Lithium-Ion Battery Market Size, Share & COVID-19 Impact Analysis, By Type (Lithium Cobalt Oxide, Lithium Iron Phosphate, Lithium Nickel Cobalt Aluminum Oxide, Lithium Manganese Oxide, Lithium Nickel Manganese Cobalt, and Lithium Titanate Oxide), By Application (Consumer Electronics, Automotive, Energy Storage System, Industrial, and Others), and Regional Forecast, 2021-2028

The global lithium-ion battery market size was valued at USD 36.90 billion in 2020 and is projected to grow from USD 44.49 billion in 2021 to USD 193.13 billion by 2028, exhibiting a CAGR of 23.3% during the forecast period. The Asia-Pacific dominated the lithium-ion battery market with a share of 46.34% in 2020.

Based on our analysis, the market exhibited a lower growth of about 6.2% in 2020 than 2020 as compared to the average year-on-year growth during 2017-2019. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over. The global impact of COVID-19 has been unprecedented and staggering, with the global market witnessing a negative impact on demand across all regions amid the pandemic.

Li-ion battery, also called as LIB, is a rechargeable battery used in laptops, cellphones, and hybrid & electric cars. Li-ion battery usage is growing across various applications owing to its lightweight, high energy density to increase battery life and ability to recharge.

Impact of COVID-19 on Global Lithium-ion Battery Market to Hamper Growth

The COVID-19 pandemic affected growth of this market during 2020. The outbreak of COVID-19 has restricted the supply of batteries. The key battery component is mainly available in Asia Pacific, but the pandemic has over-exposed the dependency of raw materials on the region. Lithium and cobalt serve key functions in battery cathodes and electrolytes. China dominates the production of elements and controls approximately 80% of the global supply chain of these materials. Many countries across the world have imposed travel restrictions, which have impacted the flow of raw materials and many power plants were shut down worldwide, which impacted the market.

LATEST TRENDS

Growing Sales of Electric Vehicles to Mitigate Climate Change

Electric vehicles have reduced the climate impact when compared to internal combustion engines. Government bodies across the globe are approaching a greener and pollution-free mobility as passenger and commercial electric vehicles are changing trends for future transportation, which will certainly boost lithium-ion battery market growth. Electric vehicles companies, such as Tesla, have implemented the usage of these batteries in cars. Europe has strictly imposed emissions regulations & norms and implemented major public electric mobility transportation projects.

Mounting Renewable Energy Projects is Propelling Growth of the Market

The growing interest toward maintaining a clean environment has propelled the growth of renewable energy projects, such as photovoltaic installation and nuclear power plants, and wind energy projects are propelling the growth of li-ion batteries. In addition, the growing acceptance of li-ion batteries equipment in the medical sector is also supporting the growth.

DRIVING FACTORS

Increased Adoption of Batteries in Power Grid and Energy Storage Systems Play a Key Role in Market

Implementing strict government regulation to regulate rising pollution levels enhances the industries to use these batteries. The power industry is working to produce renewable energy and store it for the future. Low cost, low-self discharge rate, and minimal installation space are some of the key factors driving the adoption of Li-ion batteries in smart grid and energy storage systems. Since these batteries are more resistant to high temperatures, they are ideal for use in remote areas and thermal control applications. For example, in July 2021, Siemens Smart Infrastructure and German Grid Operator company was planning to develop a 100 MW lithium-ion battery storage facility.

Declining Prices of Li-ion Batteries Have Catalyzed Adoption in Various Sector

The major factor restraining the adoption of these batteries from 1990 was its prices. Li-ion batteries contain many components, and the main component of any LIB was its cell, which accounts for 50% of its cost. However, recent developments by LIB manufacturing companies have helped in declining prices of these batteries, which will further reduce in future. The declining prices of components and the adoption of advanced technologies to increase battery capacity are key factors that increase the adoption of lithium-ion batteries.

RESTRAINING FACTORS

Growing Demand for Other Batteries is Hindering Market Growth

The increasing demand for other batteries, such as lead-acid batteries, sodium- nickel chloride, flow batteries, and lithium-air batteries, in consumer electronics, electric vehicles, and energy storage systems is projected to hinder the growth of these batteries.

