Lithium-ion Battery Market to Reach $129.3 Bn Globally by 2027: Report

According to a new report, the global lithium-ion battery market is expected to hit USD 129.3 billion by 2027, registering a CAGR of 18.0% from 2020 to 2027.

According to a new report, the global lithium-ion battery industry has been estimated at USD 36.7 billion in 2019 and is expected to hit USD 129.3 billion by 2027, registering a CAGR of 18.0 percent over the next eight years from 2020 to 2027.

The report published recently by Allied Market Research revealed that the increase in demand for smartphones, tablets, and other electronic devices and the emergence of electrical, hybrid electric and plug-in hybrid vehicles will drive the growth of the global lithium-ion battery market. While on the other hand, the high price of the batteries will impede the growth to some extent. However, higher energy efficiency requirements in technologically updated consumer gadgets are expected to create multiple opportunities in the industry.

The report also added that based on component, the cathode segment accounted for nearly two-fifths of the global lithium-ion battery market share in 2019, and is expected to rule the roost by the end of 2027. Cathodes offer high capacity and superior power delivery to lithium-ion batteries, which, in turn, fuels the segment growth. The electrolytic solution, on the other hand, would grow at the fastest CAGR of 19.5 percent throughout the forecast period. Technological advancements in electrolytic solutions are expected to drive the growth of the segment.

Furthermore, based on the end-use industry, the report detailed that the electrical & electronics segment contributed to nearly half of the global lithium-ion battery market revenue in 2019, and is anticipated to retain its dominance till 2027. Currently, mobile phone manufacturers are developing smartphones, tablets, UPS, and PCs with enhanced performance, slimmer designs, and various other advanced features. This factor has boosted the growth of the segment. At the same time, the automotive segment would showcase the fastest CAGR of 19.1 percent during the study period. The surge in the penetration of electric vehicles/plug-in hybrid vehicles is anticipated to drive the growth of the segment growth.

Based on region, Asia-Pacific garnered the major share in 2019, holding nearly two-fifths of the global lithium-ion battery market. Expansion of the automotive business and development of the electronic sector in China and India has fostered the market growth in the province. Simultaneously, North America would portray the fastest CAGR of 18.7 percent during the estimated period. This is due to the increase in applications of lithium-ion batteries across the automotive, electronics, and industrial sectors.