PUBLISHER: DataM Intelligence | PRODUCT CODE: 1325364
PUBLISHER: DataM Intelligence | PRODUCT CODE: 1325364
Global Lithium-ion Batteries Market reached US$ 52.1 billion in 2022 and is expected to reach US$ 144.0 billion by 2030 growing with a CAGR of 13.6% during the forecast period 2023-2030.
The demand for lithium-ion batteries in the automotive sector, particularly for EVs and hybrid vehicles, has been a primary driver of the market. The transition from traditional internal combustion engines to electric powertrains has fueled the demand for high-performance, long-lasting batteries with fast-charging capabilities.
Consumer electronics is expected to hold more than 1/3rd share in the global lithium-ion batteries market in the forecast period, covering nearly half of the share in countries India, China and Japan where the electronics sector has a greater dominance. Furthermore, the proliferation of smartphones, laptops, tablets, wearables and other portable electronic devices has boosted the demand for lithium-ion batteries. These batteries offer high energy density, longer lifespan and lighter weight compared to other battery technologies, making them ideal for powering portable devices.
Rise in Demand for Electric Vehicles
Lithium-ion batteries are the primary energy storage solution used in EVs. They offer high energy density, longer lifespan and fast-charging capabilities, making them well-suited for powering electric vehicles. The increasing adoption of lithium-ion batteries in EVs has directly driven the growth of the lithium-ion batteries market. Considering the growing demand for EV government across the globe is also investing in boosting the market share of the product.
For instance, on 1st January 2023, To improve the domestic supply chain for the cutting-edge batteries that power electric vehicles (EVs), U.S. Department of Energy (DOE) announced funding of US$ 42 million for 12 projects. In order to increase domestic EV adoption, projects chosen for the Electric Vehicles for American Low-Carbon Living (EVs4ALL) program focus on developing batteries that last longer, charge more quickly, function well in subfreezing temperatures and have better overall range retention.
Increasing Usage and Demand for Smart Devices
The proliferation of smart devices in the consumer's daily lives has led to a surge in their usage. Smartphones, in particular, have become essential tools for communication, internet browsing, multimedia consumption and a wide range of applications. The increased reliance on smart devices has significantly driven the demand for reliable and long-lasting battery solutions.
Furthermore, emerging trends in the smart device market, such as the Internet of Things (IoT), augmented reality (AR), virtual reality (VR) and wearable devices, are expected to further drive the demand for lithium-ion batteries. These technologies require efficient and reliable energy storage solutions to power their functionalities.
Alternative Battery Technologies
Alternative battery technologies, such as solid-state batteries, lithium-sulfur batteries and various post-lithium-ion technologies, offer the potential for improved performance and features compared to traditional lithium-ion batteries. These alternative technologies may offer higher energy densities, faster charging capabilities, longer cycle life and better safety profiles.
Furthermore, excessive battery heating issues can drive interest and investments in alternative battery technologies that offer improved thermal stability. For instance, solid-state batteries are being researched and developed as a potential alternative to conventional lithium-ion batteries due to their enhanced safety features, including resistance to overheating and thermal runaway.
The pandemic resulted in disruptions to global supply chains, including raw materials, components and manufacturing facilities. Restrictions on transportation, lockdown measures and reduced workforce availability led to delays and shortages in the supply of lithium-ion batteries and related materials. This disruption affected the production and availability of batteries, impacting the market.
Furthermore, the automotive industry, including the electric vehicle (EV) sector, experienced a slowdown due to lockdowns, economic uncertainties and reduced consumer spending during the pandemic. The reduced demand for EVs had a direct impact on the lithium-ion batteries market since EVs are a major application segment for these batteries.
The global lithium-ion batteries market is segmented based on type, material, capacity, voltage, end-user and region.
Lithium Cobalt Oxide (Licoo2) has Excellent Cycling Stability, High Energy Density and Specific Capacity
Lithium Cobalt Oxide (LiCoO2) holds a major share in the market and is expected to cover up to 1/3rd share in the forecast period. The demand for LiCoO2 has been significant due to the widespread adoption of portable electronics globally. However, there is increasing interest in developing alternative cathode materials with better safety, lower cost and higher energy density.
This is driven by the need for improved battery performance, longer cycle life and enhanced thermal stability. As a result, the market share of LiCoO2 is gradually diversifying to include other cathode materials like Lithium Nickel Manganese Cobalt Oxide (NMC) and Lithium Iron Phosphate (LFP). Furthermore, ongoing research and development efforts are focused on enhancing the performance and safety of LiCoO2 cathodes is expected to create future opportunities for the segmental growth of the product.
Asia-Pacific Increasing Adoption of Electric Vehicles (EVs)
Asia-Pacific holds a significant share of the global lithium-ion batteries market and countries like India, China and Japan hold a major share in it. India is among the developing economy making it cover 1/3rd of the market. Furthermore, according to official data, China's lithium-ion battery market continued to grow rapidly in the first 10 months of 2022.
According to data from the Ministry of Industry and Information Technology, the overall output of lithium-ion batteries exceeded 580 gigawatt-hours (GWh) between January and October. Particularly, the output of consumer-grade lithium-ion batteries exceeded 84 GWh. In the first 10 months, power batteries for new energy vehicles (NEVs) were built to a capacity of around 224 GWh. Furthermore, according to the ministry, exports of lithium-ion battery products increased 87 percent year over year.
The major global players include LG Chem Ltd, Panasonic Corporation, Samsung SDI Co Ltd, BYD Co Ltd, BAK Group, A123 Systems, GS Yuasa Corporation, Hitachi Ltd, Johnsons Controls Inc. and Saft Groupe S.A.
The global lithium-ion batteries market report would provide approximately 78 tables, 89 figures and 220 Pages.
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