Global Battery Market: Regional & Strategic Developments
The increasing popularity of consumer electronics, including smartphones, tablets, and LCDs, on a global scale, is mainly accredited to the rise in internet penetration and the growing disposable income. In this regard, according to statistics, the total revenue of the global consumer electronics market is likely to reach $1135.72 billion by 2026, from $1085.8 billion in 2021. Subsequently, this factor is set to fuel the need for high-capacity batteries, such as lithium-ion, thus augmenting the battery market, globally.
According to Inkwood Research’s estimations, the global battery market is expected to grow with a CAGR of 16.68% during the forecast period of 2022 to 2030.
The market’s notable growth is attributed to the incentives for electric vehicle manufacturing as well as the declining prices of batteries. For instance, according to industry data, the prices of batteries have depreciated by approximately 97% since 1991. Hence, the reduction in battery prices is expected to bolster its demand and adoption across various industries, thus promoting market growth over the upcoming years.
Regional Trends to Strengthen Global Market’s Growth Trajectory
Significant investments by key players in battery technologies across the globe are expected to have a positive impact on the market growth during the forecast period. For instance, in 2022, the United Kingdom start-up, Britishvolt, gained new investments worth $50.17 million from Glencore for constructing a large-scale battery factory in the country. Consequently, this factor is integral to the market’s growth in Europe.
On the other hand, while North America remains one of the largest consumers of different types of batteries, the surging adoption of electric vehicles in the Asia-Pacific further contributes to the global market’s growth.
Asia-Pacific to Lead the Market with a 17.68% CAGR
- The increasing demand for electric vehicles is a major driving factor facilitating the growth of the Asia-Pacific battery market during the forecast years. In this regard, China leads the global sales of electric vehicles, with about 9 million battery electric vehicles sold in the country in 2021. Besides, this figure also denotes a substantial increase of 162% compared to 2020.
- The growth of the automotive industry, especially in developing nations such as India and Japan, further contributes to the adoption of electric vehicles in the region. Since a wide range of batteries is utilized in hybrid electric vehicles as well as electric vehicles, automotive batteries is set to be the fastest-growing application during the forecast period.
- Moreover, Barrel Energy signed a memorandum of understanding with Roshan Energy Technologies for developing and manufacturing lithium-ion batteries in India. Hence, such joint ventures and collaborations play an essential role in positioning lithium-ion battery, under the technology category, as the fastest-growing and dominating segment.
North America to Dominate the Market by 2030
- North America continues to remain one of the largest consumers of various types of batteries, acquiring a revenue share of 91.26% in 2021. Moreover, the integration of renewables with energy storage is set to present lucrative growth opportunities for the North America battery market over the upcoming forecast years.
- In this regard, the United States, capturing the highest revenue share in North America, has undertaken considerable measures and investments to boost the production of advanced batteries. For instance, the United States Department of Energy issued notices of intent to provide an amount worth $2.91 billion for the expansion of energy industries, including energy storage and electric vehicles.
- Likewise, in 2021, the government of the United States announced to offer funding worth $209 million for 26 new laboratory research projects pertaining to electric vehicle batteries. The government is establishing efforts to boost the domestic supply chain of lithium batteries, as well.
In Conclusion | Key Players’ Efforts to Counter Limitations
While regional developments are integral to the overall growth, the problems associated with battery safety and recycling may hinder the global battery market growth. Hence, in order to overcome these limitations, major companies such as Duracell, Panasonic Corporation, and Samsung SDI Co Ltd, among others, are attempting to provide safer, more reliable, and high-performance battery technologies.
Aligning with this, Saint-Gobain announced its plan to partner with Addionics, an Israeli battery technology start-up, to develop next generation solid-state lithium-ion batteries integrated with novel electrode components. The partnership aimed to deliver significant improvements in electric vehicle battery performance. These include a longer driving range, fast charging, enhanced safety, and lower production costs, thereby providing the global battery market with notable growth opportunities.
Which is the fastest-growing type in the global battery market?
Secondary battery segment, under the type category, is set to progress with the highest CAGR of 17.20% during the forecast period.
What are the main technologies analyzed in the global battery market report?
Lead-acid battery, lithium-ion battery, sodium-sulfur (NAS) battery, nickel-zinc (NiZn) battery, nickel-cadmium (NiCD) battery, nickel-metal hydride (NiMH) battery, zinc-manganese dioxide battery, flow battery, small sealed lead-acid battery, and other technologies are analyzed in the global report.