The market for battery in Asia-Pacific is expected to grow approximately at a CAGR of 15.52% 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. 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.
- A significant fraction of Asia-Pacific's population are estimated to be living without access to electricity and are dependent on conventional fuels, such as kerosene and diesel, for their lighting and mobile phone charging needs. Lithium-ion battery integrated energy storage solutions are likely to witness an increasing rate of adoption due to the technical benefits associated with it and declining lithium-ion battery prices.
- As of 2018, more than 130 million households in India had no access to electricity, providing a considerable opportunity for the deployment of off-grid solar applications that include lighting/lanterns, street/led lighting, solar water pumps, air heating systems, etc. The increasing potential of off-grid solar applications is expected to attract new investments, during the forecast period.
- The installation of solar rooftop in India has witnessed a slow growth. Early in 2018, the government downsized the target for the financial year 2017-2018 to only 1000 MW of capacity from 5000 MW. As of December 2017, total installed rooftop solar capacity was 928 MW.
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 battery, primarily 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 are 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 among the leading countries in global EV sales, along with other developing economies like India, which 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.
China Driving the Market Demand
- The growth rate in China's economy accelerated in 2017 for the first time in the last seven years and registered a growth rate of 6.9%. The growth is mainly due to increase in export, construction, and consumer spending.
- 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 cars into the country.
- China is likely to be the dominant player in the Asia-Pacific Lithium-ion Battery market, supported by increasing urbanization and consumer spending, 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 Asia-Pacific battery market remains highly fragmented, with the presence of numerous players. 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.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- Report customization as per the client's requirements
- 3 months of analyst support