U.S. Lightning Product Market to Reach $294.57 Bn by 2024 Driven by Surging Adoption of Electric Vehicles

The U.S. lightning product market comprises batteries used in various applications including consumer electronics, electric vehicles, utility storage and industrial applications. Lightning batteries provide high energy density, long service life and high discharge capacity. They are used in devices such as smartphones, laptops, power tools, electric vehicles and energy storage systems. Rising sales of EVs and focus on renewable energy is propelling the demand for advanced lightning batteries in the country.

The U.S. Lightning Product Market is estimated to be valued at US$ 294.57 billion in 2024 and is expected to exhibit a CAGR of 18% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the U.S. lightning product market are BYD Company Limited, Panasonic Corporation, Contemporary Amperex Technology Co. Limited, Samsung SDI Co. Ltd, TianJin Lishen Battery Joint-Stock CO. LTD, GS Yuasa Corporation, Duracell Inc., Clarios (Formerly Johnson Controls International PLC), VARTA AG, LG Chem Ltd, Tesla Inc. and EnerSys. The companies are investing heavily in R&D to develop high-performance battery technologies and expand production capacities to leverage opportunities in the industry.

The growing demand for EVs and focus on renewable energy is driving the need for advanced lightning batteries in the country. With an aim to achieve carbon neutrality and reduce dependency on fossil fuels, the Biden administration is promoting large-scale adoption of EVs through tax incentives and setting ambitious EV sales targets for automakers. This is creating a huge demand for lithium-ion batteries from the automotive sector.

Technological advancements such as continuous improvements in battery energy density, life cycle and safety are supporting the growth of the U.S. lightning product market size. Battery manufacturers are investing in new materials such as lithium-sulfur, lithium-metal and solid-state batteries that provide higher energy density compared to conventional lithium-ion batteries.

Market Trends

Rising investments in battery gigafactories: Major battery and automotive companies are undertaking heavy investments to set up new gigafactories in the US. For instance, Tesla and Panasonic operate a battery plant in Nevada with a 35GWh capacity.

Increasing preference for consumer electronics: Sales of electric bikes, power tools, mobile phones and laptops are surging which is driving the need for portable high-capacity batteries.

Market Opportunities

Growth in renewable energy storage: As the US aggressively expands solar and wind power capacities, demand for utility-scale energy storage systems using lithium batteries is growing.

Emergence of micro-mobility: Emergence of e-scooters, e-bikes and drones for personal mobility offers opportunities for smaller lithium-ion batteries.

The COVID-19 pandemic has greatly impacted the growth of the U.S. Lightning Product Market. Lockdowns and restrictions imposed during the pandemic led to disruptions across the supply chain and lower consumer demand. Many production facilities were shut down temporarily due to workforce shortages. This significantly affected the market's growth trajectory during 2020-21.

However, with vaccination drives and easing of lockdowns from 2021 onwards, the market has started recovering. Though demand is yet to reach pre-pandemic levels, sales of lighting products are increasing steadily as commercial and industrial activities resume. Manufacturers are ramping up production and expanding distribution networks to cater to the growing needs. Furthermore, rising awareness about energy-efficient lighting and the push for green building initiatives are expected to boost adoption in the coming years. Sustainable and smart lighting solutions equipped with IoT capabilities are likely to gain traction. Overall, the market is well-positioned for robust expansion over the forecast period, despite facing short-term setbacks during the peak of the health crisis. Close monitoring of demand trends and ensuring supply chain resilience will be crucial for stakeholders in this space.

In terms of value, the Western region dominates the U.S. Lightning Product Market with the highest market share. States such as California, Texas and New York have sizable lighting needs owing to their large population sizes and strong presence of commercial and industrial sectors. The region also has progressive policies supporting sustainable infrastructure development and adoption of eco-friendly technologies. Looking ahead, the Southern region is projected to showcase the fastest growth during the forecast period. Rapid urbanization and construction activities and rising disposable incomes are strengthening demand for quality, energy-efficient lighting solutions across states like Florida, North Carolina and Georgia.