Lithium-ion Battery Market Trends
Growth Drivers
- Increasing Demand for Smartphones – Smartphones' demand for lithium-ion batteries has increased dramatically. According to smartphone suppliers, around 1.39 billion cell phones were sold globally in 2022. The growth can be accredited to the prolonged shelf life and improved efficiency.
- Growing Government Initiatives – The ambitious "zero carbon" goals established by governing bodies throughout the world have increased demand for EVs and, as a result, for lithium-ion batteries, a vital part of electric car strength systems. According to the UN, more than 70 nations have established a net-zero target, which accounts for nearly 76% of global emissions and includes the three greatest polluters: China, the United States, and the European Union.
- Enlargement of Renewable Electricity Sources – Effective electricity storage solutions are required due to the expansion of renewable electricity sources like solar and wind energy. In order to maintain grid stability, lithium-ion batteries are crucial for storing the electricity produced by these sources.
Challenges
- Environmental Challenges - One of the main issues is the concern over the environmental impact of lithium extraction, handling, and disposal as well as the production process itself.
- Risk of Thermal Runaway
- Higher Costs of the Batteries
Lithium-ion Battery Market: Key Insights
Many multi-national companies are concentrating towards new product applications by the advancement in Lithium Ion Battery. Moreover, the many advantageous properties of Lithium Ion Battery for instance, its low cost, durability, battery- life, zero maintenance and more is projected to aid the market grow substantially during the forecast period. Uses of Lithium Ion Batteries have been discovered at regular intervals in the past since 1991 and consecutively till date which is expected to drive the Lithium Ion Battery market rapidly in the future. The global Lithium Ion Battery market is observing vibrant growth on account of increasing demand of energy storage applications in e-bikes, e-vehicles, smartphones, laptops etc. Technological advancement and new application introduction in automotive and electronic industry in the past few years is projected to drive Lithium Ion Battery market besides the wide range of functions of Lithium Ion Battery in an immense range of daily use products.
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For instance, the electronic devices accounted for net new connections of television by 22%, mobile phones by 24%, smart phones by 20%, tablets of 14% and computer of 20% share in household across Finland as per Statistics Finland which is expected to expand the growth of lithium ion battery market in electronics sector during the forecast period. Lithium Ion Battery Market is anticipated to record a CAGR of 16.2% over the forecast period. The Lithium Ion Battery market is expected to reach a value of USD 72.3 billion at the end of the forecast period.On the basis of regional platform, global Lithium Ion Battery market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
As a precursor to automotive and electronic industry, Asia Pacific is estimated to observe a substantial growth in Lithium Ion Battery market on the back of increasing Lithium Ion Battery usage. On account of Lithium Ion Battery usage in growing end-use industries such as electronic portable devices, e-vehicles, etc. the growth will showcase an exponential growth by the end of the forecast period.
Growing adoption of hybrid and e-vehicles with promising government laws toward sustainable and eco-friendly technologies will drive the market growth. In past few years, China, U.S., UK and Germany have witnessed a significant rise in e-vehicles demand because of emission rules and cost effectiveness. China is one of the regional hotspots for the lithium-ion battery market succeeded by South Korea, and Japan.
Asia Pacific is expected to drive demand curve positively and pose a positive influence on the growth of Lithium Ion Battery market over the forecast period owing to increasing Lithium Ion Battery application in automotive industries. North America is expected to grow with the highest CAGR during the forecast period.
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
18.6% |
|
Base Year Market Size (2024) |
USD 67.34 billion |
|
Forecast Year Market Size (2037) |
USD 634.97 billion |
|
Regional Scope |
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