Cylindrical Type Lithium Ion Secondary Battery Market Trends and Forecast
The future of the global cylindrical type lithium ion secondary battery market looks promising with opportunities in the home and commercial markets. The global cylindrical type lithium ion secondary battery market is expected to grow with a CAGR of 16.3% from 2025 to 2031. The major drivers for this market are the increasing demand for electric vehicles & energy storage, the rising adoption of portable consumer electronics, and the growing focus on renewable energy storage solutions.
• Lucintel forecasts that, within the type category, 21700 is expected to witness the highest growth over the forecast period due to the growing energy density and longer lifespan.
• Within the application category, commercial is expected to witness higher growth.
• In terms of region, APAC is expected to witness the highest growth over the forecast period due to the growing adoption of electric vehicles in this region.
Emerging Trends in the Cylindrical Type Lithium Ion Secondary Battery Market
The cylindrical type lithium ion secondary battery market is seeing several emerging trends that are shaping the future of energy storage solutions, particularly in electric vehicles, consumer electronics, and grid storage. These trends reflect technological advances, consumer demands for longer-lasting power, and growing concerns about sustainability.
• Advancements in Energy Density: One of the primary trends in cylindrical lithium-ion batteries is the drive to increase energy density. Companies are focusing on improving the energy capacity per unit volume, allowing for longer-lasting batteries with smaller form factors. This is particularly critical for electric vehicles, where high energy density is essential for longer ranges and fast charging.
• Battery Recycling and Sustainability: With growing environmental concerns, there is an increased focus on developing efficient recycling technologies for cylindrical lithium-ion batteries. This includes innovations in material recovery processes to reduce the environmental footprint of battery production and increase the reuse of valuable materials like cobalt, lithium, and nickel.
• Solid-State Battery Development: Solid-state batteries are emerging as a potential game-changer in the lithium-ion battery market. These batteries offer higher energy densities, improved safety, and longer life spans than traditional liquid electrolyte batteries. As research progresses, solid-state cylindrical batteries are expected to become more commercially viable, especially in the EV and portable electronics sectors.
• Battery Management Systems (BMS) Integration: Another trend is the integration of advanced Battery Management Systems (BMS) to optimize battery performance and safety. These systems use artificial intelligence and machine learning algorithms to monitor battery health, improve charge cycles, and prevent issues like overheating and degradation. This trend is crucial for enhancing the longevity and reliability of cylindrical lithium-ion batteries.
• Government Incentives and Local Manufacturing: Governments, especially in countries like China, India, and the U.S., are incentivizing local battery production and research. Policies promoting battery manufacturing infrastructure, combined with subsidies and incentives for electric vehicle adoption, are driving the growth of the cylindrical lithium-ion battery market. This trend is helping to reduce costs and dependency on imports.
These trends are reshaping the cylindrical lithium-ion battery market by focusing on enhancing performance, increasing sustainability, and driving innovation. As technology advances, these developments will play a pivotal role in the adoption of electric vehicles and other energy-intensive applications.
Recent Development in the Cylindrical Type Lithium Ion Secondary Battery Market
The cylindrical type lithium ion secondary battery market continues to evolve as new technologies improve battery performance, energy density, and manufacturing capabilities. Global players are making strategic advancements to meet the demands of the growing electric vehicle (EV) market and other energy storage solutions.
• Energy Density Improvements: Manufacturers are focusing on increasing the energy density of cylindrical lithium-ion batteries to support longer battery life and faster charging times. Companies like Panasonic and LG Chem are exploring new anode and cathode materials to achieve these improvements, which are essential for the electric vehicle sector.
• Battery Recycling Initiatives: With growing concerns over resource scarcity and environmental impact, battery recycling initiatives have gained traction. Companies are investing in technologies that enable the extraction of valuable materials such as lithium, cobalt, and nickel from spent batteries, ensuring sustainability and reducing reliance on raw materials.
• Integration of Artificial Intelligence: Battery management systems (BMS) are being integrated with AI and machine learning to optimize battery performance. This allows for better monitoring of battery health, more efficient charging cycles, and enhanced safety. AI-based BMS is becoming essential for improving battery life and performance, especially in electric vehicles.
• Collaboration Between Automakers and Battery Manufacturers: Major automakers are increasingly forming partnerships with battery manufacturers to secure a reliable supply of high-performance cylindrical lithium-ion batteries. Companies like Tesla, Panasonic, and CATL are collaborating to scale up production and improve battery performance for electric vehicles and energy storage solutions.
• Enhanced Manufacturing Processes: Battery manufacturers are investing in advanced manufacturing techniques to increase the efficiency and reduce the costs of cylindrical lithium-ion batteries. This includes automation in battery production lines and the use of advanced materials and coatings that enhance battery performance and lifespan.
These developments are reshaping the cylindrical lithium-ion battery market by improving battery efficiency, driving sustainability, and ensuring greater scalability. As technology continues to evolve, these improvements will help meet the growing demand for clean energy solutions in electric vehicles and other sectors.
