The global Lithium-Ion Battery market size was estimated at USD 54.9 billion in 2023 and is projected to reach USD 163.32 billion in 2030 at a CAGR of 14.6% during the forecast period 2023-2030.
The lithium-ion battery market pertains to the global industry involved in the production, distribution, and marketing of lithium-ion batteries, a rechargeable battery type that utilizes lithium ions as the primary charge carriers. These batteries have vast applications, which include but are not limited to portable electronics, electric vehicles (EVs), energy storage systems, and renewable energy integration. The market encompasses all activities related to lithium-ion battery manufacturing, research and development, raw material sourcing, component production, assembly, distribution, and sales. It entails a gamut of stakeholders such as battery manufacturers, suppliers of raw materials and components, battery pack assemblers, battery management system providers, and end-users.
The demand for lithium-ion (Li-ion) batteries will be complemented by the increasing preference of consumers for electric and hybrid vehicles. Sustainable transportation and zero-emission vehicles have been the main focus leading to the significant momentum gained by electric vehicles (EVs) in recent years. Governments are now providing favorable subsidies and schemes to encourage consumers to switch to EVs, thereby supporting the e-mobility movement. For instance, the Netherlands and Sweden joined the U.S., Canada, Israel, Australia, Germany, Norway, and New Zealand in November 2022 to transition their government-operated fleets to zero-emission vehicles.
The COVID-19 pandemic has resulted in significant disruptions to supply chains, which have had an adverse impact on the lithium-ion battery market. These disruptions have led to shortages of critical raw materials such as cobalt and nickel, both of which are essential components in the production of Li-ion batteries. The imposition of strict lockdown measures worldwide to control the spread of the virus has led to a considerable reduction in automobile production, thereby affecting the demand for battery metals. In the report on the post-COVID-19 scenario of India's energy and mobility sectors, it is suggested that the production of electric vehicles in India may experience delays due to the increasing emphasis on producing BS-VI. Furthermore, the limited import of Chinese components may present new challenges in the manufacturing of electric vehicles.
The pandemic had a considerable impact on businesses globally, with nations like India and China bearing the brunt of the virus's outbreak. lithium-ion batteries are expected to witness a substantial surge in demand owing to the heightened consciousness among individuals and enterprises regarding the benefits of energy storage and the efficient utilization of lithium-ion technology. Lithium-ion batteries are increasingly favored over other battery technologies due to their elevated energy density, prolonged lifespan, and expedited charging capabilities. The market for lithium-ion batteries is poised for swift expansion during the projected period, stimulated by the escalation in the need for dependable energy storage solutions and the adoption of renewable energy systems. Governments worldwide are encouraging the shift to clean energy and endorsing the deployment of energy storage technologies via numerous incentives and regulations. This has triggered an upswing in the demand for lithium-ion batteries across residential, commercial, and utility-scale applications. These factors have led to the expansion of the market and increased demand for Lithium-Ion Battery solutions.
Asia-Pacific to Dominate the Market