North America Battery Market Size
| Study Period | 2019-2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 12.40 Billion |
| Market Size (2029) | USD 26.79 Billion |
| CAGR (2024 - 2029) | 16.65 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
North America Battery Market Analysis
The North America Battery Market size is estimated at USD 12.40 billion in 2024, and is expected to reach USD 26.79 billion by 2029, growing at a CAGR of 16.65% during the forecast period (2024-2029).
Over the medium term, declining lithium-ion battery prices, increasing adoption of electric vehicles, growing renewable energy sector, and increased sale of consumer electronics are also expected to drive the market's growth.
On the other hand, the demand-supply mismatch of raw materials may negatively impact the market’s growth and is one of the major restraints for the market.
Nevertheless, integrating renewables with energy storage systems will provide growth opportunities in the forecast period.
The United States dominates the market and will likely register the highest CAGR during the forecast period. The government has encouraged investors in electric vehicles (EVs) and the renewable industries, resulting in an increased demand for battery-based energy storage systems, primarily led by lithium-ion batteries.
North America Battery Market Trends
Automotive Application to Witness Significant Growth
- The automotive sector is expected to be one of the major end-user segments for batteries, primarily lithium-ion batteries, in the coming years. The penetration of electric vehicles is anticipated to provide a massive impetus for North America's battery industry growth.
- Further, the automotive industry's starting, lighting, and ignition (SLI) accessories also require lead-acid batteries to power their functionalities. SLI batteries are necessary to facilitate a high initial burst of power, which is essential to start a vehicle's engine. These batteries are typically smaller and lighter than deep-cycle batteries.
- The United States is one of the region's largest electric vehicle (EV) markets. According to the Argonne National Laboratory, the total number of plug-in electric light vehicle sales in the United States was about 918,460 units in 2021, with a growth rate of 51.16% from the previous year.
- Furthermore, as per the Office of Energy Efficiency and Renewable Energy, in January 2023, the government announced the development of electric vehicle battery plants in North America. The region is expected to witness a ramping up of manufacturing capacity from 55 gigawatts per year (GWh/year) in 2021 to 1000 GWh/year by 2030. Also, most of the projects in the pipeline are anticipated to initiate production between the years 2025 to 2030. This indicates a robust battery market development for the automotive industry in the next few years.
- Moreover, in July 2023, the Canadian government inked a deal with car manufacturer Stellantis to set up an electric vehicle battery plant in Windsor, Ontario. As per the agreement, the government would give about USD 11 billion in incentives to Stellantis to boost its clean energy supply chain. It is expected to strengthen the battery market for the automotive sector in the country. According to the International Energy Agency, the volume of plug-in hybrid electric car (PHEV) sales in Canada grew to around 29,000 units in 2022, the highest recorded annual PHEV sales in the country. This figure represents an increase of about 3.57% compared with the previous year when around 28,000 units were registered in the country for the first time.
- Moreover, declining lithium-ion battery prices and improving technologies are expected to bring price-competitive electric vehicles to the market, creating demand for batteries in the coming years.
The United States to Dominate the Market
- The United States is one of the major hotspots for batteries across the world on account of the increasing usage of consumer electronics, growing demand for electric vehicles, surging deployment of battery-based energy storage projects, expansion in renewable power infrastructure, and a robust industrial infrastructure. Moreover, the favorable policy toward the deployment of energy storage systems (ESS) in the United States is likely to drive the battery market in the coming years.
- The battery energy storage system (BESS) in the United States has been experiencing notable growth over the past few years, supported by the rising investments in renewable energy infrastructure in the country. Over the past few years, the installed renewable energy capacity and generation have been rising steadily globally, and the United States is one of the global renewable energy hotspots. According to the International Renewable Energy Agency (IRENA), during 2013-22, installed renewable energy capacity grew by more than two times, and as of 2022, the total installed renewable capacity stood at around 351 GW in the United States.
- Due to such a rapid rise in renewable power generation, grid stability has become a significant issue in the United States, with a high level of renewable integration in their grids. As renewable resources like solar and wind generate power intermittently and at various levels, storing this energy during high demand is vital. This will benefit the United States’s battery energy storage system market, which in turn, will support the growth of the batteries market over the forecast period.
- Further, according to the US Energy Information Administration (EIA), in 2023, US battery energy storage capacity will likely more than double, as the developers reported plans to add 9.4 GW of battery storage to the existing 8.8 GW of battery storage capacity. Moreover, 75% of the 20.8 GW of utility-scale battery capacity planned by the developers to be installed from 2022 to 2025 is in Texas (7.9 GW) and California (7.6 GW).
- Furthermore, portable electronic applications are increasing in popularity, as the size of electronic components is continually reducing and processing power is increasing. These new electronic devices require sophisticated and lightweight battery packs. The availability of ever smaller and lighter lithium cells has increased the demand for energy-efficient appliances. The rapid proliferation of li-ion batteries has increased their use in portable and handheld electronic devices. Further, the increasing consumption of smartphones and laptops is aiding the demand for lithium-ion batteries.
- For instance, according to the Consumer Technology Association, in the United States, smartphone sales increased from USD 33.7 billion in 2012 to about USD 74.7 billion in 2022.