Strategic Growth Opportunities in the Cylindrical Type Lithium Ion Secondary Battery Market
Several growth strategies are available in the cylindrical type lithium ion secondary battery market due to a shift in technology, government policies, and the increasing interest in electric vehicles and renewable energy systems.
• Growing Sales of Electric Vehicles: The growth of electric vehicles sales represents a considerable opportunity for cylindrical lithium-ion batteries over traditional alternatives. Increased sales of EVs means that battery technology investments to facilitate longer ranges, quicker charging, and lower overall costs are more profitable, and high-capacity cylindrical batteries are ideal in this situation.
• Renewable Energy Supporting Demand: With increasing focus on achieving sustainability goals, there is a growing use of wind, solar, and other renewables that require energy storage systems. These developments create a favorable environment for growth of cylindrical lithium-ion batteries. This battery market is expected to grow with the added requirements of dependable grid storage as renewable energy outages and variations increase.
• Consumer Electronics Industry: The portable electronics industry is leveraging the utilization of compact powerful batteries for smartphones, laptops, and wearables. Cylindrical lithium-ion batteries are ideal because of compact structure, greater energy density, and as such easily serve the portable electronics industry.
• Battery Recycling and Circular Economy: Spent batteries have become a source of concern, however, they can be recycled and their materials reused. This presents a significant opportunity. The focus is now on recycling cylindrical lithium-ion batteries and retrieving lithium, cobalt, and nickel from them. This would make battery production more sustainable by incorporating the circular economy model.
• Energy Storage Systems (ESS) for Commercial Applications: The market for Energy Storage Systems (ESS) is increasing which is especially true for commercial and industrial sectors needing backup power support as well as grid stability. This is possible through the use of cylindrical lithium-ion batteries, which get integrated into the ESS to improve performance, storage, and life, therefore supporting substantial growth.
A hint of optimism is emerging from the cylindrical lithium-ion battery market in electric vehicles, renewable energy, portable electronics, and energy storage. Increased demand in these sectors is bound to make positive changes in technology, sustainability, and the market itself.
Cylindrical Type Lithium Ion Secondary Battery Market Driver and Challenges
Similar to any other market, the cylindrical type lithium ion secondary battery market is shaped by various drivers and challenges that influence its growth. Among these drivers are technological innovation and regulatory pressure, all of which affect the scalability of the market.
The factors responsible for driving the cylindrical type lithium ion secondary battery market include:
1. Expansion of the Electric Vehicle Market: One of the main reasons for the growth in the market for cylindrical lithium-ion batteries is the higher purchasing power of consumers. Developers of EVs (electric vehicles) are in need of efficient and durable batteries cylindrical lithium ion batteries are still being developed, however, they offer a great chance in this market.
2. Technological Innovations: Improvements in battery technology concerning energy density, charging speed, and safety are creating new opportunities for growth in the market for cylindrical lithium-ion batteries. A focus is being placed on novel materials and manufacturing processes that are expected to enhance performance and lower costs.
3. Government Policies and Incentives: Various governments are formulating plans and strategies as well as providing incentives to promote electric vehicle consumption and renewable energy adoption. Some of these strategies such as subsidizing the cost of EVs, financing the research of battery technology, and providing tax relief on renewables aid to catalyze the growth in the cylindrical lithium-ion battery industry.
4. Growing Dependence on Renewable Energy: Several countries attempt to maximize their investments in renewable energy therefore the demand for energy storage is significantly higher. This presents great possibilities for innovation in large scale energy storage systems thanks to cylindrical lithium ion batteries.
5. Development in Consumer Electronics: As smartphones, laptops, and wearable devices gain acceptance across the world, there is a corresponding increase in the need for high performance compact batteries, which cylindrical lithium-ion batteries offer.
Challenges in the cylindrical type lithium ion secondary battery market are:
1. Expensive Production and Reproduction: The manufacturing of cylindrical lithium-ion batteries remains costly owing to the raw materials involved. Recycling processes are getting better, but cobalt, lithium, and nickel are still very expensive and difficult to source, causing major problems for mass production.
2. Scarcity Of Resources and Supply Chain Issues: The small availability of important raw materials such as cobalt and lithium is a serious problem for the battery industry. The increased demand for batteries among consumers makes it critical to ensure constant availability of these raw materials.
3. Safety Warnings and Environmental Problems: Cylindrical lithium-ion batteries are susceptible to overheating, fire, short-circuiting, and other sourcing safety issues. The way batteries are disposed off and recycled also raises long sustainability concerns.
The ever-growing shift towards electric vehicles, the advancement in technology, and the government’s favorable stance are driving the cylindrical lithium-ion batteries market. But in order for the market to attain its complete potential, concerns such as production costs, availability of resources, and safety have to be taken care of.
List of Cylindrical Type Lithium Ion Secondary Battery Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. With these strategies cylindrical type lithium ion secondary battery companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the cylindrical type lithium ion secondary battery companies profiled in this report include-
• Murata Manufacturing
• Panasonic
• Samsung
• Power-Sonic
• LG Chem
• Sony
• Shenzhen Cyclen Technology
• Jiangmen TWD Technology
• Shenzhen ACE Battery
• AA Portable Power
Cylindrical Type Lithium Ion Secondary Battery Market by Segment
The study includes a forecast for the global cylindrical type lithium ion secondary battery market by type, application, and region.
