial settings enhances productivity and operational efficiency, further boosting market growth.

Region with largest share:

Asia Pacific is projected to hold the largest market share during the forecast period due to high demand for consumer electronics, and renewable energy solutions. Countries like China, Japan, and South Korea are at the forefront of lithium-ion battery production and innovation, with significant investments in manufacturing and research. The region's focus on reducing carbon emissions and promoting clean energy technologies further drives market growth. Additionally, government initiatives, such as subsidies for EVs and renewable energy projects, along with the development of local supply chains, are enhancing the competitiveness of the Asia-Pacific lithium-ion battery market.

Region with highest CAGR:

North America is projected to have the highest CAGR over the forecast period, owing to increasing demand for advancements in energy storage systems. Major companies, including Panasonic and Tesla, are growing their production sites to keep up with the growing demands of the consumer and business sectors. Government policies that encourage the use of renewable energy sources and lower emissions also spur market expansion. The growing consumer electronics industry also adds to the need for efficient batteries. North America, with its emphasis on innovation and sustainability, is positioned to hold a prominent position in the worldwide lithium-ion battery industry.

Key players in the market

Some of the key players profiled in the Lithium-ion Battery Market include A123 Systems LLC, Amperex Technology Limited (ATL), BASF SE, BYD Company Limited, CATL (Contemporary Amperex Technology Co., Limited), EVE Energy Co., Ltd., Farasis Energy, Inc., Furukawa Electric Co., Ltd., Hitachi Chemical Co., Ltd., LG Energy Solution, Murata Manufacturing Co., Ltd., Northvolt AB, Panasonic Corporation, QuantumScape Corporation, Saft Groupe S.A., Samsung SDI, Sion Power Corporation, SK Innovation, Tesla, Inc. and Toshiba Corporation.

Key Developments:

In August 2024, Hitachi and Gencurix, have entered a strategic partnership in the field of cancer molecular diagnostics. The Partnership aims to develop a testing service for the cancer molecular diagnostics by combining Hitachi High-Tech's core expertise in R&D and manufacturing of in vitro diagnostic products and digital technology.

In August 2024, Hitachi and Singtel Expanded Collaboration to Next-Generation Data Centers and GPU Cloud to Accelerate Enterprise Digital Transformation by AI Adoption.

In May 2024, Panasonic launched new LUMIX S9 compact full-frame mirrorless camera. With this Panasonic aims to bring a new enjoyable shooting experience for creators, making the journey from capturing moments to sharing them with the world.

Types Covered:

• Lithium Cobalt Oxide (LCO)
• Lithium Iron Phosphate (LFP)
• Lithium Manganese Oxide (LMO)
• Lithium Nickel Manganese Cobalt (NMC)
• Lithium Nickel Cobalt Aluminum Oxide (NCA)
• Lithium Titanate (LTO)
• Other Types

Form Factors Covered:

• Prismatic
• Cylindrical
• Pouch
• Other Form Factors

Cycle Lifes Covered:

• Less than 500 cycles
• 500-1000 cycles
• 1000-2000 cycles
• More than 2000 cycles

Voltages Covered:

• Low Voltage (up to 12V)
• Medium Voltage (12V to 48V)
• High Voltage (above 48V)

Applications Covered:

• Consumer Electronics
• Electric Vehicles (EVs)
• Energy Storage Systems
• Medical Devices
• Aerospace and Defense
• Other Applications

End Users Covered:

• Telecommunications
• Renewable Energy
• Industrial
• Healthcare
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances