Automotive Lithium-ion Batteries Market Size, Market Share, Application Analysis, Regional Outlook, Growth Trends, Key Players, Competitive Strategies and Forecasts, 2022 to 2030

Automotive Lithium-ion batteries market is expected to grow at a CAGR of 28% during the forecast period of 2022 to 2030. The increasing demand for plug-in vehicles is the largest driver impacting the market. The pandemic caused by COVID-19 had a moderately negative effect on the market for lithium-ion batteries. As a result of the widespread COVID-19 epidemic, the supply of batteries and other components is being severely constrained. This is because the pandemic is causing serious disruptions in businesses and the global economy. The Asia-Pacific region is responsible for the majority of the manufacturing of key components for batteries. The suspension of business in China and other nations in the Asia Pacific region has a significant negative impact on battery makers in the United States, Germany, and Australia. It has also led to a reduction in production, which has caused a significant drop in the number of inputs available to businesses. The recovery is contingent on the aid provided by the government, as well as the level of corporate debt and the manner in which businesses and markets adjust to the reduced demand. Following the phase of recovery, it is anticipated that the market would continue to expand during the forecast period.

Stringent Environment Regulations Favoring Lithium -ion Battery Market

Favorable government laws are the primary driver that is driving growth in the Li-ion battery market for automotive applications. Together with vehicle manufacturers, governments from a number of different countries are working together to solve the growing concerns around environmental safety and the clean energy mix. For instance, a number of countries, such as France and the United Kingdom, have announced that they will prohibit the sale of diesel vehicles in their respective countries. This move will help to drive sales of electric vehicles (EVs), which will help to drive down emissions. Additionally, governments are providing financial incentives and tax credits to encourage the adoption of electric vehicles, which will result in an increase in the demand for automotive lithium-ion batteries. The European Commission (EC) has implemented severe fuel economy and emission requirements in order to address the problems that have been generated by the changing climatic and atmospheric conditions that have been brought about by fast urbanisation and the expanding population.

Increasing Demand for Electric Vehicles Remains as the Most Significant Driver

Even though the pandemic caused a decline of global automobile sales that resulted about 15% percent decline, the number of electric car registrations increased by 40% in 2020. The total number of electric vehicles sold across the globe was 3 million in 2020. Electric vehicles rely on power supplied by lithium-ion batteries as their primary source of propulsion. It was inevitable that the proliferation of electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) would lead to an increase in the use of lithium-ion batteries, and this trend is forecast to continue in the foreseeable future. The increasing popularity of electric cars (EVs) among consumers has contributed to a growth in the market for vehicles that consume less energy and produce less pollution. As a result of the numerous benefits associated with electric vehicles, such as a reduced need for the engine of the vehicle to be maintained, a reduction in the use of potentially hazardous oil waste, and a reduction in the pollution caused by fuel combustion engines, as well as the development of improved battery technology, the number of electric vehicles is continually rising. Many people believe that the automobile industry and transportation systems will one day transition to electric vehicles; as a result, there will eventually be a greater need for lithium-ion batteries as their use becomes more widespread.

Price Correction to Further Boost the Demand

Since their inception in the 1990s, the high cost of lithium-ion batteries has been one of the primary factors that has slowed down their widespread use. A lithium-ion battery is made up of a variety of different parts. The cell is the most important part of any lithium-ion battery and accounts for about half of the total cost of the battery. On the other hand, recent advancements and statements made by firms that manufacture lithium-ion batteries and companies that manufacture automobiles show that the price of these batteries is projected to decrease significantly in the near future. Some of the causes that are contributing to the price drop include developments in manufacturing on a large scale, the falling cost of individual components, and the implementation of more modern technologies to increase battery capacity. The adoption of these batteries across a wide variety of new applications would be accelerated by a drop in the price.

10,000-60,000 MAh Led the Market in 2021 and Likely to Remain Dominant

The market share that was held by the segment that ranged from 10,000 to 60,000 MAh in 2021. It is anticipated that the segment of lithium-ion batteries with 10,000-60,000 MAh capacity would contribute the biggest share to the market for lithium-ion batteries during the forecast period.Some examples of these applications include electric vehicles, plug-in hybrid electric vehicles, e-motorcycles, golf cart vehicles, hybrid trucks, buses, automated guided vehicle and others.

The automotive sector is anticipated to lead the market for lithium-ion batteries in the year 2020.

APAC Emerged as the Global Leader

In 2021, the Asia Pacific region led the global market with a revenue share that was greater than 40%. As environmental concerns have grown in China, conventional scooters powered by fossil fuels have been banned from all of the country's major cities in an effort to cut emissions. This has led to an increase in the number of electric scooters being purchased in the country. The rise of Asia Pacific as a central location for global production has led to an increase in the use of tools that are powered by lithium-ion batteries. This trend is expected to continue. In addition to this, the region is home to the greatest number of people in the entire planet. As a consequence of this, there has been a significant increase in sales of consumer electronics in the Asia Pacific region that are powered by lithium-ion batteries, including mobile phones and laptop computers.

The American Recovery and Reinvestment Act of 2009 is one of the federal programmes that encourages individuals to purchase electric vehicles by providing tax credits to those individuals who do so. The new Corporate Average Fuel Efficiency requirements (CAFE) dictate the fuel economy of passenger cars and light commercial vehicles plying on highways in the United States. As a result, there has been an increase in the adoption of electric vehicles in the country.

Due to the fact that Germany is home to a number of significant automobile manufacturing businesses, it is projected that Germany will become a significant market for automotive microcontroller manufacturers.

Market Remains Highly Fragmented

The market for automotive Li-ion batteries is highly fragmented, and in order to compete effectively in this industry, manufacturers are adopting both organic and inorganic growth strategies. In order to bolster the quality of the products and services they provide to customers, the companies that manufacture lithium-ion batteries have employed a variety of organic and inorganic growth methods, including product launches, product developments, and acquisitions. The BYD Company in China, LG Chem in South Korea, Contemporary Amperex Technology Co. Ltd. (CATL) in China, Samsung SDI in South Korea, Panasonic Corporation in Japan, BAK Group in China, GS Yuasa Corporation (GS Yuasa) in Japan, Hitachi in Japan, Clarios in Germany, and Toshiba Corporation are some of the major players in the market for lithium-ion batteries.

Historical & Forecast Period

This study report represents analysis of each segment from 2020 to 2030 considering 2021 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2022 to 2030.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. Key data point that enables the estimation of Automotive Lithium-ion batteries market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Automotive Lithium-ion batteries market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Market Segmentation

By Type Outlook (2020-2030; US$ Mn)

• BEV - Market size and forecast 2021-2026
• PHEV - Market size and forecast 2021-2026

By Capacity (2020-2030; US$ Mn)

• 3,000-10,000 mAh
• 10,000-60,000 mAh
• 60,000 mAh and Above

Region Segment (2020-2030; US$ Mn)

• North America (U.S., Canada)
• Europe and UK (UK, Germany, Spain, Italy, France, RoE)
• Asia Pacific (China, Japan, India, Australia, South Korea, RoAPAC)
• Latin America (Brazil, Mexico, RoLATAM)
• Middle East and Africa (GCC, Africa, RoME)

Global Impact of Covid-19 Segment (2020-2021; US$ Mn )

• Pre Covid-19 situation
• Post Covid-19 situation

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Automotive Lithium-ion batteries market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2030.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Automotive Lithium-ion batteries market?
• Which is the largest regional market for Automotive Lithium-ion batteries market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Automotive Lithium-ion batteries market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Automotive Lithium-ion batteries market worldwide?

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