Japan Battery Market Size
Study Period | 2019 - 2030 |
Base Year For Estimation | 2024 |
Forecast Data Period | 2025 - 2030 |
Historical Data Period | 2019 - 2023 |
CAGR | 11.00 % |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Japan Battery Market Analysis
The Japan Battery Market is expected to register a CAGR of 11% during the forecast period.
Japan's battery industry is undergoing significant transformation driven by the country's ambitious renewable energy goals and technological innovation. The government has set aggressive targets for renewable energy to account for 36-38% of the country's energy mix for power generation by 2030, spurring demand for energy storage battery solutions. In August 2021, Tesla announced a groundbreaking collaboration with Japanese companies to establish an energy storage battery facility in Hokkaido, demonstrating the growing focus on grid stability and renewable energy integration. This facility, designed to power approximately 500 homes, represents a significant step toward modernizing Japan's energy infrastructure.
The automotive sector continues to be a major catalyst for battery market evolution, with manufacturers making substantial investments in production capacity. In August 2021, Nissan Motor announced plans to build a lithium-ion battery plant in Japan's Ibaraki Prefecture through a joint investment of JPY 50 billion with battery manufacturer Envision AESC. The facility, scheduled for completion in 2023, will have an annual production capacity of 6 gigawatt-hours (GWh) of electric vehicle battery, highlighting the industry's commitment to domestic manufacturing capabilities. The government's ambitious target of converting all new car sales to environmentally friendly vehicles by 2035 has accelerated investments in EV battery technology and production.
The industrial and energy storage battery segments are witnessing rapid technological advancement and increased adoption. Japanese companies are focusing on developing advanced battery technologies, including solid-state batteries and improved lithium-ion formulations. Major manufacturers like Panasonic, GS Yuasa, and Toshiba are investing in research and development to enhance battery performance, safety, and energy density. The integration of grid storage battery systems with renewable energy projects has become increasingly common, with several large-scale projects being implemented across the country.
Strategic industry collaborations and partnerships are reshaping the competitive landscape. In October 2021, BHP announced a significant agreement to supply nickel sulfate from its Nickel West plant to Prime Planet Energy & Solutions (PPES), a joint venture between Toyota and Panasonic, strengthening the domestic secondary battery supply chain. Japanese materials producer Showa Denko's strategic decision to sell its lead-acid battery operations to investment fund Advantage Partners and Tokyo Century in July 2021 reflects the industry's ongoing consolidation and focus on next-generation industrial battery technologies. These developments indicate a shift toward more integrated and efficient battery production ecosystems in Japan.
Japan Battery Market Trends
Increasing Renewable Energy Installations Fueling Government Support for Battery Storage Projects
Japan has emerged as one of the largest renewable energy markets in the Asia-Pacific region, with substantial growth in renewable energy installations creating increased demand for battery storage solutions. The country's commitment to renewable energy is evident in its diverse energy mix comprising solar, hydro, wind, and bioenergy sources, which collectively accounted for approximately 12% of the total electricity generation mix and 6.6% of the primary energy mix. This significant renewable energy penetration has created a strong need for reliable energy storage battery systems to manage intermittency issues and ensure grid stability, particularly for solar power installations, which experience natural production gaps during nighttime and low-light conditions.
The Japanese government's supportive policies have further strengthened the connection between renewable energy growth and battery storage demand. For instance, in February 2022, the Ministry of Economy, Trade and Industry (METI) implemented new feed-in tariffs (FITs) and feed-in premiums (FIPs) for solar installations, offering attractive rates of USD 0.096/kWh for 10-50kW systems and USD 0.087/kWh for 50-250kW installations. These incentives have catalyzed large-scale solar battery storage projects, as exemplified by the joint venture between Orix and Kansai Electric (KEPCO) announced in July 2022, which will develop a substantial 48MW/113MWh battery storage system in western Japan, scheduled to begin operation by 2024. Such projects demonstrate the growing recognition of energy storage battery systems as essential infrastructure for maintaining power quality, preventing voltage fluctuations, and ensuring a reliable energy supply from renewable sources.
Increasing Adoption of Electric Vehicles
Japan's automotive sector is undergoing a transformative shift toward electrification, driven by the country's ambitious environmental goals and commitment to reducing greenhouse gas emissions. The government's Well-to-Wheel Zero Emission policy, targeting a remarkable 80% reduction in greenhouse gas emissions per vehicle, with a specific focus on achieving an approximate 90% reduction for passenger vehicles by 2050, has created a strong foundation for electric vehicle adoption. This policy framework has not only established clear environmental targets but has also stimulated investment in rechargeable battery technology and manufacturing capabilities within Japan's automotive sector.
