The lithium-ion battery market size is expected to advance at a CAGR of 16.3% during 2022–2030, to reach $165.6 billion by 2030. This can be because of the surging focus on sustainable energy due to the growing concern about the consequences of burning fossil fuels and rising electricity consumption worldwide; increasing deployment of electric vehicles; technological advancements; decreasing costs of Li-ion batteries; and rising number of government initiatives.
The sales of Li-ion batteries in APAC generated the highest revenue, around $30 billion, in 2022. This is also predicted to grow rapidly in the coming years, as the sales of portable electronic devices and EVs are rising. India, China, Japan, and South Korea, generate a huge demand for portable electronic devices, such as tablets, gaming systems, and smartphones, fuelling the need for Li-ion batteries in the region. Similarly, the adoption of EVs in these nations will benefit the Li-ion battery industry. To boost the demand for EVs, governments are offering incentives and subsidies to both manufacturers and customers.
The European lithium-ion battery market generated around $7 billion in 2022. This growth is attributed to the government incentives regarding renewable energy sources, electric vehicle manufacturing, and smart portable electronics.
European countries have been encouraging the use of renewable energy sources, such as wind, geothermal, and solar; and low carbon fuels such as natural gas and biomass, to reduce the GHG emissions in the region. In this process, governments of several countries in the region are providing subsidies to electric vehicle buyers to increase the sales, resulting in lower pollution levels. Along with environmental factors, the fuel cost electric vehicles’ is also less than that of conventional vehicles.
In addition, along with the demand for electric vehicles, users are also setting up solar panels in their premises, which primarily need lithium-ion batteries for electricity storage. Further, with the decreasing battery prices coupled with solar photovoltaic installations; the sales of lithium-ion batteries are expected to rise in the forecast period.
Li-NMC batteries are expected to lead the market in the coming years, accounting for a revenue share of 40% by 2030. This variant is employed, owing to its high energy density with good stability and long discharge cycle. This is due to the usage of an optimal amount of nickel, manganese, and cobalt. These characteristics make them ideal for laptops, mobile phones, tablets, and power tools. Li-NMC batteries are also employed in hybrid electric vehicles (HEVs), battery electric vehicles (BEVs), and plug-in hybrid electric vehicles (PHEVs) to address safety concerns with regard to battery overheating.
The automotive sector contributed the highest revenue share to Li-ion battery manufacturers and suppliers in 2022. This is mainly ascribed to the increasing global popularity of EVs, due to the implementation of numerous environmental norms and emission laws.
The most-significant lithium-ion battery market players are BYD Company Limited, LG Chem Ltd., Panasonic Corporation, Samsung SDI Co. Ltd., Shenzhen BAK Battery Co. Ltd., GS Yuasa Corporation, Showa Denko K.K., Toshiba Corporation, Amperex Technology Limited, and Tesla Inc.