Asia-Pacific Battery Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Asia-Pacific Battery Market is segmented by Type (Primary and Secondary Battery), Technology (Lead-acid Battery, Lithium-ion Battery, and Other Technologies), Application (Automotive Batteries (HEV, PHEV, and EV), Industrial Batteries (Motive, Stationary (Telecom, UPS, and Energy Storage Systems (ESS), etc.), Portable Batteries (Consumer Electronics, etc.), and Others), and Geography (India, China, Japan, South Korea, and Rest of Asia-Pacific).

Market Snapshot

Asia-Pacific Battery Market Overview
Study Period: 2018- 2026
Base Year: 2020
CAGR: >15 %
Asia-Pacific Battery Market Top Companies

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Market Overview

The market for batteries in Asia-Pacific is expected to register a CAGR of more than 15% during the forecast period of 2021 – 2026, reaching a value of approximately USD 100 billion by 2026, up from USD 41.3 billion in 2019. The outbreak of the COVID-19 pandemic had a slight impact on the region's battery market, especially, lithium-ion batteries which are used in many applications, including consumer electronics, electric vehicles, and others. During this pandemic, the largest area of growth has been in electric vehicles (EVs). China, which dominates global lithium-ion battery production, has seen its biggest lithium-ion manufacturers, Contemporary Amperex Technology Co. Ltd (CATL) and BYD curtail production due to a lack of workers and access to raw materials. Major factors driving the market include declining lithium-ion battery prices, rapid adoption of electric vehicles, growing renewable sector, and increased sale of consumer electronics. On the other hand, the demand-supply mismatch of raw materials is likely to hinder the market growth in the coming years.

  • The automotive batteries segment is expected to be the fastest-growing segment in the battery market due to the increasing demand for new vehicles produced in the region. The segment is expected to be the leading end-user for lithium-ion batteries in upcoming years.
  • Plans to integrate renewable energy with the national grids in respective countries are expected to create a significant opportunity for the lithium-ion battery manufacturers and suppliers in the near future.
  • China and India are expected to be major investment hotspots in the Asia-Pacific battery market on account of policy-level support from the governments, encouraging the manufacturing sector.

Scope of the Report

The Asia-Pacific battery market report includes:

Type
Primary Battery
Secondary Battery
Technology
Lead-acid Battery
Lithium-ion Battery
Other Technologies
Application
Automotive Batteries (HEV, PHEV, and EV)
Industrial Batteries (Motive, Stationary (Telecom, UPS, and Energy Storage Systems (ESS), etc.)
Portable Batteries (Consumer Electronics etc.)
Other Applications
Geography
India
China
Japan
South Korea
Rest of Asia-Pacific

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Key Market Trends

Automotive Battery Segment to Witness Significant Growth

  • The automotive sector is expected to be one of the major end-user segments for lithium-ion batteries in the near future. The penetration of electric vehicles is anticipated to provide a massive impetus for the lithium-ion battery industry growth.
  • A range of different vehicle types is now available globally, featuring increasing degrees of hybridization and electrification. There are various types of vehicles, including hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles, and electric vehicles (EVs).
  • In developed and developing economies, both alike, the adoption of electric vehicles is increasing at a high growth rate. China is already leading in global EV sales and other developing economies like India, which has already begun transforming its public transportation infrastructure for EVs.
  • In the current market scenario, policy support plays a crucial role in driving the adoption of electric vehicles. Policy support enables market growth by making vehicles appealing to consumers, reducing risks for investors, and encouraging manufacturers to develop electric vehicles on a large scale.
  • Falling battery prices and improving technology are expected to bring price-competitive electric vehicles to the market, creating demand for battery technologies.
  • Vehicles with internal combustion engines (ICE) were the only types used earlier in the Southeast Asian nations. The sales of new vehicles in six of Southeast Asia's largest markets, i.e., Thailand, Indonesia, Malaysia, the Philippines, Vietnam, and Singapore, combined, continued to weaken in the third quarter of 2019, with sales falling by 6.3% to 851,820 units from 908,913 units sold during the same period in 2018. This is a negative second quarter for the market and brings the nine-month year-to-date total to 2,538,718 units - 2.4% lower than the 2,600,737 units sold in the same period of last year.
  • However, automotive production in countries like Thailand, Indonesia, and Malaysia witnessed a decent growth of over 8% during 2017-2018. This trend is expected to continue in the coming years as well, irrespective of the global decline in automotive production. Therefore, the increasing trend of automotive production in the major countries of Southeast Asia is expected to drive the Asia-Pacific battery market, especially the lead-acid type, during the forecast period.
Asia-Pacific Battery Market Growth

