China-based CATL was the leading EV battery maker as of March 2025, with a market share of over ** percent. The Chinese company BYD ranked second with a market share of **** percent, followed by South Korean LG Energy Solution with a market share of **** percent. New entrants from China increase competition CATL (Contemporary Amperex Technology Co. Limited) was the largest battery manufacturer, having overtaken its main Chinese, South Korean, and Japanese competitors. CATL has several battery production bases in China, Germany, and Hungary. Electric cars are a major factor Considering the tightening environmental regulations, global sales of battery-electric vehicles increased *****-fold between 2018 and 2024. As a result, large-scale electric vehicle production drove the lithium-ion battery demand up to around *** terawatt-hour in 2024.

The global lithium-ion battery market was valued at some **** billion U.S. dollars in 2020. It is projected that the market will grow at a CAGR of **** percent, reaching the size of almost ** billion U.S. dollars in 2026. The lithium-ion battery industry Lithium-ion batteries are used across several products and industries, from smartphones to electric cars. As of 2020, most of the largest li-ion battery factories worldwide were located in China, which also held the largest share of the global manufacturing capacity that year. LG Chem was the leading li-ion battery manufacturer worldwide as of August 2020, with a market share of around **** percent. Application in electric vehicles Initially developed for consumer electronics, the li-ion battery type has become increasingly important for its use in electric vehicles. As more countries advance in the shift towards cleaner fuel alternatives, the supply and demand for lithium-ion batteries are expected to continue growing. Combined with technological improvements in battery production, the average price of a lithium-ion battery pack has been steadily falling since 2011. Still, lithium is a finite resource that requires mining and transportation over vast distances. It can be expected that the recycling of lithium-ion batteries will become more important in the coming years, with the market for lithium-ion battery recycling growing *****-fold between 2020 and 2027.

The Report Covers Indian Lithium-Ion Battery Market Size & Share, and It is Segmented by Applications (Portable, Automotive, and Other Applications). The Report Offers the Market Size and Forecasts for the India Lithium-Ion Battery Market in Revenue (USD) for all the Above Segments.

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Lithium-Ion Battery Market Size 2025-2029

The lithium-ion battery market size is forecast to increase by USD 405.1 billion, at a CAGR of 34.5% between 2024 and 2029.

The market is experiencing robust growth, driven primarily by the surging demand from the consumer electronics sector. The insatiable appetite for portable devices, electric vehicles, and renewable energy storage systems is fueling the market's expansion. Additionally, legislative initiatives supporting battery recycling are creating new opportunities for market participants. However, the market is not without challenges. The increasing popularity of fuel cell solutions, which offer greater energy density and longer runtimes, poses a significant threat to lithium-ion batteries. Moreover, the environmental concerns surrounding the extraction and disposal of lithium, a key component in these batteries, could hamper market growth.
Companies must navigate these challenges by investing in research and development to improve battery efficiency and sustainability, as well as exploring alternative sources for lithium and recycling initiatives. The market's dynamics underscore the need for strategic planning and innovation to capitalize on emerging opportunities and maintain a competitive edge.

What will be the Size of the Lithium-Ion Battery Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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The market continues to evolve, driven by advancements in technology and increasing demand across various sectors. Rechargeable batteries, a key component of this market, are subject to ongoing research and development to enhance their performance and safety. Discharge rate, battery pack size, resistance, and capacity are critical factors influencing battery performance. Range anxiety, a concern for electric vehicle (EV) consumers, is being addressed through advancements in battery technology and charging infrastructure. Battery pack safety is a paramount concern, with ongoing efforts to improve battery management systems (BMS) and battery pack management. BMS optimizes battery usage, ensuring efficient charging and discharging, while battery pack management focuses on durability and reliability.

