Lithium-ion Battery Market size is poised to cross USD 479 Billion by the end of 2035, growing at a CAGR of 19% during the forecast period, i.e., 2023 – 2035. In the year 2022, the industry size of lithium-ion battery was over USD 48 Billion. The increasing adoption of the lithium-ion battery industry in the renewable energy sector is boosting market growth. In 2021, the US was able to manufacture 44 GWh of lithium-ion batteries.
Also, many countries are consuming lithium-ion batteries at a higher rate. As a result of its rapidly growing electronics and electric car industries, China is the world's biggest user of lithium.
Growth Drivers
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~ 19% |
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Base Year Market Size (2022) |
~ USD 48 Billion |
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Forecast Year Market Size (2035) |
~ USD 479 Billion |
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Regional Scope |
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Type (Lithium Nickel Manganese Cobalt Oxide (LI-NMC), Lithium Iron Phosphate (LFP), Lithium Cobalt Oxide (LCO))
The lithium cobalt oxide segment is estimated to hold the largest share of 34.4% by 2035 and is anticipated to expand rapidly. The demand for batteries used in portable electronic devices, computers, digital cameras, and other electronics is steadily increasing. These batteries are also widely used in applications such as automobiles, telecom towers, and home inverters that require an uninterrupted power supply. This adoption is driving the market growth.
Component (Cathode, Anode, Electrolyte, Separator)
The cathode segment in the lithium-ion battery market is expected to hold the largest share during the forecast period, expanding at a rate of 15.5%. One of the major reasons for the growth in the cathode market is the worldwide trend toward electric mobility. This has led to a rise in demand for cathode materials that provide high performance, improved energy density, and longer lifespans in order to meet the increasing demand for electric vehicles.
Our in-depth analysis of the global market includes the following segments:
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Type |
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Component |
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Capacity |
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Application |
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APAC Market Forecast
Asia Pacific lithium-ion battery market is expected to hold the largest share of 48% by 2035. The growth can be attributed to the increased sales of EVs in the region. In 2020, China was the biggest market for electric vehicles (EVs), selling around 1.12 million battery electric vehicles (BEVs), according to the China Association of Automobile Manufacturers (AMMA). It is anticipated that China will continue to be the largest electric car market globally during the projected period. Lithium-ion companies will likely invest heavily in China and India in the coming years due to rising demand for consumer electronics from the growing middle-class population.
North American Market Statistics
The lithium-ion battery market is anticipated to grow at a CAGR of 26% during the forecast period. The region is the second largest consumer of batteries owing to increased manufacturing activities. The United States boasts a robust manufacturing infrastructure for lithium-ion batteries, including numerous battery manufacturers and research and development facilities dedicated to battery technologies. With this infrastructure in place, the U.S. has a competitive advantage in terms of production capacity and technological advancements. These factors are driving the market growth in the region.
Author Credits: Smruti Ranjan, Rajrani Baghel
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