PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1752402
PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1752402
With a CAGR of 10.3%, the global lithium-ion battery market is projected to grow from USD 194.66 billion in 2025 to USD 426.37 billion by 2033. Market growth will be driven by the accelerating shift toward electrification across transportation, industrial, and energy sectors, coupled with ongoing advancements in battery performance, energy density, and charging efficiency. Increasing adoption of electric vehicles and the need for high-performance energy storage systems to support grid stability and industrial operations are key growth drivers. Enhanced battery management systems and innovations in manufacturing processes contribute to improved safety, cost optimization, and lifecycle performance. Additionally, government-backed initiatives to build localized battery supply chains and support large-scale battery production fuel investment across the value chain. As industries prioritize sustainability, efficiency, and energy resilience, the demand for lithium-ion batteries is poised to rise significantly across diverse end-use applications.
Scope of the Report | |
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Years Considered for the Study | 2021-2033 |
Base Year | 2024 |
Forecast Period | 2025-2033 |
Units Considered | Value (USD Billion) |
Segments | By Battery Type, Application, and Region |
Regions covered | North America, Europe, APAC, RoW |
"Growing adoption of NMC batteries to support lithium-ion battery market growth"
Lithium nickel manganese cobalt (NMC) batteries are projected to grow significantly in the lithium-ion battery market, driven by their high energy density, long cycle life, and strong thermal stability. These batteries strike an optimal balance of performance and cost, making them ideal for electric vehicles, power tools, medical devices, and industrial equipment. Ongoing efforts to reduce cobalt content are enhancing affordability and addressing sustainability concerns. Their ability to deliver reliable, high-capacity power in compact form factors supports their expanding use across automotive and energy storage systems. As industries prioritize lightweight, efficient, and long-lasting energy solutions, NMC batteries are emerging as a versatile and scalable option, reinforcing their position as a core technology in the evolving battery landscape.
"Rising energy storage demand fuels expansion of lithium-ion battery market"
Energy storage is poised to be the fastest-growing application in the lithium-ion battery market, driven by escalating demand for reliable, flexible, and cost-efficient energy solutions. Increasing grid instability, challenges in peak load management, and the critical need for uninterrupted backup power fuel the large-scale deployment of lithium-ion battery storage systems across utilities and industrial sectors. These systems enable optimized energy management by storing excess power during low-demand periods and delivering it during peak consumption, which helps reduce operational costs and strengthen grid resilience. The inherent scalability, rapid response times, and long service life of lithium-ion batteries make them ideal for both front-of-the-meter and behind-the-meter applications. Accelerated investments in grid modernization, renewable energy integration, and smart infrastructure boost adoption. As energy storage becomes increasingly central to the transformation of power systems, lithium-ion batteries will continue to play a pivotal role in enabling sustainable and efficient energy management worldwide.
" Expanding EV adoption and renewable investments to drive Asia Pacific's dominance in lithium-ion battery market"
The Asia Pacific region is expected to register the highest CAGR in the lithium-ion battery market during the forecast period, fueled by rapid growth in electric vehicle adoption and significant investments in renewable energy projects. Leading countries such as China, India, Japan, and South Korea are aggressively expanding their battery manufacturing capacities and technological capabilities. Government incentives supporting clean energy and energy storage solutions further accelerate market growth. Additionally, the region benefits from a well-established supply chain, abundant raw material availability, and ongoing infrastructure development. Moreover, as this region undertakes major manufacturing of Li-ion batteries, the adoption rate has seen an upward trend due to the cost minimization of these batteries. These factors collectively position Asia Pacific to lead global demand and innovation in lithium-ion battery technologies, making it the dominant region in the market over the coming years.
Breakdown of primaries
A variety of executives from key organizations operating in the lithium-ion battery market were interviewed in-depth, including CEOs, marketing directors, and innovation and technology directors.
Note: Three tiers of companies are defined based on their total revenue as of 2024: tier 3 = revenue less than USD 500 million; tier 2 = revenue between USD 500 million and USD 5 billion; and tier 1 = revenue more than USD 5 billion. Other designations include sales, marketing, and product managers.
Major players profiled in this report are as follows: LG Energy Solution (South Korea), Samsung SDI (South Korea), Panasonic Holdings Corporation (Japan), BYD Company Ltd. (China), Contemporary Amperex Technology Co., Limited (China), BAK Power (China), CALB (China), CLARIOS (US), EnerSys (US), EVE Energy Co., Ltd. (China), Gotion, Inc. (China), GS Yuasa Corporation (Japan), Mitsubishi Electric Corporation (Japan), SK Innovation Co., Ltd. (South Korea), Tesla (US), Toshiba Corporation (Japan), Sunwoda Electronic Co., Ltd. (China), VARTA AG (Germany), AESC GROUP LTD. (Japan), Amperex Technology Limited (China), Amprius Technologies (US), Enovix Corporation (US), Farasis Energy (GanZhou) Co., Ltd. (China), Group14 Technologies, Inc. (US), Ipower Batteries Private Limited (India), Leclanche SA (Switzerland), LITHIUMWERKS (Netherlands), Lyten, Inc. (US), NexTech Batteries (US), PolyPlus Battery Company (US), Saft (France), Sila Nanotechnologies, Inc. (US) and SolarEdge (Israel). These leading companies possess a wide portfolio of products, establishing a prominent presence in established as well as emerging markets.
The study provides a detailed competitive analysis of these key players in the lithium-ion battery market, presenting their company profiles, most recent developments, and key market strategies.
Research Coverage
This report segments the lithium-ion battery market based on battery type, application, and region. The battery type segment includes lithium nickel manganese cobalt oxide (NMC), lithium iron phosphate (LFP), lithium cobalt oxide (LCO), lithium titanate oxide (LTO), lithium manganese oxide (LMO), and lithium nickel cobalt aluminum oxide (NCA). The application segment comprises electric vehicles (EVs), energy storage, industrial, consumer electronics, medical, and other applications, which include aerospace, marine, and telecommunications. The market has been segmented into four regions: North America, Asia Pacific, Europe, and Rest of the World (RoW).
Reasons to Buy the Report
The report will help the leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the overall market and the subsegments. This report will help stakeholders understand the competitive landscape and gain more insights to position their businesses better and plan suitable go-to-market strategies. The report also helps stakeholders understand the lithium-ion battery market's pulse and provides information on key market drivers, restraints, challenges, and opportunities.
Key Benefits of Buying the Report