Global Automotive Lithium-Ion Battery Market to Grow with a CAGR of 6.91% through 2028
Increasing adoption of electric vehicles
(EVs) worldwide, driven by environmental concerns and government incentives are
the factors driving market in the forecast period 2024-2028
According to TechSci Research report, “Automotive
Lithium-Ion Battery Market – Global Industry Size, Share, Trends, Competition
Forecast & Opportunities, 2028”, the Global Automotive Lithium-Ion
Battery Market stood at USD 42.51 billion in 2022 and is anticipated to grow
with a CAGR of 6.91% in the forecast period, 2024-2028
One of the most significant drivers is the
accelerating adoption of electric vehicles (EVs) worldwide. This trend is
fueled by a growing awareness of environmental concerns and the need to reduce
greenhouse gas emissions. Governments and regulatory bodies are implementing
stringent emission standards, encouraging automakers to shift towards
electrified vehicles. As a result, there's a surge in EV sales, and lithium-ion
batteries are at the forefront of this transition due to their high energy
density, reliability, and suitability for electric propulsion.
Advancements in battery technology constitute another
pivotal driver. Researchers and manufacturers have made substantial strides in
improving lithium-ion batteries. These advancements include higher energy
density, which allows for longer driving ranges on a single charge, and faster
charging capabilities, addressing one of the main challenges associated with EV
adoption. Moreover, ongoing efforts to extend battery life and reduce costs are
making EVs more accessible and appealing to a broader range of consumers.
Automakers' commitment to electric mobility is a third
driving force behind the market's expansion. Major players in the automotive
industry are not merely introducing EV models; they're investing heavily in
battery manufacturing facilities and research and development to secure a
competitive edge. This commitment ensures a consistent supply of high-quality
lithium-ion batteries, which are crucial for achieving economies of scale and
making EVs more affordable.
Furthermore, the automotive lithium-ion battery market
is interconnected with developments in renewable energy and energy storage.
Batteries play a critical role in renewable energy integration and grid
stability, making them integral to achieving a sustainable energy ecosystem.
This synergy between EVs, renewable energy, and energy storage systems is
expected to drive further investments and innovations in lithium-ion battery
technology.
In conclusion, the Global Automotive Lithium-Ion
Battery Market's growth is multifaceted, driven by the increasing adoption of
electric vehicles, ongoing advancements in battery technology, and automakers'
resolute commitment to electrify their fleets. This transformation extends
beyond the automotive sector, influencing energy systems and sustainability
efforts on a global scale. As these drivers continue to shape the industry, the
automotive lithium-ion battery market is poised for sustained and significant
expansion..
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The Asia-Pacific region stands out as the epicenter of
the global automotive lithium-ion battery market. This dominance can be
attributed to the region's status as a hub for electric vehicle manufacturing,
particularly in China. The Chinese government's robust support for EVs,
including incentives and regulatory measures, has fostered a thriving domestic
market. South Korea is another significant player in the APAC region, home to
major battery manufacturers like LG Chem and Samsung SDI. Japan also contributes
to the market with its established automotive and battery industries. Together,
these countries drive both production and consumption, making APAC the largest
and most influential regional market.
North America is witnessing substantial growth in the
automotive lithium-ion battery market, primarily driven by the United States
and Canada. In the U.S., an increasing focus on reducing emissions and
achieving sustainability goals has spurred demand for electric vehicles.
American automakers, including Tesla, have played a pivotal role in driving
innovation and market expansion. Additionally, government incentives and
infrastructure development for EV charging stations have contributed to market
growth. Canada, while smaller in comparison, is also making strides in EV
adoption and battery production, further bolstering the regional market.
Europe is another prominent region in the global
automotive lithium-ion battery market. Several European countries have embraced
electric mobility as a means to reduce carbon emissions and combat climate
change. Leading automakers like Volkswagen, BMW, and Volvo are investing
heavily in electric vehicle development. Additionally, European battery
manufacturers are emerging as key players, aiming to reduce dependence on Asian
suppliers. Government initiatives and stringent emission regulations, such as Euro
7 standards, are set to drive further growth in this region.
While APAC, North America, and Europe dominate the
market, other regions are also making strides in automotive lithium-ion
batteries. For instance, countries in Latin America and the Middle East are
gradually adopting EVs, driven by environmental concerns and rising oil prices.
However, these regions face infrastructure challenges and limited local battery
production capabilities.
In conclusion, regional insights highlight the global
automotive lithium-ion battery market's diverse landscape. While APAC remains
the frontrunner due to its manufacturing capabilities and consumer demand,
North America and Europe are experiencing significant growth driven by environmental
concerns, government support, and innovative automakers. As EV adoption
continues to rise worldwide, the regional dynamics of this market are expected
to evolve further.
Major companies operating in Global Automotive
Lithium-Ion Battery Market are:
- Panasonic Corporation
- Hitachi Ltd.
- Toshiba Corporation
- Samsung SDI Co. Ltd.
- LG Chem Ltd.
- BYD Co. Ltd.
- 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 with TechSci Research, a research-based
management consulting firm.
“Global
Automotive Lithium-Ion Battery Market – Global Industry Size, Share, Trends,
Opportunity, and Forecast, 2018-2028, 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, 2018-2028F”, 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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