Li-Ion Pouch Battery Market

Li-Ion Pouch Battery Market Outlook (2024 to 2034)

Revenue from the global Li-ion pouch battery market is projected to reach US$ 69.13 billion in 2024. The market has been forecasted to reach a value of US$ 174.48 billion by the end of 2034, expanding at a CAGR of 9.7% over the next ten years.

The automotive sector in potentially high growth countries is expanding, which suggests that there is a significant increase in demand for Li-ion batteries, including pouch cells and battery packs. Energy storage systems have a huge market potential in these countries. Aluminum pouch film is used to package pouch-type lithium-ion batteries, which are suitable for use as a power source for large-scale energy storage and electronic vehicles. Compared to standard square batteries, these films are molded into a variety of shapes and sizes and are incredibly light.

Key Market Growth Drivers

• Li-Ion pouch battery packs are used in the automotive, military, and consumer industries. Since there isn't a standard for pouch cells, each manufacturer creates the cells for a particular use. Li-polymer pouch packs are quite common. Its specific energy is comparatively lower than Li-ion's.
• Low-cost renewable energy generation is gaining popularity in potentially high growth countries where other flexible options such as cross-border interconnections and natural gas generation are not sufficient.
• The Li-ion battery technologies that have been dominating the storage industry for the past few years have not seen a significant decrease in cost, thus driving Li-ion pouch battery market growth.
• As the availability of raw materials is reducing on Earth and more people are becoming aware of sustainable resources, automotive lithium batteries are increasingly used because of their capacity for recycling.
• Due to their low cost, long cycle life, and inherent safety, lithium iron phosphate (LFP) batteries are gaining popularity. They are less energy-dense compared to conventional Lithium Cobalt Oxide (LCO) solutions, however, they still have a lot going for them in applications such as grid storage and low-cost electric vehicles where safety and cost are major considerations.
• More manufacturers are attempting to optimize LFP chemistry and pouch cell design to boost energy density without compromising on cost or security.
• Lithium-ion batteries are in great demand across the globe as they have multiple uses in consumer electronics, electronic vehicles, and stationary storage.
• The higher energy density, safe operation, high discharge rate, life cycle, flexibility, and low internal resistance of these pouch cell batteries are other uses. Lithium-ion battery pouch films are therefore gaining popularity in stationary storage and electric car applications due to these benefits.

Report Attribute	Detail
Li-Ion Pouch Battery Market Size (2024E)	US$ 69.13 Billion
Projected Market Value (2034F)	US$ 174.48 Billion
Global Market Growth Rate (2024 to 2034)	9.7% CAGR
East Asia Market Share (2024E)	30.1%
South Asia & Pacific Market Share (2024E)	24%
Revenue Share of Lithium Iron Phosphate (2034F)	31.6%
Key Companies Profiled	CUSTOM CELLS ITZEHOE GMBH; FDK Corporation; Enertech International Inc.; DNK Power Company Limited; Amperex Technology Limited; Energy Innovation Group Ltd.; Bestgo B Vertical Partners West LLC; Servovision Co. Ltd.; Fruedenberg Group; Leclanché SA; A123 Systems LLC; Toshiba Corporation; Gee Power; EVE Energy Co. Ltd.; SK Innovation Co. Ltd.; EPEC LLC; FluxPower Battery Co., Ltd.; SOLAREDGE e-MOBILITY SpA; Echion Technologies; Panasonic Industrial Corporation; YOK Energy; Shenzhen Ace Battery Co. Ltd.

What are the Prevailing Li-Ion Pouch Battery Market Trends?

“Longer Energy Storage Capacity of Li-Ion Batteries Driving Their Demand”

Several governments across the globe are putting their efforts to cut down on the pollutants that come from regular vehicles. In addition, the environment is being threatened by the depletion of natural resources. Due to this, consumers have demonstrated a preference for using electric vehicles. Lithium-ion batteries are preferred by manufacturers of electric vehicles as they store energy for extended periods, which is also utilized in hybrid vehicles as well.

There is no need to deal with the inconvenience of maintaining engine efficiency with these batteries. The number of electric car sales is also increasing due to surging environmental issues, thereby, the revenue from lithium-ion battery packs is also rising. The market for lithium-ion battery packs is expanding due to increasing consumer acceptance of cutting-edge products and technological advancements. To increase their profits, major players in the market are introducing long-lasting lithium-ion batteries.

What are the Key Challenges for Manufacturers of Li-Ion Pouch Batteries?

“Quick Heating and Higher Cost of Charging Infrastructure Limiting Adoption of Li-Ion Pouch Batteries”

The market development pace is hampered by a lack of charging infrastructure in port regions. These days, building infrastructure for charging is expensive, as is the cost of transporting energy from a local grid to a port terminal range. The existence of alternatives, such as lead-acid and flow batteries, is hindering the demand for lithium-ion batteries. In certain situations, lithium-ion batteries store comparatively large amounts of energy, but they also tend to heat up quickly and catch fire.

Country-wise Insights

East Asia is analyzed to hold 30.1% of the global Li-Ion pouch battery market share in 2024, meanwhile, the South Asia & Pacific region is estimated to gain a market share of around 1/4th in 2024. The main factors driving the growth of the lithium-ion battery pack market in North America are expanding regulations encouraging the use of electric vehicles and government funding for reducing carbon emissions. The growth in South Asia & Pacific is primarily attributed to the sharp increase in sales of smart electronics. It is also projected that the electrification of delivery trucks and pickup trucks will increase demand for these batteries.

How is the Market for Li-Ion Pouch Batteries Expanding in China?

