The global battery market, valued at approximately US$18 billion in 2021, is set to experience steady growth in the coming years. A recent report sheds light on how this growth will unfold in the context of rapidly evolving battery technology and an expanding application base.
Rising Automotive Sector Applications Drive Market Growth
The automotive sector plays a pivotal role in propelling the battery market forward. Batteries are increasingly used in two-wheelers and four-wheelers for starting, lighting, and ignition (SLI) applications, driven by the global surge in vehicle manufacturing. Government initiatives, such as Indias announcement of US$40 billion in incentives in 2020, further boost automotive battery production, with US$2.4 billion allocated for advancing cell chemistry to support the manufacturing of 50 GW of lithium-ion batteries in India.
The electric vehicle (EV) industrys growth is another influential factor. The increased adoption of batteries in EVs and hybrid EVs has led to heightened demand for lithium-ion batteries due to their exceptional performance characteristics. In 2021, global electric vehicle sales doubled to reach 6 million units, as reported by the International Energy Agency. This trend, coupled with the rising adoption of electric vehicles, is expected to drive significant growth in the battery market.
Lead Acid Batteries Maintain Strong Presence, Lithium-ion Batteries Gain Momentum
Lead acid batteries have been on an upward trajectory in recent years and are expected to continue their stable growth. Their versatile applications range from electric bikes and uninterrupted power supply to transport vehicles, grid-scale power systems, and telecommunications. The adoption of lead acid batteries in healthcare, chemical, and oil and gas applications, where consistent electricity supply is crucial, has also grown. Their reliability and cost-effectiveness make them an attractive choice for industrial applications.
In contrast, lithium-ion batteries are gaining substantial momentum worldwide. These batteries find primary use in the automobile sector, particularly in electric vehicles, owing to the surging EV sales. Additionally, lithium-ion batteries are prized in grid storage applications for their low maintenance, lightweight, and high energy density properties. These functional advantages are expected to drive the replacement of lead acid batteries in various sectors, including solar power systems, manufacturing, and railways, thereby contributing to the battery markets growth in value and volume.
Asia Pacific Emerges as a Lucrative Revenue Pocket
Developing nations in the Asia Pacific region are poised to hold a significant share of the battery market in the coming years. The proliferation of batteries in the automobile industry and consumer electronics sector, coupled with the rising adoption of electric vehicles, contributes to the regions substantial market growth. Government initiatives aimed at achieving carbon neutrality targets, such as Indias plan to promote electric vehicle use and increase adoption by 30% by 2030, further drive demand. Macroeconomic factors, including a growing population and stable GDP, are also expected to boost the battery markets growth in the region.
Leading players in the battery market are employing various growth strategies to strengthen their positions. Collaborations, new product launches, and capacity enhancements are some of the key strategies in play. For example, in 2020, Amperex Technology Ltd., a Japanese manufacturer, acquired 180 acres of land in India to establish a manufacturing unit for lithium-ion polymer (LiP) batteries. In 2021, Barrel Energy signed a Memorandum of Understanding (MoU) with Roshan Energy Technologies for the development and manufacturing of lithium-ion batteries in North American countries and India. This strategic partnership aims to expand Roshan Energy Technologies reach in India and international markets.
Major Players in the Global Battery Market
- Exide Industries Ltd.
- Okaya Power Pvt. Ltd.
- Luminous Power Technologies Pvt. Ltd.
- Tata AutoComp GY Batteries Pvt. Ltd.
- HBL Power Systems Ltd.
- NEC Corporation
- BYD Company Ltd.
- GS Yuasa International Ltd.
- Johnson Controls
Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2023-2030 By Product, Technology, Grade, Application, End-user, Region: (North America, Europe, Asia Pacific, Latin America and Middle East and Africa) https://www.fairfieldmarketresearch.com/report/battery-market
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