Globally the size of lithium-ion battery market is set to grow at a CAGR of 14.5%, estimated to reach USD 101.26 billion by 2027 driven by the increasing penetration of lithium-ion batteries into large applications indicates.
Lithium-Ion battery refers to a kind of rechargeable battery which is used in various industries for various purposes. These batteries consist of great life cycle with the high energy density. From the last decade, lithium-ion battery market has seen tremendous growth due to the high demand from the consumer electronics and automotive sectors. As new devices are coming in market and runs on portable power source, lithium-ion battery has become a great option.
The Lithium-Ion Battery market was moderately impacted by the COVID-19 pandemic and the expected growth of the market is expected to decline as the pandemic is restricting the supply of batteries and other components due to severe disruptions in businesses and the global economy. Battery manufacturers in the US, Germany, and Australia are highly impacted by the shutdown of operations in China and other Asia Pacific countries. It has also resulted in the limited production leading to a serious decline in business inputs. The recovery depends on government assistance, as well as the level of corporate debt and how the companies and markets cope with the trimmed demand. After the recovery phase, the lithium-ion battery market is projected to grow at a moderate rate until 2027.
Lithium-ion batteries are used in a wide range of applications from life-saving medical equipment to luxury yachts. Some of the most common applications of lithium-ion batteries include electric mobility, energy storage systems, power backups/ups, mobile, laptops, and other commonly used consumer electronic goods. Lithium batteries offer reliable, constant, long-lasting power. In addition, lithium batteries are used in conjunction with solar panels as these batteries charge quickly, maximizing the potential solar power storage. Moreover, they are the ideal choice for mobility equipment such as electric wheelchairs to stairlifts, as they are lightweight, offer a longer life span, fast charging, a low self-discharge rate, and extended run time when compared to lead-acid batteries. Apart from that, Lithium-ion (Li-ion) batteries are used in many products such as electronics, toys, wireless headphones, handheld power tools, small and large appliances, electric vehicles, and electrical energy storage systems. Thus, the increasing penetration of lithium-ion batteries into large applications indicates a high-value market for lithium-ion batteries in the upcoming years.Growing demand for high power and high-capacity lithium-ion batteries in Electric vehicles
The substantially higher starting prices of lithium-ion batteries are one of the major issues for data center operators. Li-ion batteries generally cost 1.3 to 2 times as much as lead-acid batteries. However, the battery prices are expected to continue to fall, with prices anticipated to drop below $100 per kWh by 2027. This factor is expected to have a low impact on the lithium-ion battery market growth over the forecast years and developments in the recycling of lithium-ion batteries are likely to overcome cost concerns.
In the electrical energy transformation process, the grid-level energy storage system plays an essential role in balancing power generation and utilization. Batteries have considerable potential for application to grid-level energy storage systems because of their rapid response, modularization, and flexible installation. Among various battery technologies, lithium-ion batteries are attracting significant interest as supporting devices in the grid because of their remarkable advantages such as high energy density, high energy efficiency, and long cycle life. Presently, 77% of electrical power storage systems in the USA rely on lithium-ion batteries to stabilize the grid. Thus, growing applications of lithium-ion batteries in the energy sector create new opportunities for lithium-ion battery market growth.
Lithium Nickel Manganese Cobalt (NMC) Batteries are one of the most successful li-ion batteries developed to date by combining nickel, manganese, and cobalt. Furthermore, NMC batteries are used for e-bikes, power tools, and other electric powertrains. Most EV makers use Lithium Nickel Manganese Cobalt batteries. It is also a popular option for mass-produced cells in applications requiring frequent cycling such as automotive, energy storage due to the reduced material cost resulting from lower cobalt content.
Lithium iron phosphate batteries offer numerous benefits as compared to lead-acid batteries and other lithium batteries. They have a longer life span, high power density, no maintenance, are extremely safe, lightweight, improved discharge and charge efficiency. Lithium Iron Phosphate batteries also have a lifecycle of 1,000-10,000 cycles that can handle high temperatures with minimal degradation. This battery also offers excellent thermal and chemical stability and stays cool in higher temperatures.
