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Market Research Report

Asia-Pacific Battery Market - Growth, Trends, and Forecasts (2020 - 2025)

Published by Mordor Intelligence LLP Product code 369410
Published Content info 125 Pages
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Asia-Pacific Battery Market - Growth, Trends, and Forecasts (2020 - 2025)
Published: May 1, 2020 Content info: 125 Pages
Description

The market for battery in Asia-Pacific is expected to grow approximately at a CAGR of 15.52% during the forecast period of 2020 - 2025. 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 automotive batteries segment is expected to be the fastest growing segment in the battery market owing to the increasing demand from new vehicles produced in the region, and the segment is expected to be the leading end-user for lithium-ion battery in upcoming years.
  • Plans to integrate renewable energy with the national grids in respective countries is expected to create a significant amount of opportunity for the lithium-ion battery manufacturers and suppliers in the near future.
  • China and India are expected to be major investment hotspots in the Asia-Pacific battery market on account of policy-level support, from the governments, encouraging the manufacturing sector.

Key Market Trends

Automotive Battery segment to witness the Fastest Growth

  • 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. China is 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.
  • Vehicles with internal combustion engines (ICE) were the only types used earlier in the Southeast Asean nations. The sales of new vehicles in six of Southeast Asia's largest markets, i.e., Thailand, Indonesia, Malaysia, the Philippines, Vietnam, and Singapore, combined, continued to weaken in the third quarter of 2019, with sales falling by 6.3% to 851,820 units from 908,913 units sold during the same period in 2018. This is a negative second quarter for the market and brings the nine-month year-to-date total to 2,538,718 units - 2.4% lower than the 2,600,737 units sold in the same period of last year.
  • However, automotive production in countries like Thailand, Indonesia, and Malaysia witnessed a decent growth of over 8% during 2017-2018. This trend is expected to continue in the coming years as well, irrespective of the global decline in automotive production. Therefore, the increasing trend of automotive production in the major countries of Southeast Asia is expected to drive the Asia-Pacific battery market especially the lead-acid type during the forecast period.

China and India are expected to be Major Investment Hotspots

  • Asia-Pacific has multiple growing economies with substantial natural as well as human resources, with China and India 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.
  • Both China and India market is driven by increasing population, urbanization, declining cost of electronic items, the introduction of new smart technology, and cheaper internet data. Replacement of older smartphone with newer ones is expected to further drive the market growth.
  • The increasing penetration of telecommunication services provides an opportunity for the growth of the telecommunication market in China and India. Therefore, with the increase in subscribers, the requirement for telecommunication towers in these countries are expected to increase. This would further foster the demand for batteries required for backup purposes.
  • China is the largest market for electric vehicles (EV) with over 1.1 million EVs sold during 2018, and it is expected to remain the world's largest electric car market. China accounted for almost 50% of the global electric car sales in 2018. As of 2018, foreign automakers faced a 25% import tariff, or they were required to build a factory in China with a cap of 50% ownership. The 50% factory ownership rule is likely to be relaxed in 2020. Electric vehicle makers are expected to be the first to benefit from this change.
  • Also, India is among the top five emitters of CO2 in the world. To mitigate the problem of air pollution, the government has taken the initiative to implement policies favorable to increase the EV fleet count on road.
  • The government has clarified that entities planning to set up charging stations may not require licensing from the ministry. Moreover, the Indian government aims to sell six million EVs by 2020. They have also set an ambitious target of new vehicle sell after 2030 to be fully electric ones. These initiatives are expected to drive the demand for batteries in the country.
  • Hence, with the increasing adoption of EV and the favorable government policies in the country, the use of lithium-ion batteries is expected to increase as lithium-ion batteries are the mostly preferred in the EVs.

Competitive Landscape

The Asia-Pacific battery market is highly fragmented with numerous players and some of the major players include Contemporary Amperex Technology Co. Limited, BYD Co. Ltd, Duracell Inc., EnerSys, GS Yuasa Corporation, Clarios, LG Chem Ltd, Panasonic Corporation, Saft Groupe S.A., Samsung SDI Co. Ltd, Tesla, Inc., and TianJin Lishen Battery Joint-Stock CO.,LTD

Reasons to Purchase this report:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support
Table of Contents
Product Code: 53366

Table of Contents

1 INTRODUCTION

  • 1.1 Scope of the Study
  • 1.2 Market Definition
  • 1.3 Study Assumptions

2 RESEARCH METHODOLOGY

3 EXECUTIVE SUMMARY

4 MARKET OVERVIEW

  • 4.1 Introduction
  • 4.2 Market Size and Demand Forecast in USD billion, till 2025
  • 4.3 Recent Trends and Developments (Including Ongoing R&D Activities in the Battery Market)
  • 4.4 Battery/Raw Material Price Trends and Forecast, by Major Technology Type (in USD per kWh or USD per tonne)
  • 4.5 International Trade Statistics (Import/Export Data), by Major Technology Type, By Major Countries, in USD
  • 4.6 Government Policies and Regulations
  • 4.7 Market Dynamics
    • 4.7.1 Drivers
    • 4.7.2 Restraints
  • 4.8 Supply Chain Analysis
  • 4.9 Porter's Five Forces Analysis
    • 4.9.1 Bargaining Power of Suppliers
    • 4.9.2 Bargaining Power of Consumers
    • 4.9.3 Threat of New Entrants
    • 4.9.4 Threat of Substitutes Products and Services
    • 4.9.5 Intensity of Competitive Rivalry

5 MARKET SEGMENTATION

  • 5.1 Type
    • 5.1.1 Primary Battery
    • 5.1.2 Secondary Battery
  • 5.2 Technology
    • 5.2.1 Lead-acid Battery
    • 5.2.2 Lithium-ion Battery
    • 5.2.3 Other Technologies
  • 5.3 Application
    • 5.3.1 Automotive Batteries (HEV, PHEV, EV)
    • 5.3.2 Industrial Batteries (Motive, Stationary (Telecom, UPS, Energy Storage Systems (ESS), etc.)
    • 5.3.3 Portable Batteries (Consumer Electronics etc.)
    • 5.3.4 Others
  • 5.4 Geography
    • 5.4.1 India
    • 5.4.2 China
    • 5.4.3 Japan
    • 5.4.4 South Korea
    • 5.4.5 Rest of Asia-Pacific

6 COMPETITIVE LANDSCAPE

  • 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
  • 6.2 Strategies Adopted by Leading Players
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles
    • 6.4.1 BYD Co. Ltd
    • 6.4.2 Contemporary Amperex Technology Co. Limited
    • 6.4.3 Duracell Inc.
    • 6.4.4 EnerSys
    • 6.4.5 GS Yuasa Corporation
    • 6.4.6 Clarios (Formerly Johnson Controls International plc)
    • 6.4.7 LG Chem Ltd
    • 6.4.8 Panasonic Corporation
    • 6.4.9 Saft Groupe S.A.
    • 6.4.10 Samsung SDI Co. Ltd
    • 6.4.11 Tesla, Inc.
    • 6.4.12 TianJin Lishen Battery Joint-Stock CO.,LTD.

7 MARKET OPPORTUNITIES AND FUTURE TRENDS

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