(EnergyIndustry.Net, September 14, 2022 ) The global lithium-ion battery market size is expected to grow from USD 44.5 billion in 2022 to USD 135.1 billion by 2031, at a CAGR of 13.1%. The growth of the market is attributed to the rising adoption of lithium-ion batteries from renewable energy sector and increasing requirement of battery-operated material-handling equipment in various industries. However, growing concern attributed to transportation and storage of spent batteries is restraining the market growth.
The lithium-ion battery market has promising growth potential due to several factors, including the rising adoption of lithium-ion batteries in new application and growing focus on research & development by manufacturers for advancement in lithium-ion batteries, which is expected to boost the penetration of lithium-ion batteries.
Based on type, the market is segregated into lithium nickel manganese cobalt oxide, lithium iron phosphate, lithium cobalt oxide, lithium titanate oxide, lithium manganese oxide, and lithium nickel cobalt aluminum oxide. The lithium cobalt oxide segment held the largest share of the market in 2021. Due to its high energy density, it is majorly used as a power source for smartphones, tablets, laptops, and digital cameras, among others. An LCO battery is made up of a graphite carbon anode and a cobalt oxide cathode with a layered structure.
Based on capacity, the market is segregated into 0-3,000 mAh, 3,000-10,000 mAh, 10,000-60,000 mAh, 60,000 mAh and above. The 10,000-60,000 mAh segment holds the largest share of the lithium-ion battery market in 2021. Li-ion batteries with capacities of more than 10,000 mAh are used for applications requiring high capacities such as hybrid electric vehicles, e-motorcycles, material handling equipment, marine, robots, industrial, telecommunication systems, electronic cash registers, standby power supplies, golf cart vehicles, hybrid trucks, buses, smart grids, aviation industry, automated guided vehicles, among others. The automotive industry is among the largest adopters of lithium-ion batteries with capacity in the range of 10,000–60,000 mAh due to the high-power needs for electric vehicles. Electric vehicles use lithium-ion batteries because of their high energy density compared to their low weight.
Based on voltage, the market is segregated into low (Below 12V), middle (12V-36V), and high (above 36V). The high (above 36V) segment is expected to hold the largest CAGR during the forecast period. Most manufacturers prefer above 36 V lithium-ion batteries that support and power high-current applications, have long life spans, and are equipped with high capacities and unmatched capabilities. These batteries are installed in electric vehicles and for marine, power, military, and telecom applications.
Based on industry, the market is segmented into consumer electronics, automotive, aerospace, marine, medical, industrial, power, and telecommunications. The automotive segment is expected to be one of the major adopters of lithium-ion batteries. Lithium-ion batteries are the most suitable energy storage devices for powering electric vehicles owing to attractive properties such as high energy density and long cycle life. Followed by automotive, the consumer electronics segment also held a significant share of the market in 2021. The increasing demand for consumer electronics such as smartphones, tablets, and wearables has led to the rising demand for lithium-ion batteries. Continuous technological developments in consumer electronics have also boosted the growth of this market.
The lithium-ion battery market has been segmented into North America, Europe, Asia Pacific, and Rest of the World. In 2021, Asia Pacific held the largest share of the lithium-ion battery market with only the China capturing more than 23% of the overall market, as it is one of the major lithium-ion battery producers in Asia Pacific. Advancements in the technologies used in wearable devices and consumer electronics in Asia Pacific are fuelling the growth of the lithium-ion battery market in the region. Besides, increasing R&D for the development of new battery technologies by various countries in Asia Pacific is another factor driving the growth of the lithium-ion battery market in the region.
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