Japan Battery Market Size
| Study Period: | 2019 - 2028 |
| CAGR: | 11 % |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Japan Battery Market Analysis
The Japan battery market was valued at USD 8.85 billion in 2020, and it is expected to reach USD 14.64 billion by 2027, registering a CAGR of about 11% during the forecast period of 2022-2027. Due to the COVID-19 pandemic, the batteries' production and sales volume decreased in 2020, which was majorly caused by the disruptions in supply from foreign countries because of imposed lockdowns and restrictions. By the end of 2020, the imports of raw materials into the country came back to normal, which helped the battery production in the country to regain its initial pace. Factors such as increasing adoption of electric vehicles, along with the increasing demand for consumer electronics, are expected to drive the market. However, with the increasing demand for lithium-ion batteries, especially in electric cars, there is a substantial growth in mineral prices, and in some cases, there is a shortage of mineral supply, which is likely to act as a restraint for the market growth during the forecast period.
- The secondary battery segment dominated the market in 2021, and is expected to be the largest segment in the Japan battery market during the forecast period.
- Advancements in the research and development of battery chemistries are expected to be a significant growth opportunity for the Japan Battery market in the future. For instance, in May 2021, the researchers at the Japan Advanced Institute of Science and Technology (JAIST) has developed a material helping batteries to retain their original capacity up to 95% for an average of five years, thus extending the battery life inside the device, be it a smartphone, laptop, or even electric vehicle.
- Increasing renewable energy installations fueling government support for battery storage projects in the country are likely to drive the Japan battery market during the forecast period.
Japan Battery Industry Segmentation
The Japan battery market report includes:
| Battery Type | |
| Primary Battery | |
| Secondary Battery |
| Technology | |
| Lithium-ion Battery | |
| Lead-Acid Battery | |
| Others |
| Application | |
| Automotive Batteries (HEV, PHEV, EV) | |
| Industrial Batteries (Motive, Stationary (Telecom, UPS, Energy Storage Systems (ESS), etc.) | |
| Portable Batteries (Consumer Electronics, etc.) | |
| SLI Batteries | |
| Others |
Japan Battery Market Trends
This section covers the major market trends shaping the Japan Battery Market according to our research experts:
Secondary Battery Segment Expected to Dominate the Market
- In secondary batteries, electrode reactions are reversible, implying that applying an external voltage reconstructs the electrodes to their original state. Accordingly, secondary batteries act as both energy sources and energy storage systems. In general, secondary batteries have a low capacity and initial voltage, high self-discharge rates, and varying recharge life ratings. Moreover, these batteries are cost-efficient over the long term, even though individual batteries can be comparatively more expensive.
- Secondary batteries that are widely used in Japan include lead-acid batteries, alkaline storage batteries, and lithium-ion batteries.
- Lead-acid batteries are the most frequently used and available rechargeable batteries for various end-use applications, such as transportation, industrial, commercial, residential, and grid storage. However, due to stringent lead emission standards and benefits (such as cost advantages, lightweight, and ongoing improvements), lithium-ion batteries are increasingly deployed in high-drain applications, such as consumer electronics, battery energy storage systems, electric vehicles, and cordless electric power tools.
- However, lead-acid batteries are set to witness moderate growth in the secondary battery segment owing to their low specific energy, limited cycle life, and poor weight-to-energy ratio. The export value of rechargeable lead-acid batteries in Japan registered a considerable decline of more than 30%, from JPY 17 billion in 2018 to JPY 11 billion in 2020.
- The most popular secondary battery in Japan is the lithium-ion battery. It has a fast charging ability and offers longer life when compared to its counterparts. According to the Battery Association of Japan, sales of lithium-ion batteries for vehicles in terms of volume witnessed a significant growth of more than 280%, from approximately 191 million units sold in 2013 to 544 million units sold in 2020. However, sales of lead-acid batteries witnessed a decline of more than 8%, from approximately 24.8 million units sold in 2017 to 22.8 million units sold in 2020.
- The rising adoption of electric vehicles (EV) across the country, coupled with a growing focus on climate change, is likely to create a positive business scenario for secondary battery manufacturers. Moreover, in November 2021, Japan announced to spend around USD 877 million on subsidies and incentives to support the construction of advanced battery manufacturing plants which are used in electric vehicles.
- Therefore, owing to the above points, secondary battery segment is expected to dominate the Japan market during the forecast period.
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Increasing Renewable Energy Installations Expected to Drive the Market
- Japan is one of the largest renewable energy markets in Asia-Pacific region. The country’s renewable energy installed capacity reached 101.37 GW in 2020, representing an increase of over 4.34% compared to the previous year’s value.
- Solar, hydro, wind, and bioenergy are the major renewable energy sources in the country. According to the BP statistical review of World Energy, in 2020, renewable energy sources accounted for approximately 12.5% of the total electricity generation mix and 6.63% of the primary energy mix in the country.
