Cylindrical Li-ion Battery Market Size, Share, Competitive Landscape and Trend Analysis Report, by Type, by Capacity, by Application, by End-Use : Global Opportunity Analysis and Industry Forecast, 2024-2033

Key Market Dynamics

Cylindrical lithium-ion batteries are particularly suited for EV application due to its high energy density. This allows EVs to store more energy in a relatively small and lightweight package, which is crucial for achieving longer driving ranges and enhancing vehicle performance. The compact size and form factor of cylindrical cells make them easy to integrate into various battery pack configurations, providing flexibility to EV manufacturers in designing efficient and space-saving battery systems. Safety improvements have also played an important role in driving the demand for Cylindrical Li-ion battery market. In addition, advancements in battery management systems (BMS) and the incorporation of better thermal management techniques have made cylindrical lithium-ion batteries safer and more reliable. These enhancements reduce risks such as overheating and thermal runaway, ensuring safer operation in various applications such as power tools, lamps, etc. As safety concerns decrease, more consumers and industries are willing to adopt cylindrical lithium-ion batteries, further driving the demand for cylindrical Li-ion battery market.

However, cylindrical lithium-ion batteries consist of cylindrical metal multiple electrode layers, separated by using a porous membrane and immersed in an electrolyte solution. The electrodes normally consist of lithium-containing compounds, such as lithium cobalt oxide (LCO) , lithium iron phosphate (LFP) , or lithium nickel manganese cobalt oxide (NMC) , depending on the precise battery chemistry. In addition, safety concerns associated to lithium-ion batteries, inclusive of overheating, fire, and explosion risks, are indeed indispensable issues that have an impact on their great adoption, in high-stakes purposes such as electric powered automobiles (EVs) and energy storage systems. When it comes to cylindrical lithium-ion batteries, perception of these safety problems requires a nearer examination of their design, chemistry, and the measures applied to reduce potential risks. All these factors are expected to hamper the growth of cylindrical Li-ion battery market.

The cylindrical Li-ion battery market is expected to witness significant growth due to a rise in global demand for efficient energy storage solutions. In addition, the rise in renewable energy installations has intensified the demand for robust energy storage systems. Solar and wind energy generation is inherently intermittent, necessitating effective storage solutions to balance supply and demand. Cylindrical lithium-ion batteries are increasingly being used in energy storage systems (ESS) due to their scalability, efficiency, and ability to provide stable power output. All these factors are anticipated to offer new growth opportunities for the Cylindrical Li-ion Battery market during the forecast period.

Historical Trends of Cylindrical Li-ion Battery:

In the Early 1990s: The cylindrical Li-ion battery emerged as a revolutionary energy storage technology, initially developed for use in small electronic devices such as camcorders and early mobile phones. Its superior energy density, longer lifespan, and safety compared to older battery technologies captured the interest of researchers and industries alike. Early applications were primarily focused on consumer electronics, providing reliable power for portable gadgets.

In the Late 1990s: Advancements in materials and manufacturing processes significantly improved the performance and safety of cylindrical lithium-ion batteries. This period saw a gradual expansion in their use, particularly in laptops and other portable electronic devices. The demand for lightweight, high-capacity batteries drove continued innovation and scale-up in production capabilities.

In the Early 2000s: As the technology matured, cylindrical lithium-ion batteries started to penetrate more diverse applications. Enhanced by better battery management systems and improved cell design, these batteries found a growing market in power tools and other industrial applications. The focus on increasing energy density and reducing costs spurred further technological advancements.

In the Mid to Late 2000s: The rise of electric vehicles (EVs) and the push for renewable energy solutions brought cylindrical lithium-ion batteries to the forefront of the energy storage revolution. Automakers and energy companies began to recognize their potential for high-capacity energy storage. Significant investments in research and development led to breakthroughs in battery efficiency, durability, and scalability.

In the 2010s: This decade marked a significant turning point with the widespread adoption of cylindrical lithium-ion batteries in the automotive industry, particularly for EVs and hybrid electric vehicles. Stricter environmental regulations and the global emphasis on reducing carbon emissions accelerated their deployment. The energy storage capabilities of these batteries also made them essential for integrating renewable energy sources solar such as wind into the power grid.

In the 2020s: The trend of using cylindrical lithium-ion batteries has continued to grow, driven by escalating concerns about climate change and the urgent need to transition to a low-carbon economy. Advances in battery chemistry, recycling technologies, and manufacturing efficiency have further enhanced their performance and sustainability. The range of applications has expanded to include not only transportation and consumer electronics but also large-scale energy storage systems and smart grid solutions. Increasing investments and supportive government policies worldwide are likely to sustain this growth trajectory, cementing the Cylindrical Li-ion Battery's role as a cornerstone of modern energy solutions.

