PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1438067
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1438067
According to Stratistics MRC, the Global Automotive Lithium Ion Battery Market is accounted for $48.0 billion in 2023 and is expected to reach $166.0 billion by 2030 growing at a CAGR of 19.39% during the forecast period. Automotive lithium-ion batteries are advanced rechargeable energy storage devices widely used in electric vehicles (EVs) and hybrid vehicles. These batteries leverage lithium-ion technology to store and release electrical energy efficiently, offering high energy density and a longer lifespan compared to traditional alternatives. Their lightweight design enhances overall vehicle performance, providing increased range and acceleration capabilities for electric cars. With the automotive industry's growing emphasis on sustainability and electric mobility, lithium-ion batteries play a crucial role in powering the shift towards cleaner and more energy-efficient transportation solutions.
According to the International Energy Agency, by 2030, the Net Zero Scenario will witness the installation of 17*million*publicly available charging stations.
Rising demand for electric vehicles (EVs)
EVs have gained significant popularity as the automotive industry increasingly shifts towards sustainable and eco-friendly transportation solutions. Lithium-ion batteries are the preferred choice for EV manufacturers due to their high energy density, longer lifespan, and lightweight nature. The push for stricter emission regulations globally and growing awareness of environmental concerns are fueling the adoption of EVs, thereby propelling the demand for lithium-ion batteries. This trend is likely to continue as governments, consumers, and automakers prioritize the transition to cleaner and more energy-efficient transportation alternatives.
High cost of production
The intricate manufacturing process, including the need for high-quality raw materials, advanced technologies, and stringent safety standards, contributes to elevated production costs. The expense of maintaining quality control and meeting regulatory requirements further amplifies the overall production expenditure. Additionally, this high cost poses a challenge for manufacturers offering competitive pricing for electric vehicles, hindering the widespread adoption of automotive lithium-ion batteries and potentially impeding the growth of the electric vehicle market.
Growing infrastructure for charging stations
The growing infrastructure for charging stations presents a significant opportunity for the automotive lithium-ion battery market. As the global shift towards electric vehicles accelerates, the demand for efficient and widespread charging networks rises. This trend not only promotes the adoption of electric vehicles but also enhances the market for lithium-ion batteries, a key component in EVs. The expanding charging infrastructure addresses concerns related to range anxiety and facilitates the seamless integration of electric vehicles into everyday life. Consequently, the automotive lithium-ion battery market stands to benefit from the increased demand driven by the development and accessibility of charging stations.
Competition from internal combustion engine vehicles
As traditional ICE vehicles continue to dominate the automotive landscape, the demand for lithium-ion batteries may be hindered. The established infrastructure and consumer familiarity with conventional vehicles may slow the adoption of electric vehicles, impacting the growth of the lithium-ion battery market. Concerns about range anxiety, charging infrastructure, and the comparatively lower initial cost of ICE vehicles contribute to the competitive pressure on the automotive lithium-ion battery market. Manufacturers in this space must address these challenges to accelerate the transition to electric vehicles and ensure the sustained growth of the lithium-ion battery market.
The COVID-19 pandemic significantly impacted the automotive lithium-ion battery market. Disruptions in global supply chains, production halts, and decreased consumer demand for automobiles led to a temporary downturn. However, as the automotive industry gradually recovered, the increasing focus on electric vehicles (EVs) and the growing push for sustainable transportation provided a stimulus for the lithium-ion battery market. Governments worldwide are incentivizing EV adoption, and the industry's shift toward cleaner technologies has propelled the demand for automotive lithium-ion batteries, fostering resurgence in market growth.
The hybrid electric vehicles segment is expected to be the largest during the forecast period
The hybrid electric vehicle (HEV) segment is experiencing significant growth due to increasing demand for environmentally friendly transportation solutions. HEVs, which combine internal combustion engines with electric propulsion, rely heavily on advanced lithium-ion battery technology to enhance fuel efficiency and reduce emissions. Governments worldwide are implementing stringent emissions standards and providing incentives for hybrid vehicles, driving the adoption of HEVs. Additionally, advancements in battery technology, such as higher energy density and longer lifespans, are making HEVs more appealing to consumers.
The cylindrical segment is expected to have the highest CAGR during the forecast period
The cylindrical segment in the automotive lithium-ion battery market has experienced substantial growth owing to its inherent advantages, such as high energy density, reliability, and cost-effectiveness. Widely adopted by electric vehicle manufacturers, cylindrical batteries, notably that using lithium-ion chemistry, have become the preferred choice for automotive applications. This surge in demand can be attributed to their compact design, efficient thermal management, and proven track record in electric vehicles, contributing to the overall expansion of the automotive lithium-ion battery market.
The North American region has witnessed heavy growth in the automotive lithium-ion battery market due to several key factors. Increasing consumer demand for electric vehicles (EVs) and stringent environmental regulations promoting sustainable transportation have driven the adoption of lithium-ion batteries. Moreover, advancements in technology, coupled with government incentives and investments in EV infrastructure, have bolstered market expansion. Additionally, the rising awareness of climate change and a shift towards clean energy solutions further contribute to the robust growth of the automotive lithium-ion battery market in North America.
The Asia-Pacific region has experienced significant growth in the automotive lithium-ion battery market, driven by a surge in electric vehicle (EV) adoption. Increasing environmental concerns and advancements in technology have fuelled the demand for electric vehicles, consequently boosting the demand for lithium-ion batteries. Key players in the region, such as China and Japan, have actively invested in research, development, and production infrastructure for electric vehicles and their components. In addition, the expanding charging infrastructure and a growing focus on sustainable transportation solutions further contribute to the flourishing automotive lithium-ion battery market in the Asia-Pacific region.
Key players in the market
Some of the key players in Automotive Lithium Ion Battery market include BYD Co. Ltd., Contemporary Amperex Technology Co. Ltd , GS Yuasa Lithium Power, Hitachi Ltd., LG Chem Ltd., OptimumNano Energy Co. Ltd. , Panasonic Corporation, Saft Groupe, Samsung SDI Co. Ltd., Tesla Motors, Tianjin Lishen Battery joint stock Co. Ltd, Toshiba Corporation and Wanxiang Group Corporation.
In December 2023, LG Chem Ltd., headquartered in Seoul, South Korea, has officially initiated the construction of a cathode plant in the United States, marking a significant step toward establishing a global production hub for battery materials. The strategically chosen location for this facility is Montgomery County, Clarksville, Tennessee, where LG Chem aims to produce cathode materials specifically tailored for North American electric vehicles (EVs). The company plans to engage in collaborative efforts with key partners throughout the entire development and supply chain processes.
In November 2023, Toshiba Electronic Devices & Storage Corporation has launched "SSM10N961L," a low on-resistance, 30V N-channel common-drain MOSFET, suitable for devices with USB and for protecting battery packs. The release of a 30V product realizes a wider selection of applications requiring voltages higher than 12V, such as load switching for the power lines of USB charging devices, and the protection of lithium-ion battery packs in laptop PCs and tablets.
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.