Battery Contract Manufacturing Market Size, Share & Trends Analysis Report By Product (Lithium-ion, Lithium Polymer, LFP, Alkaline), By Application, By Region, And Segment Forecasts, 2023 - 2030

Battery Contract Manufacturing Market Growth & Trends

The global battery contract manufacturing market size is expected to reach USD 14.26 billion by 2030, according to a new report by Grand View Research, Inc. The market is expected to witness a significant rise on account of the increasing consumption of lithium-ion batteries in electric vehicles, grid storage, and medical equipment in the near future.

The advantages of battery contract manufacturing include lower costs, faster production times, and access to specialized expertise. By outsourcing battery production, companies can focus on their core competencies and leave the manufacturing process to the experts. These reasons attributed to the growth of the battery contract manufacturing industry in the U.S. over the forecast period.

The rising sales of electric vehicles along with the expanding renewable energy sector are expected to drive the market growth. Technological advancements to reduce the weight of batteries and increase their power output is expected to augment industry expansion. In addition, competent distribution channels are likely to be an important way to gain a competitive advantage.

Lithium-ion constituted the largest segment in the global battery contract manufacturing industry in 2022 with a revenue share of 37.81%. Development of the automotive industry using lithium-ion batteries in Indonesia, Vietnam, Mexico, Thailand, and India is expected to drive industry size. Growing inclination towards pollution-free HEVs & EVs along with technological developments is expected to drive the battery demand over the forecast period. China is expected to witness high gains in light of energy storage technologies and favorable government support to promote investments in manufacturing sectors.

The growing number of portable consumer electronics that rely on batteries has led to increased consumption of rechargeable batteries. Portable devices including smartphones, digital cameras, MP3 players, and laptops require rechargeable batteries to provide efficient and effective power. Battery technology is evolving continuously to meet the high performance and power density requirements of devices.

COVID-19 has been a major restraint to the battery contract manufacturing industry owing to several factors including reducing operational costs by end-users, coupled with disruption in the availability of spare parts due to sluggish manufacturing activities and logistics issues.

Battery Contract Manufacturing Market Report Highlights

• In 2022, in terms of revenue, lithium-ion emerged as the largest segment and accounted for a 37.81% share. Several advantages to lithium-ion battery contract manufacturing is that it can provide flexibility in terms of production volume
• In 2022, electric vehicles segment accounted for the largest share in the global market with a share of 28.93%. High demand for lithium-ion batteries in electric vehicles on account of their high energy density and high safety level, is expected to augment the market growth over the forecast period
• The U.S. emerged as the largest market in North America in 2022. Increasing electric vehicle sales in the country owing to supportive federal policies coupled with the custom battery requirement in the U.S. market are expected to drive the demand for battery contract manufacturing
• In Asia Pacific, China emerged as the largest country for the consumption of battery contract manufacturing industry with a share of 55.74% in 2022. A decrease in the price of custom lithium-ion batteries and increasing penetration of energy storage systems in the country is expected to fuel the market growth
• In Colombia, extensive investments in low-cost and energy-efficient batteries for electric vehicles and grid storage are expected to spur the demand for battery contracts over the next few years

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