|Fastest Growing Market:||Asia-Pacific|
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The global battery market is expected to register a CAGR of 15.8% during the forecast period 2022-2027, reaching around USD 250.16 billion by 2027, up from USD 99.05 billion in 2020. Battery manufacturers globally were heavily affected by the COVID-19 pandemic as global demand plummeted at the start of the pandemic during Q1 2020. Sales dropped across various sectors such as consumer electronics, manufacturing, and EVs, and battery manufacturers had to reduce output to avoid oversaturation in the market. Factors such as declining lithium-ion battery prices and increasing electric vehicles' adoption are expected to drive the global battery market during the forecast period. However, a mismatch in demand and supply of raw materials for battery manufacturing is likely to hinder the market growth during the forecast period.
· The automotive batteries segment is expected to witness significant growth during the forecast period owing to the increasing adoption of electric vehicles across several major and emerging economies in the world.
· The number of people without access to electricity in the African region is expected to grow from 588 million in 2016 to about 602 million in 2030, despite efforts to boost electrification through grid connectivity. The Sub-Saharan region, in particular, is expected to be one of the central hotspots for off-grid solar initiatives. As solar energy is an intermittent source and generates power only during the daytime, the use of off-grid solar power in conjunction with energy storage substantially enhances the utilization of solar PV units. As a result, the use of energy storage with solar PV has been gaining popularity in developed countries, which is likely to create a huge opportunity for the battery market in the near future.
· Asia-Pacific is expected to dominate the market during the forecast period, with a majority of the demand coming from China, India, Japan, and South Korea.
Scope of the Report
The battery market report includes:
|Nickel-metal Hydride (NiMH) Battery|
|Nickel-cadmium (NiCD) Battery|
|Nickel–zinc (NiZn) Battery|
|Sodium–sulfur (NAS) Battery|
|Zinc-manganese Dioxide Battery|
|Small Sealed Lead-acid Battery|
|Other Technologies (Dual Carbon Battery, Zinc-carbon Battery, Silver-oxide Battery, etc.)|
|Automotive Batteries (HEV, PHEV, and EV)|
|Industrial Batteries (Motive, Stationary (Telecom, UPS, Energy Storage Systems (ESS)), etc.)|
|Portable Batteries (Consumer Electronics, etc.)|
|Power Tool Batteries|
|Middle-East and Africa|
Key Market Trends
Automotive Batteries Expected to Witness Significant Growth
· Vehicles with internal combustion engines (ICE) were the only types used earlier. However, technology has now been shifting toward electric vehicles (EV) due to growing environmental concerns. Lithium-ion batteries are mostly used in EVs as they provide high energy density, low self-discharge, less weight, and low maintenance.
· For ICE vehicles, the lead-based battery is being widely used and is expected to continue to be the only viable mass-market battery system for the foreseeable future. For SLI applications, lithium-ion batteries still require higher cost reductions to be considered a viable mass-market alternative to lead-based batteries.
· Lithium-ion battery systems propel plug-in hybrid and electric vehicles. Lithium-ion batteries are the only available technology capable of meeting OEM requirements for the vehicle driving range and charging time due to their high energy density, fast recharge capability, and high discharge power. Lead-based traction batteries are not competitive for use in full hybrid electric vehicles or electric vehicles because of their lower specific energy and higher weight.
· In recent years, the Asia-Pacific region dominated the electric battery manufacturing market, which is expected to continue during the forecast period. Europe is expected to witness significant growth during the forecast period owing to factors like increasing investments in the sector due to favorable government policies and various incentives for electric vehicle battery manufacturers.
· In January 2021, the European Commission approved a second Important Project of Common European Interest to support innovation and research in the battery value chain. Called “European Battery Innovation,” the project was jointly prepared and notified by Belgium, Croatia, Austria, Finland, Germany, France, Greece, Poland, Italy, Slovakia, Sweden, and Spain. In the coming years, the twelve countries will provide up to EUR 2.9 billion in funding, which is expected to unlock around EUR 9 billion in private investments.
· Based on the abovementioned factors, the automotive batteries segment is expected to witness significant demand in the global battery market during the forecast period.
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Asia-Pacific Expected to Dominate the Market
· Asia-Pacific has multiple growing economies with substantial natural and human resources. China and India are expected to be major investment hotspots for battery companies in the coming years, on account of policy-level support from the respective governments encouraging the manufacturing sector.
· The deployment of electric vehicles and the installation of renewable power plants in China and India are increasing rapidly, which is expected to foster massive demand for batteries.
· China is the largest market for electric vehicles (EV), with over 1.15 million EVs sold during 2020, and it is expected to remain the world’s largest electric car market. China accounted for almost 40% of global electric car sales in 2020.
· Furthermore, over 50% of the telecom towers in the country are located in sites that face outages for 8 hours a day or more. The telecom sector players must maintain an uptime of 99.5 and face penalties if they fail to maintain the required uptime. As a result, the Indian telecom sector heavily depends on diesel generators. It is estimated that India’s telecom sector accounts for 1% of the country’s greenhouse gas emissions, as opposed to the global average of 0.7%. The telecom sector is also the second-biggest consumer of diesel, after the railway sector, in the country.
