Lithium-Ion Battery Market to Grow by USD 448.8 Billion (2024-2028) as Consumer Electronics Drive Demand, Report with AI Impact on Market Trends – Technavio

NEW YORK, Nov. 27, 2024 /PRNewswire/ — Report on how AI is redefining market landscape – The global lithium-ion battery market  size is estimated to grow by USD 448.8 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  42.93%  during the forecast period. Augmented demand from consumer electronics is driving market growth, with a trend towards legislative support for battery recycling. However, growing popularity of fuel cell solutions  poses a challenge.Key market players include A123 Systems LLC, AT and T Inc., BYD Co. Ltd., CLARIOS LLC, Envision Energy USA Ltd., Exide Industries Ltd., GS Yuasa International Ltd., Hitachi Ltd., Johnson Controls International Plc., LG Chem Ltd., Manz AG, Panasonic Holdings Corp., Samsung SDI Co. Ltd., Shenzhen Bak Battery Co. Ltd., SK Inc., Sony Group Corp., TDK Corp., Tesla Inc., TianJin Lishen Battery Joint Stock Co. Ltd., and Toshiba Corp..

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Key Market Trends Fueling Growth

The Lithium-ion battery market is experiencing significant growth, driven by the rise of electric vehicles (EVs) in the automobile sector and the increasing demand for rechargeable batteries in consumer electronics and renewable energy. Key components of Lithium-ion batteries include the anode (often made of graphite), cathode (typically Lithium Cobalt Oxide or Lithium Titanate), and electrolyte solution. Major market players are focusing on strategic collaborations, mergers, and innovation to meet the surging demand. EV sales are fueling the market, with lithium-ion batteries being the preferred choice due to their high energy density, long life cycle, and memory effect. The EV industry’s reliance on lithium-ion batteries is expected to continue, with solid-state batteries and lithium-air flow batteries being potential future competitors. In the consumer electronics sector, lithium-ion batteries power small-sized electronic devices such as laptops and mobile phones, thanks to their high conductivity and energy efficiency. The aerospace, medical, marine, industrial, and telecommunications industries also rely on these batteries for reliable power sources. The lithium supply chain faces disruptions due to the increasing demand for lithium-ion batteries, making it crucial for companies to secure their supply of lithium insertion materials like graphite and LiCoO2. The fundamental operation of lithium-ion batteries involves the combination of the anode and cathode during charging and discharging, with the selective membrane preventing unwanted reactions. Lithium-ion batteries offer features like power density, long life cycle, and energy efficiency, making them a popular choice for various applications. However, they require an integrated protection circuit for charging and discharging, and proper management to ensure reliable performance and minimize aging. Competition in the market includes lead-acid batteries, nickel-metal hydride batteries, and nickel-cadmium batteries. As the market evolves, companies must stay ahead by focusing on expertise, innovation, and delivering reliable battery solutions to meet the growing demand. 

The global shift towards sustainable transportation has gained momentum due to growing concerns over environmental issues and increasing greenhouse gas emissions. In response, numerous governments have set targets and introduced directives to phase out diesel and petrol vehicles and promote the adoption of electric vehicles (EVs) instead. Notable examples include France, the UK, and the Netherlands, which plan to ban the sale of diesel vehicles by 2040, 2040, and 2030, respectively. China is also taking action by offering subsidies for EVs and restricting new ownership of diesel and petrol cars. These initiatives are expected to significantly boost the demand for lithium-ion batteries, a key component of EVs, in the automotive industry. 

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Market Challenges

•         The Lithium-ion battery market is experiencing significant growth due to the increasing demand for electric vehicles (EVs) in the automobile sector and consumer electronics. However, challenges persist, including supply chain disruptions related to the EV industry’s reliance on raw materials like Lithium and Cobalt. Major market players are collaborating, merging, and exploring alternative technologies like lithium-air flow batteries, solid-state batteries, and Lithium Titanate to mitigate these challenges. Anodes and cathodes, key components of Lithium-ion batteries, utilize various materials such as graphite, LiCoO2, and lithium insertion materials. The fundamental operation of these batteries involves an electrolyte solution and a selective membrane. Features like power density, life cycle, energy efficiency, and rechargeability make Lithium-ion batteries popular power sources for small-sized electronic devices, electric vehicles, renewable energy sector applications, and industries like aerospace, medical, marine, industrial, and telecommunications. Despite their advantages, challenges such as memory effect, aging, and maintenance requirements necessitate expertise in management and reliable power supply solutions. Alternatives like lead-acid, nickel-metal hydride, and nickel-cadmium batteries also compete in the commercial market, offering different features and requirements for various applications.

