Global Battery Market Research and Forecast, 2022-2028

Global Battery Market Size, Share & Trends Analysis Report by Category (Primary, and Secondary), By Type (Lithium-Ion (Li-Ion), Nickel-Metal Hydride (NI-MH), Nickel Cadmium, Lead Acid, and Others), By Application (Automotive, Industrial, Household, Telecommunication, and Others) Forecast, 2021-2027

The global battery market is anticipated to grow significantly at a CAGR of 10.5% during the forecast period. Strong demand for consumer appliances, rising transportation needs, and fuel savings are all contributing to the growth of the market. Original Equipment Manufacturers (OEMs) are offering government incentives for cleaner transportation as well as new hybrid and electric automotive models. For instance, the Clean Transportation Program (also known as the Alternative and Renewable Fuel and Vehicle Technology Program) invests up to $100 million in a diverse portfolio of transportation and fuel transportation initiatives around California each year. The Energy Commission combines public and commercial funds to encourage the use of alternative and renewable fuels in transportation.

Electricity is less expensive and cleaner than traditional fuels, which helps to reduce CO2 emissions, which contribute to global warming. Technological improvements in alternative fuel vehicles, such as electric vehicles, are expected to create a lucrative opportunity for market players. Stringent pollution standards imposed by governments in industrialized countries such as the US and the UK, along with a growing focus on fuel efficiency, are projected to drive market demand. For instance, in the US the pollution control law such as Clean Air Act (CAA), Clean Water Act (CWA), and the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), among other, are managed by the United States Environmental Protection Agency. However, factors, like a mismatch in demand and supply of raw materials for battery manufacturing, are likely to hinder the market growth during the forecast period.

Impact of COVID-19 Pandemic on Global Battery Market

Due to the COVID-19 pandemic, almost every industry has been severely impacted. The manufacturing industries have been halted their operations impacting the overall supply chain. The automotive and transportation industries are among the most vulnerable sectors to the ongoing COVID-19 pandemic, and they are currently experiencing unprecedented uncertainty. On the contrary, the continued deployment of EV charging stations across the various locations has led to a positive impact on the market growth during the pandemic. For instance, the first solar-powered electric vehicle charging station opened in Cape Town, South Africa, in December 2020. It is a public electric vehicle charging station that is free to use. South Africa wants to reduce carbon emissions by 2050, and the government wants to make the country green while also lowering the negative impact on the transportation industry. Thus, the market witnessed positive growth and is expected to grow in near future owing to technological advancements by the major players for Battery.

Segmental Outlook

The global battery market can be segmented based on category, type, and application. Based on category, the market is further sub-divided into the primary battery and secondary battery. Based on the type, the market is segmented into Li-Ion battery, Ni-MH battery, Nickel Cadmium battery, lead-acid battery, and other batteries. Due to the growing uses in UPS, telecommunication, transportation, and electric bikes, the lead-acid battery market accounted for the biggest proportion. The need for a lead-acid battery will be driven by the high use of continuous power supply devices in the oil and gas, healthcare, and chemical industries for consistent power delivery. Moreover, as per application, the market is further diversified as an automotive application, industrial application, household application, telecommunication, and other applications.

Global Battery Market Share by Type, 2020 (%)

Global Battery Market Share by Type

Lithium-Ion (Li-Ion) Segment holds the significant share in the Global Battery Market

Among the type for the global battery market, the lithium-ion (Li-ion) battery segment held the highest share in 2020 and is also anticipated to grow during the forecast period. By 2027, lithium-ion batteries are predicted to have a majority market share in lead-acid battery applications such as storage and autos, plug-in electric cars, and electric vehicles. Due to its low maintenance qualities and better energy density, Li-ion batteries are predicted to be widely used in electric vehicles, energy storage systems, and portable gadgets. The key factor driving the segmental growth is a huge increase in consumer electronics adoption on a global scale. Following this, the growing popularity of portable devices such smartphones, laptops, digital cameras, gaming consoles, and flashlights, as well as high-speed internet connections, is driving segmental expansion in the market.

Regional Outlooks

The global battery market is further segmented based on geography including North America (the US, and Canada), Europe (Italy, Spain, Germany, France, and Others), Asia-Pacific (India, China, Japan, and Others), and the Rest of the World (the Middle East and Africa, and Latin America). Asia-Pacific has been predicted to dominate the global battery market, followed by North America. The growth is mainly attributed due to the high adoption of consumer electronics in the region. Besides, India and China are key manufacturing countries in the consumer electronics segment owing to the availability of skilled labor and low production and setup cost. Moreover, North America and Europe are expected to witness significant growth on account of rising electric vehicle production.

Global Battery Market Growth, by Region 2021-2027

Global Battery Market Growth, by Region

North America is projected to have considerable growth in the Global Battery Market

North America is anticipated to exhibit significant growth in the global battery market. A decrease in the cost of Li-ion batteries, higher consumer electronics sales, quick adoption of electric cars, and a developing renewable sector are all major factors driving the regional market. Furthermore, North America continues to be a leader in the global battery market's research and development, as well as one of the top consumers of batteries. For instance, California is one of the major plug-in car markets in the country, with nearly 670,000 plug-in EVs sold by 2019.

Market Players Outlook

The key players of the global battery market include Exide Technologies, BASF SE, Robert Bosch GmbH, Saft Groupe SA, Toshiba Corp., Mitsui & Co. Ltd., ProLogium Technology Co., Ltd., MaxPower Inc., GS Yussa Corp., General Electric Co, and Panasonic Corp., among others The market players are considerably contributing to the market growth by the adoption of various strategies including mergers & acquisitions, collaborations, funding, and new product launches, to stay competitive in the market. For instance, Toyota Motor Corporation and Panasonic Corporation launched a joint venture called "Prime Planet Energy" in October 2020 to develop lithium-ion batteries for hybrid automobiles at a plant in Western Japan by 2022, to meet the country's predicted high demand for electric vehicles.

The Report Covers

Market value data analysis of 2020 and forecast to 2027.

Annualized market revenues ($ million) for each market segment.

Country-wise analysis of major geographical regions.

Key companies operating in the global battery market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

Analysis of market entry and market expansion strategies.

Competitive strategies by identifying 'who-stands-where' in the market.