Market Segmentation

The cylindrical Li-ion battery market is segmented by type, capacity, application, end-use, and region. Based on type, the market is classified into lithium iron phosphate, lithium cobaltate, lithium manganate, cobalt-manganese, and others. By capacity, it divided into Up to 350 mAh, 350-500 mAh, 500-700 mAh, 700-900 mAh, 900-1, 200 mAh, 1, 200-3, 400 mAh, more than 3, 400 mAh. As per application, the market is segregated into power tools, toys, lamps, e-bikes, portable mobile energy systems, and others. By end-use, it is divided into consumer electronics, automotive, telecommunication, and others. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Regional Market Outlook

Cylindrical lithium-ion batteries are commonly used in electric cars, buses, and bikes. Countries such as China, Japan, and South Korea are leading in EV adoption and production. China has made significant step in EV adoption, driven by strong government policies and incentives aimed at reducing air pollution and dependency on fossil fuels. Major Chinese EV manufacturers such as BYD Australia Pty. Ltd., and XPENG INC rely heavily on cylindrical lithium-ion batteries for their energy efficiency, cost-effectiveness, and safety. The Chinese government has implemented substantial subsidies and established an extensive network of charging infrastructure, further boosting the adoption of EVs. Additionally, China is home to several leading battery manufacturers, such as BYD, which are major suppliers of cylindrical lithium-ion batteries both domestically and internationally.

• In January 2022, South Korean battery giant LG Energy Solution Ltd announced plans to expand its lithium-ion battery lineup by introducing a prismatic cell type. This move aims to diversify its product offerings and attract a broader customer base. Local competitors such as Samsung SDI and SK On are also transitioning to prismatic cells with lithium-iron-phosphate (LFP) technology, a market currently dominated by China's CATL. This shift is driven by leading electric vehicle manufacturers, Tesla and Volkswagen, who adopted prismatic cells earlier in 2021.

• According to the International Energy Agency (IEA) , in China, battery demand for vehicles grew over 70%, while electric car sales increased by 80% in 2022 relative to 2021, with growth in battery demand slightly tempered by an increasing share of PHEVs. Battery demand for vehicles in the United States grew by around 80%, despite electric car sales only increasing by around 55% in 2022.

Competitive Landscape

The major players operating in the cylindrical Li-ion battery market include Panasonic Energy Co., Ltd., Tianneng Rechargeable Battery, Murata Manufacturing Co., Ltd., Xiamen Tmax, Battery Equipments Limited., EVE Energy Co., Ltd, Sony Group Corporation, LG Chem, Hitachi, Astemo Americas, Samsung SDI Co., Ltd.

Recent Key Strategies and Developments

• In November 2023, Toshiba Corporation developed a new lithium-ion battery using a cobalt-free 5V-class high-potential cathode material that significantly suppresses performance-degrading gases produced as side reactions. This battery is operated at a wide range of applications, from power tools to electric vehicles.

• In March 2024, Samsung SDI announced its participation in Inter Battery 2024, which started in March and ran for three days in Seoul. At the event, the company  unveiled a suite of 'super-gap' battery technologies, including fast-charging and ultra-long-life batteries. Additionally, Samsung SDI will present its roadmap for mass production of all solid-state batteries, a cutting-edge solution that surpasses traditional lithium-ion batteries.

The rapid increase in battery electric vehicle (BEV) sales from 1.4 million units in 2018 to 9.5 million units in 2023 has significantly impacted the cylindrical lithium-ion battery market. This surge in BEV adoption has driven substantial demand for cylindrical Li-ion batteries, as they are favored for their high energy density, durability, and efficient thermal management. The escalating production of BEVs necessitates an equally rapid expansion in cylindrical Li-ion battery manufacturing capabilities, prompting advancements in battery technology and economies of scale.

Industry Trends

• In January 2024, Amara Raja Batteries Ltd, a prominent automotive battery manufacturer, announced plans to commence operations at a gigafactory by the end of 2025. The company laid the foundation for this significant facility in the Mahbubnagar district of Telangana, India. The plant is projected to produce lithium cells with a capacity of up to 16 GWh and battery packs with a capacity of up to 5 GWh.

• The Chinese government plans to reduce subsidies for electric vehicles by 30% in 2022, with the aim of completely phasing them out by the end of the year. This decision comes in response to the rapid growth and maturation of the country's electric vehicle industry. By cutting these subsidies, the government aims to encourage manufacturers to become less dependent on state funding and to foster innovation and development within the industry independently.

• In June 2023, in Olen, Belgium, Umicore opened one of the world's largest and most advanced solid-state battery material prototyping labs. The 600-square-meter facility, outfitted with cutting-edge installations and technology, supports the entire chain of solid-state battery research.

Key Sources Referred

1. International Renewable Energy Agency (IREA)

2. India Brand Equity Foundation (IBEF)

3. Invest India

4. United Nations Development Programme (UNDP)

5. International Energy Agency (IEA)

Key Benefits For Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the cylindrical li-ion battery market analysis from 2024 to 2033 to identify the prevailing cylindrical li-ion battery market opportunities.

• The market research is offered along with information related to key drivers, restraints, and opportunities.

• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.

• In-depth analysis of the cylindrical li-ion battery market segmentation assists to determine the prevailing market opportunities.

• Major countries in each region are mapped according to their revenue contribution to the global market.

• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.

• The report includes the analysis of the regional as well as global cylindrical li-ion battery market trends, key players, market segments, application areas, and market growth strategies.