•         Lithium-ion batteries have been widely used in various industries, including automotive and material handling equipment. However, end-users face challenges with the frequent replacement or charging of these batteries, particularly in operations that run for multiple shifts. For instance, forklifts in warehouses require batteries that can last longer to avoid disruptions in logistics management. Traditional batteries, such as lead-acid and lithium-ion, have limited energy capacity and long recharging periods, necessitating frequent replacements every 2-3 years. To address these issues, more end-users are adopting fuel cell systems, which offer longer operational hours and require less frequent replacement or charging. This shift towards fuel cells is expected to impact the demand for lithium-ion batteries in these industries.

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Segment Overview 

This lithium-ion battery market report extensively covers market segmentation by

1. Type 
• 1.1 Lithium nickel manganese cobalt
• 1.2 Lithium titanate
• 1.3 Lithium iron phosphate
• 1.4 Lithium cobalt oxide
2. Application 
• 2.1 Automotive
• 2.2 Consumer electronics
• 2.3 Energy storage and others
3. Geography 
• 3.1 APAC
• 3.2 Europe
• 3.3 North America
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Lithium nickel manganese cobalt-  Lithium-ion batteries with nickel, manganese, and cobalt compositions have gained significant market share due to their unique properties. Nickel and manganese combine to create spinel structures, reducing internal resistance, while nickel’s large specific energy ensures stability. These batteries cater to various applications, including power tools, e-bikes, electric drivetrains, laptops, mobile phones, portable gadgets, electric vehicles, and battery storage power plants. The lithium nickel manganese cobalt segment dominated the global lithium-ion battery market in 2023 and is projected to maintain its position throughout the forecast period.

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Research Analysis

The Lithium-ion battery market is experiencing significant growth due to the increasing demand for electric vehicles (EVs) in the automobile sector and the expanding use of electric power sources in consumer electronics and renewable energy. Lithium and cobalt are key elements in the production of these batteries, with lithium providing high energy density and cobalt enhancing conductivity. The market for lithium-ion batteries is diverse, serving the EV industry, power tools, small-sized electronic devices, and renewable energy storage. The fundamental operation of lithium-ion batteries involves the combination of lithium insertion materials, such as graphite and LiCoO2, during charging and discharging. The market is subject to supply chain disruptions due to the limited availability of raw materials and geopolitical tensions. Strategic collaborations, mergers, and innovation in materials, such as graphite-based lithium-ion batteries, are driving market growth. Lithium-ion batteries are the power sources of choice for various applications, from electric vehicles to laptops, mobile phones, and renewable energy storage systems. Their high energy density, long cycle life, and rechargeability make them an essential component of the modern world’s power infrastructure.

Market Research Overview

The Lithium-ion battery market is a significant segment of the energy storage industry, primarily driven by the growing demand for electric vehicles (EVs) in the automobile sector and the increasing adoption of renewable energy in various industries. Lithium-ion batteries are preferred due to their high energy density, long cycle life, and superior power density compared to traditional lead-acid, nickel-metal hydride, and nickel-cadmium batteries. The market is also fueled by the increasing sales of electric vehicles and the expanding use of lithium-ion batteries in consumer electronics. The lithium-ion battery market consists of several types, including lithium-air flow batteries, solid-state batteries, and graphite-based lithium-ion batteries. The fundamental operation of a lithium-ion battery involves the movement of lithium ions between the anode and cathode through an electrolyte solution and a selective membrane. Lithium-ion batteries are used in various applications, including electric vehicles, power tools, small-sized electronic devices, aerospace, medical, marine, industrial, telecommunications, and more. The market is subject to supply chain disruptions due to the reliance on key raw materials like lithium and cobalt. However, strategic collaborations, mergers, and advancements in technology, such as lithium titanate and solid-state batteries, are expected to mitigate these challenges. Lithium-ion batteries offer several features, including high energy efficiency, long life cycle, and low memory effect. They are rechargeable and require minimal maintenance, making them a reliable power source for various applications. The market is expected to grow significantly in the coming years, driven by the increasing demand for clean energy and the growing popularity of electric vehicles.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Type

• Lithium Nickel Manganese Cobalt
• Lithium Titanate
• Lithium Iron Phosphate
• Lithium Cobalt Oxide

• Automotive
• Consumer Electronics
• Energy Storage And Others

• APAC
• Europe
• North America
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio