Market Scenario
India lithium-ion battery market generated a revenue of US$ 4,294.80 Million revenue in 2022 and is estimated to reach US$ 25,303.59 million by 2031 at a CAGR of 22.1% during the forecast period.
The lithium-ion battery market in India is expected to flourish due to the government’s initiative to make the country eco-friendlier. The Indian government is investing in developing infrastructure and manufacturing capabilities for development of lithium-ion batteries, which are increasingly being used in electric vehicles (EVs) as well as other applications such as consumer electronics and energy storage. This growth is supported by increasing demand for EVs and energy storage systems, backed by various government initiatives such as the Production Linked Incentive (PLI) Scheme for National Program on ACC Battery Storage.
Moreover, companies such as Exide Industries are investing in the lithium-ion cell manufacturing space. According to reports, Exide plans to participate in the PLI Scheme for National Program on ACC Battery Storage. Exide is also one of India's largest selling battery companies.
The increased focus on lithium-ion technology is likely to benefit Indian consumers with more access to efficient, affordable and reliable electricity. Furthermore, it is expected to create significant opportunities for businesses, both large and small. This will help promote sustainable economic growth in the country and open up new possibilities for businesses to expand their operations into this rapidly growing sector.
The South zone in India dominates the Lithium-ion battery market due to the presence of large battery assembling units and access to ports and mines essential for Li-ion battery production. However, it's worth noting that the West zone, particularly the states of Gujarat and Maharashtra, has seen significant investment and development in recent years and is expected to experience a higher compound annual growth rate in the coming years. Additionally, it's crucial to consider the impact of government initiatives and regulations aimed at promoting the adoption of clean energy and electric vehicles, which drive the demand for Li-ion batteries. Furthermore, the growing demand for energy storage solutions in various industries, such as consumer electronics, automotive, and renewable energy, is likely to contribute to the growth of the Li-ion battery market in India.
To Get more Insights, Request A Free Sample
Market Dynamics
Driver
Increasing Adoption Electric Vehicle in India Lithium-Ion Battery MarketDue to Favorable Government Policies
The use of Li-ion batteries in electric vehicles and electronic devices has seen a sharp rise and is expected to continue to grow in the future, making Li-ion battery recycling a crucial aspect. Recycling helps reduce the dependence on imported raw metals and eliminates health and environmental hazards. The Indian government has introduced laws offering tax benefits to recyclers to encourage the practice. Battery manufacturers in the lithium-ion battery market are required to collect spent batteries under the Extended Producer Responsibility (EPR) regulations. The implementation of the Battery Waste Management Rules has led to an increase in battery recycling by approved recyclers, thereby boosting the availability of raw materials in the domestic market.
The Indian government and leading market players have taken various initiatives to establish Li-ion battery assembly factories. Companies such as Panasonic Corporation, Amara Raja Batteries Ltd, and Exide Industries Ltd are exploring the possibility of setting up factories in India. Indian Oil Corporation Ltd. has also announced plans to establish a 1 GW battery manufacturing plant in collaboration with a foreign start-up.
In addition, auto manufacturers in the India lithium-ion battery market are entering the battery manufacturing business as a secondary market for electric vehicles. Suzuki Motor Corp. is partnering with Toshiba Corporation and Denso to build a factory in Gujarat, with an investment of USD $180 million. Li Energy has established a Li-ion cell manufacturing facility in Tamil Nādu, with plans to scale it up to 150 MW.
Restraints
Market Segmentation
The report includes India lithium-Ion battery market analysis on basis of following segments: type, power capacity, application and form/ design.
By Type
Lithium Cobalt Oxide (LCO) batteries are a type of lithium-Ion batteries and have become the dominant choice for various electronic devices, including laptops, cell phones, and other electrical appliances. In 2020, LCO batteries held approximately 35% of the global Lithium-Ion battery market share due to its high energy density, long cycle life, and relatively low self-discharge rate compared to other Lithium-Ion batteries. The combination of these factors has made LCO batteries the preferred choice for manufacturers in the consumer electronics industry. However, the high cost of cobalt, a key component of LCO batteries, has led to efforts to find alternative materials and reduce the cost of production.
By Power Capacity
Lithium Cobalt Oxide (LCO) batteries, with their high energy density and long cycle life, are well-suited for high-power applications, including electric vehicles (EVs). By power capacity, LCO batteries with more than 60,000 mAh are growing at the CAGR in the India lithium-ion battery market, with a projected compound annual growth rate of around 28% during the forecast period. This rapid growth is largely driven by the increasing adoption of EVs and the need for high-power, long-lasting batteries to meet the demands of this growing market. The demand for LCO batteries in the EV sector is expected to continue to grow as more and more consumers adopt electric vehicles and automakers invest in the development of longer-range EVs. The ability of LCO batteries to provide reliable, high-power performance is crucial to the growth and success of the EV market.
To Understand More About this Research: Request A Free Sample
By End User
The shift towards electric vehicles (EVs) is driving the growth of the Lithium-Ion battery market, with the BEV automotive OEM application segment expected to experience the fastest compound annual growth rate (CAGR). This growth is largely due to the rising costs of gasoline and the increasing awareness of the negative environmental and health impacts of burning hydrocarbons.