The transition to electric vehicles has created a parallel surge in demand for advanced electric vehicle battery technologies, particularly in the secondary battery segment. Lithium-ion batteries have emerged as the preferred choice for electric vehicle applications due to their fast charging capabilities and longer life cycles compared to traditional automotive battery technologies. The Battery Association of Japan has reported significant volume growth in lithium-ion battery sales for vehicles, indicating a robust and growing market for automotive battery applications. This trend is further supported by the automotive industry's shift away from lead-acid batteries, despite their historical dominance, as manufacturers increasingly favor lithium-ion batteries for their superior performance characteristics and alignment with electric vehicle requirements.
Segment Analysis: Battery Type
Secondary Battery Segment in Japan Battery Market
The secondary battery segment dominates the Japan battery market, accounting for approximately 92% of the total market share in 2024. This segment's commanding position is primarily driven by the increasing adoption of electric vehicles, renewable energy storage systems, and consumer electronics applications. The segment has witnessed substantial growth due to technological advancements in lithium-ion batteries, which offer higher energy density, longer lifecycle, and improved safety features. Major Japanese manufacturers like Panasonic, GS Yuasa, and Toshiba have significantly invested in expanding their secondary battery production capabilities to meet the rising demand from automotive and energy storage sectors. The segment's growth is further supported by Japan's commitment to achieving carbon neutrality by 2050, which has led to increased deployment of battery energy storage systems for renewable energy integration and grid stability applications.
Remaining Segments in Battery Type
The primary battery segment, while smaller in market share, continues to maintain its significance in specific applications where disposable power sources are preferred. These batteries are extensively used in devices such as remote controls, watches, medical devices, and emergency equipment where long shelf life and reliability are crucial factors. Japanese manufacturers have focused on developing advanced primary batteries with improved performance characteristics and environmental sustainability features to meet the evolving consumer demands and regulatory requirements. The segment maintains its relevance through continuous innovation in areas such as extended shelf life, enhanced safety features, and specialized applications in medical and military devices.
Segment Analysis: Technology
Lithium-ion Battery Segment in Japan Battery Market
The lithium-ion battery segment dominates the Japan battery market, holding approximately 59% market share in 2024. This significant market position is driven by the increasing adoption of electric vehicles and energy storage systems in Japan. The country's major manufacturers like Panasonic and Toshiba have made substantial investments in lithium-ion battery technology, focusing on improving energy density, safety features, and cost efficiency. The segment's dominance is further strengthened by Japan's push toward renewable energy integration and grid stabilization, where lithium-ion batteries play a crucial role in energy storage applications. Additionally, the growing consumer battery sector and the government's initiatives to promote clean energy technologies have contributed to the segment's market leadership.
Lead-acid Battery Segment in Japan Battery Market
The lead-acid battery segment continues to maintain a stable presence in the Japan battery market, particularly in automotive and industrial applications. This segment demonstrates steady growth potential from 2024-2029, supported by its established infrastructure and lower cost compared to other battery technologies. The segment's growth is driven by the consistent demand from the automotive sector for Starting, Lighting, and Ignition (SLI) batteries, as well as its widespread use in uninterruptible power supply (UPS) systems and telecommunications infrastructure. The technology's reliability and well-established recycling infrastructure further contribute to its sustained growth trajectory in the Japanese market.
Remaining Segments in Technology
Other battery technologies in the Japanese market include nickel-cadmium batteries, nickel-metal hydride batteries, and emerging technologies like dual carbon batteries. These segments play important roles in specific applications where their unique characteristics provide advantages over lithium-ion and lead-acid batteries. For instance, nickel-metal hydride batteries continue to find applications in hybrid vehicles and industrial equipment, while newer technologies are being developed for specialized applications requiring specific performance characteristics. The diversity of these technologies helps meet varied application requirements across different sectors of the Japanese economy.
Segment Analysis: Application
Automotive Batteries Segment in Japan Battery Market
The automotive battery segment has emerged as the dominant force in Japan's battery market, commanding approximately 39% of the total market share in 2024. This significant market position is primarily driven by Japan's aggressive push toward vehicle electrification, with the government setting ambitious targets for all new car sales to be environmentally friendly by 2035. The segment's growth is further supported by substantial investments in battery manufacturing capabilities, exemplified by Nissan's joint investment project with Envision AESC to establish a lithium-ion battery plant in Ibaraki Prefecture. The market is also benefiting from increasing consumer adoption of hybrid and electric vehicles, backed by government subsidies of up to JPY 800,000 for battery electric vehicles (BEVs) and JPY 400,000 for plug-in hybrid electric vehicles (PHEVs). Major automotive manufacturers in Japan are actively expanding their electric vehicle portfolios, driving sustained demand for automotive batteries.