A Lithium Cobalt Oxide battery is a type of rechargeable battery that can generally reach 500 cycles. These batteries have the advantage of high current charging and discharging and allow devices to release more energy in a short period of time. Furthermore, they are 40% lighter than a steel-cased Lithium-Ion Battery of the same capacity and 20% lighter than an aluminum-cased battery, due to which they are mostly used for racing applications and power tools, such as UAVs and RC models.
Li-titanite oxide batteries have a nominal cell voltage of 2.40V, can be fast charged, and deliver a high discharge current 10 times that of the rated capacity. In addition, the cycle count is also higher than that of a regular Li-ion. Moreover, these kinds of batteries are safe, offer excellent low-temperature discharge characteristics and obtain a capacity of 80 percent at –30°C. They are typical uses are electric powertrains, UPS, and solar-powered street lighting.
Lithium Manganese Oxide batteries offer high thermal stability and enhanced safety although the cycle and calendar life are limited. These batteries have a capacity that is roughly one-third lower than Li-cobalt. Moreover, design flexibility also allows engineers to maximize the battery for either optimal longevity, maximum load current or high capacity. For example, the long-life version in the 18650 cells has a moderate capacity of only 1,100mAh; the high-capacity version is 1,500mAh.
Lithium nickel cobalt aluminum oxide batteries have been used since 1999 for special applications. It shares a resemblance with NMC by offering reasonably good specific power, high specific energy, and a long-life span. High energy and power densities, along with a good life span, make Lithium Nickel Cobalt Aluminum Oxide batteries suitable for electric automobiles. Also, these types of lithium batteries are becoming more and more important in in-grid storage and electrical power terrain applications.
By Power Capacity
Up to 3,000 MAH segment accounted for the 19.82% market share in 2020. Li-Ion batteries up to 3000 MAH is a source of power for various portable devices including flashlights, hobby transmitters, and receivers.
These battery lives can last up to 10,000 hours, depending on the current required by the object being powered. These lithium polymer batteries have full range of applications such as wearable devices, consumer products, and medicals. These batteries are also widely used in GPS, DVD, iPod, Tablet PC, MP4 Player, Power Bank, Mobile Backup Power Supply, Bluetooth Speaker, IOT, and other DIY and Industrial applications.
Li-ion batteries with a capacity of over 10,000 MAH are used for applications that require high capacity, such as plug-in hybrid electric vehicles, electric vehicles, e-motorcycles, material handling equipment, robots, marine, industrial, telecommunication systems, standby power supplies, electronic cash registers, golf cart vehicles, hybrid trucks, buses, smart grid, aviation industry, automated guided vehicle, yachts, solar backup power, energy storage system (ESS) platforms, satellites, and launch vehicles.
60000mAh lithium-ion rechargeable battery can be used in all kinds of electronic equipment. Lithium battery solutions above 60,000 MAH find applications in Solar, EV, Medical, Aerospace & Defense, Industrial and LED Lighting applications. Nexeon's silicon anode technologies, having a capacity of 3.2A Li-ion batteries are the highest capacity Lithium-Ion Battery commercially available.
Twelve-volt batteries are commonly used in RV, boats, and other automobile systems. These lithium-ion batteries make excellent partners for off-grid solar systems as they are extremely safe, even when mishandled during charging. They are also more durable, withstanding harsh weather conditions ranging from cold to unbearable heat.
36V lithium-ion batteries are commonly used in a broad spectrum of applications, including Electric vehicles, E-bikes, AGV (Automated Guided Vehicle), Golf Cart, Forklift, LED Work Light, Flashlights, Emergency & Exit Light, Solar Street Light. Global demand for these systems is likely to be propelled by growth in infrastructural and industrial activities along with the need of high-capacity systems for high production and yield of goods. The flourishing e-commerce and retail sector, booming automotive component manufacturing, growing consumable goods industry, and rising construction industry are further augmenting demand for 12V-36V batteries.
Above 36V lithium-ion batteries are used in a leaf blower, chain saw, edger, hedge trimmer, lawnmower, string trimmer, powerhead, pole saw, hedge trimmer, and automotive mild-hybrid vehicle technology. 48V battery solutions lead the way in automotive mild-hybrid vehicle technology. They offer powerful acceptance for regenerative braking and high discharge capability across an extended range of temperatures to support high current comfort features.
