Global Battery Market Outlook, 2027

Global Battery Market Outlook, 2027

The report ""Global Battery Market Outlook, 2027"" published by Bonafide Research provides comprehensive information on batteries classified by type (primary & secondary), technology (lead-acid, lithium-ion, nickel cadmium & nickel metal hydride), and application (automotive, industrial, & portable). The overall battery market was valued at around USD 110 billion in 2021, which is anticipated to rise to over USD 188 billion by the upcoming timeframe. Furthermore, the market is expected to grow at a CAGR of more than 9% between 2022 and 2027.The number of people without access to electricity in the African region is to increase by over 600 million in 2030, despite efforts to boost electrification. The Sub-Saharan and rural South Asian regions, in particular, are expected to be one of the central hotspots for off-grid solar initiatives. As a result, the use of energy storage with solar photovoltaic technology has been gaining popularity in these countries, which is likely to create an enormous opportunity for the battery market.

The lithium-ion battery segment is expected to cross a market of USD 75 billion by the end of the forecast period, recording the highest CAGR. Major factors driving the market include declining prices, rapid adoption of electric vehicles, a growing renewable sector, and increased sales of consumer electronics. On the other hand, the demand-supply mismatch of raw materials is the hindrance to the market's growth. Significant increases in battery energy density will probably require a disruptive technology involving a lithium anode. The market-leading segment of lead-acid batteries is expected to report the lowest CAGR of 5.98% through the forecasted period. High demand for portable electronics, including LCDs, smart-phones, tablets, and wearable devices such as fitness bands, is boosting the market's growth. The market is expected to observe substantial growth on account of technological advancements in terms of enhanced efficiency, cost-effectiveness, and product innovation.

The automotive sector is expected to be the major application segment for the battery market in the near future. 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 vehicles on a large scale. Falling battery prices and improving technology are expected to bring price-competitive electric vehicles to the market, creating a demand for battery technologies.

New markets that further boost battery growth are the electric bicycle and storage systems for renewable energy, from which homeowners, businesses, and developing nations are benefiting. Large grid storage batteries collect surplus energy during high activity and bridge the gap when the input is low or when user demand is heavy. The market comprises a network of players, including major global players as well as localized regional players. Key players in the global battery market include Johnson Controls, Exide Technologies, GS Yuasa, Robert Bosch GmbH, Saft Groupe SA, Delphi Automotive LLP, LG Chem, and Panasonic Corporation, among others.

Decreasing fossil fuel reserves, along with promising government initiatives and high CO2 emissions, are expected to propel market growth in the next few years. Key non-rechargeable batteries are extensively used in children’s toys, light beacons, remote controls, watches, and electronic keys. These are expected to witness a loss of stake to rechargeable batteries on account of efficiency and enhanced lifespan.

Developing markets in Africa and the Asia Pacific are expected to boost battery demand in electric bicycle applications and storage applications such as the leveling of load in renewable sources of energy like the wind and solar. Growing aircraft and automobile manufacturing in APAC developing nations such as China and India is expected to provide enormous market growth opportunities. Growing technological advancements in battery technologies have amplified the usage of various battery-operated equipments across the world. Hybrid Electric Vehicles (HEV) is equipped with countless features that consume a significant amount of battery power. These features include a GPS navigation system, power windows, a display that gives information about the battery charge level, and air-conditioning systems.

Growing integration of electronics, fuel savings, rising government incentives for cleaner transportation and an increasing number of new hybrid and electric automotive models from OEMs are some of the major factors driving the growth of the global battery industry. The increasing demand for transportation and electronic vehicles is a prominent driver for the battery market. Along with that, incentives provided by the government and fuel savings with the use of electronic vehicles will further drive the market growth. Also, the development of new electric and hybrid automotive vehicles by the OEMs is anticipated to boost the market's growth. Furthermore, several other factors, such as increased efficiency, cost-effectiveness, etc., will further fuel the market's growth. Furthermore, several battery market opportunities are anticipated to improve the market growth. The rising demand for electronic and hybrid vehicles will offer new opportunities for the market. The development and research of these vehicles will further fuel the market's growth in the upcoming years.

There has been an increase in the demand for energy storage systems across the globe. Energy storage can play a crucial role in balancing variable generation sources and grid integration. In this regard, by increasing the overall flexibility of the system, energy storage systems can reduce peak demand, improve power quality, avoid or reduce deviation penalties, and enhance the capacity of distribution and transmission grids. The demand for lithium batteries has been increasing with the growing demand for consumer electronic products such as mobile phones and laptops, as these batteries are widely used in these products. Lithium-ion batteries are widely used in consumer electronics due to their rechargeable quality. Moreover, the lithium-ion battery pack offers high power and also has a higher energy density compared to other battery types. These factors are leading to an increase in demand for lithium-ion batteries in consumer electronic products.
On September 21, 2021, Toshiba Corporation and Sojitz Corporation entered into a joint development agreement for the commercialization of next generation lithium-ion batteries using niobium titanium oxide (NTO) as the anode material. In October 2018, Toshiba Corporation started building a new production facility to manufacture rechargeable lithium-ion batteries in Yokohama, Japan. Toshiba Infrastructure Systems & Solutions Corporation manufactures lithium-ion batteries. The company is expecting increasing demand for lithium-ion batteries. Through this initiative, the company is consolidating its position in the global lithium-ion battery market.

