The global lithium-ion battery market was valued at some 40.5 billion U.S. dollars in 2020. It is projected that the market will grow at a GACR of 14.6 percent, reaching the size of almost 92 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 26.5 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 seven-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.

The global lithium-ion battery market size reached USD 54.0 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 140.5 Billion by 2033, exhibiting a growth rate (CAGR) of 11.14% during 2025-2033. The market is experiencing significant growth mainly driven by the rising demand for electric vehicles (EVs) and rapid expansion of renewable energy storage solutions. In line with this, technological advancements enhancing battery efficiency and capacity, along with the widespread product adoption in consumer electronics further propels the market growth. At present, Asia Pacific holds the largest market share owing to the presence of a robust battery manufacturing ecosystem.

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global and regional levels for 2025-2033. Our report has categorized the market based on product type, power capacity, and application.

China-based CATL was the leading EV battery maker as of June 2024, with a market share of almost 38 percent. The Chinese company BYD ranked second with a market share of 15.8 percent, followed by South Korean LG Energy Solution with a market share of 13.6 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 10-fold between 2017 and 2022. As a result, large-scale electric vehicle production drove a lithium-ion battery demand up to around eight terawatt-hours.

North America Lithium-Ion Battery Market is Segmented by Application (consumer Electronics, Industrial Batteries (motive, Stationary (telecom, Ups, Energy Storage Systems (ESS), Etc. )), and Other Applications (power Tools, Defense, Medical Devices, Etc. )) and Geography (United States, Canada, and Rest of North America). The Report Offers the Market Size and Forecasts for the North America Lithium-Ion Battery Market in Revenue (USD) for all the Above Segments.

The Lithium-Ion Battery Market estimated size and share is projected to exceed USD 265.80 billion by 2034, with a forecasted CAGR of 15.4% during the period.

The market is segmented by Application (Electronic Devices, Automotive, Energy storage systems, and Other)

The Automotive Lithium Ion Battery Market is segmented by Vehicle Type (Battery Electric Vehicle, Plug in Hybrid Electric Vehicle and Hybrid Electric Vehicles), Channel Sales Type (OEMs and Aftermarket) and Geography.

The global lithium-ion (Li-ion) battery market is expected to surpass 150 billion U.S. dollars by 2032, compared to a market size of approximately 50 billion U.S. dollars in 2023.

Popularity of lithium-ion batteries

In 2022, Li-ion batteries made up the vast majority of the electrochemical energy storage projects worldwide. Their popularity is due to their lightness and the fact that Li-ion batteries can hold a charge better than other battery types, have no memory effect (no need to completely discharge batteries before recharging) and are able to handle hundreds of charge and discharge cycles.

Market forecast

The popularity of Li-ion batteries will most likely persist in the coming years. Their price is not forecast to increase and, according to recent projections, the global Li-ion demand will experience an almost seven-fold increase between 2022 and 2030.

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 Southeast Asia Lithium Battery Companies and it is segmented by Application (Automotive, Industrial, Consumer Electronics, and Other Applications (Medical Devices, Power Tools, etc.)) and Geography (Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam, Laos, and Rest of Southeast Asia). The market size and forecasts for the Southeast Asia lithium-ion battery market in revenue (USD Billion) for all the above segments.

Lithium Ion Battery Market is estimated to be valued at USD 74.73 Bn in 2025 and is expected to expand at CAGR of 17.3%, reaching USD 228.47 Bn by 2032.

According to Cognitive Market Research, the global Automotive Lithium ion Battery market size will be USD 57142.6 million in 2024. It will expand at a compound annual growth rate (CAGR) of 17.20% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 22857.04 million in 2024 and will grow at a compound annual growth rate (CAGR) of 15.4% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 17142.78 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 13142.80 million in 2024 and will grow at a compound annual growth rate (CAGR) of 19.2% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 2857.13 million in 2024 and will grow at a compound annual growth rate (CAGR) of 16.6% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 1142.85 million in 2024 and will grow at a compound annual growth rate (CAGR) of 16.9% from 2024 to 2031.
The cathode category is the fastest growing segment of the Automotive Lithium ion Battery industry

Market Dynamics of Automotive Lithium ion Battery Market

Key Drivers for Automotive Lithium ion Battery Market

Increasing Demand for Electric Vehicles (EVs) to Boost Market Growth

The growing demand for electric vehicles (EVs) is one of the primary driving factors for the automotive lithium-ion battery market. As the global automotive industry transitions toward more sustainable, eco-friendly transportation solutions, lithium-ion batteries are essential for powering EVs due to their high energy density, long lifespan, and relatively lighter weight compared to traditional battery technologies. Governments worldwide are implementing stringent emission regulations and offering incentives for EV adoption, fueling this trend. With the increasing adoption of EVs, the demand for lithium-ion batteries, which offer efficient energy storage for electric motors, is expected to rise significantly. Additionally, advancements in EV battery technology, including improvements in range, charging speed, and cost-efficiency, further drive the market. The shift toward electric mobility, including passenger cars, commercial vehicles, and electric two-wheelers, has positioned lithium-ion batteries as the key energy solution in the automotive sector, accelerating market growth. For instance, GS Yuasa International Ltd. revealed plans to develop a new high-capacity lithium-ion battery specifically designed for electric vehicles. This new battery aims to improve energy density by 20% compared to existing models, which will extend the driving range of EVs and support faster charging capabilities.

Advancements in Battery Technology and Performance to Drive Market Growth

Advancements in lithium-ion battery technology significantly contribute to the market's growth. Ongoing research and development efforts aim to improve battery performance, including increased energy density, faster charging times, and longer operational lifespans. Innovations such as solid-state batteries, silicon anode technologies, and improvements in electrolyte materials are enhancing the overall efficiency of lithium-ion batteries, making them more cost-effective and practical for automotive applications. Furthermore, advancements in thermal management and battery management systems (BMS) are helping to enhance battery safety, charging speed, and operational reliability. As the automotive industry increasingly shifts toward electrification, these technological improvements are critical to reducing costs and improving the performance of electric vehicles.

Restraint Factor for the Automotive Lithium ion Battery Market

High Manufacturing Costs Will Limit Market Growth

The production of lithium-ion batteries involves expensive raw materials, such as lithium, cobalt, and nickel, which contribute to the overall cost of battery packs. Additionally, the complex manufacturing processes and advanced technologies required for producing high-performance batteries further elevate costs. These high production costs are reflected in the price of electric vehicles (EVs), making them less affordable for cost-conscious consumers, especially in emerging markets. While technological adv...

The lithium-ion battery market is set to grow from US$ 64.0 Bn in 2024 to US$ 206.4 Bn by 2032, driven by EV demand, innovations, and strong adoption in APAC

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.

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).

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 13 percent of the global automotive lithium-ion battery market.

[223+ Pages Report] The global lithium-ion battery market size is expected to grow from USD 49.67 billion in 2021 to USD 165.65 billion by 2030, at a CAGR of 16.32% from 2022-2030

The europe lithium-ion battery market will grow from USD 13.6 Bn in 2025 to USD 30.7 Bn by 2032 at a 12.3% CAGR, driven by rising energy storage demand

The market size of the Electrolyte For Lithium Ion Battery Market is categorized based on Application (Consumer Electronics, Electric Vehicle, Others) and Product (Liquid Electrolyte, Solid Electrolyte) and geographical regions (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).

This report provides insights into the market size and forecasts the value of the market, expressed in USD million, across these defined segments.