Lithium Polymer Battery Market - By Power Rating, By Type, By End Use Industry, By Geography - Global Opportunity Analysis & Industry Forecast, 2024-2030

The Lithium Polymer Battery Market was valued at USD 60.21 Billion in 2022 and grew at a CAGR of 18% from 2024 to 2030. The market is expected to reach USD 300.24 Billion by 2030. The surge in the demand for electric vehicles (EVs) is reshaping the automotive industry landscape, propelling the lithium polymer battery market to new heights. From electric cars and buses to trucks and scooters, the adoption of EVs is on the rise, fueled by a growing awareness of environmental concerns and the need to reduce carbon emissions. Lithium polymer batteries emerge as the preferred power source for EVs due to their exceptional energy density, lightweight design, and customizable shape and size. These batteries not only enable longer driving ranges but also contribute to the overall efficiency and performance of electric vehicles. Moreover, stringent emissions regulations imposed by governments worldwide and the implementation of incentives to promote the transition to electric transportation further amplify the demand for lithium polymer batteries. As battery technology continues to evolve, with advancements in energy density and charging capabilities, the prospects for the lithium polymer battery market in the electric vehicle segment appear exceedingly promising, driving innovation and sustainability in the automotive sector. The relentless expansion of the consumer electronics market is driving a surge in demand for lithium polymer batteries, revolutionizing the landscape of portable power sources. From smartphones and tablets to laptops, wearable devices, and beyond, the quest for compact, lightweight, and enduring energy solutions has intensified. Lithium polymer batteries emerge as the quintessential choice, boasting thin profiles, customizable shapes, and remarkable energy density. These characteristics make them exceptionally well-suited for seamless integration into a myriad of portable electronic devices, ensuring optimal performance and longevity. Furthermore, the advent of transformative technologies like 5G connectivity, Internet of Things (IoT) devices, and augmented reality (AR)/virtual reality (VR) gadgets is poised to catalyze even greater demand for lithium polymer batteries across the consumer electronics spectrum. As the appetite for smarter, more connected gadgets continues to grow, lithium polymer batteries stand poised to power the next generation of innovation, reshaping the consumer electronics landscape with their unrivaled versatility and efficiency.

 

 

The report: “Lithium Polymer Battery – Forecast (2024-2030)”, by IndustryARC, covers an in-depth analysis of the following segments of the Lithium Polymer Battery.

By Power Rating: Upto 500mAh, 500-1000 mAh, 1000-2000 mAh, 2000-3000 mAh, 3000-5000 mAh, 5000-8000 mAh, 8000-20000 mAh, 20000 mAh and Above

By Type: Gel Polymer, Solid Polymer, Gel Composite Polymer

By End Use Industry: Automotive, Industrial, Energy and Power, Telecom, Medical, Aerospace and Défense, Consumer Electronics and Others

By Geography - North America (U.S, Canada, Mexico), Europe (Germany, UK, France, Italy, Spain, Russia and Others), APAC (China, Japan India, SK, Aus and Others), South America (Brazil, Argentina and others), and RoW (Middle East and Africa).

 

• For many years now, lithium batteries have been a trusted power source in various industries. LPo batteries are used in applications such as smartphones, watches, computers and tablets. Lithium is used in lightweight marine batteries, solar batteries and electric vehicle batteries thus driving their potential recycling.

• High Energy Density and Improved Safety offered by Lithium Cobalt Oxide batteries has driven their adoption. However their Short Lifespan, limited charging and discharging capacity limits their adoption.

• Of the 180,000 metric tons of Li-ion batteries available for recycling worldwide in 2019, just a little over half were recycled. As lithium-ion battery production soars, so does interest in recycling. This drives the need for recycling as a co-industry for manufacturing.

 

Gel Polymer batteries dominate the market with a share of 46.9% in 2023. Lithium metal could be a useful alternative to traditional graphite-based anodes for the development of next-generation batteries due to its high specific capacity and low electrochemical potential. However, an unstable interface and potentially dangerous lithium-dendrite growth impede the practical use of lithium-metal batteries. Lithium gel polymer battery provides high lithium-ion conductivity and effectively suppresses lithium dendrite growth. The fluorinated ionic liquid promotes stronger anion coordination and weaker cation coordination, and thus, enables favorable lithium transport properties.

 

Automotive is the fastest growing market with a CAGR of 11.9% through the forecast period 2024-2030. Majority of electric cars are powered by wet lithium-ion batteries, which use liquid electrolytes to transfer energy around. Electric car makers anticipate for high energy density batteries to improve range of their vehicles along with increased lifespan. In April 2022, Innolith, a Swiss startup, claimed to have made the world’s first 1,000 Wh/kg rechargeable battery; while none of the other battery makers have reached even 500 Wh/kg energy density batteries. A 1,000 Wh/kg Lithium Polymer Battery Recycling would be capable to power an electric car upto 1,000 km. The company has planned a pilot production in Germany, however, availability is expected after 2023. The company uses inorganic substances instead of organic solvents in its batteries, for better stability and to be flammable-free. Panasonic provides batteries to Tesla delivering power up to 530 km in premium models. The batteries require climate control during extreme hot and cold temperatures. Thus, the vehicle powered exclusively by a battery, the energy to optimize its battery temperature, is drawn from the battery itself, which hampers the battery performance. The automotive sector has witnessed a drop of more than 150% in the price per kWh in 6 years. Today, Tesla battery pack costs around $100 per kWh, and General Motors’ Chevrolet Bolt NMC battery pack is analyzed to cost around $125 per kWh showcasing significant price decline driving the adoption.