SEGMENTATION

By Type Analysis

Lithium Iron Phosphate Batteries are Set to Lead Market

Based on type, the market is segmented into lithium cobalt oxide, lithium iron phosphate, lithium nickel cobalt aluminum oxide, lithium manganese oxide, lithium nickel manganese cobalt, and lithium titanate oxide. Lithium cobalt oxide accounted for a major share in 2020 due to its wide adoption in mobile phones, laptops, cameras, and other modern electronic gadgets. Lithium iron phosphate batteries accounted for the fastest-growing segment due to their properties such as long life span, lightweight, and providing excellent safety for products.

By Application Analysis

Growing Demand for EV or HEVs to Lead Lithium-ion Battery Market

By application, the market is segmented into automotive, consumer electronics, energy storage systems, industrial, and others. The automotive sector is expected to be the dominating application for Li-ion batteries. The rising awareness about the benefits of battery-operated vehicles and increasing prices of petrol and diesel, specifically in Asia Pacific, North America, and Europe, have attracted consumers to these electric or hybrid vehicles. The consumer electronics sector is considered to be the fastest-growing application for lithium-ion batteries. The continuous development in the consumer electronics sector has led to an increase in the adoption of lithium ion batteries in these applications. They offer multiple advantages such as high power capacity, reduced pollution, and increased safety.

REGIONAL ANALYSIS

Geographically, the lithium-ion battery market share is divided into North America, Latin America, Europe, Asia Pacific, and the Middle East & Africa.

As per our findings, Asia Pacific dominates the market share during the forecast timeframe. China and Japan are considered the world's largest markets of electric vehicles. The automotive sector is widely adopting li-ion batteries. In addition, the growing demand for smartphones, laptops, and other electronic devices in various other countries, such as China, India, Japan, and Singapore, is expected to increase the market in the region.

North America will showcase strong growth, led by the U.S. The growing sales of consumer electronics & electronics vehicles will contribute to the market size.

The increasing focus of government bodies toward greenhouse gas emissions in the environment in Europe has supported the growth of this market. Several countries in the region, such as Germany, Argentina, France, and others, have set their target of being zero emission of CO₂ by 2050. This has boosted the usage of Li-ion batteries in the region. The European Commission and the Batteries European Partnership Association have launched a public-private partnership to encourage research into smart battery technology in Europe.

The Middle East & Africa is expected to observe substantial growth as many countries are going through massive construction activities and cities are developing at a larger scale. This, in turn, leads to the requirement of industrial and construction power tools that use Li-ion batteries. Key nations actively operating in the region are South Africa and Gulf Cooperation Council (GCC) countries.

KEY INDUSTRY PLAYERS

This market is highly competitive with large number of market players operating in multiple regions. Prominent manufacturers such as Saft Group S.A., BYD Company, LG Chem, and A123 Systems have well established supply chain and distribution network which help these major players to hold prominent position in the market.

List of Key Company Profiled in the Report are:

• BYD Company (China)


• LG Chem (South Korea)


• Contemporary Amperex Technology Co. Ltd (CATL) (China)


• Samsung SDI (South Korea)


• Panasonic Corporation (Japan)


• BAK Power (China)


• Clarios (Germany)


• Toshiba Corporation (Japan)


• Hitachi (Japan)


• Automotive Energy Supply Corporation (Japan)


• A123 System (U.S.)


• Saft Group S.A. (France)

KEY INDUSTRY DEVELOPMENTS:

• September 2021– The Toshiba Corporation, Sojitz Corporation, and CBMM have entered into JDA (Joint Development Agreement) to commercially the next-generation lithium-ion batteries by using niobium titanium oxide for anode material.


• May 2021– The commercial vehicle manufacturer, Daimler Truck AG, and lithium-ion battery manufacturer, CATL, extended their existing partnership based on their shared vision of CO₂ neutral electrified trucking. CATL will be a supplier of Li-ion battery packs for the Mercedes-Benz eActros Longhaul battery-electric truck, which will be ready for series production in 2024.  

REPORT COVERAGE

The Lithium-Ion Battery Market report offers qualitative and quantitative insights on lithium-ion batteries and a detailed analysis of market size & growth rate for all possible segments in the market.

Along with this, the report provides an elaborative analysis of market dynamics, emerging trends, and competitive landscape. Key insights offered in the report are advancement in technology for Li-ion batteries by individual segments, recent industry developments such as partnerships, mergers & acquisitions, consolidated SWOT analysis of key players, Porter’s five forces analysis, business strategies of leading market players, macro and micro-economic indicators, and key industry trends.

REPORT SCOPE & SEGMENTATION