Industrial Batteries Segment in Japan Battery Market
The industrial battery segment is experiencing remarkable growth momentum in the Japan battery market for the period 2024-2029. This accelerated growth is primarily driven by the increasing deployment of battery energy storage systems in conjunction with renewable energy projects, particularly solar and wind power installations. The segment is witnessing substantial demand from various industrial applications, including telecom infrastructure, uninterrupted power supply (UPS) systems, and material handling equipment. The growth is further catalyzed by Japan's commitment to renewable energy integration, with the country targeting renewable energy to account for 36-38% of its power generation mix by 2030. The industrial battery sector is also benefiting from the expansion of data centers across Japan, with major projects like Lendlease's USD 600 million development near Tokyo driving demand for industrial-scale battery solutions. Additionally, the segment's growth is supported by increasing adoption in telecommunications infrastructure and the ongoing modernization of industrial facilities.
Remaining Segments in Application Segmentation
The Japanese battery market's remaining segments include portable batteries for consumer electronics, SLI (Starting, Lighting, Ignition) batteries, and other specialized applications. The portable battery segment continues to play a crucial role in powering a wide range of consumer electronic devices, from smartphones to laptops, reflecting Japan's position as a leading consumer electronics market. The SLI batteries segment maintains steady demand from the conventional automotive sector, serving as a reliable power source for traditional internal combustion engine vehicles. The other applications segment encompasses specialized uses such as medical devices, power tools, and military applications, each contributing to the diverse application landscape of Japan's battery market. These segments collectively demonstrate the versatility and comprehensive nature of battery applications in Japan's technological ecosystem.
Japan Battery Industry Overview
Top Companies in Japan Battery Market
The Japanese battery market features a mix of established domestic manufacturers and international players competing through continuous innovation and strategic partnerships. Companies are heavily investing in research and development to enhance battery performance, particularly in areas like lithium-ion technology, energy density improvements, and fast-charging capabilities. Operational excellence is being pursued through automated manufacturing processes and digitalized supply chain management. Strategic collaborations between battery manufacturers and automotive companies have become increasingly common to secure market position in the growing electric vehicle segment. Market leaders are expanding their production capacities while simultaneously developing next-generation battery technologies, including solid-state batteries and advanced energy storage battery solutions. These companies are also focusing on sustainability initiatives and circular economy practices, including battery recycling programs and reduced environmental impact manufacturing processes.
Domestic Leaders Face Global Competition Growth
The Japanese battery market is characterized by a strong presence of domestic conglomerates like Panasonic, GS Yuasa, and Maxell Holdings, which have historically dominated the landscape through their integrated operations and established distribution networks. These companies leverage their diverse business portfolios and technological expertise to maintain market leadership, while also facing increasing competition from international players, particularly from South Korea and China. The market structure shows moderate consolidation, with major players controlling significant market share while smaller specialists serve niche applications and specific customer segments.
Recent years have witnessed an acceleration in merger and acquisition activities, particularly in the electric vehicle battery segment, as companies seek to strengthen their technological capabilities and expand market reach. Strategic partnerships between battery manufacturers and automotive companies have become increasingly prevalent, creating integrated value chains and fostering innovation. Japanese companies are also pursuing international collaborations to enhance their global competitiveness and access new markets, while simultaneously defending their domestic market position against growing foreign competition.
Innovation and Sustainability Drive Future Success
For established players to maintain and expand their market share, focus needs to be placed on developing next-generation battery technologies while optimizing production costs through automation and economies of scale. Companies must invest in research and development to improve battery performance metrics, including energy density, charging speed, and lifecycle durability. Building strong relationships with key end-users, particularly in the automotive and energy storage sectors, while maintaining flexibility to adapt to changing market demands will be crucial for long-term success. Additionally, establishing robust recycling infrastructure and implementing sustainable manufacturing practices will become increasingly important as environmental regulations tighten.
