Lithium-ion Battery Market - Historic Data (2019-2024), Global Trends 2025, Growth Forecasts 2037
Lithium-ion Battery Market in 2025 is assessed at USD 77.36 billion. The global market size crossed USD 67.34 billion in 2024 and is likely to register a CAGR of over 18.6%, exceeding USD 618.55 billion revenue by 2037. Asia Pacific industry is anticipated to reach USD 296.9 billion by 2037, driven by increased sales of EVs and the rising demand for consumer electronics.
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.
Lithium-ion Battery Sector: Growth Drivers and Challenges
Growth Drivers
- Increasing Demand for Smartphones – Smartphones' demand for lithium-ion batteries has increased dramatically. According to smartphone suppliers, around 1.39 billion cell phones were sold globally in 2022. The growth can be accredited to the prolonged shelf life and improved efficiency.
- Growing Government Initiatives – The ambitious "zero carbon" goals established by governing bodies throughout the world have increased demand for EVs and, as a result, for lithium-ion batteries, a vital part of electric car strength systems. According to the UN, more than 70 nations have established a net-zero target, which accounts for nearly 76% of global emissions and includes the three greatest polluters: China, the United States, and the European Union.
- Enlargement of Renewable Electricity Sources – Effective electricity storage solutions are required due to the expansion of renewable electricity sources like solar and wind energy. In order to maintain grid stability, lithium-ion batteries are crucial for storing the electricity produced by these sources.
Challenges
- Environmental Challenges - One of the main issues is the concern over the environmental impact of lithium extraction, handling, and disposal as well as the production process itself.
- Risk of Thermal Runaway
- Higher Costs of the Batteries
Lithium-ion Battery Market: Key Insights
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
18.6% |
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Base Year Market Size (2024) |
USD 67.34 billion |
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Forecast Year Market Size (2037) |
USD 618.55 billion |
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Regional Scope |
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Lithium-ion Battery Segmentation
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 34.4% share by 2037. 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.
Component (Cathode, Anode, Electrolyte, Separator)
The cathode segment in the lithium-ion battery market is expected to dominate largest share during the forecast period, led by 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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Customize this ReportLithium-ion Battery Industry - Regional Synopsis
APAC Market Forecast
Asia Pacific lithium-ion battery market is expected to dominate 48% share by 2037. The growth can be attributed to 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. 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 North American lithium-ion battery market is predicted to witness significant growth rate till 2037. 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.
Companies Dominating the Lithium-ion Battery Landscape
- Seimens
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Lyten, Inc
- Yoshino Technology
- Ascend Elements
- Ola Electric
In the News
- Ascend Elements, a company based in the US that specializes in battery recycling and engineering materials, has recently announced a collaboration agreement with Honda Motor Co. Ltd. The partnership aims to ensure a stable and sustainable supply of recycled lithium-ion battery materials for Honda's electric vehicles in North America.
- Ola Electric has revealed its intention to establish a manufacturing plant for cells that will power its lithium-ion (Li-ion) batteries. This battery manufacturing facility will be located in a new integrated plant near Bengaluru, India, that will also produce the company's e-scooters.
Author Credits: Rajrani Baghel
- Report ID: 1313
- Published Date: Apr 23, 2025
- Report Format: PDF, PPT
