Global Lithium Battery Market Overview, 2029

The global lithium-ion battery market is rapidly expanding, fueled by the surge in electric vehicles, renewable energy storage, and portable electronics. Lithium-ion batteries have become the cornerstone of modern energy storage due to their high energy density, lightweight, and long life cycle. New Corporate Average Fuel Economy (CAFE) standards mandated fuel economy standards for passenger cars and Light Commercial Vehicles (LCVs) resulting in the expansion of electric drive technologies. Increasing product demand in smartphones owing to their extended shelf life and enhanced efficiency is expected to drive market growth. The increasing demand for EVs owing to growing consumer awareness about carbon emissions is expected to fuel market growth. A decline in the demand for lead-acid batteries, owing to EPA regulations on lead contamination and resulting environmental hazards coupled with regulations on lead-acid battery storage, disposal, and recycling, has led to an increase in the demand for Li-ion batteries in automobiles. Mexico has been a center of the global automotive industry as companies worldwide are eyeing to invest here. The COVID-19 pandemic has been a major restraint to market growth owing to several factors including reduced operational cost by end-users, coupled with disruption in the availability of spare parts due to sluggish manufacturing activities and logistics issues. Battery providers have taken subsequent steps to ensure efficient services to end-users that have signed long-term contracts with them. Vendors are opting for digital tools and are following prescribed preventative measures including social distancing norms and the use of protective kits in case of an on-site inspection and repair services required by end-users on a case-to-case basis.

According to the report titled, “Global Lithium-ion Battery Market Overview, 2029”, published by Bonafide research, the Global Lithium-ion Battery market was valued at USD 44.51 Billion in 2023 and it is anticipated to grow with a CAGR of more than 15.23% from 2024 to 2029, achieving USD 103.7 Billion by 2029. The lithium-ion battery is very integral to this future development of power storage as it has long-term advancements and accessible applications. The key traits include higher power density, quick recharge capabilities, longer cycle life, and, of course, solid-state batteries. Such developments should unveil more avenue paths in a sustainable and effective strength landscape. While manufacturers have made focused efforts to decorate power density on lithium-ion batteries, they look forward to storing excess electricity in smaller and lighter packs. Such advancement would lead to longer-lasting units and make possible larger varieties of electric vehicles, which might attract more people. While the above happens, researchers continue to develop advanced battery chemistries and work toward improving charging infrastructure, thereby increasing charging time. Another area of focus is longevity of batteries and ideas to maximize expected charge-discharge cycles of the battery. This would reduce the widespread replacement needs and would allow for a longer battery life cycle. The advantage in solid-state batteries employing a solid rather than a liquid electrolyte is well established-in terms of improvements in safety, power density, and thermal stability. They are promising avenues toward future strength storage technologies. Sustainability is one of the key drivers in future lithium-ion batteries. The producers are continually striving to improve greener production processes that eliminate the environmental impact in the manufacturing of the battery. The outlook for lithium-ion batteries appears bright as they will evolve and power many industries with electricity. These are to play a fundamental role in a greener and more sustainable future through transportation decarbonization, enabling high penetration of renewable energy, and stimulating the demand for portable electronics.

Market Dynamics

Market Drivers

• Growth of Electric Vehicles (EVs): The global shift toward sustainable transportation is driving demand for lithium-ion batteries, primarily due to their high energy density, efficiency, and long cycle life. Governments worldwide are implementing policies to reduce carbon emissions, which has accelerated the adoption of EVs. This surge in EV production, especially in markets like China, Europe, and the US, is a significant driver for the lithium-ion battery market, as it powers the core of EV propulsion systems. Additionally, automotive manufacturers are heavily investing in battery technologies to extend range and lower costs, boosting demand further.
• Rising Demand for Energy Storage Systems (ESS): The increasing penetration of renewable energy sources like solar and wind has amplified the need for reliable energy storage solutions. Lithium-ion batteries are preferred for grid-level energy storage due to their high efficiency, scalability, and ability to manage intermittent power supply. As more countries integrate renewable energy into their grids, lithium-ion batteries are crucial for stabilizing energy output, enabling peak load management, and improving overall grid resilience.