Lithium-ion batteries, with their high energy density, are popular in sectors ranging from consumer electronics to transportation. Battery cost, a significant market driver, is influenced by factors such as battery pack design, cell chemistry, and manufacturing processes. Battery testing and recycling are essential for ensuring battery durability and sustainability. Thermal management, battery impedance, and charging infrastructure are other critical factors shaping the market. Fast charging, a desirable feature for consumers, is driving innovation in battery technology. Lithium-ion polymer batteries and lithium cobalt oxide, lithium manganese oxide, and lithium iron phosphate are among the various cell chemistries being explored to improve battery efficiency and reliability.The continuous unfolding of market activities underscores the dynamic nature of the market.

How is this Lithium-Ion Battery Industry segmented?

The lithium-ion battery industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  Lithium nickel manganese cobalt
  Lithium titanate
  Lithium iron phosphate
  Lithium cobalt oxide


Application

  Automotive
  Consumer electronics
  Others


Voltage

  Low (Below 12V)
  Medium (12V - 36V)
  High (Above 36V)


Capacity

  Below 3,000 mAh
  3,001-10,000 mAh
  10,001-60,000 mAh
  Above 60,000 mAh


Geography

  North America

    US


  Europe

    France
    Germany
    Italy
    Sweden
    UK


  APAC

    China
    India
    Japan
    South Korea


  Rest of World (ROW)

By Type Insights

The lithium nickel manganese cobalt segment is estimated to witness significant growth during the forecast period.

Lithium-ion batteries, specifically lithium nickel manganese cobalt (NMC) batteries, have gained significant traction in various industries due to their unique properties. The combination of nickel and manganese in these batteries offers advantages from both worlds. Manganese, with its low internal resistance, forms a spinel structure, which is beneficial for creating batteries with low resistance. Nickel, despite having a larger specific energy, is unstable. By blending these metals, the strengths of each are amplified, resulting in high-performing batteries. NMC batteries are widely adopted in power tools, e-bikes, and other electric drivetrains due to their versatility. They cater to both high-energy and high-power applications, m

The North America Lithium Battery Market report segments the industry into Application (Consumer Electronics, Automotive, Industrial Batteries (Motive, Stationary (Telecom, UPS, Energy Storage Systems (ESS), etc.)), Other Applications (and more)) and Geography Regional Market Analysis (United States, and more). The report includes Market Size and Demand Forecast till 2028 (for regions only, and more).

Lithium-ion Battery Market size was valued at USD 62 Billion in 2023 and is projected to reach USD 172 Billion by 2030. CAGR of around 15.5%.

The report covers Asia-Pacific Lithium-ion Battery Manufacturers and the market is segmented by Application (Automotive Batteries, Industrial Batteries, Consumer Electronics Batteries, and Other Applications) and Geography (India, China, Japan, South Korea, and the Rest of Asia-Pacific).

The global automotive lithium-ion battery market size reached USD 56.4 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 226.1 Billion by 2033, exhibiting a growth rate (CAGR) of 16.69% during 2025-2033. The rising adoption of electric vehicles (EVs), supportive government incentives, rapid advancements in battery technology, decreasing battery costs, growing demand for renewable energy storage, expanding EV charging infrastructure, and collaborations between automakers and battery manufacturers are some of the factors facilitating the market growth.

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2025-2033. Our report has categorized the market based on battery type, distribution channel, and vehicle type.

Lithium-ion Battery Market was valued at USD 58.4 billion in 2024 and is expected to reach USD 187.7 billion by 2030 with a CAGR of 21.3%.

This statistic represents the market share of the largest automotive lithium-ion battery cell suppliers as of 2017. In that year, LG Chem accounted for approximately ** percent of the global automotive lithium-ion battery market.

UK Lithium-Ion Battery Market size was valued at around USD 19.2 million in 2024 and is projected to reach USD 108.2 million by 2030 along with a CAGR of around 16.2%.

