According to experts, the market growth for lithium-ion batteries used in electric vehicles is expected to be high in the coming years. According to reports by BloombergNEF, the li-ion battery demand for EVs is expected to increase from 115 GWh in 2020 to 1.2 TWh by 2030.
According to a report by Grand View Research, the market estimation for lithium-ion batteries was projected to reach USD 129.3 billion by 2027, with a CAGR of 18% from 2020 to 2027.
The main forces behind this expansion are the rising popularity of renewable energy sources and the rising demand for electric cars (EVs). Since they have a high energy density, a long cycle life, and a low self-discharge rate, lithium-ion batteries are frequently employed in EVs and stationary energy storage devices.
Additionally, the market for lithium-ion batteries is expanding as a result of the falling price of these batteries as well as the rising demand for consumer gadgets like smartphones and laptops.
It’s important to note that, given the industry’s and the market’s continuous evolution, this estimate may have altered.
The annual growth rate will be 30% over the next decade. The driving factors for the growth of the lithium-ion battery market for EVs are:
- Government incentives and subsidies encourage EV adoption and drive demand for lithium-ion batteries.
- The cost of lithium-ion batteries has fallen rapidly in recent years, resulting in EVs being more affordable and increasing in popularity among consumers.
- Environmental concerns are growing to impact fossil fuels, driving demand for cleaner and more sustainable transportation options such as EVs.
- The technological advancements in battery technology make EVs more practical and convenient for everyday use, driving up the demand for lithium-ion batteries.
Automotive, industrial, consumer electronics, grid energy, and other applications make up the various lithium-ion battery market segments. The growing popularity of electric cars is likely to provide the automotive industry with the biggest market share, while the growing need for renewable energy storage is expected to drive the fastest CAGR growth in the grid energy sector.
Lithium-ion battery sales are broken down into five regions: North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. Due to the presence of significant battery producers like LG Chem, Panasonic, and Samsung SDI in the region, as well as the rising demand for electric cars in nations like China and Japan, it is anticipated that Asia-Pacific will account for the lion’s share of the global market.
As the worldwide shift towards cleaner and more sustainable transportation continues to gain momentum, it is anticipated that the market for Li-ion batteries used in EVs will grow quickly.