Li-ion Battery Market Demonstrates Strong Growth, Driven by Energy Storage Shipments

Summary

LONDON - March 31, 2025 - Strong growth is anticipated across the entire lithium ion (Li-ion) battery landscape; with global battery shipments forecasted to have a five-year CAGR of 21% out to 2029, reaching a total value power of 3,446 GWh. Rates of growth are expected to increase year-on-year; with battery shipments rising by 23% in 2024 and a year-on-year growth rate of 26% forecast for 2025.
 
The latest update to its Global Li-ion Battery and Battery Manufacturing Equipment data by Interact Analysis reveals energy storage (ESS) battery shipments are expected to drive global demand over the coming years, with an impressive 67.4% year-on-year growth rate to 2029. The market intelligence specialist notes that, although the global battery manufacturing equipment market is facing challenges, it is still expected to be valued at $29.5 billion by 2029, with a 7% CAGR and up from $21 billion in 2024.

Lower than expected electric vehicle penetration dampens forecasts

Despite a strong growth forecast for the global Li-ion battery industry, Interact Analysis has revised its forecasts down in the latest market update, compared with the report published in September 2024. The revisions stem from unmet expectations rather than actual declines in growth – such as lower than anticipated electric vehicle market penetration in the Americas and EMEA regions and disappointing Li-ion battery demand in the US.

Strong growth projected for global energy storage market

Comparatively, the outlook for the global energy storage (ESS) market is overwhelmingly positive, with the ESS market in the Americas region surpassing previous expectations for 2024 with 67.4% year-on-year growth. The ESS markets within the US, Australia and China witnessed fierce growth, causing a steep upward revision of 19 percentage points compared with the September 2024 report.
 
In 2024, Australia solidified its leadership in energy storage development with a total of 35 GWh in planned projects, including a 19 GWh initiative designed to supply electricity to Singapore. The US had 34 GWh of planned energy storage projects in 2024, with 14.5 GWh already under construction, while the total number of new energy storage installations in China surpassed pumped hydro storage (PHS) installations for the first time. This is significant as it signals a shift towards newer energy storage technologies.
 
Shirly Zhu, principal analyst at Interact Analysis, commented: “In accordance with our latest update, we expect sustained strong growth in the ESS market, driving demand and optimism within the Li-ion battery industry. While uncertainty in the electric vehicle sector, particularly in the US, and instability among top battery equipment manufacturers led to downward revisions in several of our forecasts, we remain optimistic about the overall prospects for growth.”

About the report:  
This report provides a deep-dive analysis of the li-ion battery supply chain, comprising:

• Granular data analysis of Li-ion battery production and shipments, the end-user market landscape, supplier market shares and a highly detailed factory database;
• In-depth analysis of the lithium-ion battery manufacturing equipment market in different regions, as well as the equipment supplier landscape.

About Interact Analysis

With more than 200 years of combined experience, Interact Analysis is the market intelligence authority for global supply chain automation. Our research covers the entire automation value chain–from the technology used to automate factory production, through inventory storage and distribution channels, to the transportation of the finished goods. The world’s leading companies trust us to surface robust insights and opportunities for technology-driven growth.