April 12, 2024
Battery Market

Battery Market Is Estimated To Witness High Growth Owing To Advancements In Storage Capacity And Battery Life

The battery market has witnessed significant growth in the recent years, driven by growing demand for batteries in various end-use applications such as consumer electronics, automotive, industrial and grid storage. Batteries are used widely in smart devices, smartphones, laptops, UPS systems, electric vehicles and indoor/outdoor lighting applications. Advances in battery chemistries have increased their storage capacities while prolonging their lifespan. Recent developments in battery technology have increased energy densities to power more demanding applications. The Global Battery Market is estimated to be valued at US$ 192.47 Bn in 2024 and is expected to exhibit a CAGR of 12% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the battery market include DSM, CP Kelco, H & A Canada Inc., Nanjing Joyfulchem Co., Ltd., Dancheng Caixin Sugar Industry Co. Ltd., Zhengzhou Cinogel Biotech Co., Ltd., Hangzhou Gellan Solutions Biotec Co., Ltd., DuPont, Hebei Xinhe Biochemical Co. Ltd, and Nutricorn Co., Limited. These players are focusing on developing advanced battery chemistries to improve performance and introduce new and innovative storage technologies.

The growing demand for electric vehicles around the world presents a major opportunity for battery manufacturers to supply high-capacity and long-lasting batteries. Consumer demand is driving automakers to invest heavily in electrification. Governments are also promoting EV adoption through subsidies and incentives. Besides EVs, opportunities exist in consumer electronics, energy storage, military and aerospace applications.

Recent advancements in areas such as solid-state electrolytes, lithium-sulfur batteries and lithium-metal batteries promise to significantly boost energy densities. Developments are also occurring in the areas of calcium and lithium-air batteries. Startups and researchers are working on novel battery chemistries beyond lithium-ion that could enable widespread electrification of transportation.

Market drivers
Stringent emission norms mandated by governments across countries are driving automakers to increase electric vehicle production. Countries have set targets to ban sale of fossil fuel vehicles in coming years. This is a major factor creating strong demand for batteries in the automotive industry. Growing consumer preference for green vehicles is also supporting EV adoption. Investments in charging infrastructure will further boost electric mobility.

Current Challenges in Battery Market
The Battery Market Demand  is facing several challenges currently which need to be addressed for sustained growth in the future. One of the major challenges is improving battery life and energy density to meet the increasing demand from electric vehicles and portable consumer electronics. Automakers require batteries with higher capacity to increase vehicle range on a single charge. Similarly, consumers expect longer backup from their devices. Secondly, making battery production more sustainable and reducing dependency on scarce resources like cobalt is another important challenge. Battery manufacturers are exploring new chemistries which use abundant materials. High battery costs also limit mass adoption of EVs currently. Innovation and economies of scale can help bring down costs over time. Ensuring adequate battery recycling infrastructure worldwide is another area which needs attention to promote a circular economy.

SWOT Analysis
Strength: Advancements in battery chemistries like solid-state and lithium-air batteries promise substantial improvements in performance. Growing investments in battery R&D and manufacturing capacity expansion are helping the industry.
Weakness: Dependence on imports for key battery materials like lithium, cobalt, nickel poses supply risks. Hazardous waste generation during battery disposal requires proper handling and treatment.
Opportunity: Rapid growth in electric vehicles and energy storage solutions for renewable energy and electronics is opening new avenues for battery suppliers. Developing economies present a huge untapped market.
Threats: Stringent environment regulations around battery material sourcing and recycling may increase costs. dominance of few companies in cathode and anode production can influence prices.

Geographical Regions
Currently, the Asia Pacific region dominates the battery market, accounting for over 50% of global demand by value. China, Japan, South Korea and India have emerged as major battery production and consumption hubs. This is driven by the presence of leading battery and EV manufacturers as well as government support through incentives and regulations. North America and Europe are other major regional markets, encouraged by regulations on vehicle emissions and investments in charging infrastructure.

The fastest growing regional market for batteries is expected to be South East Asia over the forecast period. Countries like Indonesia, Vietnam, Philippines and Thailand are rapidly developing their electronics and automotive industries. Expanding middle class, economic growth and investment friendly policies are attracting battery material and pack manufacturers to set up local production in these nations. This will help meet the rising domestic demand as well as export opportunities.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it