Market Challenges

• Raw Material Supply Constraints: The lithium-ion battery market faces significant challenges due to the limited supply and rising costs of critical raw materials like lithium, cobalt, and nickel. Mining, refining, and processing these materials are concentrated in a few regions, leading to supply chain vulnerabilities and price fluctuations. Moreover, the environmental and ethical concerns surrounding mining practices, particularly in cobalt production, are pushing manufacturers to seek alternative chemistries, adding complexity to the market.
• Battery Recycling and Disposal: As the use of lithium-ion batteries expands, concerns about recycling and proper disposal have intensified. These batteries contain hazardous materials that can pose environmental risks if not managed correctly. Developing efficient recycling processes for recovering valuable metals like lithium and cobalt is essential but remains costly and technologically challenging. Governments and industries are under pressure to create sustainable recycling systems, which increases regulatory burdens and operational costs for manufacturers.

Market Trends

• Shift to Solid-State Lithium-ion Batteries:Solid-state lithium-ion batteries are emerging as a major trend, offering higher energy density, improved safety, and longer life cycles compared to conventional liquid electrolyte batteries. Leading automotive companies and battery manufacturers are heavily investing in this technology, aiming to commercialize solid-state batteries for EVs and energy storage. Although still in the development stage, this trend is poised to revolutionize the lithium-ion battery landscape by addressing key limitations such as thermal runaway and efficiency in high-demand applications.
• Focus on Battery Innovation for Longer Lifespans: With the rapid expansion of applications like EVs and grid storage, there is a growing trend toward extending the lifespan of lithium-ion batteries. Advances in battery management systems (BMS), charging algorithms, and materials science are helping to improve durability and reduce degradation over time. Research into next-generation cathode materials, silicon anodes, and electrolyte formulations is also driving innovation, making lithium-ion batteries more cost-effective, reliable, and suitable for a wider range of applications.

Segmentation Analysis

Based on the report, the Component is segmented into Cathode, Anode, Electrolyte, Separator, Others.

The cathode is a critical component that determines the energy density, power density, and safety of the lithium-ion battery. It is typically made from lithium-based materials, such as lithium cobalt oxide (LCO), lithium iron phosphate (LFP), lithium nickel manganese cobalt oxide (NMC), or lithium nickel cobalt aluminum oxide (NCA). The cathode material accounts for a significant portion of the battery's cost and is a key focus area for research and development to improve performance and reduce costs. The anode, on the other hand, is responsible for storing lithium ions during charging and releasing them during discharge. Graphite is the most commonly used anode material, but alternative materials like silicon and lithium titanate oxide (LTO) are also gaining traction due to their potential for higher energy density and faster charging capabilities. The electrolyte serves as the medium for the transfer of lithium ions between the cathode and anode during charge and discharge cycles. It typically consists of a lithium salt dissolved in an organic solvent. The choice of electrolyte material affects the battery's safety, cycle life, and performance at different temperatures. The separator is a critical safety component that physically separates the cathode and anode while allowing the passage of lithium ions. It is typically made from polyolefin materials, such as polyethylene or polypropylene, and plays a crucial role in preventing short circuits and thermal runaway events. Other components in a lithium-ion battery include current collectors, binders, and conductive additives, which contribute to the overall performance and reliability of the battery. As the demand for lithium-ion batteries continues to grow, particularly in the electric vehicle and energy storage sectors, advancements in these components will be crucial for improving battery performance, safety, and cost-effectiveness.

Based on the report, the Application is segmented into Automotive, Consumer Electronics, Industrial, Energy Storage Systems, Medical Devices.