China and India are Expected to be Major Investment Hotspots

  • Asia-Pacific has multiple growing economies with substantial natural as well as human resources, with China and India expected to be major investment hotspots for battery companies in coming years, on account of policy-level support, from the governments, encouraging the manufacturing sector.
  • Both China and India market is driven by increasing population, urbanization, declining cost of electronic items, the introduction of new smart technology, and cheaper internet data. Replacement of older smartphones with newer ones is expected to drive the market growth further.
  • The increasing penetration of telecommunication services provides an opportunity for the growth of the telecommunication market in China and India. Therefore, with the increase in subscribers, the requirement for telecommunication towers in these countries is expected to increase. This would further foster the demand for batteries required for backup purposes.
  • China is the largest market for electric vehicles (EV), with over 1.1 million EVs sold during 2018, and it is expected to remain the world’s largest electric car market. China accounted for almost 50% of the global electric car sales in 2018. As of 2018, foreign automakers faced a 25% import tariff, or they were required to build a factory in China with a cap of 50% ownership. The 50% factory ownership rule is likely to be relaxed in 2020. Electric vehicle makers are expected to be the first to benefit from this change.
  • Also, India is among the top five emitters of CO2 in the world. To mitigate the problem of air pollution, the government has taken the initiative to implement policies favorable to increase the EV fleet count on the road.
  • The government has clarified that entities planning to set up charging stations may not require licensing from the ministry. Moreover, the Indian government aims to sell six million EVs by 2020. They have also set an ambitious target of new vehicle sell after 2030 to be fully electric ones. These initiatives are expected to drive the demand for batteries in the country.
  • Hence, with the increasing adoption of EVs and the favorable government policies in the country, lithium-ion batteries are expected to increase as lithium-ion batteries are mostly preferred in EVs.
Asia-Pacific Battery Market Revenue Share

Competitive Landscape

The Asia-Pacific battery market is fragmented. Some of the major players include Contemporary Amperex Technology Co. Limited, BYD Co. Ltd, Duracell Inc., EnerSys, GS Yuasa Corporation, Clarios, LG Chem Ltd, Panasonic Corporation, Saft Groupe SA, Samsung SDI Co. Ltd, Tesla Inc., and TianJin Lishen Battery Joint-Stock Co. Ltd.

Recent Developments

  • In December 2019, Ather Energy announced that it had signed a memorandum of understanding (MoU) with the Government of Tamil Nadu, India, to set up a two-wheeled electric vehicle and Li-ion battery manufacturing facility. The 400,000 square feet factory is expected to be located at Hosur. Therefore, factors, such as upcoming Li-ion battery manufacturing plants majorly focused on electric vehicle applications, are expected to boost the demand for Li-ion batteries during the forecast period.
  • Factors, such as the rapid development of 5G, the Internet of Things, artificial intelligence, virtual reality, and the commercial application of these new cutting-edge technologies are expected to increase the demand for data processing and information interaction, which, in turn, is expected to speed up the construction of data centers and lead to the explosive growth of the industry.
  • In Q1 2020, automobile OEMs production decline, early lockdown in China, among other factors, led to a fall in revenue and profits for many battery manufacturers. Furthermore, Chinese manufacturers had to delay their production due to a shortage of labor, raw materials, and logistics issues.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Scope of the Study

    2. 1.2 Market Definition

    3. 1.3 Study Assumptions

  2. 2. EXECUTIVE SUMMARY

  3. 3. RESEARCH METHODOLOGY

  4. 4. MARKET OVERVIEW

    1. 4.1 Introduction

    2. 4.2 Market Size and Demand Forecast in USD billion, till 2026

    3. 4.3 Battery/Raw Material Price Trends and Forecast, by Major Technology Type, till 2026

    4. 4.4 Import and Export Analysis, by Major Battery Technology and Major Countries, in USD, till 2019

    5. 4.5 Recent Trends and Developments

    6. 4.6 Government Policies and Regulations

    7. 4.7 Market Dynamics

      1. 4.7.1 Drivers

      2. 4.7.2 Restraints

    8. 4.8 Supply Chain Analysis

    9. 4.9 Porter's Five Forces Analysis

      1. 4.9.1 Bargaining Power of Suppliers

      2. 4.9.2 Bargaining Power of Consumers

      3. 4.9.3 Threat of New Entrants

      4. 4.9.4 Threat of Substitutes Products and Services

      5. 4.9.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Type

      1. 5.1.1 Primary Battery

      2. 5.1.2 Secondary Battery

    2. 5.2 Technology

      1. 5.2.1 Lead-acid Battery

      2. 5.2.2 Lithium-ion Battery

      3. 5.2.3 Other Technologies

    3. 5.3 Application

      1. 5.3.1 Automotive Batteries (HEV, PHEV, and EV)

      2. 5.3.2 Industrial Batteries (Motive, Stationary (Telecom, UPS, and Energy Storage Systems (ESS), etc.)

      3. 5.3.3 Portable Batteries (Consumer Electronics etc.)

      4. 5.3.4 Other Applications

    4. 5.4 Geography

      1. 5.4.1 India

      2. 5.4.2 China

      3. 5.4.3 Japan

      4. 5.4.4 South Korea

      5. 5.4.5 Rest of Asia-Pacific

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Strategies Adopted by Leading Players

    3. 6.3 Company Profiles

      1. 6.3.1 BYD Co. Ltd

      2. 6.3.2 Contemporary Amperex Technology Co. Limited

      3. 6.3.3 Duracell Inc.

      4. 6.3.4 EnerSys

      5. 6.3.5 GS Yuasa Corporation

      6. 6.3.6 Clarios (Formerly Johnson Controls International plc)

      7. 6.3.7 LG Chem Ltd

      8. 6.3.8 Panasonic Corporation

      9. 6.3.9 Saft Groupe SA

      10. 6.3.10 Samsung SDI Co. Ltd

      11. 6.3.11 Tesla Inc.

      12. 6.3.12 TianJin Lishen Battery Joint-Stock CO. LTD

    4. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The Asia-Pacific Battery Market market is studied from 2018 - 2026.

The Asia-Pacific Battery Market is growing at a CAGR of >15% over the next 5 years.

BYD Co. Ltd , Contemporary Amperex Technology Co. Limited , Duracell Inc. , GS Yuasa Corporation , Panasonic Corporation are the major companies operating in Asia-Pacific Battery Market.

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