The North America Lithium-ion Battery Market size was valued at USD 16.53 Million in 2023 and is projected to reach USD 80.38 Million by 2032, exhibiting a CAGR of 25.35 % during the forecasts periods.The North American lithium-ion battery market has registered steep growth, driven by factors converging between increased penetration of electric vehicles, renewable energy storage solutions, and consumer demand for portable electronic devices. Critical drivers for this market will continue to be the United States and Canada, with strong manufacturing capabilities and high levels of technological innovation. The states, like California, are promoting the use of EVs and the integration of renewable energy in the U.S. This creates demand for more advanced lithium-ion batteries with increased energy storage capacity from both solar and wind power plants. Federal and state incentives at all levels further support market growth by providing investment incentives for battery manufacturing facilities and R&D funding for next-generation battery technologies. Another key market player is Canada, which holds extensive reserves of critical minerals used in the production of lithium-ion batteries. Its commitment to finding sustainable energy solutions and promotion of EV infrastructure development drive huge investments in the manufacture and deployment of batteries. Improvements in technological aspects of lithium-ion batteries, such as energy density, life, and safety, further increase their attractiveness for as many industries as possible. Besides automotive and renewable energy applications, lithium-ion batteries find increasing interest in grid-scale energy storage projects for stabilizing electricity supply and supporting a more resilient and sustainable energy infrastructure. Recent developments include: February 2023: Ascend Elements, a United States-based battery recycling and engineered materials company announced a basic agreement with Honda Motor Co. Ltd to collaborate on stable procurement of recycled lithium-ion battery materials for Honda electric vehicles in North America, which is expected to reduce the carbon footprint of electric vehicles., January 2023: United States battery manufacturer Yoshino Technology announced the development of solid-state lithium-ion batteries with outputs ranging from 330 W to 4,000 W designed for home backup, off-grid applications, and powering small industrial machinery. The system can be used in combination with solar panels. The 4,000 W power station has a peak power of 6000 W and 2,611 Wh capacity. A 600 W solar panel can fully recharge in 5.5 hours.. Key drivers for this market are: 4., Declining Lithium-Ion Battery Prices4.; Increasing Adoption Of Electric Vehicles. Potential restraints include: 4., Safety Concerns Related To Lithium-Ion Battery. Notable trends are: Automotive Batteries Expected to be the Fastest-growing Segment.

According to Cognitive Market Research, the global battery market size is USD 104.31 billion in 2024 and will expand at a compound annual growth rate (CAGR) of 15.8% from 2024 to 2031. Market Dynamics of Battery Market

Key Drivers for Battery Market

Rapid growth of electric vehicles (EVs) and hybrid mobility: The worldwide transition towards electric mobility represents one of the most significant factors influencing battery demand. EVs depend extensively on high-performance lithium-ion batteries, with substantial investments from governments and automakers in electrification infrastructure and subsidies.

Increasing demand for renewable energy storage: As the adoption of solar and wind energy increases, so does the necessity for battery storage to manage grid fluctuations and ensure a consistent supply. Batteries, particularly in residential and utility-scale applications, are essential for making renewable energy reliable and scalable.

Growing usage of portable electronic devices: From smartphones and laptops to wearable technology, consumer electronics continue to generate substantial demand for compact, energy-dense battery solutions. This sector drives advancements in battery miniaturization and charging efficiency.

Key Restraints for Battery Market

Rapid growth of electric vehicles (EVs) and hybrid mobility: The worldwide transition towards electric mobility represents one of the most significant factors influencing battery demand. EVs depend extensively on high-performance lithium-ion batteries, with substantial investments from governments and automakers in electrification infrastructure and subsidies.

Increasing demand for renewable energy storage: As the adoption of solar and wind energy increases, so does the necessity for battery storage to manage grid fluctuations and ensure a consistent supply. Batteries, particularly in residential and utility-scale applications, are essential for making renewable energy reliable and scalable.

Growing usage of portable electronic devices: Inadequate handling, substandard cells, or design flaws can result in overheating or battery fires. These safety issues are particularly critical in EVs and large-scale storage systems, often necessitating additional regulatory compliance and research and development.

Key Trends of Battery Market

Shift toward solid-state and next-generation battery technologies: Companies are investing in solid-state batteries, which promise higher energy density, faster charging, and improved safety. Emerging chemistries such as sodium-ion and lithium-sulfur are also gaining traction in R&D pipelines.

