(EnergyIndustry.Net, September 11, 2023 ) The Global Lithium-ion Battery Market size is expected to grow from USD 56.8 billion in 2023 to USD 187.1 billion by 2032, at a CAGR of 14.2% from 2023 to 2032. A lithium-ion battery comprises three key components—a positive electrode, a negative electrode, and an electrolyte. Lithium-ion batteries are classified into various other classes based on the materials used for electrodes. The materials combined with lithium in such batteries are cobalt, magnesium, nickel, titanium, and iron phosphate. Based on their compositions, they differ in their power capacities and voltage. Lithium cobalt oxide (LCO) batteries are among the most utilized lithium-ion batteries for mobile phones, laptops, and digital camera applications. These batteries are used for various other applications such as automobiles and stationary applications such as telecom towers and home inverters.
By type, the Lithium Titanate Oxide (LTO) battery type is expected to grow at an impressive CAGR during the forecast period. LTO, also known as li-titanate, is a class of battery suited for advanced applications. Lithium titanate is an off-white powdered compound containing lithium and titanium. LTO batteries exploit advanced nano-technology practices to create anodes with larger surface areas than other lithium-ion batteries. LTO batteries have a nominal cell voltage of 2.4 V, capable of fast charging and discharging current ten times the rated capacity. LTO batteries also have a longer life cycle and battery cycles reaching up to 20,000 as compared to the 2,000 in standard lithium-based batteries. They offer high levels of security and stability due to the lower operating voltage, thus making them safer options for consumers.
The capacity of batteries ranging from 3,000 mAh to 10,000 mAh is expected to grow with the highest CAGR. The lithium-ion batteries with power capacities ranging from 3,000 mAh to 10,000 mAh are mainly made of Lithium Cobalt Oxide (LCO), Lithium Iron Phosphate (LFP), and Lithium Manganese Oxide (LMO) chem Lithium Cobalt Oxide (LCO) chemistries. Due to their high capacities, these batteries are suitable for hybrid electric vehicles and industrial applications. The consumer electronics and smartphone market growth has also increased the need for higher-capacity batteries that can keep devices running for long hours while providing an optimum experience in terms of large screen and power backup services. The emergence of new technologies such as IoT and artificial intelligence, and products based on these new technologies are expected to fuel the demand for portable electronic devices in the future, which, in turn, is expected to increase the demand for lithium-ion batteries ranging from 3,000 mAh to 10,000 mAh.
The automotive application 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 and plug-in electric vehicles supports the growth of the lithium-ion battery market. Lithium-ion batteries have become highly adoptable in these types of electric vehicles due to their high energy per unit mass relative to other electrical energy storage systems. The rise in electric vehicle adoption is driving the need for more lithium-ion batteries to power these eco-friendly vehicles, highlighting the growing importance of lithium-ion technology in the automotive industry.
The market in Asia Pacific has been segmented into China, Japan, India, Australia, Indonesia, Thailand, and the Rest of Asia Pacific. The market mainly comprises developing economies, such as China and India, which have tremendous potential for many application areas in the lithium-ion battery market. The presence of several electronics manufacturers in the region, such as Panasonic Holdings Corporation (Japan), Sony Corporation (Japan), Samsung Electronics (South Korea), and LG Electronics Inc. (South Korea), is a crucial factor driving the market for lithium-ion batteries in the Asia Pacific region. The countries in Asia Pacific are moving toward green energy and, therefore, are focusing on developing an ecosystem to manufacture lithium-ion batteries locally. The region has become an attractive automotive market, emerging as a hub for automobile production in recent years. The increasing purchasing power of the population has stimulated the demand for consumer electronics and automobiles, thereby generating demand for lithium-ion batteries.
Key Market Players:
LG Energy Solution (South Korea), SK Innovation Co., Ltd. (South Korea), Panasonic Holdings Corporation (Japan), BYD Company Limited (China), Samsung SDI Co. Ltd. (South Korea), and Toshiba Corporation (Japan) are among a few top players in lithium-ion battery companies.
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