 

APAC region holds the largest market share of 42% in 2023. The APAC region driven by China is projected to drive market growth. China surpassed the US in 2022 to become the world leader in electric cars production, continuing to build a potential domestic market for battery makers like CATL through 2023 India is one of the fastest-growing countries globally for lithium-ion batteries. The country does not have reserves of the required raw materials for the production of the lithium-ion batteries on its own, and the cells and batteries are being imported from other countries (China, Vietnam, and Thailand). They are then either assembled or directly sold in the domestic market.

In order to counter the manufacturing issue, the National Institution for Transforming India (NITI) Aayog rolled out proposals in February 2022 to provide subsidies for investors setting up giga-scale lithium-ion manufacturing facilities in India. Between 2024-2030, the NITI Aayog is likely to invite bids for establishing production lines with 50 GWh of annual output capacity. Therefore, the indigenous manufacturing of lithium-ion batteries is expected to grow over the forecast period.

 

Therefore, owing to the above factors, Asia-Pacific is expected to dominate the lithium-ion battery market during the forecast period. A Lithium Ion/Polymer battery consists of 4 main components namely- anode, electrolytes, separators, and cathode. China manufactures around 65% of the anodes, 64% of the electrolytes, 44% of the separators, and 39% of the cathodes.

 

 

 

With the rising popularity of emission-free battery and hybrid electric vehicles, industry participants are likely to expand their investments in EVs. Furthermore, technology improvements have prompted prominent corporations to expand their reach into previously unexplored markets. Notably, the ubiquity of rapid car battery chargers for increased battery performance will augur well for the growth of the global automotive battery market. Furthermore, increased electrification of commercial vehicles in mature economies will fuel industry growth. Stakeholders are also likely to increase their output as a result of strong government initiatives encouraging the adoption of EVs. In February 2022, The Ontario government-backed an investment of $18.5 million by car components producer Ventra Group. This investment will allow the Ontario economy to boom as a result of domestic auto manufacturers' regional development programs. Furthermore, corporations anticipate that this investment will be used to build a flex-ion battery innovation center, which will boost employment and the economy.

 

For socio-economic development, energy is the foundation block. A significant gap has been identified between installed energy generation capacity, demand for energy and the population growth rate across various parts of globe. To cope with the pressure of growing population, many countries across world has adopted smart metering programs and full automated grids.. Smart meters generate petabytes of data over current drawn, readings, power factor, damage, pilferage and other parameters. Smart meters are also integrated with the ICT architecture to send signal or readings directly to the grid. So, if there is a power failure, the meter won’t be able to send any notifications to utility. Thus, there is the need for backup energy supply. So growing smart grids and smart meters will further bolster the need for Lithium Polymer Battery Market.

 

The industry has been disrupted as a result of a drop in automotive manufacturing and the closure of transportation services. The suspension of automotive battery production, in particular, didn't seem to work well for the global market outlook. However, the removal of prohibitions and strong government policies may lead to the selling of batteries. Despite the fact that the emergence of COVID-19 halted global production and sales of new automobiles, the impact on electric vehicles was good. Component production, on the other hand, was negatively impacted, and tiny Tier II and Tier III manufacturers suffered liquidity concerns. Major automotive events throughout the world were canceled or postponed, including the 2022 Geneva motor show, the Qatar Grand Prix, the New York International Auto Show, and the Australian Grand Prix. Fiat Chrysler Automobiles, Ford, PSA Group, Volkswagen Group factories in Europe, Ducati, Tesla factory in California, BMW Group European factories, Rolls-Royce, and General Motors are among the worldwide automakers that have halted production owing to the Coronavirus (COVID-19) epidemic. This hampered the market growth for lithium polymer batteries.

 

Enhanced control of beam shape and diameter, MCT3 Cutting Head, and a new MAZATROL Smooth Lx CNC control system to ensure optimal performance on a wide range of materials which greatly eases versatile operations on the workpiece that will ultimately result in widespread adoption. Such developments will positively affect the growth of this market.

 

Product launches, acquisitions, and R&D activities are key strategies adopted by players in the Lithium Polymer Battery Market. 

1. CATL 

2. Panasonic Corporation

3. Mitsubishi Electric Corporation

4. LG CHEM LTD 

5. SAMSUNG ELECTRONICS CO. LTD 

6. BYD Company Limited

7. Wanxiang Group Corporation 

8. Beijing Pride Power Battery Technology Co Ltd 

9. Tianneng Power International Limited 

10. Inverted Energy 

 

1. In February 2022, Panasonic Corporation announced that its Energy Company will establish a production facility at its Wakayama Factory in western Japan to manufacture new, large 4680 (46 millimeters wide and 80 millimeters tall) cylindrical lithium-ion batteries for electric vehicles (EVs).

2. In January 2022, Nexeon Limited, a provider of cutting-edge silicon anode materials for future-generation lithium-ion batteries, granted a license for its NSP-1 technology to SKC Co. Ltd, a leading player in advanced materials. This agreement guarantees swift and dependable access to these vital materials for customers worldwide.