- The electrical and electronics segment contributed to nearly half of the global lithium-ion battery market revenue in 2019
- North America will see the fastest CAGR of 18.7 per cent during the estimated period
The global lithium-ion battery industry is expected to reach $129.3 billion by 2027, with a CAGR of 18.0 per cent from 2020 to 2027 as per a report by Allied Market Research. The report titled, “Lithium-ion Battery Market by Component, End-use Industry, Automotive and Industrial: Global Opportunity Analysis and Industry Forecast, 2019–2027” said that this market was estimated at $36.7 billion in 2019.
The report added that an increase in demand for smartphones, tablets, and other electronic devices and the emergence of electrical, hybrid electric, and plug-in hybrid vehicles are some factors that drive the growth of the global lithium-ion battery market. It added that the high price of the batteries restricts growth to some extent. Higher energy efficiency requirements in technologically updated consumer gadgets are expected to create multiple opportunities in the industry.
Cathode segment to lead
As per the report, based on component, the cathode segment accounted for nearly two-fifths of the global lithium-ion battery market share in 2019. It is expected to dominate by 2027. Cathodes offer high capacity and superior power delivery to lithium-ion batteries. The electrolytic solution will grow at the fastest CAGR of 19.5 per cent throughout the forecast period.
Based on end-use industry, the electrical and electronics segment contributed to nearly half of the global lithium-ion battery market revenue in 2019. It is expected to maintain its dominance till 2027.
The report stated, “Currently, mobile phone manufacturers are developing smartphones, tablets, UPS, and PCs with enhanced performance, slimmer designs, and various other advanced features. This factor has boosted the growth of the segment. At the same time, the automotive segment would showcase the fastest CAGR of 19.1 per cent during the study period. Surge in penetration of electric vehicles/plug-in hybrid vehicles is anticipated to drive the growth of the segment growth.”
North America will see the fastest CAGR
In terms of region, Asia-Pacific took the major share in 2019 by capturing nearly two-fifths of the global lithium-ion battery market. The report added that the expansion of the automotive business and development of the electronic sector in China and India has lead to market growth in the province. North America will see the fastest CAGR of 18.7 per cent during the estimated period. This is due to the increase in applications of lithium-ion batteries across the automotive, electronics, and industrial sectors.