“Stringent Pollution Control Regulations Imposed by Government in China”

Attribute	China
Market Value (2024E)	US$ 12.9 Billion
Growth Rate (2024 to 2034)	9.2% CAGR
Projected Value (2034F)	US$ 31.25 Billion

China is projected to account for 62% of the East Asian market share in 2024. The market is developing more quickly in the country as a result of rising investments in energy and infrastructure development projects as well as rising sales of e-scooters. The manufacturers of lithium-ion battery packs are witnessing opportunities for growth as a result of the government's stringent regulations on pollution, carbon emissions, and greenhouse gas emissions.

What Makes India a Lucrative Market for Manufactures of Li-Ion Pouch Batteries?

“Demand for Portable and Efficient Battery Solutions Driven by Increasing Use of Laptops, Smartphones, and Other Portable Electronics”

Attribute	India
Market Value (2024E)	US$ 6.45 Billion
Growth Rate (2024 to 2034)	10.7% CAGR
Projected Value (2034F)	US$ 17.91 Billion

Li-Ion battery demand is directly increased by the Indian government's promotion of electric mobility through incentives and policies, raising EV sales and production. The growing use of laptops, smartphones, and other portable electronics is fueling the need for effective and portable battery solutions. Investment in battery technology and home manufacturing is encouraged by initiatives by the government such as the Production-Linked Incentive (PLI) program and the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME). The ongoing advancements in battery technology, including higher energy density and lower costs, are making Li-Ion batteries more desirable for a wider range of applications.

Category-wise Insights

The global market is categorized into lithium cobalt oxide, lithium manganese oxide, lithium nickel manganese cobalt oxide, lithium iron phosphate, and lithium titanate. Lithium iron phosphate and lithium cobalt are estimated to account for 32.9% and 25.8% of global market share respectively in 2024. In terms of capacity, 5-10 Ah and 10-15 Ah Li-Ion pouch batteries together are evaluated to account for 42.5% in 2024.

What Properties of Lithium Iron Phosphate Make it Irreplaceable in the Market?

“Less Than Half the Weight of Traditional Lead Acid Batteries”

Attribute	Lithium Iron Phosphate
Segment Value (2024E)	US$ 22.74 Billion
Growth Rate (2024 to 2034)	9.3% CAGR
Projected Value (2034F)	US$ 55.14 Billion

Given its excellent safety record, lithium iron phosphate (LiFePO4) batteries are adopted more than li-ion batteries manufactured from several other cathode materials. Their superior thermal stability and remarkably stable chemical properties due to the phosphate content is contributing to the expanding Li-ion pouch battery market size expansion. LiFePO4 batteries, which weigh less than half compared to conventional lead acid batteries, are used in the majority of battery-powered off-road vehicles. They are very effective, and end users use the entire capacity of the battery without shortening its life or decreasing its capacity.

By Capacity Which Segment is Responsible for Significant Market Share?

“Successful Incorporation of Li-Ion Pouch Batteries into Several Products”

Attribute	10 to 15 Ah Li-Ion Pouch Batteries
Segment Value (2024E)	US$ 18.04 Billion
Growth Rate (2024 to 2034)	9.7% CAGR
Projected Value (2034F)	US$ 45.36 Billion

Li-Ion pouch batteries with a capacity of 10 to 15 Ah offer a noteworthy energy density as per their weight, rendering them perfect for use in portable applications. Additionally, because they are small and light, a thinner battery is used, increasing the design flexibility of gadgets. Since pouch batteries are produced in a variety of sizes and shapes, they are effectively integrated into a range of products. When compared to other battery types, they typically support faster charging, which further helps in reducing downtime. Over time, Li-Ion batteries result in lower replacement costs because of their extended lifespan, which frequently exceeds 500 charge cycles.

Competitive Landscape

Key players in the li-ion pouch battery market are placing a strong emphasis on releasing cutting-edge battery packs with premium conducting materials. Their main areas of focus are acquisitions, supply chain management, new product developments, strategic alliances, and capacity expansion initiatives.

• FDK Corporation in February 2021 declared that it would expand its high-power cylindrical-type primary lithium-ion battery assembly line to increase production capacity by 25%.
• SK Innovation, Hyundai Motors, and Kia joined forces in April 2021 to jointly develop batteries for electric vehicles. Mass production and installation are anticipated to begin in 2024.
• The Toyota Technology and Development Award for lithium-ion batteries for hybrid cars was given to GS Yuasa International Limited in March 2021.

Fact.MR provides detailed information about the price points of leading providers of Li-Ion pouch batteries globally, sales growth, production capacity, and technological advancements, in this new market report.

Segmentation of Li-Ion Pouch Battery Market Research

• By Chemistry :

  • Lithium Cobalt Oxide
  • Lithium Manganese Oxide
  • Lithium Nickel Manganese Cobalt Oxide
  • Lithium Iron Phosphate
  • Lithium Titanate

• By Capacity :

  • 1 to 3Ah
  • 5 to 10Ah
  • 10 to 15Ah
  • 16 to 30Ah
  • 40 to 50Ah
  • 50 to 100Ah

• By Thickness :

  • 6mm
  • 7mm
  • 8mm
  • 9mm
  • 10mm
  • 11mm
  • 12mm

• By Rated Voltage :

  • 6V
  • 12V
  • 24V
  • 48V
  • 60 to 72V
  • 96V

• By End User :

  • Electric Vehicles
  • Cell Phones
  • Battery Powered Off-Road Vehicles
  • Robotics, Energy Storage Systems
  • Portable Electronic Devices
  • Utility Meters
  • Medical Measurements
  • Portable Devices

• By Region :

  • North America
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Western Europe
  • Eastern Europe
  • Middle East & Africa