Global Battery Market Forecast 2024-2032

Global Battery Market Forecast 2024-2032

The global battery market is expected to register a CAGR of 16.45% during the forecast period, 2024-2032. The market study has also analyzed the impact of COVID-19 on the battery market qualitatively as well as quantitatively.

A battery is a type of device that can store chemical energy for use as electrical power and transform it back into electrical power when required. With positive and negative electrodes spaced by an electrolyte, an electrochemical cell or cells make up a battery. During discharge, the battery’s chemical reactions produce electrical energy.

Batteries have become integral components in numerous applications, providing reliable and portable power sources across various industries, including consumer electronics, automotive, energy storage, and industrial sectors. Also, the battery industry encompasses various battery types, such as lithium-ion batteries, lead-acid batteries, nickel-cadmium batteries, and others, each customized for specific use cases considering factors such as energy density, power output, and cycle life.

MARKET INSIGHTS

Key growth enablers of the global battery market:

• Growing demand for portable electronics

• Incentives for EV battery manufacturing

• High demand for automotive applications, especially from electric vehicles

o A diverse range of batteries are experiencing increased demand for automotive applications, particularly in electric and hybrid vehicles. An automotive battery plays a vital role in a vehicle’s powertrain, functioning independently of the gasoline used for propulsion. When the car engine is turned off, the electrical systems rely on the automotive battery for power.

o Additionally, the battery supplies current to the electric starting motor and ignition system during engine startup. It is also tapped into when the vehicle’s alternator requires additional electricity. This emphasizes the necessity for cost-effective and energy-efficient batteries to meet the evolving demands of automotive technology.

o Globally, governments are introducing laws to encourage the use of electric vehicles (EVs) and lower greenhouse gas emissions from moving cars. These policies include subsidies, tax breaks, and stricter emissions standards. As per reports, as of 2022, 14% of new car sales were electric vehicles, surpassing 10 million units sold and indicating an increase from approximately 9% in the previous year. The demand for EVs and, consequently, the modern batteries that power them is increased by this regulatory pressure.

Key growth restraining factors of the global battery market:

• Safety issues related to battery usage

• Volatility in raw material prices

• Issues related to battery recycling

o Recycling batteries may not always be economically advantageous compared to mining raw materials. This is mainly due to the potential outweighing of recovered material value by the costs associated with logistics, disassembly, and processing. Consequently, it hinders the investment and scalability of recycling efforts.

o Additionally, environmental risks persist even with existing recycling processes. While improper disposal of battery components can result in toxic runoff and pollution, the absence of universal standards and regulations for battery recycling compounds these concerns.

o Moreover, the infrastructure for large-scale, efficient battery recycling is currently underdeveloped. Existing processes are often energy-intensive and lack optimization for recovering all valuable materials from various battery chemistries. These factors, in turn, create bottlenecks and elevate the overall cost of battery recycling in the market.

Global Battery Market | Top Trends

• The growing trend of incorporating renewable energy sources and the growing preference for larger electric vehicles (EVs) like electric trucks and SUVs, which require more substantial energy storage solutions for improved performance, are driving the demand for batteries with greater capacity and longer ranges.

• Active exploration of opportunities for second-life applications is being undertaken as an increasing number of used batteries are reaching the end of their initial life cycle in electric vehicles. Moreover, these batteries can be repurposed for less demanding uses. This includes providing backup power or offering grid-balancing services, making use of the remaining capacity for less intensive applications.

• Ongoing research and development efforts are driving continuous technological advancements in batteries. These initiatives encompass improvements in manufacturing techniques, cell architecture, and electrode materials, collectively contributing to enhanced battery performance, more competitive pricing, and reduced charging times.

