According to a new report published by Allied Market Research, titled, “Lithium-ion Battery Market," The lithium-ion battery market size was valued at $46.2 billion in 2022, and lithium-ion battery industry is estimated to reach $189.4 billion by 2032, growing at a CAGR of 15.2% from 2023 to 2032.
Lithium-ion batteries are rechargeable power storage devices that consist of a couple of components, together with cathodes, anodes, electrolytes, separators, and different materials. These batteries have received colossal reputation due to their high electricity density, long cycle life, and lightweight nature.
The international focus on creating sustainable energy resources via renewable energy technology has led to increase in investments through governments and private institutions. This surge in demand for energy storage devices has pushed the growth of the lithium-ion battery market. In addition, the rise in border disputes and terrorist activities worldwide has spurred the development of unmanned weapons and smart missiles, which closely rely on excessive electricity density batteries as power sources.
Moreover, speedy innovation and utility of smart weapons, unmanned drones, and automobiles in the military enterprise contribute to the growth in demand for lithium-ion batteries. Lithium-ion batteries are a kind of rechargeable battery recognised for their excessive precise energy. The use of light-weight lithium and other substances in their development makes lithium-ion batteries rather light. The application of lithium-ion batteries in a variety of industries has proven exceptional promise, such as in the aerospace sector, where Airbus Defense and Space has efficaciously examined High Altitude Pseudo-Satellite Aircraft (HAPAS) prototypes powered by using photo voltaic power all through the day and lithium-ion batteries at some stage in the night. This improvement marks a sizeable step towards the future commercialization of lithium-ion batteries.
Lithium-ion batteries showcase a theoretical electricity density of about 2,600 Wh/kg, making them incredibly promising for high-energy-density battery applications. One excellent subject where they find use is in large-scale car vehicles, enabling efficient electric transportation. Government policies aimed at phasing out fossil fuel-based cars play a pivotal role in driving the improvement of the lithium-ion battery market.
However, there are positive challenges associated with lithium-ion batteries such as the price of lithium-ion batteries is $190 per kW/h in 2022. This high fee is particularly attributed to the complicated manufacturing technique and the requirement for graphene composite materials to prevent dendrite formation and short circuits. The demand for large investments from research institutes and manufacturing corporations to overcome these challenges poses a major downside hampering the growth of the lithium-ion battery market opportunities.
The depletion of fossil fuel sources and the uneven distribution of resources worldwide has led to an accelerated demand for renewable strength sources. Consequently, there is a increase in need for highly environment friendly and high-energy-density batteries for electricity storage. The fast innovation and development of electric power transportation vehicles, which include cars, aircraft, and navy transport vehicles, are key elements that propel the demand for high-energy-density batteries. Furthermore, the amplify in investments in photo voltaic farms and wind farms have boosted the demand for lithium-ion batteries, offering many possibilities for the lithium-ion battery market growth.
The lithium-ion battery market forecast is segmented on the basis of component, capacity, application, and region. On the basis of component, it is categorized into cathode, anode, electrolyte, separator, and others. On the basis of capacity, it is divided into 0-3,000 mAh, 3,000-10,000 mAh, 10,000-60,000 mAh, and 10,000 mAh and above. On the basis of application, it is classified into electrical & electronics, automotive, industrial, and others. On the basis of region, the lithium-ion battery market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Key Finding of the Study
- As per lithium-ion battery market analysis, on the basis of component, the cathode segment emerged as the global leader by acquiring nearly half of the lithium-ion battery market share in 2022 and is anticipated to continue this trend during the forecast period.
- On the basis of capacity, the 3,000- 10,000 mAh segment emerged as the largest market share in 2022, which accounts for more than two-fifths of the lithium-ion battery market share.
- On the basis of application, the automotive segment emerged as the largest market share in 2022 which accounts for more than half of the lithium-ion battery market share, and is anticipated to continue this trend during the forecast period.
- On the basis of region, Asia-Pacific is the major consumer of lithium-ion batteries among other regions. It accounted for more than two-fifths of the global market share in 2022.
Impact of Russia-Ukraine War on Global Lithium-Ion Battery Market
The Russia-Ukraine war has the potential to considerably impact the lithium-ion battery market. Ukraine performs a vital role in the global supply chain for critical minerals and metals used in battery manufacturing, together with lithium, cobalt, and nickel. If the struggle disrupts mining operations or transportation routes in Ukraine or neighboring countries, it may want to lead to a shortage of these key raw materials, inflicting multiplied costs and supply constraints for lithium-ion batteries. Moreover, the geopolitical uncertainty ensuing from the struggle may dampen investor self-assurance and decision-making in the battery sector.
Impact of Global recession on Global Lithium-Ion Battery Market
A global recession in 2023 is expected to have tremendous implications for the lithium-ion battery market. During an economic downturn, there is typically a limit in consumer spending, decreased business investments, and a standard slowdown in monetary activity. These elements are anticipated to at once have an impact on the demand for lithium-ion batteries across a variety of sectors, which encompass military, defense, marine, and offshore applications.
The first principal has an impact on a potential slowdown in market growth. Reduced consumer buying strength and decreased investments in new projects, which lead to the demand for lithium-ion batteries. The slower increase in price can affect the overall market expansion, due to reduced sales and revenue.
Furthermore, the delay or cancellation of tasks that require lithium-ion batteries may additionally have a negative influence on the market. Economic uncertainty through a recession often results in agencies preserving returns on investments and prioritizing cost-cutting measures. As a result, projects such as the electrification of defense vehicles or the integration of renewable strength in marine and offshore applications may additionally experience delays or face cancellation.
The major companies profiled in this report include BYD Co., Ltd., A123 Systems, LLC, Hitachi, Ltd., CATL, LG Chem, Panasonic Corp., Saft, Samsung SDI Co., Ltd., Toshiba Corp., and GS Yuasa corporation. Key manufacturers have innovated and expanded their production capacities in order to meet market demand across the globe due to the rapid increase in demand for energy in recent years government all over the world has set sights on the development of renewable energy sources which require high energy density storage batteries. Additional growth strategies such as new product developments, acquisition, and business expansion strategies, are also adopted to attain key developments in the Lithium-ion battery market trends.