Robust EV Gowth Driving the Global Lithium-Ion Battery Market to Reach USD 422.8 billion by 2032
Analysts at GMI Research estimates that the Lithium-ion Battery Market size was worth USD 164.8 billion in 2024, and forecast to touch USD 422.8 billion in 2032, growing at a significant higher CAGR of 12.5% from 2025-2032, in kilowatt the market is forecast to grow at whopping CAGR of 27% till 2032 the market growth is driven by growing adoption of EVs, EV cells price decline, government focus on net zero globally.
Lithium-Ion Battery Market Drivers
Growing Adoption of Electric Vehicles Globally
Lithium-ion batteries are most used in electric vehicles due to its high energy density which allows batteries to save more energy and charge faster. Electric vehicles become more popular in recent years because of its environment friendly features. As per the Energy Information Administration estimates, sales of electric vehicles have reached around 17 million united in 2024 as compared to 14 million units in 2023, approx. 21% increase in 2024.
Growing Focus on Sustainability and Net Zero Emissions
Even, government are encouraging the usage of low-emission vehicles and providing incentives to the companies to increase the production of the lithium-ion batteries, will increase the demand for electric vehicle and further create more opportunities for lithium-ion batteries in near future.
Increasing Adoption in Renewable Energy
The factor driving the Lithium-ion battery market includes increasing demand for renewable battery energy storage systems across the globe along with rising government regulations for controlling pollution and drop in the prices of batteries.
Lithium-ion batteries are gaining traction in the power industry, as these batteries offer frequency and voltage control in case if there any sudden fluctuations, higher energy density and faster charging, which makes these batteries suitable for storing huge amounts of renewable energy.
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Moreover, longer life cycle, improved charge efficiency, more usable capacity than lead acid battery and no maintenance requirement, are some of the advantages of lithium-ion battery, which are accelerating its adoption in the automotive industry. However, spent lithium-ion batteries contains hazardous chemicals like mercury and lead which can cause fire accidents at facilities, as these batteries have tendencies to overheat, which is restricting the lithium-ion battery market growth.
Segment Analysis Based on Type, Lithium-Ion Cobalt Oxide segment is projected to hold the largest lithium-ion battery market share.
Lithium-ion cobalt oxide batteries are majorly used in digital cameras, portable electronic devices and personal computer. This type of battery is becoming popular in the market as it offers high energy density, magnificent electrochemical performance, and high-capacity ratio.
As per lithium-ion battery market forecast, 3,000 to 10,000 mAh is estimated to expand at the fastest rate.
These modules are increasingly used in applications which requires heavy loads. These batteries find its application in consumer electronics, power tools and aerospace.
Based on Industry, Automotive is expected to dominate the market
Automotive lithium-ion battery market is driven by growing awareness amongst consumers about the advantages of using lithium-ion batteries and rise in the prices of petrol and increasing focus of governments on reducing carbon emissions.
As per lithium-ion battery market analysis, Asia Pacific dominates the global lithium-Ion battery market.
The lithium-ion battery market is dominated by APAC owing to growing sales of EVs in China and India, China lithium ion battery market driven by the reduction in the prices of lithium ion batteries along with the increase in sales of electric vehicles across the China.
China is the largest market for EVs and EVs registration n China comprises of around 60% of the total EV registration globally in 2023 and the new registration electric cars touched 8.1 million units in 2023.
India lithium ion battery market is driven by the increase in the recycling of lithium ion batteries, rapid expansion in the production of batteries and tax benefits provided by government for the purchase of electric vehicles.
Lithium Battery Competitors
Some of the major players operating in the lithium-ion battery market are LG Chem Ltd., Panasonic Corporation, Johnson Controls, Hitachi Ltd., Samsung SDI Co. Ltd., BAK Group, BYD Company Ltd., GS Yuasa Corporation, Toshiba Corporation, Saft Group, Valence Technology, Inc., CATL, Panasonic and CALB among others.
Leading market players
- LG Chem Ltd.
- Panasonic Corporation
- CATL
- CALB
- Hitachi Ltd.
- Johnson Controls
- Samsung SDI Co. Ltd.
- BAK Group
- BYD Company Ltd.
- GS Yuasa Corporation
- Toshiba Corporation
- Saft Group
- Valence Technology
About GMI Research:
GMI Research is a market research & consulting firm which helps its client to address their most pressing strategic and business challenges. GMI Research leverages its industry expertise and experience to identify the industry trends, big opportunities and potential growth areas across industries. Our Syndicated reports provide actionable insights and cover industry trends, market drivers & restraints, macroeconomic factors, market estimates & forecasts, competitive landscape etc. which helps our clients to strengthen its market position by deploying specific strategies and actions that will lead to higher growth.
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