How Lithium-Ion Battery Market is Growing

A lithium-ion battery is a type of rechargeable battery that depends on lithium ions for its electrochemistry. Lithium-Ion batteries have a wide range of uses in heavy-duty vehicles, smartwatches, and other frequently used electronic gadgets.

Anode (the positive electrode), cathode (the negative electrode), and liquid electrolyte are the three components that make up a battery cell. The lithium-ion battery's cathode and anode are comprised of carbon and any other metal oxide, respectively. To connect these two electrodes, a simple salt solution (liquid electrolyte) containing lithium-ion would be utilized.

According to a research report by Astute Analytica, the global lithium-ion battery market value was US$ 60,385.6 million in 2021 and is expected to reach US$ 1,85,040.3 million by 2031, growing at a compound annual growth rate (CAGR) of 20.5% over the projection period from 2022 to 2027.

The lithium-ion battery market is growing by factors such as the rising adoption of consumer electronics and increasing demand for electric vehicles. The global appliance and consumer electronics (ACE) market is estimated to grow at a CAGR of 12-15% during 2017-2027.

The need for internet use and rising disposable money have combined grown the demand for smart consumer electronics. Apart from the consumer electronics stream, the lithium-ion battery’s main applications are in aerospace, telecommunication, and the integration of renewable energy with grid technology. The increasing adoption of lithium-ion batteries is due to their capacity to hold significant power in lightweight bodies and small sizes. Due to its widespread use in consumer devices, the 3,000–10,000 mAH range of lithium-ion battery capacities accounts for more than half of the market.

The Asia Pacific dominated the global lithium-ion battery market in 2021. Most of the market is by players from countries like India and China, which have considerable potential for various applications of lithium-ion batteries. India’s lithium-ion battery market is witnessing the highest growth in the APAC region at a CAGR of 21.8% during the forecast period.

 

The rate of digitalization has accelerated globally since COVID-19. Everyday activities, including learning and shopping, are conducted using electronic gadgets, which is raising consumer demand for electronics and is estimated to boost the market for lithium-ion batteries. Although the global marketplace continued to expand, the disturbed supply chain swept it up.