Lithium-Ion Battery Packs Market to Reach Valuation of USD 68.6 Billon by 2028 - Increasing Demand for Lithium-Ion Battery Packs Market in automotive industry to Drive the Market Growth

From the period 2022 to 2028, the Global Lithium-Ion Battery Packs Market is expected to reach USD 68.6 Billon in terms of revenue, growing at a Compound Annual Growth Rate (CAGR) of 2.60%.

Governments all over the world are focusing on reducing the pollutants emitted by conventional vehicles. Furthermore, the depletion of natural resources endangers the environment. As a result of their efficiency, consumers have shown a preference for electric vehicles. Li-ion batteries have been preferred by electric vehicle manufacturers because they store energy for longer runs and can also be used in hybrid vehicles. In addition, the hassle of maintaining engine efficiency is unnecessary. Electric vehicle sales have increased. As a result, lithium-ion battery pack sales have increased. Increased demand for continuous power supply from critical infrastructures in the aftermath of COVID-19, rising demand for plug-in vehicles, rising demand for battery-powered material-handling equipment in industries due to automation, continued development of smart devices, and rising adoption of lithium-ion batteries in the renewable energy sector are driving market expansion.

Key Highlights from the Report

• On the basis of Product Type, the market is segmented into Lithium Cobalt Oxide Battery Pack, Lithium Magnesium Oxide Battery Pack, Lithium Iron Phosphate Battery Pack, Lithium Nickel Manganese Cobalt Oxide Battery Pack, Lithium Nickel Cobalt Aluminum Oxide Battery Pack and Lithium Titanate Battery Pack. Because of its good charge and discharge cycle, lithium nickel manganese cobalt (LI-NMC) is expected to account for the largest market share. Because of their increased safety, these batteries have applications in the automotive and consumer electronics industries.

• On the basis of End-use, the market is segmented into Automotive Li-Ion Battery Pack, Consumer Electronics Li-Ion Battery Pack, Medical Devices Li-Ion Battery Pack, and Industrial & Grid Energy Li-Ion Battery Pack. Because of the growing adoption of EVs around the world, the automotive segment is expected to dominate the Lithium-Ion Battery Market with a significant market share. Furthermore, the increased adoption of various environmental norms and emission regulations has contributed to market growth.

• Asia Pacific is the fastest regional segment in terms of growth. The APAC lithium-ion battery market is expected to grow at the fastest Compound Annual Growth Rate (CAGR) between 2021 and 2030. China and Japan are the world's second and third-largest EV markets, respectively. Continuous advancements in the consumer electronics and automotive industries have increased the use of lithium-ion batteries, which offer numerous advantages such as high- power capacity, increased safety, and reduced pollution. Several APAC countries are planning off-grid electrification, especially in rural areas. Energy storage system investments are expected to increase significantly in the region as governments in developing economies develop new policies to improve the reliability and quality of power distribution facilities for residential customers.

Some of the key players in the Lithium-Ion Battery Packs Market include LG Chem Ltd., BYD Co. Ltd., Panasonic Corporation, Contemporary Amperex Technology Co. Ltd., Samsung SDI Co., EnerSys, Hefei Guoxuan High-Tech Power Energy Co. Ltd., Automotive Energy Supply Corporation, Tianjin Lishen Battery Joint-Stock Co. Ltd., CBAK Energy Technology Inc., Lithium Energy Japan Corporation. and others.

Market Dynamics:

Increasing interest in plug-in hybrid vehicles

Lithium-ion batteries provide power to electric vehicles. The widespread use of electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) has unavoidably increased the adoption of lithium-ion batteries, which is expected to continue in the future. The growing consumer acceptance of EVs has aided the market for these energy-saving, pollution-reducing vehicles. The popularity of electric vehicles is growing due to benefits such as less need for vehicle engine maintenance, reduced use of hazardous oil waste, and reduction in pollution caused by fuel combustion engines, as well as the development of improved battery technologies.

Lithium-ion battery prices are falling

A lithium-ion battery is made up of numerous parts. The cell is the most expensive component of any lithium-ion battery, accounting for nearly half of the total cost; electronics, assembly, and packaging account for the remainder. However, recent developments and claims made by lithium-ion battery manufacturers and automobile manufacturers indicate that the price of these batteries is expected to fall significantly. Large scale, falling component prices, and the adoption of advanced technologies to increase battery capacity are some of the factors driving down prices. A decrease in price would hasten the adoption of these batteries in a variety of new applications.

North America is expected to grow at a rapid pace over the forecast period, owing to rising consumer electronics and automotive sales in countries such as the United States and Mexico. In the coming years, the market is expected to be driven by rising demand for lithium-ion batteries in mobile phones due to improved efficiency and battery life. Because of the high awareness of the need for energy-efficient batteries, North America is a significant market segment.