Global Automotive Lithium-Ion Battery Market to Grow with a CAGR of 7.05% through 2029
Technological advancements in battery performance, increasing adoption of electric vehicles, and supportive government policies are the factors driving the market in the forecast period.
According to TechSci Research report, “Automotive
Lithium-Ion Battery Market – Global Industry Size, Share, Trends, Competition
Forecast & Opportunities, 2029F”, the Global Automotive Lithium-Ion Battery Market size reached USD 45.27 Billion in 2023 and is expected to reach USD 68.03 Billion by 2029, growing with a CAGR of 7.05% in the forecast period. The automotive lithium-ion battery market is experiencing robust growth due to the increasing adoption of electric vehicles (EVs) driven by environmental concerns and the shift to greener transportation. As global demand for EVs rises, automakers are heavily investing in electric vehicle production, leading to a higher need for advanced lithium-ion batteries. These batteries are crucial for providing the range, efficiency, and performance required by modern electric vehicles. The market is witnessing technological advancements aimed at improving battery energy density, lifespan, and charging speeds. Manufacturers are exploring new battery chemistries and innovations like solid-state batteries to address challenges related to driving range and charging time. The expansion of EV charging infrastructure further supports the demand for lithium-ion batteries, and there is growing interest in integrating these batteries with energy storage solutions, creating new opportunities for both automotive and energy markets.
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The Automotive Lithium-Ion Battery Market is Segmented By Vehicle Type, Sales Channel, Power Capacity and By Region.
The global automotive lithium-ion battery market is segmented by sales channel into OEM (Original Equipment Manufacturer) and aftermarket. The OEM segment primarily involves batteries supplied directly by manufacturers to automakers for installation in new vehicles. These batteries are designed to meet the specific requirements of automakers, including performance, efficiency, and safety standards. As the demand for electric vehicles (EVs) continues to rise, OEMs play a crucial role in supplying high-quality, advanced lithium-ion batteries that support the growing production of electric and hybrid vehicles. The aftermarket segment focuses on replacement batteries and components for vehicles that are already in use. This channel caters to consumers who need to replace aging or worn-out batteries in their electric or hybrid vehicles. With the increasing lifespan of EVs and the growing number of vehicles on the road, the aftermarket sector has seen steady demand for battery replacements. Additionally, the rise in vehicle maintenance services and third-party retailers has expanded the availability of replacement parts, contributing to growth in the aftermarket segment.
Both sales channels benefit from advancements in battery technology. OEMs are driven by the need to meet evolving consumer preferences and regulatory requirements, while the aftermarket segment benefits from the growing awareness of the need for efficient battery replacements and maintenance. As the adoption of electric vehicles continues to expand, both OEM and aftermarket channels will see continued demand for lithium-ion batteries, with each channel playing a distinct role in supporting the global automotive battery ecosystem. The development of more efficient, durable, and cost-effective battery technologies will further drive growth in both segments.
In 2023, the fastest growing region in the global automotive lithium-ion battery market is Asia-Pacific. This region has become a hub for electric vehicle (EV) production and lithium-ion battery manufacturing, driving significant demand for these batteries. The rapid adoption of electric vehicles, particularly in countries like China, Japan, and South Korea, has played a central role in this growth. Governments in the region have implemented policies and incentives that promote the transition to electric mobility, further boosting the demand for electric vehicles and the batteries that power them. China, as a leader in electric vehicle production, continues to be a major force in the market, with a vast number of EVs sold annually. The country’s extensive investment in charging infrastructure and battery production also contributes to its dominant position in the market. Japan and South Korea are also key players, with advanced battery technology and robust automotive industries. These nations are not only focusing on increasing the number of electric vehicles on the road but also driving innovations in battery technology, including improvements in energy density, charging speed, and overall battery performance.
This growing demand for EVs and advancements in battery technologies in Asia-Pacific are expected to continue driving the automotive lithium-ion battery market in the coming years, making it the fastest growing region in 2023.
Major companies operating in Global Automotive
Lithium-Ion Battery Market are:
- Panasonic Holdings Corporation
- Hitachi Ltd
- Toshiba Corporation
- Samsung SDI Co., Ltd.
- LG Chem Ltd.
- BYD Company Limited
- GS Yuasa Lithium Power
- Tianjin Lishen Battery joint stock Co. Ltd
- OptimumNano Energy Co. Ltd.
- Contemporary Amperex Technology Co. Ltd.
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“Lithium-ion
batteries represent a transformative force in the automotive industry, powering
the global shift towards electric mobility. Their high energy density and rapid
advancements have extended electric vehicle ranges and enhanced performance,
making EVs more appealing to consumers. Major automakers' unwavering commitment
to electrification and battery production signifies a profound industry transformation.
However, addressing resource scarcity and recycling challenges is vital to
ensuring the long-term sustainability of these batteries and the environmental
benefits of electric vehicles. In essence, lithium-ion batteries are pivotal in
shaping a greener and more sustainable future for transportation,” said Mr.
Karan Chechi, Research Director of TechSci Research, a research-based
management consulting firm.
“Automotive Lithium-Ion Battery Market – Global Industry Size, Share, Trends,
Opportunity, and Forecast, 2019-2029, Segmented By Vehicle Type (Battery
Electric Vehicle, Plug in Hybrid Electric Vehicle and Hybrid Electric
Vehicles), By Sales Channel (OEM and Aftermarket), By Power Capacity (5-25 Wh,
48-95 Wh, More than 95Wh), By Region and By Competition Forecast
& Opportunities, 2019-2029F”, has evaluated the future growth potential of Global Automotive
Lithium-Ion Battery Market and provides statistics & information on market
size, structure, and future market growth. The report intends to provide
cutting-edge market intelligence and help decision makers take sound investment
decisions. Besides, the report also identifies and analyzes the emerging trends
along with essential drivers, challenges, and opportunities in Global Automotive
Lithium-Ion Battery Market.
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