Vietnam Battery Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 6.70 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Vietnam Battery Market Analysis
The Vietnam battery market is estimated to be at USD 302.85 million by the end of this year and is projected to reach USD 420.21 million after five years, registering a CAGR of over 6.77% during the forecast period.
- Over the medium period, factors such as declining lithium-ion battery prices and increasing demand for lead-acid batteries are expected to drive the Vietnam battery market during the forecast period.
- On the other hand, the country relies on pumped hydro storage rather than battery storage systems, which may hinder the growth of battery-based energy storage systems and the battery market during the forecast period.
- Nevertheless, the rising focus on technologically advanced batteries by end users and manufacturers will likely create a massive opportunity for battery companies to invest and redirect their resources to make a breakthrough battery technology.
Vietnam Battery Market Trends
Lead-acid Battery to Dominate the Market
- Starting lighting ignition (SLI) batteries start automobiles and other internal combustion engines. Though they are not used for deep discharge applications, they excel in applications requiring a high current for a brief time.
- SLI batteries are mostly lead-acid batteries used in automotive (excluding electric vehicles) applications. A significant fraction of the lead-acid battery is used for SLI applications.
- The energy-to-weight ratio of a lead-acid battery is low. However, it can supply large surge currents, indicating a high power-to-weight valuable ratio for SLI applications. Due to the low cost, lead-acid batteries are preferred when the price is more critical than the energy-to-weight ratio. For example, they are used in backup supplies for mobile phone towers, hospitals, and off-grid remote storage.
- Lead-acid batteries in automotive applications contribute to more than 60% of the market. Automotive (excluding electric vehicles) batteries are mostly SLI batteries. A lead-acid battery can also be used for in-vehicle entertainment systems, power steering, power locking, power window systems, etc.
- In a lead-acid battery, plates are made up of lead and lead dioxide, and a chemical reaction occurs when these plates are immersed in the sulfuric acid and water solution, leading to the production of DC voltage in the range of 6 to 12 voltage, which powers the system of the car.
- According to Vietnam Automobile Manufacturers' Association (VAMA), the sales volume of passenger vehicles in Vietnam amounted to about 284 thousand units in 2022, with an annual growth of 39.5 % compared to the previous year.
- PINACO is one of the dominant players in the car battery market, accounting for nearly 40-45% of the market share. The company is a battery supplier of automobile and motorbike manufacturers, such as Ford Vietnam, Suzuki Vietnam, Mercedes-Benz Vietnam, Thaco Truong Hai, Kia Motors, Hyundai Vinamotor, Vina Mazda, Honda Vietnam, Mekong Auto, and Samco.
- Moreover, increasing telecommunications penetration is driving the demand for telecom infrastructure. The upcoming 5G technology is expected to create additional subscribers, even when consumers may continue using 4G services, thus creating other demand for regional telecommunication towers.
- Hence, such factors are expected to boost the demand for lead-acid batteries and the Vietnam battery market during the forecast period.
Growing Demand for Lithium-ion Batteries Expected to Drive the Market
- The penetration of electric vehicles is anticipated to provide a massive impetus for the growth of the lithium-ion battery market. Vietnam currently imports a significant share of lithium cells and batteries. However, with the growing EV business worldwide, the country is witnessing new developments in EV manufacturing plants and vehicles.
- In 2022, a lithium-ion battery pack will cost around 151 US dollars per kilowatt hour. Lithium-ion batteries are among the most efficient energy storage systems on the market. In recent years, large-scale production and capital investment in battery manufacturing has reduced lithium-ion battery packs' cost and efficiency.
- Vietnam's government is looking to use technology to develop its major cities into smart cities. Electric automobiles meet the criteria of smart city concepts as more and more people move to urban centres.
- Furthermore, in May 2023, Pan Asia Metals signed a non-binding memorandum of understanding (MoU) to examine the feasibility of establishing a standalone lithium conversion factory in Vietnam. With such agreements' approval, lithium-ion battery manufacturing is expected to increase in the country.
- In April 2023, Li-Cycle Holdings Corp., an industry leader in lithium-ion battery resource recovery and North America's lithium-ion battery recycler, and VinES Energy Solutions announced the signing of a definitive agreement for a long-term recycling relationship. According to the agreement, Li-Cycle will become VinES' strategic and preferred recycling partner for Vietnamese-sourced battery materials beginning next year. Such a trend will likely continue during the forecast period and attract more investments in the country's battery market.