Localization of battery manufacturing to reduce dependence on imports: Governments in regions like the U.S. and EU are pushing for domestic battery production through policy incentives. This helps reduce dependency on Asia-Pacific manufacturers and strengthens energy security.

Growth in battery recycling and circular economy initiatives: With sustainability taking center stage, the market is seeing increased investment in battery recycling technologies and second-life applications. Companies are repurposing EV batteries for stationary storage and developing closed-loop supply chains. Introduction of the Battery Market

The battery describes a device that can transform chemical energy into electrical energy. The battery market is expected to be driven by the arrival of new and exciting markets, e-bikes, and energy storage devices that use batteries for a variety of uses. Additionally, the increasing use of automotive batteries in electric vehicles is expected to add to this demand. One factor that could drive the battery market forward is the widespread adoption of uninterruptible power supply systems in industries including healthcare, chemicals, and oil and gas. Due to their low cost and great dependability, lead acid batteries are utilized for crucial applications. The battery market was projected to grow slower due to the need for domestic lithium-ion production capabilities.

The global lithium-ion battery market size was valued at USD 53.96 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 140.51 Billion by 2033, exhibiting a CAGR of 11.14% during 2025-2033. Asia-Pacific currently dominates the market, holding a significant market share of over 40.5% in 2024. The rising demand for electric vehicles (EVs), rapid expansion of renewable energy storage solutions, continual technological advancements enhancing battery efficiency and capacity, along with the widespread product adoption in consumer electronics are some of the major factors expanding lithium-ion battery market share.

IMARC Group provides an analysis of the key trends in each segment of the global lithium-ion battery market, along with forecasts at the global, regional, and country levels from 2025-2033. The market has been categorized based on product type, power capacity, and application.

The global lithium-ion battery market is experiencing explosive growth, projected to reach a valuation of $90.39 billion in 2025 and exhibiting a remarkable Compound Annual Growth Rate (CAGR) of 42.93%. This surge is primarily driven by the escalating demand for electric vehicles (EVs) across the globe, coupled with the increasing adoption of lithium-ion batteries in consumer electronics and grid-scale energy storage solutions. The automotive sector is the dominant application segment, fueled by government regulations promoting electric mobility and advancements in battery technology leading to improved performance and reduced costs. Consumer electronics, including smartphones, laptops, and portable devices, also contribute significantly to market growth, while the energy storage segment is rapidly expanding due to the need for reliable and efficient renewable energy integration. Key market trends include the development of higher energy density batteries, improved safety features, and the exploration of sustainable and cost-effective manufacturing processes. Despite these positive drivers, challenges remain, including the volatile pricing of raw materials like lithium and cobalt, concerns regarding battery lifecycle management and recycling, and the ongoing need to improve battery safety and longevity. Competitive rivalry is intense, with major players like Tesla, LG Chem, Panasonic, and CATL vying for market share through strategic partnerships, technological innovations, and geographical expansion. The market segmentation reveals a diversified landscape. Lithium iron phosphate (LFP) batteries are gaining traction due to their cost-effectiveness and improved safety profile, while nickel manganese cobalt (NMC) batteries continue to dominate high-performance applications. Regionally, the Asia-Pacific region, particularly China, holds a significant market share due to its robust manufacturing base and substantial EV adoption. North America and Europe are also witnessing considerable growth, driven by supportive government policies and increasing consumer awareness of electric vehicles and sustainable energy solutions. The forecast period (2025-2033) suggests sustained, albeit potentially moderating, growth, reflecting the anticipated maturity of certain segments and ongoing technological advancements shaping the competitive landscape. Continued innovation in battery chemistry, manufacturing efficiency, and recycling technologies will be crucial in shaping the future trajectory of this dynamic market.

According to Cognitive Market Research, the global lithium-ion battery market size will be USD 1824.5 million in 2025. It will expand at a compound annual growth rate (CAGR) of 18.00% from 2025 to 2033.