Manufacturers are constantly improving lithium-ion with new enhanced chemical combinations to increase the battery aging life. Increasing demand for wearable devices can boost the battery market performance. They are now considering replacing lithium-ion batteries with ions and electrolytes such as zinc, aluminum, magnesium, and sodium. These batteries will be cheaper and potentially safer, which will help companies to propel in the battery market. Energizer recently launched a smartphone with a whopping 16,000mAh battery, influencing other manufacturers in the market. In 2017, A company named Pisen developed a laser pointer power bank. This laser power bank battery is so efficient that with one charge it can work for an entire year. The battery capacity is very powerful that it has been chosen by millions of customers all over the world. Firefly, a power bank is combined with the power to charge other devices, water-resistant along with LED and great-sounding wireless music, is an innovative development in the battery market. This innovation is gaining a lot of traction from the population more engaged in outdoor activities such as camping.

Covid-19 Impacts:
The battery market was moderately impacted by the COVID-19 pandemic. In the prevailing COVID-19 situation, the expected growth of the market is expected to decline as the pandemic is restricting the supply of batteries and other components due to severe disruptions in businesses and the global economy. The current situation has impacted the supply chain of the battery industry. Key components for batteries are mainly manufactured in Asia and the Pacific. The COVID-19 situation has exposed the over-dependency on the region for key raw materials, especially China. Battery manufacturers in the US, Germany, and Australia are highly impacted by the shutdown of operations in China and other Asia-Pacific countries. It has also resulted in limited production, leading to a serious decline in business inputs. The recovery depends on government assistance as well as the level of corporate debt and how the companies and markets cope with the trimmed demand. After the recovery phase, the market is projected to grow at a moderate rate until 2030.

Major Companies Present In the Market
A123 Systems LLC, BYD Company Limited, C&D Technologies Inc., Clarios, Contemporary Amperex Technology Corporation Limited, GS Yuasa International Limited, Hitachi Chemical Corporation Limited, LG Chem Limited, Panasonic Corporation, Saft Group SA, Samsung Corporation Limited, Sony Corporation, Toshiba Corporation

Considered In the Report
• Geography: Global
• Historical year: 2016
• Base year: 2021
• Estimated year: 2022
• Forecasted year: 2027

Regions and Countries covered:
• North America (USA, Canada, Mexico)
• Europe (Germany, UK, France, Spain, Italy, Russia)
• Asia-Pacific (India, Japan, Australia, China)
• South America (Brazil, Argentina, Columbia)
• Middle East & Africa (UAE, Qatar, Saudi Arabia, South Africa)

Aspects Covered In the Report
• Market Size By Value for the historic time period (2016-2021)
• Market Size By Value for the forecast time period (2022-2027)
• Market Share by Type (Primary & Secondary)
• Market Share by Technology (Lead acid Battery, Lithium ion Battery, Nickel metal hydride Battery, Nickel cadmium Battery & Other Batteries)
• Market Share by Application (Automotive Batteries, Industrial Batteries & Portable Batteries)
• Market Share by Country

The approach of the report:
We keep an eye on evolving markets and try to evaluate the potential of the products and services. If we find the market interesting, we start working on it and create the desired table of content, considering all aspects of the business. We start by creating separate questionnaires for C-level executives, national/regional sales personnel, company owners, dealers, distributors, and end-users. Once the questionnaires have been finalized, we start collecting the primary data (mostly through phone calls) and try to understand the market dynamics regionally or tier-wise. This process gives us in-depth details of the market, including all present companies, the top-performing products with reasons why they dominate; we get the details of new players and their innovative approaches; market trends; dynamics; and all the small details of the market. After the collection of primary inputs, we then cross-check the same with secondary sources that include associations, trade journals, annual reports, paid databases, newspapers, magazines, press releases, government sources, etc. From this, we get a rough estimate of the market and start checking existing product price variants, trade, production, raw material scenarios, policies and regulatory landscape, etc. Then, to finalize the market, we start collecting financials of each player present in the market, including limited, private limited, and LLPs. Moreover, we perform cross-industry and cross-region analysis of the product, and based on collected primary inputs and using statistical modeling, we start forecasting the market. We follow our forecasting algorithm, which is unique for each product but gives more weight age to primary inputs. At the same time, the content team starts preparing company profiles, market dynamics, market trends, five forces, PEST analysis, etc. Once the data is verified by the data expert, the team (primary team, content team, and data team) together crosscheck the segmentations, validate the market, and then the designing team starts plotting the graphs. Once the file is ready, the content team completes the report and makes sure that all the discussed points have been covered and provides their valuable inputs in the form of strategic recommendations for new as well as existing players. The QC team then checks the overall report that includes spell check, data verification, and makes the same dispatch ready and error-free.

Intended Audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the battery manufacturers, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.