By End User
Applications have been used in systems such as avionics backup power supplies, emergency lighting, ELTs, powering auxiliary equipment, UPS, and engine start batteries for fighter jets and drones. Aircraft manufacturers are beginning to move from the use of Nickel Cadmium (Ni-cad) batteries to Lithium-Ion (Li-ion) batteries, to minimize the mass and volume of the power subsystems in aerospace applications.
Lightweight lithium batteries are the ideal choice for mobility equipment such as electric wheelchairs to stairlifts, as they offer size customization, a longer life span, fast charging, a low self-discharge rate, and extended run time when compared to lead-acid. The transition towards a clean energy system has boosted the growth of lithium-ion batteries for mobility applications. Further, several governments pushing electric mobility to reduce greenhouse gas emissions is expected to drive the growth of the segment over the coming years.
Most of the demand for lithium-ion batteries in the maritime sector comes from ferries, which lend themselves well to batteries because of easy charging infrastructure at end destinations, and the reduction in operating costs for companies through fuel savings. Projections in shipping are showing much higher emissions over the next few years, are likely to create demand for lithium-ion and hybridization of ships, which in turn increases the growth prospects for li-ion batteries in the marine industry.
A range of power tools such as bandsaws, drills, crimpers, and others use rechargeable lithium-ion batteries. The strengths of lithium-ion batteries for power tools include ease of use, longer run times, flexible charging, and the battery will not discharge if stored for an extended period. The growing demand for power tools and fastening tools has stimulated the development of these batteries.
From lawnmowers to blowers, from chainsaws to brush cutters, the range of electrical machinery is increasingly wider and efficient as the lithium-ion is much more performing than the systems used in the past. Furthermore, professionals increasingly use tools and battery-powered machinery especially for garden maintenance as they are lightweight and offer greater comfort in use.
Most electric scooters will have some type of lithium-ion-based battery pack due to their excellent energy density and longevity. Many quality electric scooters are using the Lithium Manganese battery chemistry as it is one of the safest chemistries. This battery gives high capacity and outputs current. Individual Li-ion cells in an e-scooter battery pack are made by just a handful of different internationally known companies.
Lithium batteries offer many advantages over lead-acid and AGM batteries, such as an extended lifespan, significant weight reduction, increased efficiency, and an overall reduction in cost. These advantages make lithium batteries the best option for small EVs such a golf carts, Forklifts, and delivery vehicles. Toyota Material Handling pioneered the use of lithium-ion batteries as an option back in 2013.
Li-ion batteries have been deployed in a wide range of energy-storage applications, ranging from energy-type batteries of a few kilowatt-hours in residential systems with rooftop photovoltaic arrays to multi-megawatt containerized batteries for the provision of grid ancillary services. Lithium-ion batteries will be the fastest-growing energy storage technology, with annual growth expected to reach more than 28 GW by 2028.
Over the past several years, lithium-ion batteries have become more popular in the aftermarket because they are much lighter and smaller than an equivalent lead-acid battery. Lithium-ion batteries are now common in electric and hybrid vehicles, replacing nickel-metal hydride units over the last few years. In the motorcycle aftermarket, lithium-ion batteries are used. They are also used in the Victory Empulse and Zero line of electric motorcycles.
Lithium polymer (LiPo) batteries are among the most common battery types used for drones because they offer the advantage of high energy density concerning their size and weight, with a higher voltage per cell, so they can power the drone's onboard systems with fewer cells than another rechargeable. Li-ion batteries are key to power drones.
The global lithium-ion batteries market has been segmented, on the basis of region, into North America, Europe, Asia-Pacific, Middle East & Africa, and South America.
GLOBAL Lithium-ion batteries MARKET, BY region, 2021 (% Share)
The North American lithium-ion battery market reached a value of USD 9.78 Billion in 2020 and the market is expected to grow at a CAGR of around 14.5% during 2021-2027. The region is experiencing escalating demand for electric and hybrid vehicles that use lithium-ion batteries. Moreover, the rising sales of consumer electronics in the US and Canada have also accelerated the demand for these batteries. Apart from this, the demand for lithium-ion batteries is stimulated due to excess power storage capacity, which is advantageous during peak hours of electricity demand. Among the North American countries, the U.S. holds maximum market share and is expected to retain dominance over the forecast period.
