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

Market Overview

The global battery market is expected to register a CAGR of more than 9.5% during the forecast period of 2021 - 2026, reaching a value of around USD 188.68 billion by 2026, up from USD 88.49 billion in 2019. 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, lithium-ion battery sales decreased for electric vehicles (EV) in the United States and China. At the same time, in European countries, like Germany, it increased with growth in EV sales by nearly 8.5% in Q1 2020. The primary driver for the market includes the declining price of a lithium-ion battery and the increasing adoption of electric vehicles. However, factors, like a mismatch in demand and supply of raw materials for battery manufacturing, are 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:

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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).
• 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.

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