Global Lithium-ion Battery Market Set to Surge to $221.7 Billion by 2029 Driven by EV Demand and Renewable Energy Storage

The Global Lithium-ion Battery Market: Powering the Future of Energy Storage

The global lithium-ion battery market is experiencing rapid growth, driven by increasing demand for electric vehicles (EVs), smartphones, and renewable energy storage. These powerful, rechargeable batteries are becoming vital for a cleaner and more interconnected future.

According to the latest study from BCC Research, the Global Lithium-ion Battery Market is expected to expand from $117.8 billion in 2024 to approximately $221.7 billion by the end of 2029. This represents a compound annual growth rate (CAGR) of 13.5% during the forecast period from 2024 to 2029.

This report offers a comprehensive overview of the global lithium-ion battery market, addressing key components such as cathodes and electrolytes, various battery types (including NMC, LFP, and NCA), and applications across different sectors like automotive, electronics, and energy storage. It also considers capacity ranges, regional trends, emerging technologies, environmental, social, and governance (ESG) factors, and profiles of leading companies, utilizing data from 2023 and forecasts extending to 2029.

Key factors driving market growth include:

– **Increasing global sales of electric vehicles (EVs)**: The global surge in EV sales is attributed to heightened environmental awareness, supportive government policies, and advancements in battery technology, significantly boosting the lithium-ion battery market.

– **Growing demand for energy storage applications using repurposed lithium-ion batteries (LIBs)**: As renewable energy use expands, the demand for energy storage systems rises, creating opportunities for repurposed LIBs. These second-life batteries provide a cost-effective and sustainable solution for storing solar and wind energy.

– **Declining LIB prices facilitating increased EV deployment**: The reduction in lithium-ion battery prices makes EVs more affordable, accelerating their adoption and production worldwide.

– **Increasing government support for transportation electrification**: Governments globally are enhancing support for transportation electrification through subsidies, tax incentives, and stricter emission regulations, which further drives demand for lithium-ion batteries.

– **Grid-level use of LIBs interfacing with renewable energy sources**: Lithium-ion batteries are increasingly utilized at the grid level to store energy from renewable sources like solar and wind, helping to balance supply and demand and ensuring a stable and reliable clean energy supply.

### Report Synopsis

– **Base year considered**: 2023
– **Forecast period**: 2024-2029
– **Base year market size**: $109.9 billion
– **Market size forecast**: $221.7 billion
– **Growth rate**: CAGR of 13.5% for 2024-2029
– **Segments covered**: Type, component, capacity, application, and region
– **Regions covered**: North America, Asia-Pacific, Europe, and Rest of the World (RoW)
– **Countries covered**: U.S., Canada, Mexico, France, Germany, the U.K., Italy, Netherlands, South Korea, Japan, India

### Market Drivers

– Increasing global sales of EVs
– Growing demand for energy storage applications using repurposed LIBs
– Falling LIB prices facilitating increased EV use
– Increasing government support for transportation electrification
– Grid-level use of LIBs interfacing with renewable energy sources

### Interesting Facts

– The International Energy Agency (IEA) reported that global battery production reached 2.5 TWh in 2023, a rise of 780 GWh from 2022, marking over 25% growth year-on-year.
– EV sales surged, nearing 14 million in 2023, accounting for 18% of total car sales, a significant increase from 14% in 2022.
– The U.S., China, and Europe continue to dominate the lithium-ion battery market, together representing over 90% of global demand.

### Key Questions Addressed in the Report:

– **What is the projected market size and growth rate?** The global market for LIBs was valued at $109.9 billion in 2023 and is expected to reach $221.7 billion by the end of 2029, with a CAGR of 13.5%.
– **What are the key factors driving market growth?** Significant factors include the rising sales of EVs, growing demand for repurposed LIBs, falling LIB prices, government support for electrification, and grid-level applications.
– **Which market segments are covered?** The LIB market is segmented by type, component, capacity, application, and region.
– **Which type will dominate through 2029?** LFP batteries are projected to be the dominant type through 2029.
– **Which region holds the largest market share?** Asia-Pacific currently possesses the largest share of the global market.

### Leading Companies Include:

– BYD CO. LTD.
– CALB
– CONTEMPORARY AMPEREX TECHNOLOGY CO. LTD.
– EVE ENERGY CO. LTD.
– FARASIS ENERGY (GANZHOU) CO. LTD.
– GOTION
– GS YUASA INTERNATIONAL LTD.
– LG ENERGY SOLUTION
– PANASONIC ENERGY CO. LTD.
– SAMSUNG SDI
– SHENZHEN BAK BATTERY CO. LTD.
– SK ON CO. LTD.
– TESLA
– TOSHIBA CORP.
– VEHICLE ENERGY JAPAN INC.

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