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Li-ion Battery Market size worth $254.5 Bn by 2032

  • Published Date: January 24, 2023

Li-ion Battery Market size is set to surpass USD 254.5 billion by 2032, according to a new research report by Global Market Insights Inc.

The rising number of renewable energy initiatives and sustainability goals will positively influence the industry outlook. Over the last decade, several countries have scaled up efforts to reverse climate change, curb pollution, and limit greenhouse gas (GHG) emissions. The growing emphasis on net-zero targets is also accelerating the need to harness renewable energy systems to cater to the growing power demand worldwide. For instance, according to a study published by the International Renewable Energy Agency (IRENA), the targeted renewable power capacity of 5.4 TW will need to be doubled in order to achieve the net-zero goals. Similar initiatives encouraging the adoption of renewable systems will offer lucrative business prospects for Li-ion battery manufacturers.

Widespread demand for grid-scale LFP Li-ion batteries to drive business growth

Li-ion battery market from the LFP chemistry segment crossed 24% share in 2022. The surging demand for LFP batteries made from lithium, iron, and phosphate can be attributed to the growing requirement for zero maintenance, lower weight, superior charge & discharge properties, and longer lifespan. These batteries are extensively used as high-value electric propulsion solutions for boats.

LFP batteries are gaining significant traction across an array of industrial consumers owing to their longer life cycle, tolerance to sub-optical charging & discharging cycles, and zero-leak & fire risk. Leading EV manufacturers such as Tesla and Rivian are also rapidly switching to LFP batteries. Meanwhile, these battery systems are expected to witness a surge in demand across grid-scale storage applications, powered by massive investments in off-grid electricity infrastructure development.

Thriving demand for aluminum foils to expand Li-ion production capacity

Li-ion battery market size from the aluminum foil component segment is anticipated to exhibit over 20.5% CAGR between 2023 and 2032. Aluminum foil is a critical component used as a positive electrode current collector while manufacturing Li-ion batteries. It plays a vital role in the performance characteristics of batteries such as stability and capability. Furthermore, aluminum is easily available and affordable, which makes it an ideal raw material for manufacturers. The rising efforts by industry majors to increase production capacity and address the burgeoning demand for modern battery storage systems will boost the product demand.

Browse key industry insights spread across 650 pages with 1033 market data tables & 33 figures & charts from the report, “Lithium-Ion Battery Market Size By Chemistry (LFP, LCO, LTO, NMC, NCA, LMO), By Component (Cathode, Anode, Separators, Electrolytes, Aluminum Foil, Copper Foil, Others), By Application (Industrial {Military, Heavy Industrial Equipment, Medical, Marine, Others}, Automotive {Hybrid Electric Vehicles, Battery Electric Vehicles}, Consumer Electronics {Smartphones, Laptops, UPS Systems, Smart Cameras, Smart Watches, Smart Glasses, Smart Textiles, Activity Trackers, Others}, Energy Storage), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2023 – 2032”, in detail along with the table of contents:

Surging e-commerce sales to fuel Li-ion battery application in consumer electronic products

Consumer electronics held 17.5% share of the Li-ion battery market in 2022. Li-ion batteries are widely used in rechargeable consumer electronic devices such as laptops, smartphones, tablets, kitchen appliances, and even children’s toys. The growing e-commerce sector and increasing purchase of electronics through online platforms are expected to fuel consumer electronics applications of Li-ion batteries. Moreover, the emergence of the COVID-19 pandemic accelerated the e-commerce sales exponentially. For instance, according to the 2020 Annual Retail Trade Survey (ARTS) by the U.S. Census Bureau, the e-commerce sales soared by 43% from over USD 571 billion in 2019 to more than USD 815 billion in 2020.

Favorable government funds to propel industry growth across Europe

Europe Li-ion battery market size is projected to record nearly 16% growth rate through 2032. The region is expected to emerge as a major hotspot for the Li-ion battery industry due to the deployment of net-zero emission targets. Several government agencies across Europe have introduced stringent norms pertaining to the reduction of carbon emissions across transportation, power generation, and other energy-intensive sectors, accelerating the adoption of renewable energy systems. For instance, in July 2022, Europe announced an investment worth more than USD 1.9 billion in 17 large-scale clean energy projects to foster innovation in the field of renewable energy and other clean-tech applications.

New product launches to proliferate industry development

Key participants operating in the Li-ion battery market are Tesla, General Electric, Exide Technologies, BYD Company Ltd., Energon, Toshiba Corporation, Samsung SDI Co., Ltd., Panasonic Corporation, LG Chem, Duracell, Inc., A123 Systems, LLC, Hitachi Energy Ltd., Clarios, Koninklijke Philips N.V., Akku Tronics New Energy Technology Co., Ding Tai Battery Company Ltd., Maxell, Ltd., and EnerDel. These firms are launching new products to cater to broader business verticals and enhance business performance.

Authors: Ankit Gupta, Vinayak Shukla