Automotive Lithium-ion Battery Market (Vehicle Type - Passenger, and Commercial; Power Capacity - 5–25 kWh, 18–28 kWh, 48–95 kWh, 100–250 kWh, and more than 300 kWh): Global Industry Analysis, Trends, Size, Share and Forecasts to 2028

A recent report published by Infinium Global Research on the automotive lithium-ion battery market provides an in-depth analysis of segments and sub-segments in the global as well as regional automotive lithium-ion battery market. The study also highlights the impact of drivers, restraints, and macro indicators on the global and regional automotive lithium-ion battery market over the short term as well as the long term. The report is a comprehensive presentation of trends, forecast and dollar values of the global automotive lithium-ion battery market. According to the report, the global automotive lithium-ion battery market is projected to grow at a CAGR of over 17% over the forecast period of 2022-2028. 

Market Insight

The revenue generated by the automotive lithium-ion battery market was about USD 30 billion in 2022 and is expected to reach over USD 75 billion in 2028 and is expected to grow with a CAGR of over 17% over the forecast period 2022-2028. Compared to lead-acid or nickel-metal hydride batteries, lithium-ion batteries offer higher energy densities, making it possible to reduce battery size while maintaining storage capacity. A lithium-ion battery used in an automotive application is made up of tens to thousands of individual cells that are bundled together to give the necessary voltage, power, and energy. Typically, individual cells are installed into several modules, which are subsequently put together to form the entire battery pack as illustrated. Batteries are used in a variety of automobile vehicle applications. The lithium-ion batteries are used for a variety of automotive applications such as smart lighting ignition, idle stop, mild hybrid, powering the electronics onboard the automotive, and even powering the electric, hybrid, and plug-in hybrid vehicles. 

The automotive lithium-ion battery market is majorly driven by the growing sales of automotive vehicles around the world. The demand for automotive vehicles is increasing as the disposable income of consumers is growing at a rapid pace, particularly in developing countries. The availability of more money at hand has led to people focusing on better mobility and transportation. Governments around the world have launched schemes and incentives to promote the adoption of electric vehicles among consumers. Thus, the awareness of EVs is growing rapidly among consumers. Other factors, such as rising fuel prices, have boosted the adoption of EVs. According to the IEA, the sale of EVs was 6.6 million in 2021. The fluctuating crude oil prices have caused an upsurge in fuel prices. Also, the EV manufacturers are running promotional campaigns with offers. The limited infrastructure of charging stations for EV vehicles is expected to restrain the growth of the market. Technological developments in manufacturing technology and processes are expected to offer new growth opportunities. The COVID-19 outbreak had a negative impact on the automotive lithium-ion battery market. The imposition of restrictions led to a sharp decline in transportation. Thus, the global sale of automotive vehicles also plummeted. This caused a decline in demand for automotive lithium-ion batteries. Also, according to BP Statistical Revenue of World Energy 2021, lithium mine production in the world declined by about 4.6% in 2020 as compared to 2019. The lithium mine production declined from 45 thousand tonnes in 2019 to 40 thousand tonnes in 2020. The decline in the production of lithium caused a fall in the manufacturing of lithium-ion batteries. 

The COVID-19 outbreak had a negative impact on the automotive lithium-ion battery market. The imposition of restrictions led to a sharp decline in transportation. Thus, the global sale of automotive vehicles also plummeted. This caused a decline in demand for automotive lithium-ion batteries. Also, according to BP Statistical Revenue of World Energy 2021, lithium mine production in the world declined by about 4.6% in 2020 as compared to 2019. The lithium mine production declined from 45 thousand tonnes in 2019 to 40 thousand tonnes in 2020. The decline in the production of lithium caused a fall in the manufacturing of lithium-ion batteries. 

Asia-Pacific is expected to be the largest region in the market. Leading automotive lithium-ion battery manufacturers are headquartered in the region, which has resulted in a strong ecosystem of automotive lithium-ion batteries in the Asia-Pacific region. There are many local emerging EV manufacturers who have created a strong demand for automotive lithium-ion batteries. Also, the demand for lithium-ion batteries is significant from conventional automakers in Asia-Pacific. Countries such as India and China are also adopting EV vehicles for public transportation, which is creating favorable conditions for the market. North America is expected to be the second largest market owing to the growing usage of automotive lithium-ion batteries and the increased adoption of EVs. In North America, it is one of the largest automotive manufacturers in the world. The demand for high-end automotive and high safety standards has led to the vehicles being equipped with sensors and other electronics, which has necessitated the use of lithium-ion batteries in commercial and passenger vehicles in the region. 

Segment Covered

The report on the global automotive lithium-ion battery market covers segments such as vehicle type, and power capacity. On the basis of vehicle type, the sub-markets include passenger, and commercial. On the basis of power capacity, the sub-markets include 5–25 kWh, 18–28 kWh, 48–95 kWh, 100–250 kWh, and more than 300 kWh. 

Companies Profiled:

The report provides profiles of the companies in the market such as Hitachi Ltd., Panasonic Corp., Johnson Controls Inc., Toshiba Corp., ENVISION AESC GROUP LTD., LG Chem Ltd., Samsung SDI Co. Ltd., Blue Energy Co. Ltd., GS Yuasa Corporation, and Saft Groupe SAS. 

Report Highlights:

The report provides deep insights into demand forecasts, market trends, and micro and macro indicators. In addition, this report provides insights into the factors that are driving and restraining the growth in this market. Moreover, The IGR-Growth Matrix analysis given in the report brings insight into the investment areas that existing or new market players can consider. The report provides insights into the market using analytical tools such as Porter's five forces analysis and DRO analysis of the automotive lithium-ion battery market. Moreover, the study highlights current market trends and provides forecasts from 2022-2028. We also have highlighted future trends in the market that will affect the demand during the forecast period. Moreover, the competitive analysis given in each regional market brings insight into the market share of the leading players.