The global lithium-ion battery market size was valued at USD 41.97 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 18.1% from 2022 to 2030. The automobile sector is expected to witness significant growth owing to the rising adoption of electric vehicles. The worldwide registration of electric vehicles is anticipated to increase significantly over the forecast period. The U.S. emerged as the largest market in North America with a revenue share of over 75.0% in 2021. Increasing sales of electric vehicles in the U.S. owing to supportive federal policies, coupled with the presence of market players in the country, are expected to drive the demand for lithium-ion batteries in the U.S. over the forecast period.

Application Insights

The consumer electronics segment held the largest revenue share of over 40.0% in 2021. Portable batteries are incorporated in portable devices and consumer electronic products. The applications of portable batteries include mobile phones, laptops, computers, tablets, torches or flashlights, LED lighting, vacuum cleaners, digital cameras, wristwatches, calculators, hearing aids, and other wearable devices. The electric and hybrid electric vehicle market is projected to witness lucrative growth over the forecast period. Growing awareness regarding the benefits of battery-operated vehicles and increasing fossil fuel prices, particularly in Asia Pacific, Europe, and North America, are projected to favor the growth.

Regional Insights

The Asia Pacific led the market with a revenue share of over 40.0% in 2021.The emergence of Asia Pacific as a global manufacturing hub has resulted in the increased adoption of tools that are powered by lithium-ion batteries. Moreover, the region has the largest population in the world. This results in high sales of consumer electronics such as mobiles and laptops in the Asia Pacific that utilize lithium-ion batteries for their operations.

The growing electric vehicles market in Asia Pacific countries, such as India and China, is one of the major factors that is positively influencing the demand for lithium-ion batteries. The market in Germany is expected to witness reasonable growth over the forecast period owing to the increasing use of lithium-ion batteries in energy storage systems, electric vehicles, and consumer electronics. Germany is the world’s leading market for energy storage systems as well as the development of renewable energies.

Lithium-ion Battery Market Report Scope