Lithium-Ion Battery Market Size

Lithium-Ion Battery Market Size

Lithium-Ion Battery Market size exceeded USD 63 billion in 2023 and is projected to expand at over 16.5% CAGR from 2024 to 2032. Increasing consumer preference for electric and hybrid vehicles will complement the demand for lithium-ion (Li-ion) batteries. Electric vehicles (EVs) have gained substantial momentum in recent years owing to the growing focus on sustainable transportation and zero-emission vehicles. Several governments are supporting the e-mobility movement with favorable subsidies and schemes encouraging consumers to switch to EVs.

Increasing consumer preference for electric and hybrid vehicles will complement the demand for lithium-ion (Li-ion) batteries. Electric vehicles (EVs) have gained substantial momentum in recent years owing to the growing focus on sustainable transportation and zero-emission vehicles. Several governments are supporting the e-mobility movement with favorable subsidies and schemes encouraging consumers to switch to EVs.

Surging production demand to restrain the industry

The growing supply-demand gap could restrict the lithium-ion battery market growth to a considerable extent. Extensive R&D initiatives and innovations in Li-ion battery variants require manufacturers to ramp up production capacities. Moreover, due to ongoing shortages of raw materials, manufacturers are making investments in advanced and more sophisticated battery storage technologies. Several developing countries are experiencing a dramatic surge in EV demand, compelling Li-ion battery manufacturers to address the shortage of critical minerals and metals. However, the increasing number of initiatives by industry players to grow production capacities will help overcome the current limitations.