SEGMENTATION ANALYSIS

Market Segmentation –Type, Technology, and Application –

Market by Type:

• Primary Battery

• Secondary Battery

Market by Technology:

• Lead-Acid Battery

o Lead-acid batteries are one of the oldest and most widely used types of rechargeable batteries that utilize lead dioxide as the positive electrode, metallic lead as the negative electrode, and sulfuric acid as the electrolyte.

o Lead-acid batteries are the most cost-effective battery technology available. Their low cost can be attributed to their well-developed manufacturing methods, a solid recycling system, and the relative abundance of lead. As a result, they are the preferred solution in cases where cost is the main consideration.

• Lithium-Ion Battery

• Nickel-Cadmium Battery

• Nickel Metal Hydride Battery

• Nickel-Zinc (NiZn) Battery

• Flow Battery

• Sodium-Sulfur (NaS) Battery

• Zinc-Manganese Dioxide Battery

• Small Sealed Lead-Acid Battery

• Other Batteries

Market by Application:

• Automotive Batteries

o Vehicle-specific rechargeable batteries, or automotive batteries, are made especially for use in automobiles. These batteries start the engine of the car and provide the electrical energy needed for the other electrical systems to function and for the ignition.

o Ongoing advancements in battery technology are enhancing the practicality and consumer appeal of electric vehicles (EVs). The improved energy storage capacity per unit of weight enables extended driving ranges on a single charge, effectively addressing a significant consumer concern.

o Additionally, the decreasing manufacturing costs of batteries contribute to making EVs more competitively priced in comparison with traditional vehicles.

• Industrial Batteries

• Portable Batteries

• Power Tools Batteries

• SLI Batteries

• Other Applications

REGIONAL ANALYSIS

Geographical Study Based on Four Major Regions:

• North America: The United States and Canada

• Europe: The United Kingdom, Germany, France, Italy, Spain, Belgium, Poland, and Rest of Europe

• Asia-Pacific: China, Japan, India, South Korea, Thailand, Malaysia, Australia & New Zealand, and Rest of Asia-Pacific

o Asia-Pacific boasts abundant resources such as lithium, cobalt, and graphite, essential for battery production. The region’s self-sufficiency in the supply chain minimizes reliance on external sources and reduces associated costs related to transportation and logistics.

o The Asia-Pacific region, particularly countries such as China, hosts a sizable and rapidly expanding domestic market for consumer electronics and electric vehicles (EVs). This surge in demand creates a substantial need for batteries, consequently propelling production activities within the region.

o Moreover, prominent battery manufacturers headquartered in the Asia-Pacific, such as BYD, CATL, and CALB, possess significant production capacities. These industry leaders not only bolster the region’s production strength but also drive innovation and expansion initiatives, consolidating the region’s prominence in the global battery market.

• Rest of World: Latin America, the Middle East & Africa

COMPETITIVE INSIGHTS

Major players operating in the global battery market:

• BYD Company Ltd

• C&D Technologies Inc

• Johnson Controls Inc

• Panasonic Corporation

• Samsung SDI Co

• Saft Groupe SA

Key strategies adopted by some of these companies;

• In July 2023, Saft collaborated with Stellantis and CNRS on a collaborative industrial research initiative in France to build a prototype IBIS energy storage battery. The ability to integrate the inverter and charging processes results in a more cost-effective and efficient energy storage system that increases range and reduces interior space requirements for the car.

• In October 2023, Samsung SDI and Stellantis NV announced a second battery manufacturing facility in the United States as part of the StarPlus Energy joint venture at Kokomo, Indiana. With a 34-gigawatt hour (GWh) yearly capacity, this plant is anticipated to start production in early 2027.

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Frequently Asked Questions (FAQs):

• How significant is the battery recycling market on a global scale?

A: The battery recycling market is gaining prominence, driven by environmental concerns and is projected to expand rapidly with increased emphasis on sustainable practices.

• What are the different types of batteries available in the market?

A: Various battery types, including lithium-ion, lead-acid, nickel-cadmium, etc., are available in the market, each catering to specific applications with unique characteristics.

• What role do batteries play in the development of battery-operated vehicles?

A: Batteries are the primary energy storage components in battery-operated vehicles, powering their electric drivetrains for sustainable and eco-friendly transportation solutions.