Lithium-Ion Battery Market to Generate Revenue Worth $106,493.0 Million by 2024

  • Published: May 2019

The global lithium-ion battery market was worth $33,720.8 million in 2018, and is projected to reach $106,493.0 million by 2024, exhibiting a CAGR of 21.8% during the forecast period (2019–2024). The consumer electronics category held the largest share, by application, during the historical period (2014–2018).

The automotive category is expected to witness the fastest growth over the forecast period, mainly driven by the increasing demand for electric vehicles (EV), as an alternative to conventional-fuel-based vehicles.

Advancements in Lithium-Ion Battery Composition are a Prominent Trend

The major trend being seen in the lithium-ion battery market is the change in the chemistry of the electrolyte and anode material of the battery cells. The current lithium-ion cell power, on an average, is 4.2 V; these cells consist of nickel–manganese–cobalt (NMC) group of cathodes and 1 mole (M) of Lithium hexafluorophosphate (LiPF6) solution as the electrolyte. The electrolyte acts as the limiting agent to increase the cell power. Improving the electrolyte can allow for an increase in the lithium-ion cell power to more than 4.2 V.

Increasing Demand for Electric Vehicles is the Major Driver

Environmental concerns and volatility in the oil prices continue to push consumers toward alternatives to automobiles with internal combustion engines, which is helping the lithium-ion battery market advance. Additionally, government agencies are taking numerous initiatives to encourage the sale of EVs, which is a major factor behind the growth in their adoption. Compared to other battery technologies, lithium-ion variants are now considered standard for modern battery EVs (BEV), due to their excellent energy density.

Segmentation Analysis of Lithium-Ion Battery Market

Lithium-Ion Battery Market

Lithium–iron phosphate (LFP) was the highest revenue generating category, among all types in the lithium-ion battery market, in 2018, primarily due to their heavy usage in China. The country is the largest consumer of lithium-ion batteries, including the LFP type, across the globe, as it is the largest manufacturer of EVs and consumer electronics, which are the major application areas of these energy storage devices.

The automotive category is expected to exhibit the fastest revenue growth, by application, in the forecasted period. This can be attributed to the increasing demand for EVs, as an alternative to conventional-fuel-based vehicles.

Geographical Analysis of Lithium-Ion Battery Market

APAC and North America are expected to account for over 80.0% share in the global lithium-ion battery market, by 2024. This can be mainly attributed to the presence of established players and increasing adoption of lithium-ion batteries in portable electronic devices, EVs, and uninterrupted power supply (UPS) systems.

Europe, LATAM, and MEA also hold considerable shares in the market, on account of the government incentives for creating energy from renewable sources, increase in EV manufacturing volume, and quick adoption of smart portable electronics.

Germany is expected to lead the European lithium-ion battery market, mainly as a result of the high penetration rate of EVs.

Mexico is predicted to be the fastest-growing market in the LATAM region. The increase in the demand for electronic items and EVs are the major factors contributing to the growth of the market in Mexico.

Due to the rising electric vehicle fleet size and demand for electric cars, Saudi Arabia is expected to hold a considerable share in the MEA region in the forecast period.

Competitive Landscape of Lithium-Ion Battery Market

The lithium-ion battery market is highly fragmented in nature, with BYD Company Limited, LG Chem Ltd., Panasonic Corporation, Samsung SDI Co. Ltd., Shenzhen BAK Battery Co. Ltd., and GS Yuasa Corporation as some of the major players.

In Feb 2018, LG Chem and Mahindra & Mahindra Limited (an automotive manufacturer) announced a collaboration in the field of advanced lithium-ion battery technology. As part of this collaboration, the former company has started the supply of high-energy-density lithium-ion cells, based on the NMC (nickel–manganese–cobalt) chemistry, for the Mahindra and SsangYong range of electric vehicles. LG Chem has also started designing the battery modules for Mahindra Electric.

Some other important player operating in the lithium-ion battery market are Hitachi Chemical Company Ltd., Johnson Controls International plc, Toshiba Corporation, Tesla Inc., Amperex Technology Limited, and Tianjin Lishen Battery Joint-Stock Co. Ltd.