Among the various designs for Lithium-Ion batteries, pouch cells held the highest market value in 2022. The pouch form offers a high level of packaging efficiency, with a rate of 90 to 95%, making it the most efficient use of space among battery packs. Its versatility and ability to be used in a variety of industries, including consumer electronics, military, and automotive, have made the pouch battery pack a popular choice for manufacturers. The pouch form is expected to continue to be a leading design in the Lithium-Ion battery market, driven by its high performance, efficiency, and versatility.
Competitive Landscape
The competition landscape section of the report features 16 players in total, 8 of them being prominent local players from India and 8 being key players at a global level.
Amara Raja Batteries has taken part in the Indian government's smart city program by setting up EV battery charging and EV battery swapping facilities in Tirupati in partnership with the Tirupati Municipal Corporation. Meanwhile, Toyota Motor Corporation and Panasonic Corporation have formed a joint venture to develop automotive prismatic batteries for EVs.
List of Key Companies Profiled:
Segmentation Overview: India Lithium-ion Battery Market
By Product Type
By Power Capacity
By Form/Design
By Application
By Region
| Report Attribute | Details |
|---|---|
| Market Size Value in 2022 | US$ 4,294.80 Mn |
| Expected Revenue in 2031 | US$ 25,303.59 Mn |
| Historic Data | 2018-2022 |
| Base Year | 2022 |
| Forecast Period | 2023-2031 |
| Unit | Value (USD Mn) |
| CAGR | 22.1% |
| Segments covered | By Product Type, By Power Capacity, By Form/Design, By Application, By Region |
| Key Companies | ISRO, Amara Raja Group, HBL Power Systems Limited, EON Electric Ltd., Exide Industries Ltd., Microtex Energy Pvt. Ltd., Mercom Capital Group, LLC, Tata Chemicals, Bharat Heavy Electricals Ltd., BYD Company, LG Chem, Panasonic Corporation, Samsung SDI, BAK Group, Hitachi Corporation, Johnson Controls, Toshiba Corporation, Other Prominent Players |
| Customization Scope | Get your customized report as per your preference. Ask for customization |
In 2022, India lithium-ion battery market earned US$ 4,294.80 million in revenue.
The market is expected to grow at a compound annual growth rate of 22.1 percent from 2023 to 2031, according to the report.
The report gives a comprehensive market size analysis and forecast for numerous factors at the segment level. These includes: Type (6 sub segments), power capacity (4 sub segments), application (6 sub segments), form/design (5 sub segments) and region (4 sub segments)
In North India, the report covers Uttar Pradesh, Rajasthan, Delhi, and Haryana; in South India, Tamil Nadu, Kerala, Karnataka, and Andhra Pradesh; in Eastern India, West Bengal, Bihar, and Assam; and in Western India, Gujarat, Maharashtra, and Madhya Pradesh.
The report includes descriptive profiles of eight significant Indian local players as well as eight key global players. Business description, firm financials, key details, strategy outlook, list of products, and current developments are all covered for these players.
The market for lithium-ion battery is being driven by rising consumer electronics use because of radical changes in middle-class lifestyles and purchasing tastes, as well as the operational feasibility of lithium-ion batteries.
The material cost segmentation holds the maximum share of 66% while remaining has been covered by tax, equity return, term loan, O & M insurance, energy, labor, R & D and working capital.
Yes, the report analyses the impact of the Covid 19 pandemic on market growth trends based on several characteristics such as lithium-ion battery manufacturing, assembly, supply chain, and trade (EXIM).
The demand-supply gap in India is determined based on imports, exports, and production in the country, and it is noted to be narrowing as lithium-ion battery manufacture has recently begun in the country.
The loose oligopoly nature of the India lithium-ion battery market is expected to shift towards monopolistic form in the forecast period.
Yes, to encourage the recycling of Li-ion batteries, the Indian government has announced laws that provide tax breaks to recyclers.
Developments and investments made in western states such as Gujarat and Maharashtra have contributed to the region's highest growth rate, with a CAGR of 23.1 percent over the forecast period.
LOOKING FOR COMPREHENSIVE MARKET KNOWLEDGE? ENGAGE OUR EXPERT SPECIALISTS.
SPEAK TO AN ANALYST
.png)
Features | Type of License | |||
 Single User |   Multi User |  Corporate | ||
| e-Access | ✓ | ✓ | ✓ | |
User Sharing | 1 User Only | 2-6 Users | Unlimited within Company/Enterprise | |
⨉ | ⨉ | ✓ | ||
Free Customization | Up To 30 hrs work | Up To 60 hrs work | Up To 80 hrs work | |
Deliverable |
| ✓ | ✓ | ✓ |
| ⨉ | ✓ | ✓ | |
| ⨉ | ⨉ | ✓ | |
Analyst Support | 4 Month Post purchase | 7 Month Post purchase | One Year Post purchase | |
Free Report update in next update cycle | ⨉ | ⨉ | ✓ | |
Free Industry Update (Within 180 days) | ⨉ | ⨉ | ✓ | |
Benefit | Up to 20% off on next purchase | Up to 30% off on next purchase | Up to 40% off on next purchase | |
| Report ID: AA0821086 
.svg)
