The market for the battery is expected to grow approximately at a CAGR of 12.31% during the forecast period of 2019 - 2024. Major factors driving the market include declining lithium-ion battery prices, rapid adoption of electric vehicles, growing renewable sector, and increased sale of consumer electronics. On the other hand, the demand-supply mismatch of raw materials is likely to hinder the market growth.
- The SLI application is one of the largest segment of batteries. The lead-acid battery is the technology of choice for all SLI battery applications in conventional combustion engine vehicles, such as cars and trucks in Europe and worldwide.
- The number of people without access to electricity in the African region is expected to increase from 588 million in 2016 to about 602 million in 2030, despite efforts to boost electrification through grid connectivity. The Sub-Saharan region, in particular, is expected to be one of the central hotspots for off-grid solar initiatives. As solar energy is an intermittent source and generates power only during the daytime, use of the off-grid solar power in conjunction with energy storage substantially enhances the utilization of solar PV units. As a result, the use of energy storage with solar PV is gaining popularity in developed countries creating market opportunity for batteries.
- North America and Asia-Pacific are the regional hotspots for the battery market, in which countries such as The United States, India, and China are the hotspots for the battery market.
Key Market Trends
Automotive Batteries segment set to be the Fastest Growing Segment
- The automotive sector is expected to be one of the major end-user segments for lithium-ion batteries in the near future. The penetration of electric vehicles is anticipated to provide a massive impetus for the lithium-ion battery industry growth.
- A range of different vehicle types is now available globally, featuring increasing degrees of hybridization and electrification. There are various types of vehicles, including hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles, and electric vehicles (EVs).
- In developed and developing economies, both alike, the adoption of electric vehicles is increasing at a high growth rate. The United States and China are already leading in global EV sales, along with other developing economies like India, ehich has already begun transforming its public transportation infrastructure for EVs.
- In the current market scenario, policy support plays a crucial role in driving the adoption of electric vehicles. Policy support enables market growth by making vehicles appealing to consumers, reducing risks for investors, and encouraging manufacturers to develop electric vehicle on a large scale.
- Falling battery prices and improving technology are expected to bring price-competitive electric vehicles to the market, creating demand for battery technologies.
Asia-Pacific Driving the Market Demand
- In Asia-Pacific lies multiple growing economies with substantial natural as well as human resources, China and India are expected to be major investment hotspots for battery companies in coming years, on account of policy-level support, from the governments, encouraging the manufacturing sector.
- The deployment of electric vehicles and the installation of renewable power plants in China and India is increasing rapidly, which is expected to foster massive demand for batteries.
- China is currently one of the largest markets for the electric vehicle and has registered ~30 times faster growth than the electric vehicle market in 2018 when compared to 2017.
- The increasing adoption of electric vehicles is in line with the clean energy policy. In order to reduce the demand-supply gap, the government of China is planning to ease restriction on automakers importing car into the country.
- Asia-Pacific is likely to be the dominant player in the battery market, supported by increasing urbanization and consumer spending across several countries, such as India and China, which is expected to ramp up the demand for technically advanced devices & vehicles, due to the benefits provided by the same. Consecutively, leading to a growth in demand for batteries.
- The market for batteries remains highly fragmented, with the presence of numerous players and some of the major players include Contemporary Amperex Technology Co. Limited, BYD Co. Ltd, Duracell Inc., EnerSys, GS Yuasa Corporation, Johnson Controls International plc, LG Chem Ltd, Panasonic Corporation, Saft Groupe S.A., Samsung SDI Co. Ltd, Sony Corporation, Tesla, Inc., and TianJin Lishen Battery Joint-Stock CO.,LTD.
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