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EN20113637 |
Pages: 290 |
Oct 2023 |
Lithium-ion Battery Overview
Lithium-ion batteries have high electricity density, extended cycle life, and several applications in a variety of industries, such as patron electronics, electric powered vehicles, renewable strength storage, and portable gadgets. Thus, these batteries have greatly expanded in popularity. During charging and discharging cycles, lithium ions cross between the positive and negative electrodes in these batteries.
Global Lithium-ion Battery Market Analysis
The global lithium-ion battery market size was $46.9 billion in 2022 and is predicted to grow with a CAGR of 15.8%, by generating a revenue of $193.8 billion by 2032.
COVID-19 Impact on Global Lithium-ion Battery Market
The COVID-19 pandemic had wide-ranging negative effects on the lithium-ion battery industry. Demand for different consumer gadgets, electric vehicles (EVs), and renewable energy systems that significantly rely on lithium-ion batteries decreased as the virus spread over the world, disrupting supply chains, reducing industrial activity, and enforcing strict lockdowns. Supply chain disruptions brought on by production hold-ups and shortages, notably from important manufacturing centers like China, exacerbated the market's problems. However, the pandemic also made it clear how crucial energy storage devices are for grid resilience and stability, as well as how important EVs are becoming for cutting emissions and achieving sustainable transportation. A steady rebound in demand and prices was driven by these causes, together with stimulus packages and policy assistance for the promotion of green technologies.
Manufacturers and stakeholders examined ideas to improve battery technology and optimize production processes in addition to adapting to new health and safety requirements and speeding up digitalization.
Growing Demand for EVs with Li-ion Batteries to Promote Market Growth
A confluence of significant factors that jointly spurred the expansion of the lithium-ion battery market is responsible for its growth. The growing desire for electric automobiles (EVs) as a viable and environmentally desirable form of transportation. This need has elevated the demand for effective and large-capacity electricity storage solutions, which has resulted in a considerable increase in the demand for lithium-ion batteries as the primary energy source. Lithium-ion batteries provide a flexible and scalable solution for storing excess electricity during peak generation times. Additionally, the increasing integration of renewable power sources like solar and wind into electricity grids necessitates effective strength storage structures to mitigate intermittency issues. The demand for high-performance, long-lasting batteries is additionally being stimulated by using the multiplied use of transportable electronic devices, such as anything from smartphones to laptops. Lithium-ion technology is the technology of preference due to its better energy density and rechargeability.
Thermal Runaway Events to Restrain Market Growth
The lithium-ion battery market, despite its impressive growth, is nonetheless constrained by a number of problems that limit both its adoption and future growth. One important factor is the inherent safety issues with lithium-ion batteries, particularly in high-energy applications like grid storage and electric vehicles, where thermal runaway events can result in fires and explosions. Furthermore, relying on relatively scarce raw minerals like cobalt and lithium itself creates questions about supply chain sustainability and stability, which might result in pricing volatility and moral quandaries. Because there is a chance that hazardous waste will be produced, the difficulties with recycling and disposing of lithium-ion batteries also add to environmental worries. In addition, although it is continuously declining, the high initial cost of lithium-ion battery systems is still a deterrent for many consumers and industries wishing to switch to cleaner energy sources.
Advancements in Technology to Drive Excellent Opportunities
The market for lithium-ion batteries has made notable strides because to cutting-edge technologies. The efficiency, security, and energy density of batteries have all significantly improved as a result of these developments. The achievable and durability of lithium-ion batteries have extensively improved because to developments in electrode substances like silicon anodes and solid-state electrolytes, enabling longer-lasting and faster-charging units in a variety of industries. Furthermore, advances in manufacturing techniques, such as roll-to-roll manufacturing and 3D printing of battery components, have streamlined operations, reduced costs, and aided in the sizable use of lithium-ion batteries in portable electronics, electric powered vehicles, and distinct features. Continuous research into lithium-ion technologies promises even greater advancements as the need for sustainable energy solutions grows. These advancements could include improved recyclability or bigger energy storage capacities, which would further cement lithium-ion's critical position in the changing world of energy storage and consumption.