North America held the major market share for more than 25% of the global revenue with a market size of USD 456.13 million in 2025 and will grow at a compound annual growth rate (CAGR) of 16.8% from 2025 to 2033.
Europe accounted for a market share of over 22% of the global revenue with a market size of USD 401.39 million.
APAC held a market share of around 42% of the global revenue with a market size of USD 766.29 million in 2025 and will grow at a compound annual growth rate (CAGR) of 19.3% from 2025 to 2033.
South America has a market share of more than 4% of the global revenue with a market size of USD 69.33 million in 2025 and will grow at a compound annual growth rate (CAGR) of 18.8% from 2025 to 2033.
Middle East had a market share of around 4% of the global revenue and was estimated at a market size of USD 72.98 million in 2025 and will grow at a compound annual growth rate (CAGR) of 18.4% from 2025 to 2033.
Africa had a market share of around 3.20% of the global revenue and was estimated at a market size of USD 58.38 million in 2025 and will grow at a compound annual growth rate (CAGR) of 16.6% from 2025 to 2033.
Lithium Nickel Manganese Cobalt Oxide (NMC) category is the fastest growing segment of the lithium-ion battery industry

Market Dynamics of Lithium-ion Battery Market

Key Drivers for Lithium-ion Battery Market

Declining Battery Costs Enhancing Market Accessibility to Boost Market Growth: The cost of lithium-ion batteries has witnessed a dramatic decline over the past decade, making stationary energy storage solutions more economically viable. Advancements in battery chemistry, manufacturing processes, and economies of scale have collectively contributed to lower production costs. This cost decline has made lithium-ion energy storage systems more accessible to residential, commercial, and utility-scale users. Lower prices have also encouraged increased investments in grid-scale energy storage projects, helping utilities manage peak demand, improve grid resilience, and integrate more renewable energy sources. Additionally, innovations in battery recycling and second-life applications for retired electric vehicle (EV) batteries are further driving cost reductions, making lithium-ion batteries an increasingly attractive solution for stationary energy storage applications. For instance, the growth in EV sales is pushing up demand for batteries, continuing the upward trend of recent years. Demand for EV batteries reached more than 750 GWh in 2023, up 40% relative to 2022, though the annual growth rate slowed slightly compared to 2021?2022. Electric cars account for 95% of this growth. Globally, 95% of the growth in battery demand related to EVs was a result of higher EV sales. In comparison, about 5% came from a larger average battery size due to the increasing share of SUVs within electric car sales.

https://www.iea.org/reports/global-ev-outlook-2024/trends-in-electric-vehicle-batteries

Renewable Energy Integration Driving Demand for Energy Storage To Boost Market Growth: The increasing global shift toward renewable energy sources, such as solar and wind power, is a major driver for the lithium-ion battery market in stationary applications. Unlike conventional fossil fuel-based power generation, renewable energy is inherently intermittent, meaning that energy production fluctuates based on weather conditions and time of day. This variability creates a pressing need for efficient energy storage solutions that can store excess energy during peak production and release it when demand is high. Lithium-ion batteries, particularly Lithium Iron Phosphate (LFP) and Nickel Manganese Cobalt (NMC) chemistries offer high efficiency, fast response times, and scalable deployment options, making them ideal for renewable energy storage. Governments worldwide are implementing policies and incentives to support energy storage projects, further accelerating market growth. As the adoption of renewable energy continues to rise, the demand for lithium-ion batteries in stationary applications is expected to grow significantly, ensuring grid stability and energy reliability.

Restraint Factor for the Lithium-ion Battery Market

High Initial Investment Limiting Widespread A...

