Cylindrical Lithium-Ion Battery Market size to increase by USD 12.79 billion, APAC to account for 56% of market growth - Technavio

The global cylindrical lithium-ion battery market is poised for significant expansion, with Technavio projecting a growth of USD 12.79 billion from 2024 to 2029. The market is expected to accelerate at a CAGR of 6.8% during the forecast period, driven by the shift toward electric vehicles (EVs), rising demand for consumer electronics, and advancements in energy storage systems. The Asia-Pacific (APAC) region is anticipated to contribute 56% of the market’s growth, fueled by manufacturing hubs, increasing EV adoption, and government support for renewable energy in countries like China, Japan, and South Korea.The report provides a comprehensive analysis of growth opportunities at regional levels, new product launches, the latest trends, and the post-pandemic recovery of the global market. Download PDF Sample Report

Market Dynamics: Drivers, Trends, and Challenges

• Key Driver: The shift in the automotive industry toward EVs is a primary growth driver. Increasing consumer demand for sustainable transportation and declining battery costs are accelerating adoption worldwide.
• Emerging Trend: Revisions in lithium-ion battery safety standards are shaping the market. Updated regulations, such as those from the International Electrotechnical Commission (IEC), enhanced testing for durability and safety, boosting confidence in cylindrical designs.
• Major Challenge: Safety concerns, including risks of thermal runaway and battery fires, pose challenges. Competition from alternative battery formats and supply chain constraints for raw materials like lithium and cobalt may also impact growth.

Cylindrical Lithium-Ion Battery Market: Key Drivers and Insights

The cylindrical lithium-ion battery market is experiencing steady growth as industries worldwide embrace sustainable energy solutions and high-performance power sources. These batteries, known for their cylindrical shape and superior energy density, are integral to EVs, power tools, and portable devices. Key drivers include the global push for decarbonization, technological improvements in battery capacity, and the rising popularity of e-mobility. Unlike other battery formats, cylindrical designs offer enhanced safety and production efficiency, making them a preferred choice for automotive and industrial applications. Technavio’s report, Global Cylindrical Lithium-Ion Battery Market 2024-2028, provides an in-depth analysis of market trends, segmentation, and competitive dynamics, offering actionable insights for industry stakeholders.

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Market Segmentation

The cylindrical lithium-ion battery market is segmented by type, application, and geography, providing a comprehensive overview of its structure:

By Type

• Lithium Nickel Manganese Cobalt (NMC): The leading segment, favored for its balance of energy density and stability in EVs and power tools.
• Lithium Iron Phosphate (LFP): Growing steadily, valued for safety and longevity in energy storage systems.
• Lithium Cobalt Oxide (LCO): Strong demand in consumer electronics due to high energy capacity.
• Others: Includes niche types like Lithium Titanate (LTO) for specialized applications.

By Application

• Automotive: Dominant segment, driven by EV and e-bike adoption globally.
• Consumer Electronics: High growth due to smartphones, laptops, and wearables.
• Energy Storage Systems: Increasing use in renewable energy grids and off-grid solutions.
• Others: Includes power tools, medical devices, and industrial equipment.

By Geography

• Asia-Pacific (APAC): Contributes 56% of market growth, led by China, Japan, and South Korea’s manufacturing and EV markets.
• North America: Strong presence in the U.S. and Canada, driven by automotive innovation and renewable energy projects.
• Europe: Steady growth in Germany, UK, and France, supported by green energy policies.
• Rest of World (ROW): Emerging markets in Latin America, Middle East, and Africa showing potential.

Regional Insights: APAC Leading the Charge

The Asia-Pacific (APAC) region is expected to account for 56% of the global cylindrical lithium-ion battery market growth during the forecast period. This dominance is attributed to APAC’s position as a manufacturing powerhouse, hosting major battery producers and EV manufacturers. China leads with its massive production capacity and government incentives for EV adoption, while Japan and South Korea excel in technological innovation and high-quality battery exports. The region’s rapid urbanization, rising consumer electronics demand, and investments in renewable energy infrastructure further solidify APAC’s role as a critical hub for cylindrical lithium-ion battery growth.

Competitive Analysis: Key Companies

The cylindrical lithium-ion battery market is fragmented, with global leaders and innovative firms competing through R&D, production scale, and strategic partnerships. Key companies include:

• Panasonic Holdings Corp.: A pioneer in cylindrical batteries, supplying Tesla and other EV makers.
• LG Energy Solution (LG Corp.): Known for high-performance NMC batteries for automotive and electronics.
• Samsung SDI Co. Ltd.: Specializes in cylindrical cells for EVs and consumer devices.
• Tesla Inc.: Innovates with 4680 cylindrical cells for enhanced EV performance.
• Sony Group Corp.: Offers reliable batteries for electronics and emerging applications.
• EVE Energy Co. Ltd.: A rising Chinese player in automotive and energy storage batteries.
• Murata Manufacturing Co. Ltd.: Focuses on compact cylindrical cells for portable devices.
• Hitachi Ltd.: Provides advanced battery solutions for industrial and automotive sectors.
• Northvolt AB: A European leader in sustainable battery production.
• CATL (Contemporary Amperex Technology Co. Ltd.): Expands cylindrical offerings alongside prismatic cells.

These companies are investing in next-generation technologies and sustainable practices to maintain competitive edges.

Market Research Overview

Technavio’s report leverages extensive primary and secondary research, including interviews with industry experts and analysis of historical data from 2019 to 2023. It provides a holistic view of the market, covering:

• Market Size and Forecast: Projections for 2024-2028.
• Competitive Landscape: Insights into vendor strategies and product innovations.
• Trends and Challenges: Examination of safety trends and supply chain dynamics.

Table of Contents Highlights

• Executive Summary: Market overview and key findings.
• Market Landscape: Segmentation and competitive analysis.
• Market Sizing: Growth projections and regional contributions.
• Vendor Analysis: Profiles of leading companies and their strategies.

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