Lithium-ion battery market worth US$135.1 billion by 2031

The global lithium-ion battery market size is estimated to be US$44.5 billion in 2022 and is projected to reach US$135.1 billion by 2031, at a CAGR of 13.1%, according to MarketsandMarkets.

The plug-in vehicles is highly adopting lithium-ion batteries and rising development in smart electronic device is also another factor driving the demand for the lithium-ion battery market. Additionally, the manufacturers of lithium-ion batteries are highly focusing towards product advancement which is also expected to spur the growth of the market during the forecast period.

Lithium Nickel Manganese Cobalt Oxide segment in the lithium-ion battery market was valued at US$9.8 billion in 2021. The growth of the segment is attributed to the increasing adoption of Li-NMC in electric vehicles due to its very low self-heating rate. It is also used for power tools, medical equipment, and other electric powertrains. Li-NMC batteries can be used for a multitude of applications, ranging from applications in the automotive industry to ESS. The Li-NMC are fireproof batteries; therefore, they can be used as uninterrupted power supplies and can also be installed in residential applications for home battery storage along with solar photovoltaic cells.

Lithium-ion batteries with capacity ranging from 3,000 – 10,000 mAh are highly adopted by end-users

Lithium-ion batteries with capacity of 3,000 – 10,000 mAh is highly adopted in various industries such as automotive, consumer electronics, and aerospace. These batteries are often grouped together to form modules which are used in applications requiring heavy loads such as electric vehicles, industrial applications, robots, medical applications, GEO and LEO satellites, hybrid trucks, trains, and power backup. Batteries in this range are available in cylinder, prismatic, and battery pack formats.

High (above 36V) segment dominated the lithium-ion market in 2021

Batteries with high voltage i.e. of above 36V are highly preferred in applications such as power, military, electric vehicles, marine, huge machinery, and telecom. These high voltage lithium-ion batteries are also utilized to power electrical systems for some aerospace applications as these batteries are low in weight, which directly reduces the overall weight of aircraft.

Automotive industry dominated the lithium-ion battery market in 2021

The automotive segment is expected to be one of the major adopters of lithium-ion batteries. Battery-driven vehicles such as hybrid electric vehicles and plug-in hybrid electric vehicles are major consumers of lithium-ion batteries. Increasing adoption and awareness of hybrid electric vehicles and plug-in hybrid electric vehicles supports the growth of the lithium-ion battery market. The automotive industry is the main driver for the growth of the lithium-ion battery market in Europe and the Asia Pacific. The UK is undertaking initiatives for the growth of the market for EVs, which is expected to support the growth of the market.