- Therefore, the growing demand for lithium-ion batteries is expected to drive the Vietnamese battery market during the forecast period.
Vietnam Battery Industry Overview
The Vietnam battery market is moderately fragmented. Some of the key players in the market (in no particular order) include Vision Group, PINACO, GS Battery Vietnam Co. Ltd, Heng Li (Vietnam) Battery Technology Co. Ltd, and Leoch Battery Corporation.
Vietnam Battery Market Leaders
Vision Group
PINACO
GS Battery Vietnam Co. Ltd
Leoch Battery Corporation
Heng Li (Vietnam) Battery Technology Co. Ltd
*Disclaimer: Major Players sorted in no particular order
Vietnam Battery Market News
- May 2023: Marubeni Corporation of Japan is collaborating with VinES, a Vietnamese battery and energy-as-a-service provider, to create energy storage facilities in the Southeast Asian country. Marubeni will start its part of the collaboration with a feasibility study of battery energy storage system (BESS) installations that might be deployed at Vingroup commercial and industrial (C&I) locations.
- November 2022: VinES Energy Solutions, a subsidiary of Vietnam's largest conglomerate Vingroup JSC and China's Gotion High-Tech, began constructing a USD 275 million battery factory in Vietnam. The factory in Ha Tinh, Vietnam's central province, will generate 30 million lithium iron phosphate (LFP) battery cells yearly.
Vietnam 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 million, till 2028
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.1.1 Declining Lithium-Ion Battery Prices
4.5.1.2 The Growing Demand for Lithium-Ion Batteries in the Country
4.5.2 Restraints
4.5.2.1 The Country Relies on Pumped Hydro Storage Rather than Battery Storage Systems
4.6 Supply Chain Analysis
4.7 PESTLE Analysis
5. MARKET SEGMENTATION
5.1 Battery Technology
5.1.1 Lead-acid Battery
5.1.2 Lithium-ion Battery
5.1.3 Other Battery Types
5.2 Application
5.2.1 Automotive
5.2.2 Data Centers
5.2.3 Telecommunication
5.2.4 Energy Storage
5.2.5 Other Applications
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 Vision Group
6.3.2 Leoch International Technology Limited
6.3.3 PINACO
6.3.4 Saite Power Source(Vietnam) Co. Ltd
6.3.5 Heng Li (Vietnam) Battery Technology Co. Ltd
6.3.6 Ritar Power (Vietnam) Company Limited
6.3.7 TIA Sang Battery Joint Stock Company
6.3.8 GS Battery Vietnam Co. Ltd
6.3.9 Eni- Florence Vietnam Co. Ltd
6.3.10 Kung Long Batteries Industrial Co. Ltd
- *List Not Exhaustive
6.4 Potential List of Distributors/Importers with Their Battery Brands
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 The Rising Focus on Technologically Advanced Batteries by End Users and Manufacturers
Vietnam Battery Industry Segmentation
A battery is a device that converts chemical energy contained within its active materials directly into electric energy by means of an electrochemical oxidation-reduction (redox) reaction.
The Vietnam battery market is segmented by technology and application. By technology, the market is segmented into lead-acid batteries, lithium-ion batteries, and other battery types. By application, the market is segmented into automotive, data centres, telecommunication, energy storage, and other applications. For each segment, the market sizing and forecasts have been done based on revenue (USD million).
| Battery Technology | |
| Lead-acid Battery | |
| Lithium-ion Battery | |
| Other Battery Types |
| Application | |
| Automotive | |
| Data Centers | |
| Telecommunication | |
| Energy Storage | |
| Other Applications |
Vietnam Battery Market Research FAQs
What is the current Vietnam Battery Market size?
The Vietnam Battery Market is projected to register a CAGR of 6.70% during the forecast period (2024-2029)
Who are the key players in Vietnam Battery Market?
Vision Group, PINACO, GS Battery Vietnam Co. Ltd, Leoch Battery Corporation and Heng Li (Vietnam) Battery Technology Co. Ltd are the major companies operating in the Vietnam Battery Market.
What years does this Vietnam Battery Market cover?
The report covers the Vietnam Battery Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Vietnam Battery Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Vietnam Battery Industry Report
Statistics for the 2024 Vietnam Battery market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Vietnam Battery analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
