Battery Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The market is segmented by Type (Primary Battery and Secondary Battery), Technology (Lead-acid Battery, Lithium-ion Battery, Nickel-metal Hydride (NiMH) Battery, Nickel-cadmium (NiCD) Battery, Nickel–zinc (NiZn) Battery, Flow Battery, Sodium–sulfur (NAS) Battery, Zinc-manganese Dioxide Battery, Small Sealed Lead-acid Battery, and Other Technologies), Application (Automotive Batteries (HEV, PHEV, and EV), Industrial Batteries (Motive, Stationary (Telecom, UPS, Energy Storage Systems (ESS)), etc.), Portable Batteries (Consumer Electronics, etc.), Power Tools Batteries, SLI Batteries, and Other Applications), and Geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).

Market Snapshot

Battery Market - Market Summary
Study Period: 2019-2027
Base Year: 2021
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: >9.5 %

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Market Overview

The global battery market is expected to register a CAGR of more than 9.5% during the forecast period of 2022 - 2027, reaching a value of around USD 206 billion by 2027, up from USD 96.9 billion in 2020. With the COVID-19 outbreak, the industry witnessed a negative impact in terms of battery production and sales during Q1 and Q2 2020 because a majority of the battery industry supply chain is concentrated in China. For instance according to Society of Electric Vehicle Manufacturers, EV sales in India dropped to 236,802 units in FY 2021 from 295,683 units sold in FY 2020. Factors such as declining lithium-ion battery prices along with increasing adoption of electric vehicles are expected to drive the global battery market during the forecast period. However, 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 increase 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 the majority of the demand coming from China, India, Japan, and South Korea.

Scope of the Report

The battery market report includes:

Type
Primary Battery
Secondary Battery
Technology
Lead-acid Battery
Lithium-ion Battery
Nickel-metal Hydride (NiMH) Battery
Nickel-cadmium (NiCD) Battery
Nickel–zinc (NiZn) Battery
Flow 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.)
Application
Automotive Batteries (HEV, PHEV, and EV)
Industrial Batteries (Motive, Stationary (Telecom, UPS, Energy Storage Systems (ESS)), etc.)
Portable Batteries (Consumer Electronics, etc.)
Power Tools Batteries
SLI Batteries
Other Applications
Geography
North America
Asia-Pacific
Europe
Middle-East and Africa
South America

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Key Market Trends

Automotive Batteries 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). Moreover, the number of electric car stock inlcuding Battery Electric and Plug-in Hybrid Vehicles stood at 10.19 million in 2020.
  • In developed and developing economies, both alike, the adoption of electric vehicles is increasing at a significant growth rate. The United States and China are already leading in global EV sales, along with 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.
  • Therefore, based on the above-mentioned factors, automotive batteries segment is expected to witness significant demand for the global battery market during the forecast period.
Global Battery Market - Electric Car Stock (Battery Electric and Plug-in Hybrid Vehicles)

Asia-Pacific to Dominate the Market

  • Asia-Pacific has multiple growing economies with substantial natural and 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, thus, 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 the global electric car sales in 2020.
  • The increasing adoption of electric vehicles is in line with the clean energy policy. In order to reduce the demand-supply gap, the Chinese government is planning to ease restrictions on automakers importing cars into the country.
  • Therefore, Asia-Pacific is likely to be the dominant region in the battery market, supported by increasing urbanization and consumer spendings 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.
Battery Market - Growth Rate by Region

Competitive Landscape

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.

Recent Developments

  • In November 2021, the energy management company Apparent, California Energy Commission and Los Angeles Department of Transportation entered an agreement for a project to power the electric buses of the city 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 United States, 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 expected to help in providing funds and international marketing abilities.

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 2027

    3. 4.3 Battery/Raw Material Price Trends and Forecast, by Major Technology Type, till 2027

    4. 4.4 Import and Export Analysis, by Major Technology Type and Major Countries, in USD million, till 2020

    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 Substitute 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 Nickel-metal Hydride (NiMH) Battery

      4. 5.2.4 Nickel-cadmium (NiCD) Battery

      5. 5.2.5 Nickel–zinc (NiZn) Battery

      6. 5.2.6 Flow Battery

      7. 5.2.7 Sodium–sulfur (NAS) Battery

      8. 5.2.8 Zinc-manganese Dioxide Battery

      9. 5.2.9 Small Sealed Lead-acid Battery

      10. 5.2.10 Other Technologies (Dual Carbon Battery, Zinc-carbon Battery, Silver-oxide Battery, etc.)

    3. 5.3 Application

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

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

      3. 5.3.3 Portable Batteries (Consumer Electronics, etc.)

      4. 5.3.4 Power Tools Batteries

      5. 5.3.5 SLI Batteries

      6. 5.3.6 Other Applications

    4. 5.4 Geography

      1. 5.4.1 North America

      2. 5.4.2 Asia-Pacific

      3. 5.4.3 Europe

      4. 5.4.4 Middle-East and Africa

      5. 5.4.5 South America

  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 Battery Market market is studied from 2019 - 2027.

The Battery Market is growing at a CAGR of >9.5% over the next 5 years.

The Battery Market is valued at 206 Billion USD in 2019.

The Battery Market is valued at 96 Billion USD in 2027.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2021.

Contemporary Amperex Technology Co. Limited, BYD Co. Ltd, Duracell Inc., Exide Industries Ltd., Tesla Inc. are the major companies operating in Battery Market.

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