North America Battery Market Forecast 2024-2032

North America Battery Market Forecast 2024-2032

The North America battery market is forecasted to register a CAGR of 16.42% across the projected period. While the base year considered for the studied market is 2023, the forecast years are between 2024 to 2032.

MARKET INSIGHTS

The region’s market expansion primarily stems from advancements in the renewable energy sector, increased uptake of electric vehicles, declining costs of lithium-ion batteries, and surging sales in consumer electronics. However, the North America battery market may face constraints due to mismatches in raw material supply and demand.

REGIONAL INSIGHTS

The North America battery market growth evaluation constitutes the study of the United States and Canada. Over recent years, the United States has made significant advancements in battery technologies, a key factor expected to bolster the country’s battery market and spur growth in the foreseeable future. For example, in April 2024, Amprius Technologies Inc, a United States-based leader in next-generation lithium-ion batteries, partnered with Stafl Systems, an advanced battery pack manufacturer, to offer high-performance battery solutions. This strategic collaboration aims to drive innovation and accelerate the adoption of batteries for unmanned aerial vehicles (UAV) and urban air mobility (UAM) applications. The partnership is expected to boost sales, expand market reach, and increase market share in the high-performance battery sector.

On the other hand, various strategic initiatives are being pursued by market participants in Canada, including investments, joint ventures, agreements, and partnerships, aimed at bolstering the growth of the battery market in the region. Aligning with this, Asahi Kasei, in April 2024, announced plans to build an integrated plant in Ontario, Canada, for manufacturing and coating Hipore™ wet-process lithium-ion battery (LIB) separators. The company has reached a basic agreement with Honda Motor Co Ltd to explore joint investment opportunities. Additionally, Asahi Kasei Battery Separator Corp, set to be established in October 2024, will receive funding from the Development Bank of Japan Inc (DBJ) through the issuance of preferred shares.

Similarly, General Motors (GM) and POSCO Chemical announced plans to establish a joint venture for cathode material production in Quebec, Canada. This initiative entails an initial investment of approximately $400 million, with the aim of developing a large-scale manufacturing plant in Becancour, Quebec. The plant will focus on producing high nickel cathode materials essential for General Motors’ electric vehicle batteries. Hence, these strategic collaborations are anticipated to catalyze the expansion of the battery market in the region over the forecast period.

SEGMENTATION ANALYSIS

The North America battery market is segmented into type, technology, and application. The type category is further classified into primary battery and secondary battery. A primary battery or cell cannot be recharged easily following one use and is discarded post-discharge. The majority of primary cells utilize electrolytes contained within an absorbent material or a separator and, as a result, are termed dry batteries. These batteries are designed for long shelf life and reliable performance, making them ideal for low-drain devices that require infrequent battery replacement. The chemistry of primary cells, such as alkaline, zinc-carbon, and lithium, ensures a stable voltage output and minimal self-discharge over time. This reliability and convenience come at the cost of being single-use, leading to environmental considerations regarding their disposal and the importance of proper recycling programs to mitigate their impact.

A secondary battery or cell, also called a storage battery or rechargeable battery, can be recharged electrically post usage to its original pre-discharge condition. Such batteries are composed of one or more electrochemical cells. Moreover, they are produced in various sizes and shapes, ranging from megawatt systems to button cells, and connected to stabilize electrical distribution networks.

Secondary batteries play a crucial role in modern technology and are integral to many portable and stationary applications. These rechargeable batteries are commonly found in devices such as smartphones, laptops, electric vehicles, and energy storage systems for renewable energy sources. The ability to recharge secondary batteries multiple times reduces the need for frequent replacements, making them a more sustainable option compared to primary batteries. Advances in battery technology, including lithium-ion, nickel-metal hydride, and lead-acid chemistries, have significantly improved the energy density, lifespan, and efficiency of secondary batteries, further enhancing their appeal for both consumer electronics and large-scale industrial applications.

COMPETITIVE ANALYSIS

Some of the leading companies operating in the North America battery market include Johnsons Controls Inc, A123 Systems LLC, C&D Technologies Inc, etc.

Johnsons Controls Inc, headquartered in the United States, is a multinational company engaged in the production of HVAC, fire, as well as security equipment for buildings. The specialties provided by the company comprise manufacturing operations, industrial refrigeration, engineering, building automation, fire & hazard protection, sales, HVAC, security, and sustainability.