The automotive industry is a major consumer of lithium-ion batteries, with the growing adoption of electric vehicles (EVs) and hybrid electric vehicles (HEVs) worldwide. Lithium-ion batteries offer high energy density, long life cycles, and fast charging capabilities, making them ideal for powering EVs and HEVs. As governments implement policies to reduce emissions and promote sustainable transportation, the demand for lithium-ion batteries in the automotive sector is expected to continue growing. Consumer electronics, such as smartphones, laptops, tablets, and wearable devices, are another significant application for lithium-ion batteries. The increasing demand for these devices, coupled with the need for longer battery life and faster charging times, has driven the adoption of lithium-ion batteries in the consumer electronics market. The industrial sector utilizes lithium-ion batteries for a variety of applications, including material handling equipment, power tools, and backup power systems. The high energy density and long lifespan of lithium-ion batteries make them suitable for these industrial applications. Energy storage systems are a crucial application for lithium-ion batteries, as they enable the integration of renewable energy sources into the grid. Lithium-ion batteries can store energy generated from solar and wind power, providing a reliable and efficient way to balance the intermittency of these renewable sources. Medical devices, such as implantable devices and portable medical equipment, also rely on lithium-ion batteries. The high energy density and compact size of lithium-ion batteries make them ideal for powering these devices, while their safety and reliability are critical factors in the medical field.

Regional Analysis

Asia Pacific is leading the lithium-ion battery market primarily due to the rapid growth in electric vehicle (EV) adoption and the region's dominance in consumer electronics manufacturing.

The Asia Pacific region, particularly countries like China, Japan, and South Korea, has emerged as a global hub for lithium-ion battery production and consumption. This leadership is significantly driven by the increasing demand for electric vehicles, which are being promoted through government incentives and policies aimed at reducing carbon emissions and enhancing energy efficiency. For instance, China has implemented stringent regulations to phase out fossil fuel-powered vehicles, resulting in a substantial rise in the sales of electric scooters and cars. The region's robust consumer electronics sector, which includes smartphones, laptops, and other portable devices, has created a consistent demand for high-performance lithium-ion batteries. The convergence of these factors growing urbanization, increased consumer spending, and a commitment to renewable energy has led to substantial investments in battery technology and infrastructure. The region's extensive manufacturing capabilities and ongoing research and development efforts in battery technology have reinforced its position as a leader in the market. The combination of these elements not only fuels the current demand for lithium-ion batteries but also sets the stage for future growth, ensuring that Asia Pacific remains at the forefront of this critical industry.

Key Developments

• In June 2023, EnerSys announced that it had begun a non-binding Memorandum of Understanding with Verkor SAS, a European leader in battery technology, to explore the development of a lithium battery gigafactory in the United States.
• In February 2024, Panasonic Energy Co., Ltd., a Panasonic Group Company, declared that it has signed a long-term agreement with H&T Recharge, a prominent battery component manufacturer, for the supply of lithium-ion battery cans in North America, with the aim of increasing its production of safe EV batteries.
• In November 2023, Toshiba Corporation developed a new lithium-ion battery using a cobalt-free 5V-class high-potential cathode material that considerably suppresses performance-degrading gases produced as side reactions. This battery can operate at a wide range of applications, from power tools to electric vehicles.
• In June 2023, Samsung SDI announced that the company has become the first lithium battery maker to accept carbon footprint labels from Carbon Trust. Carbon footprint measures greenhouse gas GHG emissions throughout a product life cycle from production, raw materials, distribution to disposal.

COVID-19 impacts:
The elevator and escalator business has been significantly damaged in recent years as a result of lockdowns implemented in Global due to the COVID-19 pandemic outbreak in December 2019. The COVID-19 epidemic has hindered the construction industry's expansion in recent years, generating delays that can be ascribed to various damaged supply chains. The elevator and escalator manufacturers, as well as the overall construction industry, are expected to face a number of challenges as most commercial projects are likely to be left incomplete or delayed due to supply chain disruptions, cash flow constraints, workforce unavailability, and production shutdowns. The demand for elevators and escalators is expected to rise in the coming years as various governments of Global prepare to gradually lift the lockdowns. As the lockdowns progressively cease, the construction sector is expected to increase. As commercial developments resume throughout the world, demand for elevators and escalators is expected to rise in the upcoming years.

Considered in this report
• Geography: Global
• Historic Year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Global Elevator & Escalator Market with its value and forecast along with its segments
• Application wise tire industry distribution
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Components:
• Cathode
• Anode
• Electrolyte
• Separator
• Others

By Application:
• Automotive
• Consumer Electronics
• Industrial
• Energy Storage Systems
• Medical Devices

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to elevator & escalator industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.