- Over the last decade, Japan's installed solar energy capacity has grown from 4.89 GW in 2011 to approximately 67 GW in 2020. However, the share of solar energy in the country’s energy mix is still low. According to BP Statistical Review of World Energy 2021, solar generation was 82.9 TWh in 2020, accounting for only about 8.25% of its total electricity generation.
- As solar energy is intermittent and unavailable during the night, competent battery storage systems are necessary to properly utilize solar energy from rooftop photovoltaic (PV) and large-scale utility solar projects. Battery storage systems provide power during low and no sunlight hours and provide grid stability, preventing sudden voltage surges and sags.
- Japan is expected to become one of the global leaders in grid-connected battery storage projects, with several large-scale battery storage projects in pipeline and under construction. For instance, in August 2021, Tesla announced its plans to build the energy storage facility that is connected to the grid with 6,095 kilowatts hour (kWh) capacity and is likely to have a capacity to power approximately 500 homes and the project is expected to start by 2022.
- Similarly, the two largest solar PV power plants in Hokkaido, that were commissioned in July and October 2020, respectively, both include lithium-ion batteries. One plant has generating capacity of 64.6MWp and battery output of 19.0MWh, while the other has generating capacity of 102.3MWp and battery output of 27.8MWh. Thus, increasing renewable energy share in the country’s energy mix is likely to drive the battery market in Japan for energy storage applications during the forecast period.
- Therefore, owing to the above points, increasing renewable energy installations fuelling the damand for battery energy storage systems, thus in turn driving the Japan battery market during the forecast period.
Japan Battery Industry Overview
The Japan battery market is fragmented. Some of the major players in the market include Panasonic Corporation, Maxell, Ltd., GS Yuasa International Ltd, NGK Insulators Ltd., and Toshiba Corporation.
Japan Battery Market Leaders
Panasonic Corporation
GS Yuasa International Ltd
NGK Insulators Ltd.,
Toshiba Corporation
Maxell, Ltd.
*Disclaimer: Major Players sorted in no particular order
Japan Battery Market News
- In February 2021, the rocket and space vehicle launch station of Japan Aerospace Exploration Agency is set to be equipped with NGK Insulators’ sodium sulfur (NAS) battery storage, to ensure a safe and undisrupted electric power system. The construction company, Kyudenko has contracted NGK Insulators, which will supply a 2400kW/14400kWh NAS battery storage system to the launch pad, which is expected to be one of the largest launch station in the country, located in Southern Japan.
- In March 2021, the renewables business unit of Orix Corporation installed solar plus storage systems at two stores in Japan, owned by Valor Holdings Co. Ltd. The two stores were Supermarket Valor Takefu Store (295.7 kW) in Echizen, Fukui, and at Supermarket Valor Yuinosato Store (236.5 kW) in Kanazawa, Ishikawa. The combined capacity of the two solar plants are 532 MW and each plant has a lithium-ion battery system of 159 kWh.
Japan Battery Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in USD billion, till 2027
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.2 Restraints
4.6 Supply Chain Analysis
4.7 PESTLE Analysis
5. MARKET SEGMENTATION
5.1 Battery Type
5.1.1 Primary Battery
5.1.2 Secondary Battery
5.2 Technology
5.2.1 Lithium-ion Battery
5.2.2 Lead-Acid Battery
5.2.3 Others
5.3 Application
5.3.1 Automotive Batteries (HEV, PHEV, EV)
5.3.2 Industrial Batteries (Motive, Stationary (Telecom, UPS, Energy Storage Systems (ESS), etc.)
5.3.3 Portable Batteries (Consumer Electronics, etc.)
5.3.4 SLI Batteries
5.3.5 Others
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 Panasonic Corporation
6.3.2 Maxell, Ltd.
6.3.3 GS Yuasa International Ltd
6.3.4 NGK Insulators Ltd
6.3.5 Toshiba Corporation
6.3.6 Contemporary Amperex Technology Co Ltd
6.3.7 LG Energy Solution
6.3.8 EEMB Battery
6.3.9 B & B Battery Co. Ltd,
6.3.10 Furukawa Battery Co. Ltd
*List Not Exhaustive7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Japan Battery Market Research FAQs
What is the study period of this market?
The Japan Battery Market is studied from 2019 - 2028.
What is the growth rate of Japan Battery Market?
The Japan Battery Market is growing at a CAGR of 11% over the next 5 years.
What is Japan Battery Market size in 2019?
The Japan Battery Market is valued at 8 Billion USD in 2019.
What is Japan Battery Market size in 2028?
The Japan Battery Market is valued at 14 Billion USD in 2028.
Who are the key players in Japan Battery Market?
Panasonic Corporation, GS Yuasa International Ltd, NGK Insulators Ltd., , Toshiba Corporation, Maxell, Ltd. are the major companies operating in Japan Battery Market.
Japan Battery Industry Report
Statistics for the 2023 Japan Battery market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Japan Battery analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
