Lithium-Ion Battery Market is expected to grow considerably through 2032, owing to their wider commercial acceptance given the longer shelf life and high energy density. In addition, the rising need for energy-efficient storage systems and safety concerns regarding battery life will positively influence the overall market expansion. Lithium-ion batteries are environmentally friendly, lightweight, and compact. They also boast of attributes such as low maintenance, more charge cycles, and a low self-discharge rate.
Moreover, the key providers and leading behemoths in the lithium-ion battery industry are engaging in partnerships, mergers, and acquisitions and launching new products to stay competitive in the overall market. To cite an instance, in May 2021, Tesla acquired a Canadian battery startup for developing and manufacturing high-quality, dependable, and long-lasting electric vehicle batteries.
Overall, the lithium-ion battery is segmented in terms of chemistry, component, application, and region.
Based on chemistry, the LCO batteries segment is expected to depict over 17% growth rate by 2032 end. LCO batteries are used in devices such as mobile phones, laptops, cameras, and small power tools. Factors such as a robust population surge, rapid urbanization across developing nations, and a constant reduction in battery prices will play a key role in assisting the overall business outlook.
By component, the anode market will witness 16% CAGR by 2032. The growth can be attributed to the constantly rising demand for anodes due to the surging deployment of artificial graphite in battery manufacturing. Graphite powder is the anode material used in most lithium-ion batteries. Graphite anodes are moderately priced, light in weight, porous, and robust. They also match the voltage requirements of most of the popular Li-ion cathodes.
In terms of application, the energy storage segment across the lithium-ion battery market was valued at over USD 5.5 billion in 2022. The segmental growth throughout 2023-2032 can be attributed to the crucial role of energy storage systems in balancing power generation and utilization.
Regionally, the North America lithium-ion battery market held over 29.5% market share in 2022 and is expected to register notable gains through 2032. The growth can be attributed to the rising sales and production of electric and hybrid vehicles in the region. In addition, constant investments made by the governments and companies will increase the demand for the lithium-ion batteries in North America. For instance, General Motors Co. recently announced an investment of more than $7 billion in four Michigan manufacturing sites as the latest step toward accelerating the firm’s drive to become the EV market leader in North America by 2025.