Lithium-Ion Battery market in the Asia Pacific region is projected to grow at the highest CAGR of 15% over the period 2021−2027. Asian countries such as China and Japan are among the major markets for electric vehicles. In addition, continuous developments in the consumer electronics and automotive industry have led to an increase in the demand of lithium-ion batteries as they offer several advantages. Moreover, several countries in the region are planning off-grid electrification, especially in remote areas.
The growth of the lithium-ion battery market vendors is dependent on the market conditions, government support, and industry development. Thus, the vendors should focus on expanding geographically and improving services. Are the major companies in the market, which compete in terms of availability, quality, price, and technology. They primarily focus on the development of sophisticated j. Although the international players are dominating the market, regional and foreign players with small market shares also have a presence. The international players may strengthen their presence worldwide through acquisitions during the forecast period.
The prominent players in the lithium-ion battery market are Hitachi, Ltd (Japan), Johnson Controls (Europe), Lithium Werks (Europe), Panasonic Corporation (Japan), LG Chem (South Korea), Samsung SDI Co Ltd (South Korea), Toshiba Corporation (Japan), GS Yuasa Lithium Power (Japan), BYD CO LTD (China), Sony Corporation (Japan), A123 Systems LLC (US), AESC (Automotive, Energy Supply Corporation) (Japan), Beijing Pride Power (BPP) (Japan), BAK Group (China), and Li-Tec Battery GmbH (Germany).
The study covers the existing short-term and long-term market effects, helping decision-makers draft short-term and long-term plans for businesses by region. The report covers major regions in North America, Europe, Asia-Pacific, Middle East & Africa, and South America. The report analyzes lithium-ion battery market drivers, restraints, opportunities, challenges, and Porter's Five Forces.
Global Lithium-Ion Battery Market, by Type
Global Lithium-Ion Battery Market, by Power Capacity
Global Lithium-Ion Battery Market, by Voltage
Global Lithium-Ion Battery Market, by End User
Global Lithium-Ion Battery Market, by Region
|Market Size||2027: USD 101.26 billion|
|Historical Data||2018 & 2019|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Type, Power Capacity, Voltage, End User and Region|
|Geographies Covered||North America, Europe, Asia-Pacific, Middle East & Africa, and South America|
|Key Vendors||Hitachi, Ltd (Japan), Johnson Controls (Europe), Lithium Werks (Europe), Panasonic Corporation (Japan), LG Chem (South Korea), Samsung SDI Co Ltd (South Korea), Toshiba Corporation (Japan), GS Yuasa Lithium Power (Japan), BYD CO LTD (China), Sony Corporation (Japan), A123 Systems LLC (US), AESC (Automotive, Energy Supply Corporation) (Japan), Beijing Pride Power (BPP) (Japan), BAK Group (China), and Li-Tec Battery GmbH (Germany)|
|Key Market Opportunities||Growing applications in the energy sector|
|Key Market Drivers||Increasing penetration into large applications •Growing demand for high power and high-capacity lithium-ion batteries in Electric vehicles|
The global lithium-ion battery market’s CAGR is calculated to be approximately 14.5% in the growth phase.
Panasonic Sanyo (Japan), Automotive Energy Supply Corporation (AESC) (Japan), and LG Chem. (South Korea) are the top key players mentioned in the study as they contribute substantially to the market’s share.
The essential factors hitting the market’s growth are directed towards increasing demand for high power and high capacity cells, increasing penetration into large applications as well as mounting demand for smart devices and other consumer electronics
The growth in the Asia Pacific is attributed to the intensifying technological augmentations and snowballing focus of government headed for reducing greenhouse gas emission and upsurge in many power outages. Even the region is blessed with a well-established infrastructure that allows advanced technologies to enter, thus thriving the market.
Lithium-Ion battery refers to a kind of rechargeable battery which is used in various industries for various purposes. These batteries consists great life cycle with the high energy density