The size of the North Europe Lithium-ion Battery Market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 15.00% during the forecast period. Opportunities in the North European lithium-ion battery market are strong and abound because of the unmatched commitment to renewable energy and electric vehicle adoption. Sweden, Finland, and Norway lead the charge, providing robust technological infrastructure with governmental support that fosters a favorable environment for innovations in producing the batteries. With the ambitious targets for reduction in carbon emissions by the EU, demand for efficient energy storage solutions is rapidly creating investments in lithium-ion battery technologies. These regions have ample raw materials, such as lithium, nickel, and cobalt, which are used in batteries. This also helps strengthen the region's ability to develop a self-sustaining source of battery manufacturing, instead of one reliant solely on imports. Regional R&D focuses on optimizing batteries to improve performance and lifespan while producing a non-polluting ecosystem. While giants like automotive companies build their capacity for electric vehicle production, the high dependency on lithium-ion batteries in them promises a significant increase in demand. On the other hand, the innovating processes related to the recycling technologies that are initiated to reduce the concern about battery waste appear to be beneficial in leading to a more circular economy. So, the market for lithium-ion batteries in North Europe is highly expected to expand brightly as it marks the shift toward a greener, more sustainable energy landscape. Recent developments include: December 2022: battery energy storage project developers OX2 and Ingrid Capacity started work on two battery storage projects totaling 60MW of power in Sweden. OX2 has started work on the Bredhälla BESS (battery energy storage system) project, and is expected to be commissioned in spring 2024. Additionally, Ingrid Capacity has also announced its latest BESS project, a 20MW unit in Vimmerby in Kalmar County., September 2022: Vianode, owned by Norsk Hydro, Elkem, and Altor, will invest USD 193.51 million in building a large-scale plant for sustainable battery materials in Norway. The plant will be able to produce anode graphite for roughly 20,000 Electric Vehicles (EVs) per year by 2024.. Key drivers for this market are: 4., Rising Demand for Renewable Energy4.; Decreasing Cost per Kilowatt of Electricity Generated Through Wind Energy Sources. Potential restraints include: 4., Increasing Installation of Other Renewable Sources Such as Solar Energy. Notable trends are: The Lithium-ion Segment is Expected to Witness a Significant Growth.

The global Lithium-ion Battery market size reached USD 45.70 Billion in 2022 and is expected to reach USD 154.40 Billion in 2032 registering a CAGR of 13.1%. Lithium-ion Battery market growth is primarily driven owing to increasing use of rechargeable batteries in rapidly growing consumer electronic...

The cylindrical lithium-ion battery market is projected to expand significantly in the coming years, growing from a valuation of 95.52 billion in 2025 to a remarkable 349.22 billion by 2033, representing a remarkable 17.92% CAGR during the forecast period. This consistent growth is attributed to the increasing demand for cylindrical lithium-ion batteries across a wide spectrum of applications, including consumer electronics, power tools, electric vehicles, medical devices, and energy storage systems. Furthermore, the growing adoption of electric vehicles, driven by concerns over environmental sustainability, is expected to significantly contribute to market growth. Key factors driving the growth of the cylindrical lithium-ion battery market include:

Increasing adoption of electric vehicles and the need for extended battery life. Rising demand for high-energy density batteries for consumer electronics and power tools. Government initiatives and incentives promoting the adoption of electric vehicles and renewable energy storage systems. Technological advancements leading to improved battery efficiency and cost reduction. Growing awareness of the environmental benefits of lithium-ion batteries compared to traditional lead-acid batteries. Expanding manufacturing capacities and economies of scale in the production of cylindrical lithium-ion batteries. Recent developments include: The Global Cylindrical Lithium-Ion Battery Market is projected to grow significantly over the next decade, driven by increasing demand for electric vehicles and consumer electronics. In 2023, the market is valued at USD 95.52 billion, and it is expected to reach USD 421.3 billion by 2032, exhibiting a CAGR of 17.92%. Key market trends include the rising adoption of electric vehicles, government initiatives to promote sustainable transportation, and technological advancements in battery technology. Recent news developments in the market include the launch of new high-capacity cylindrical lithium-ion batteries by leading manufacturers such as Panasonic and LG Chem, and strategic partnerships between battery manufacturers and automotive companies to develop and produce electric vehicles.. Key drivers for this market are: Growing electric vehicle demand, increasing adoption of energy storage systems; rising consumer electronics sales; expanding industrial applications; and technological advancements.. Potential restraints include: Rising demand for electric vehicles Increasing adoption in consumer electronics Growing popularity of renewable energy storage Government incentives for clean energy Technological advancements..

Global Lithium-ion Battery Market reached US$ 43.5 billion in 2023 and is expected to reach US$ 124.4 billion by 2031