The Battery Market is estimated to be valued at US$ 167.07 Bn in 2023 and is expected to exhibit a CAGR of 18% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Batteries are an essential component used in various end-use applications such as consumer electronics, automotive, industrial, grid energy storage and others. Batteries are used to power devices ranging from portable devices such as smartphones, laptops, power banks to electric vehicles. Lithium-ion batteries dominate the battery market due to their high energy density, low self-discharge and lightweight nature. Lead-acid batteries also have a significant share due to their cost-effectiveness.
Market Dynamics:
The growth of the battery market is driven by the rising adoption of electric vehicles globally. According to the International Energy Agency (IEA), electric car sales reached 6.6 million in 2021 representing over 10% of the global car market. Countries have set targets to phase out conventionally fueled vehicles and have introduced subsidies and tax incentives to promote the use of EVs. This is expected to boost lithium-ion battery demand significantly over the forecast period.
Another key driver is the increasing deployment of renewable energy sources such as solar and wind power which require large-scale battery storage. Renewable energy generation is intermittent in nature and batteries help address this issue by storing excess energy that can be used when solar or wind power is unavailable. This is leading battery manufacturers to focus on developing increasingly larger and more efficient energy storage systems supporting the growth of the battery market.
Segment Analysis
The battery market is segmented by type into lithium-ion battery, lead acid battery, nickel-cadmium battery, and others. The lithium-ion battery segment dominated the market and accounted for around 40% of the overall revenues in 2023 due to increasing demand for electric vehicles. Lithium-ion batteries provide higher energy density and longer life as compared to traditional lead-acid batteries, hence it is widely used in consumer electronics and electric vehicles.
PEST Analysis
Political: The government of various countries are supporting the adoption of electric vehicles through subsidies and tax benefits in order to reduce carbon emissions from gasoline vehicles. This is positively impacting the growth of the battery market.
Economic: The rising disposable income and growing middle class population in developing countries is driving the purchase of consumer electronics which is fueling the battery market growth.
Social: Increasing awareness about greenhouse gas emissions and global warming is encouraging people to opt for cleaner transportation like electric vehicles which use batteries as a power source.
Technological: Continuous investments in battery technology research and development has led to improvements in battery performance, life cycle and safety. Advancements like solid-state batteries and lithium-air batteries will further support the market growth over the coming years.
Key Takeaways
The Global Battery Market Demand was valued at US$ 167.07 Bn in 2023 and is expected to reach approximately US$ 801.33 Bn by 2030, expanding at a CAGR of 18% during the forecast period. Rapid adoption of electric vehicles for personal and commercial transportation is a major factor driving the battery market revenue. In 2021, around 6.6 million electric vehicles were sold globally and this number is expected to rise considerably over the next decade.
Regionally, Asia Pacific accounted for around 45% revenue share in the global battery market in 2023 led by China, South Korea and Japan. Strong presence of battery manufacturers and electric vehicle companies in the region as well as significant investments in production capacity expansions to cater to the domestic demand will continue to drive the APAC battery market during the forecast period.
Key players operating in the battery 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. Major players are investing heavily in research & development of next-generation battery technologies and expanding manufacturing facilities globally to strengthen their market position.
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