· To reduce greenhouse gas emissions, in the absence of availability of grid electricity 100% of the time, the telecom sector is moving toward renewable energy sources, particularly solar. To deal with intermittency problems related to renewable energy, the demand for batteries from the telecom sector is increasing. In February 2020, the Indian Department of Telecommunications issued directions to telecom service providers to use renewable energy solutions and energy-efficient technologies.
· Therefore, owing to the above developments, Asia-Pacific is likely to remain the dominant region in the battery market, supported by increasing urbanization and consumer spending across several countries, such as India and China, which is expected to ramp up the demand for technically advanced devices and vehicles due to the benefits provided by the same.
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The global battery market is fragmented. Some of the major players operating in this market include Contemporary Amperex Technology Co. Limited, BYD Co. Ltd, Duracell Inc., Tesla Inc., and Exide Industries.
· In November 2021, energy management company Apparent, California Energy Commission, and Los Angeles Department of Transportation entered an agreement to power the city’s electric buses with a solar plus storage microgrid system. The microgrid is expected to combine 1.5 MW of rooftop and bus canopy-mounted solar PV with a 4.5 MWh battery energy storage system, along with five 1.5 MW electric vehicle (EV) fleet chargers and 104 remote EV charge units. The bus fleet is planned to be electrified by 2028.
· In February 2021, Barrel Energy, a lithium-ion battery manufacturer based in the US, signed a memorandum of understanding with Hyderabad-based Roshan Energy Technologies to develop and manufacture lithium-ion batteries in India and North America. Barrel Energy stated that the company would become a majority stakeholder in Roshan Technologies to expand its Indian and international markets. Roshan Energy is likely to provide its technical resources and expertise, while Barrel Energy is expected to help in providing funds and international marketing abilities.
Table of Contents
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.2 Market Size and Demand Forecast in USD billion, till 2027
4.3 Battery/Raw Material Price Trends and Forecast, by Major Technology Type, till 2027
4.4 Import and Export Analysis, by Major Technology Type and Major Countries, in USD million, till 2020
4.5 Recent Trends and Developments
4.6 Government Policies and Regulations
4.7 Market Dynamics
4.8 Supply Chain Analysis
4.9 Porter's Five Forces Analysis
4.9.1 Bargaining Power of Suppliers
4.9.2 Bargaining Power of Consumers
4.9.3 Threat of New Entrants
4.9.4 Threat of Substitute Products and Services
4.9.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1.1 Primary Battery
5.1.2 Secondary Battery
5.2.1 Lead-acid Battery
5.2.2 Lithium-ion Battery
5.2.3 Nickel-metal Hydride (NiMH) Battery
5.2.4 Nickel-cadmium (NiCD) Battery
5.2.5 Nickel–zinc (NiZn) Battery
5.2.6 Flow Battery
5.2.7 Sodium–sulfur (NAS) Battery
5.2.8 Zinc-manganese Dioxide Battery
5.2.9 Small Sealed Lead-acid Battery
5.2.10 Other Technologies (Dual Carbon Battery, Zinc-carbon Battery, Silver-oxide Battery, etc.)
5.3.1 Automotive Batteries (HEV, PHEV, and EV)
5.3.2 Industrial Batteries (Motive, Stationary (Telecom, UPS, Energy Storage Systems (ESS)), etc.)
5.3.3 Portable Batteries (Consumer Electronics, etc.)
5.3.4 Power Tool Batteries
5.3.5 SLI Batteries
5.3.6 Other Applications
5.4.1 North America
5.4.4 South America
5.4.5 Middle-East and Africa
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 BYD Co. Ltd
6.3.2 Contemporary Amperex Technology Co. Limited
6.3.3 Duracell Inc.
6.3.5 GS Yuasa Corporation
6.3.6 Clarios (Formerly Johnson Controls International PLC)
6.3.7 LG Chem Ltd
6.3.8 Panasonic Corporation
6.3.9 VARTA AG
6.3.10 Samsung SDI Co. Ltd
6.3.11 Tesla Inc.
6.3.12 TianJin Lishen Battery Joint-Stock Co. Ltd
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Battery Market market is studied from 2019 - 2027.
What is the growth rate of Battery Market?
The Battery Market is growing at a CAGR of 15.8% over the next 5 years.
What is Battery Market size in 2019?
The Battery Market is valued at 250 Billion USD in 2019.
What is Battery Market size in 2027?
The Battery Market is valued at 99 Billion USD in 2027.
Which region has highest growth rate in Battery Market?
Asia-Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Battery Market?
Asia-Pacific holds highest share in 2021.
Who are the key players in Battery Market?
Contemporary Amperex Technology Co. Limited, BYD Co. Ltd, Duracell Inc., Tesla Inc., Panasonic Corporation are the major companies operating in Battery Market.