Cylindrical Type Lithium Ion Secondary Battery Market by Type [Value from 2019 to 2031]:
• 18650
• 26650
• 21700
• Others
Cylindrical Type Lithium Ion Secondary Battery Market by Application [Value from 2019 to 2031]:
• Home
• Commercial
Cylindrical Type Lithium Ion Secondary Battery Market by Region [Value from 2019 to 2031]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Country Wise Outlook for the Cylindrical Type Lithium Ion Secondary Battery Market
The cylindrical type lithium ion secondary battery market has been evolving rapidly due to its extensive use in consumer electronics, electric vehicles (EVs), and energy storage systems. The need for high energy density, longer battery life, and fast charging capabilities is driving the market. Key players in the U.S., China, Germany, India, and Japan are working on innovations to meet these demands while addressing cost and sustainability challenges.
• United States: The U.S. has seen significant advancements in cylindrical lithium-ion batteries, driven by the booming electric vehicle (EV) market. Major manufacturers, such as Tesla and Panasonic, are improving energy density and battery longevity, while also focusing on reducing production costs. The U.S. Department of Energy is investing in research to enhance recycling processes and develop more sustainable battery materials.
• China: China is a leader in the cylindrical lithium-ion battery market, with companies like CATL and BYD at the forefront. The country’s focus is on increasing the production of higher-capacity cells, improving the efficiency of battery systems, and expanding manufacturing capabilities for EVs. The government is also supporting the growth of battery recycling infrastructure to reduce reliance on raw materials.
• Germany: Germany has long been a strong player in the battery technology sector, with companies like BMW, Volkswagen, and BASF focusing on high-performance cylindrical lithium-ion batteries for their EVs. German manufacturers are investing in increasing battery efficiency and developing next-generation solid-state batteries. The country is also focusing on battery sustainability and is working to reduce the environmental impact of lithium-ion production.
• India: India is gradually becoming an emerging market for cylindrical lithium-ion batteries, primarily driven by the growing adoption of electric vehicles and renewable energy systems. Companies in India are focusing on scaling up local manufacturing and improving the supply chain for key materials like lithium and cobalt. The Indian government is also pushing for self-sufficiency in battery production, reducing reliance on imports.
• Japan: Japan is investing heavily in the development of cylindrical lithium-ion batteries for both consumer electronics and electric vehicles. Japanese companies, including Sony and Panasonic, are improving energy density and performance while focusing on enhancing safety features. Japan is also emphasizing the integration of artificial intelligence (AI) to optimize battery management systems in EVs and renewable energy systems.
Features of the Global Cylindrical Type Lithium Ion Secondary Battery Market
Market Size Estimates: Cylindrical type lithium ion secondary battery market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends (2019 to 2024) and forecast (2025 to 2031) by various segments and regions.
Segmentation Analysis: Cylindrical type lithium ion secondary battery market size by type, application, and region in terms of value ($B).
Regional Analysis: Cylindrical type lithium ion secondary battery market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
Growth Opportunities: Analysis of growth opportunities in different type, application, and regions for the cylindrical type lithium ion secondary battery market.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the cylindrical type lithium ion secondary battery market.
Análisis de la intensidad competitiva de la industria basada en el modelo de cinco fuerzas de Porter.
Preguntas frecuentes
Q1. What is the growth forecast for cylindrical type lithium ion secondary battery market?
Answer: The global cylindrical type lithium ion secondary battery market is expected to grow with a CAGR of 16.3% from 2025 to 2031.
Q2. What are the major drivers influencing the growth of the cylindrical type lithium ion secondary battery market?
Answer: The major drivers for this market are the increasing demand for electric vehicles & energy storage, the rising adoption of portable consumer electronics, and the growing focus on renewable energy storage solutions.
Q3. What are the major segments for cylindrical type lithium ion secondary battery market?
Answer: The future of the cylindrical type lithium ion secondary battery market looks promising with opportunities in the home and commercial markets.
Q4. Who are the key cylindrical type lithium ion secondary battery market companies?
Answer: Some of the key cylindrical type lithium ion secondary battery companies are as follows:
• Murata Manufacturing
• Panasonic
• Samsung
• Power-Sonic
• LG Chem
• Sony
• Shenzhen Cyclen Technology
• Jiangmen TWD Technology
• Shenzhen ACE Battery
• AA Portable Power
Q5. Which cylindrical type lithium ion secondary battery market segment will be the largest in future?
Answer: Lucintel forecasts that, within the type category, 21700 is expected to witness the highest growth over the forecast period due to the growing energy density and longer lifespan.
Q6. In cylindrical type lithium ion secondary battery market, which region is expected to be the largest in next 5 years?
Answer: In terms of region, APAC is expected to witness the highest growth over the forecast period due to the growing adoption of electric vehicles in this region.
Q7. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the cylindrical type lithium ion secondary battery market by type (18650, 26650, 21700, and others), application (home and commercial), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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