Global Lithium-ion Battery Market Share, by Product, 2022
The lithium cobalt oxide (LCO) sub-segment accounted for the highest market share in 2022. In the lithium-ion battery market, the lithium cobalt oxide (LCO) segment—one of the first and most dependable cathode materials—plays a significant role. LCO cathodes remain a top pick for producers looking to strike a balance between energy density and overall battery performance, despite experiencing difficulties with safety and thermal stability. Concerns about cobalt's geopolitical challenges, supply chain constraints, and environmental impact have tempered the LCO segment's supremacy, directing research and development towards alternate cathode chemistries that lessen or do away with the requirement for cobalt. LCO cathodes are still important in the Li-ion battery business, especially for applications that prioritize energy density and small form factors, thanks to their established infrastructure and commercial viability.
Global Lithium-ion Battery Market Share, by Enterprise Size, 2022
The consumer electronics sub-segment accounted for the highest market share in 2022. As a key factor in the lithium-ion battery market's expansion and innovation, the patron electronics sector is essential. There has been a rising need for high-performance, lightweight, and rechargeable batteries as a result of the widespread use of smartphones, laptops, tablets, wearables, and different transportable electronic devices. There have been considerable improvements in battery chemistry, manufacturing processes, and design as a result of this market's unquenchable need for longer battery existence and faster charging capabilities. Manufacturers are under pressure to develop batteries that balance capacity, safety, and form factor as consumer expectations rise, resulting in both incremental advancements and game-changing innovations. In turn, economies of scale have prompted cost reductions and greater accessibility of lithium-ion batteries across other industries, such as electric vehicles and renewable energy storage, thanks to the demand created by the consumer electronics market. In the overall lithium-ion battery industry ecosystem, the consumer electronics category essentially serves as a trailblazer, setting the pace for innovation, efficiency, and sustainability.
Global Lithium-ion Battery Market Share, by Region, 2022
The Asia-Pacific lithium-ion battery market generated the highest revenue in 2022. In 2021, the market was dominated by the Asia-Pacific region. The utilization of lithium-ion batteries is anticipated to experience substantial expansion in the region due to the increasing deployment of electric powered vehicles in countries like China and India as well as the robust demand for electronics due to urbanization and rising power purchase parity. According to estimates, a large element of the population in Asia-Pacific lacks access to electricity and depends on traditional fuels like kerosene and diesel for their lighting and mobile cellphone charging needs. Due to the technical advantages and declining lithium-ion battery prices, lithium-ion battery integrated energy storage options are projected to see an increase in use. This is anticipated to generate a sizable number of opportunities for li-ion battery makers. One of the biggest markets for electric vehicles is China, where their adoption is rising in line with the country's clean energy policies. In addition, the Chinese government has been offering both monetary and non-monetary incentives to encourage the use of electric vehicles.
Competitive Scenario in the Global Lithium-ion Battery Market
Investment and agreement are common strategies followed by major market players. In February 2022, Panasonic Holdings Corporation built a production plant in western Japan's Wakayama Factory to produce new "4680" lithium-ion batteries for electric vehicles in an effort to grow its business internationally. Mass manufacturing and productivity verification are probably going to start at the conclusion of the fiscal year 2024. In order to create a joint venture to develop battery cells and modules for North America, LG Energy Solution, a division of LG Chem, and Stellantis N.V. signed a memorandum of agreement in October 2021. This partnership will assist Stellantis N.V. in its ambition to capture 40% of the US market for electrified vehicles by 2030. The Stellantis N.V. assembly facilities in the US, Canada, and Mexico will receive the batteries made at this plant for use in the construction of next-generation electric vehicles.
Some of the leading lithium-ion battery market players are BYD Co., Ltd., A123 Systems LLC, Hitachi, Ltd., Johnson Controls, LG Chem, Panasonic Corp., Saft, Samsung SDI Co., Ltd., Toshiba Corp., and GS Yuasa International Ltd.
| Aspect | Particulars |
| Historical Market Estimations | 2020-2021 |
| Base Year for Market Estimation | 2022 |
| Forecast Timeline for Market Projection | 2023-2032 |
| Geographical Scope | North America, Europe, Asia-Pacific, and LAMEA |
| Segmentation by Product |
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| Segmentation by Application |
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| Key Companies Profiled |
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