Batteries play a pivotal role in powering a diverse range of devices and applications across various end-use sectors such as consumer electronics, automotive, industrial, grid storage and others. Advantages associated with batteries include high energy density, portability, longer shelf life and minimal maintenance. Growing electronics demand and government incentives for clean mobility are fueling the need for batteries globally. The Global Battery Market is estimated to be valued at US$ 192.47 Bn in 2024 and is expected to exhibit a CAGR of 12% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in the battery market are DSM, CP Kelco, H & A Canada Inc., Nanjing Joyfulchem Co., Ltd., Dancheng Caixin Sugar Industry Co. Ltd., Zhengzhou Cinogel Biotech Co., Ltd., Hangzhou Gellan Solutions Biotec Co., Ltd., DuPont, Hebei Xinhe Biochemical Co. Ltd, and Nutricorn Co., Limited. The major players are investing heavily in R&D activities to develop advanced battery technologies and expand their production capacities to cater to the growing demand.
Growing environmental concerns coupled with hefty subsidies and tax incentives by governments across nations have boosted the adoption of electric vehicles especially in China, Europe and North America in recent years. This has augmented the demand for lithium-ion batteries that are majorly used in electric mobility.
Technological advancements such as lithium-sulfur batteries, solid-state batteries and flexible batteries are being developed to upgrade conventional lithium-ion batteries in terms of higher energy density, safety, durability and faster charging capabilities. Continuous R&D is expanding the scope of applications for batteries.
Market Trends
Lithium-ion batteries dominate the global battery market with a share of over 50% owing to their high energy density and ability to deliver long lifespan. Mass production of lithium-ion batteries is lowering their costs.
Solid-state batteries have emerged as a promising alternative to lithium-ion batteries due to higher energy density, safety and longer life. Developments in all-solid-state batteries are expected to revolutionize the energy storage industry.
Market Opportunities
Rising electrification of transportation with strong focus on developing EV infrastructure will spur battery demand over the next decade.
Large-scale energy storage projects are being pursued to integrate renewable energy into the grid and ensure reliability, thereby creating growth avenues for battery producers.
Impact of COVID-19 on Battery Market Growth
The COVID-19 pandemic negatively impacted the battery market in the initial months as global lockdowns disrupted manufacturing and supply chains. Major battery manufacturers saw a decline in production due to lockdowns in China, Europe and the US which are key markets. This led to shortage of battery supplies especially for portable consumer electronics and electric vehicles. However, demand for batteries for healthcare devices, remote working tools and energy storage systems increased during the pandemic.
As lockdowns eased, the Battery Market Demand recovered faster than expected. Sales of portable consumer devices, electric vehicles and energy storage systems witnessed a rise supported by government stimulus measures globally. Automakers ramped up electric vehicle production to meet growing demand while battery manufacturers increased capacities. The pandemic accelerated digital and clean energy transitions boosting demand for battery powered products. It also highlighted the need to increase local manufacturing and reduce dependencies on global supply chains. Going forward, investments in battery R&D, recycling facilities and local sourcing will be important for the market to capitalize on post-COVID opportunities.
Geographical Regions with Highest Battery Market Value
The Asia Pacific region accounts for the largest value share in the global battery market currently estimated at around 40% due to presence of major battery manufacturing hubs and electric vehicle production centers in China. Countries like China, South Korea and Japan dominate the global lithium-ion battery supply chain. The region is expected to continue its leadership driven by huge investments by governments and companies in electric vehicles, renewable energy and energy storage infrastructure. Europe and North America are other top markets owing to stringent emission regulations favoring electric mobility in these regions. Government incentives for battery technologies, adoption of renewable energy targets and investments in grid modernization are fueling battery demand growth.
Fastest Growing Regional Market for Batteries
The battery market is experiencing fastest growth in the South and Central America region currently growing at a CAGR of over 15% during the forecast period. Major economies like Brazil, Argentina, Chile are supporting adoption of electric vehicles and energy storage to meet climate goals. Initiatives for developing local battery industries, taxation benefits on EVs and investments in charging infrastructure are drawing global battery manufacturers to set up production bases. Rising sales of electric buses, trucks, two- and three-wheelers are increasing battery deployments across industries. The favorable policy push and rapid urbanization offering new opportunities are enabling this region to emerge as an attractive market for batteries in the coming years.
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