Lithium-ion Battery Market Analysis

Application Segment Analysis

The automotive sub-segment, which is part of the application segment, is projected to garner the largest share of 50.8% in the market by the end of 2035. The sub-segment’s upliftment is highly propelled by its high energy density that enables long-lasting electric vehicles, effectively supports innovative features, such as start and stop systems, provides superior efficiency, and diminishes emissions, which is readily driving the sector’s transition towards high-performance and sustainable transportation. According to an article published by the IBEF Organization in October 2025, there has been a rise in automobile exports in India by 19% as of 2025 to more than 5.3 million units. Besides, the country has produced 3,10,34,174 passenger vehicles, along with quadricycles, two-wheelers, three-wheelers, and commercial vehicles, thus increasing the market’s demand internationally.

Capacity Segment Analysis

Based on the capacity, the >100 kWh segment in the lithium-ion battery market is expected to hold the second-largest share by the end of the forecast period. The segment’s growth is highly driven by being suitable for long-range electric vehicles, offering extended mileage and improved performance, which aligns with consumer expectations and government mandates for zero-emission transport. In grid applications, >100 kWh packs are deployed in utility-scale energy storage projects to balance renewable integration, stabilize power supply, and provide backup during peak demand. The segment benefits from falling battery costs, advancements in cathode chemistries (NMC, LFP), and improvements in battery management systems that enhance safety and efficiency. Governments worldwide are investing heavily in large-scale storage projects, such as the U.S. DOE’s multi-billion-dollar funding for advanced battery supply chains and Europe’s Green Deal initiatives, further accelerating adoption.

Cell Type Segment Analysis

The prismatic sub-segment, part of the cell type segment, is predicted to account for the third-largest share in the market during the stipulated timeline. The sub-segment’s development is extremely fueled by the aspect of offering better space utilization, enabling manufacturers to pack more energy into limited volumes, an advantage for electric vehicles and grid storage systems. Their rigid aluminum or steel casing improves mechanical stability and safety, reducing risks of swelling and leakage. Automakers, particularly in Asia and Europe, increasingly prefer prismatic formats for electric vehicles, as they allow flexible module configurations and efficient thermal management. The format is also widely adopted in energy storage systems, where high-capacity, durable cells are required for long-duration performance, thus suitable for boosting the market’s growth.

Our in-depth analysis of the lithium-ion battery market includes the following segments: