Dublin, Sept. 25, 2024 (GLOBE NEWSWIRE) -- The "Lithium-Ion Battery Market - Forecasts from 2024 to 2029" report has been added to ResearchAndMarkets.com's offering.
The market for the lithium-ion battery is expected to grow at the compound annual growth rate (CAGR) of 14.58% during the forecast period (2024-2029).
The market for lithium-ion batteries is driven by the growing demand for electric vehicles and electronic devices and the expansion of other energy-storing devices. The growing solar power has greatly contributed to the demand for the lithium-ion battery. The energy-storing capacity of the lithium-ion battery is used for storing the excess power produced by solar panels.
The low-resistance charging for the lithium-ion battery is another major factor, it is used for solar energy storage. The global capacity for solar energy is expected to reach up to 672.6 GW by 2028, that is 228.4 GW in 2022. These ambitious estimates for solar power generation are due to the government's support policies for renewable energy and sustainable goals.
Relatively, the lithium-ion battery usage would also increase for the energy storage devices. Further, the need for electric vehicles would drive the market for the lithium-ion battery. The market for the lithium-ion battery has been segmented by power capacity into 0 to 3000 mAh, 3000 mAh to 10000 mAh, 10000 mAh to 60000 mAh, and more than 60000 mAh. These different battery capacity is needed for the different device sizes and applications. Safety and longevity have been major issues for companies in lithium battery production.
LITHIUM-ION BATTERY MARKET DRIVERS:
Increase in the demand for Electric vehicles
The electric vehicle sales are driven in major regions of the United States, China, Europe, and India. The buying of electric vehicles (EVs) is driving the demand for EV batteries. According to the IEA (International Energy Agency), the demand for EV batteries will be 750 GWh in 2023, which is 40% up from 2022. This rising number of EV batteries has increased demand for critical rare earth minerals like lithium. The demand for lithium was 140 kt in 2023.
The observed trend in the production of lithium-ion batteries is that they are close to the production center of EVs. The relative production of EVs in Europe was 2.5 million, and their EV battery production reached 110 GWh. Government policies in various countries promote the production of electric vehicles and lithium-ion battery manufacturing facilities for both countries. China registered a battery production capacity for electric vehicles of 417.97GW in 2023. With government backing in the United States, the manufacturing capacity would bypass Europe in upcoming years.
Rising demand for electronic devices
Rising demand for electronic devices is another major driving factor for the rise in the lithium-ion battery. Devices such as digital cameras, personal digital assistants, smartphones, laptops, watches, portable power packs, emergency power backup, surveillance, and alarm systems are the main devices that use lithium-ion batteries for their usage. Mobiles and smartphones have become an indispensable part of our lives as we are living in the age of digitalization and data consumption. Mobile phones are the most common internet access device and use lithium-ion batteries. The percentage of individuals owning a mobile phone in Asia Pacific was 75%, 82% in Arab States, and 93% high in Europe in 2023.
The companies are advancing in improving battery technologies and increasing their capacity for better performance. Additionally, cost, life cycle, and better production facilities have been major concerns for the manufacturers.
Expanding demand for medical devices
Lithium batteries are becoming common in pacemakers as they provide long life and low drain. Pacemaker Li-ion batteries could have a lifespan of 7 to 8 years and weigh very little. They are also used in hearing Aids, as they can be easily recharged. Further, the infusion pump also uses a lithium-ion battery, which delivers fluids into the body in controlled amounts.
This growing application would expand due to the growing chronic disease worldwide and increasing healthcare budgets to chase the solution. Chronic disease ailments are a major concern for the developed and developing economies alike as they could contribute to the economic loss of the nations. Lithium-ion batteries in medical devices would contribute to the devices' innovation, development, and portability for better usage.
LITHIUM-ION BATTERY MARKET GEOGRAPHICAL OUTLOOK
The Asia Pacific region to dominate the lithium-ion battery market during the forecast period.
The region has been showing significant economic growth in recent years. China, Japan, India, and South Korea: these four countries dominate the Asia-Pacific region and the global economy. These countries are part of the G20 group. This region also has the largest population concentration in the world. The demand for lithium-ion batteries of different sizes for major applications such as electric vehicles, consumer electronic devices, or energy-power-saving devices. Further, lithium-ion battery manufacturing is showing an upsurge due to government policy support.
The government of India approved the Production Linked Incentive (PLI) Scheme for the manufacturing of Advance Chemistry Cell (ACC), the scheme has a budget of Rs. 18,100 Crore for 5 years. According to the IBEF (India Brand Equity Foundation), the lithium-ion battery market in India is expected to be 20 GWh in 2022 and will bulge to 220 GWh by 2030. Depending upon different shapes and sizes, these batteries have multiple uses, such as mobile phones, laptop computers, or any other devices.
China is the largest market for new electric vehicles worldwide. The rapid industrialization in the country has created bad air quality and various health issues related to air pollution. The government in China has made stringent regulations and policies for the transport climate policy. China has been playing a leadership role in global transport climate policy. Due to those policies, electric cars have become cheaper and more affordable. The share of electric cars sold in the country in 2023 was over 35%, up from 29% in 2022. Moreover, the region's larger Internet penetration, thus increasing the usage of electronic devices, is rapidly increasing for commercial and domestic purposes.
MARKET DYNAMICS
Market Drivers
- Increase in the demand for Electric vehicles
- Rising demand for electronic devices
- Expanding demand for medical devices
Market Restraints
- Supply chain challenges for the lithium
Porter's Five Forces Analysis
Industry Value Chain Analysis
Companies Featured
- Samsung SDI
- Panasonic Corporation
- Automotive Energy Supply Corporation
- LG Chem
- Toshiba Corporation
- Hitachi Chemical Co. Ltd.
- BAK New Power
- GS Yuasa International Ltd.
- BYD Company Ltd.
- Clarios. A
- Eve Energy
- SK Innovation Co. Ltd.
- Murata Manufacturing Co. Ltd.
By Power Capacity
- 0 to 3000 mAh
- 3000 mAh to 10000 mAh
- 10000 mAh to 60000 mAh
- More than 60000 mAh
By End-user Industry
- Electronics
- Automotive
- Industrial
- Others
By Geography
North America
- USA
- Canada
- Mexico
South America
- Brazil
- Argentina
- Rest of South America
Europe
- United Kingdom
- Germany
- France
- Italy
- Spain
- Rest of Europe
Middle East and Africa
- Saudi Arabia
- UAE
- Rest of the Middle East and Africa
Asia Pacific
- China
- India
- Japan
- South Korea
- Taiwan
- Thailand
- Indonesia
- Rest of Asia-Pacific
For more information about this report visit https://www.researchandmarkets.com/r/nyitu4
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