New entrants and challenger companies can gain market share by focusing on specialized applications and emerging market segments, such as renewable energy storage systems and industrial battery applications. Success will depend on developing innovative solutions that address specific customer pain points while maintaining cost competitiveness through efficient operations and strategic partnerships. Companies must also navigate the complex regulatory landscape, particularly regarding safety standards and environmental compliance, while building credibility with major end-users through demonstrated performance and reliability. The ability to secure stable supply chains for critical raw materials and components will be essential for sustainable growth in this competitive market.
Japan Battery Market Leaders
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Panasonic Corporation
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GS Yuasa International Ltd
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NGK Insulators Ltd.,
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Toshiba Corporation
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Maxell, Ltd.
*Disclaimer: Major Players sorted in no particular order
Japan Battery Market News
- February 2022: Panasonic announced that its Energy Company is likely to produce 4680 type cylindrical lithium-ion batteries in Japan in order to expand its business globally. The company is likely to establish a production facility at its Wakayama Factory in western Japan to manufacture 4680-type battery cells.
- November 2022: Eurus Energy Holdings Corp announced that the company established a grid storage battery business and started construction of a 1.5-MW/4.58-MWh project in the Fukuoka prefecture.
Japan Battery Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in USD billion, till 2028
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.2 Restraints
4.6 Supply Chain Analysis
4.7 PESTLE Analysis
5. MARKET SEGMENTATION
5.1 Battery Type
5.1.1 Primary Battery
5.1.2 Secondary Battery
5.2 Technology
5.2.1 Lithium-ion Battery
5.2.2 Lead-Acid Battery
5.2.3 Others
5.3 Application
5.3.1 Automotive Batteries (HEV, PHEV, 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 SLI Batteries
5.3.5 Others
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Panasonic Corporation
6.3.2 Maxell, Ltd.
6.3.3 GS Yuasa International Ltd
6.3.4 NGK Insulators Ltd
6.3.5 Toshiba Corporation
6.3.6 Contemporary Amperex Technology Co Ltd
6.3.7 LG Energy Solution
6.3.8 EEMB Battery
6.3.9 B & B Battery Co. Ltd,
6.3.10 Furukawa Battery Co. Ltd
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Japan Battery Industry Segmentation
A battery can be defined as an electrochemical device (consisting of one or more electrochemical cells) that can be charged with an electric current and discharged whenever required. Batteries are usually devices that are made up of multiple electrochemical cells that are connected to external inputs and outputs. The Japan battery market is segmented by battery type, technology, and application. By battery type, the market is segmented into primary battery and secondary battery. By application, the market is segmented into automotive batteries, industrial batteries, portable batteries, SLI batteries, and others. By technology, the market is segmented into lithium-ion batteries, lead-acid batteries, and others. For each segment, the market sizing and forecasts have been done based on revenue (USD billion).
Battery Type | |
Primary Battery | |
Secondary Battery |
Technology | |
Lithium-ion Battery | |
Lead-Acid Battery | |
Others |
Application | |
Automotive Batteries (HEV, PHEV, EV) | |
Industrial Batteries (Motive, Stationary (Telecom, UPS, Energy Storage Systems (ESS), etc.) | |
Portable Batteries (Consumer Electronics, etc.) | |
SLI Batteries | |
Others |
Japan Battery Market Research FAQs
What is the current Japan Battery Market size?
The Japan Battery Market is projected to register a CAGR of 11% during the forecast period (2025-2030)
Who are the key players in Japan Battery Market?
Panasonic Corporation, GS Yuasa International Ltd, NGK Insulators Ltd.,, Toshiba Corporation and Maxell, Ltd. are the major companies operating in the Japan Battery Market.
What years does this Japan Battery Market cover?
The report covers the Japan Battery Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Japan Battery Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Japan Battery Market Research
Mordor Intelligence provides a comprehensive analysis of the battery industry in Japan. The coverage spans from primary battery to secondary battery technologies. Our extensive research includes rechargeable battery innovations, solar battery developments, and emerging electric vehicle battery technologies. The report offers detailed insights into various segments, such as lead acid battery, alkaline battery, and advanced flow battery systems. It also analyzes the growing demand for industrial battery solutions and grid storage battery applications.
Stakeholders can download our report PDF for an in-depth analysis of automotive battery trends, marine battery market dynamics, and portable battery innovations. The study examines specialized segments, including button cell battery, coin cell battery, and power tool battery technologies. It also explores emerging applications in the smartphone battery, wearable battery, and consumer battery sectors. Our comprehensive coverage extends to UPS battery systems, energy storage battery solutions, and batteries for wireless device applications, providing actionable insights for industry participants across the value chain.