- Therefore, owing to the above points, the United States is likely to dominate the North American battery market, supported by increasing urbanization, consumer spending, and technically advanced devices and vehicles.
North America Battery Industry Overview
The North American battery market is fragmented. Some of the key players in this market (in no particular order) include Contemporary Amperex Technology Co. Limited, BYD Co. Ltd., Samsung SDI Co. Ltd., LG Chem Ltd, and Panasonic Corporation., among others.
North America Battery Market Leaders
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BYD Co. Ltd
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Panasonic Co.
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Contemporary Amperex Technology Co. Limited
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LG Chem Ltd.
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Samsung SDI Co., Ltd
*Disclaimer: Major Players sorted in no particular order
North America Battery Market News
- August 2022: Honda Motor Company announced the development of a lithium-ion battery plant for electric vehicles in the United States with Korean battery supplier LG Energy Solution Ltd for a USD 4.4 billion investment. As part of the partnership, the companies aim to produce approximately 40 GWh of batteries annually for use exclusively in North America's Honda and Acura electric vehicles.
- May 2022: Stellantis N.V. and Samsung SDI announced the construction of an electric-vehicle lithium-ion battery manufacturing facility in Kokomo, Indiana, United States. It is anticipated that the plant will be operational in 2025, with an initial capacity of 23 GWh, with an aim to increase to 33 GWh in the next few years. The joint venture company is going to invest over USD 2.5 billion in the manufacturing plant.
North America Battery Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in USD, till 2029
4.3 Battery/Raw Material Price Trends and Forecast, by Major Technology Type (in USD per kWh or USD per ton), till 2029
4.4 International Trade Statistics (Import/Export Data), by Major Technology Type, by Major Countries, in USD , till 2022
4.5 Recent Trends and Developments
4.6 Government Policies and Regulations
4.7 Market Dynamics
4.7.1 Drivers
4.7.1.1 Declining Lithium-ion Battery Prices
4.7.1.2 Increasing Adoption of Electric Vehicles and Renewable Energy projects
4.7.2 Restraints
4.7.2.1 Demand-supply Gap of Raw Materials in Battery Market Value Chain
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 Substitutes Products and Services
4.9.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Type
5.1.1 Primary
5.1.2 Secondary
5.2 Technology
5.2.1 Lead-acid
5.2.2 Lithium-ion
5.2.3 Other Technologies
5.3 Application
5.3.1 Automotive
5.3.2 Industrial Batteries (Motive, Stationary (Telecom, UPS, Energy Storage Systems (ESS), etc.))
5.3.3 Consumer Electronics
5.3.4 Other Applications
5.4 Geography
5.4.1 United States
5.4.2 Canada
5.4.3 Rest of North America
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 BYD Co.Ltd.
6.3.2 Contemporary Amperex Technology Co. Limited
6.3.3 Duracell Inc.
6.3.4 EnerSys
6.3.5 Johnson Controls International PLC
6.3.6 LG Chem Ltd.
6.3.7 Panasonic Corporation
6.3.8 Saft Groupe SA
6.3.9 Samsung SDI Co. Ltd.
6.3.10 Sony Corporation
6.3.11 Tesla Inc.
- *List Not Exhaustive
6.4 Market Ranking/Share Analysis
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Growing Demand for Integration of Renewables with Energy Storage Systems
North America Battery Industry Segmentation
A battery is a device that converts chemical energy contained within its active materials directly into electric energy by means of an electrochemical oxidation-reduction (redox) reaction. This type of reaction involves the transfer of electrons from one material to another via an electric circuit.
The North American battery market is segmented by type, technology, applications, and geography (United States, Canada, and the Rest of North America). By type, the market is segmented into primary and secondary. By technology, the market is segmented into lead-acid, lithium-ion, and other technologies. By application, the market is segmented into automotive, industrial batteries (motive, stationary (telecom, UPS, energy storage systems (ESS), etc.), consumer electronics, and other applications). The report also covers the market size and forecasts for the North American battery market across the major countries.
For each segment, the market sizing and forecasts have been done based on revenue (USD).
| Type | |
| Primary | |
| Secondary |
| Technology | |
| Lead-acid | |
| Lithium-ion | |
| Other Technologies |
| Application | |
| Automotive | |
| Industrial Batteries (Motive, Stationary (Telecom, UPS, Energy Storage Systems (ESS), etc.)) | |
| Consumer Electronics | |
| Other Applications |
| Geography | |
| United States | |
| Canada | |
| Rest of North America |
North America Battery Market Research FAQs
How big is the North America Battery Market?
The North America Battery Market size is expected to reach USD 12.40 billion in 2024 and grow at a CAGR of 16.65% to reach USD 26.79 billion by 2029.
What is the current North America Battery Market size?
In 2024, the North America Battery Market size is expected to reach USD 12.40 billion.
Who are the key players in North America Battery Market?
BYD Co. Ltd, Panasonic Co., Contemporary Amperex Technology Co. Limited, LG Chem Ltd. and Samsung SDI Co., Ltd are the major companies operating in the North America Battery Market.
What years does this North America Battery Market cover, and what was the market size in 2023?
In 2023, the North America Battery Market size was estimated at USD 10.34 billion. The report covers the North America Battery Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the North America Battery Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
North America Battery Industry Report
Statistics for the 2024 North America Battery market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. North America Battery analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
