The global lithium-ion battery market is expected quadruple its revenues in the next six years to meet increasing demand in part from the automotive industry, according to a new analysis from Frost & Sullivan. In 2013, the market earned $17.58 billion.

The automotive industry is a large contributing factor of the projected growth in revenue through the popularity in electric vehicles. Tesla Motors recently announced the new lithium-ion battery plant to be built in Nevada for its Model S.

Additional growth should come from other industries, according to the report.

"Overall demand for lithium-ion batteries will continue to increase throughout the forecast period due to anticipated high growth in the automotive and grid and renewable energy storage segments," said Frost & Sullivan Research Manager Vishal Sapru. "North America and Asia-Pacific will lead demand, followed by Europe, wherein countries look for alternative energy sources to sustain automotive and energy sectors."

The lithium-ion battery market faces several challenges. The competitive structure of the market remains fragmented, and the batteries have seen recalls, which raises questions about their safety and reliability, according the the analysis.

"Manufacturers are searching for materials that enable lithium-ion batteries to operate optimally and safely in extreme temperatures," said Sapru. "Additionally, manufacturers are looking to reduce the cost of cells, battery-pack materials, and battery management systems. While these efforts will ensure a fall in prices of lithium-ion batteries, the decline rate over the next two years will be in the low single-digits."