East Asia Battery Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

East Asia Battery Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The East Asia battery market is expected to grow at a CAGR of more than 10.2% over the period of 2020-2025. Factors such as growing demand from the automotive sector, declining lithium-ion battery prices, and plans to make East Asia as a data center hub are expected to drive the market during the forecast period. Despite the growing demand for batteries in automotive, data centers, and telecommunications sectors, battery energy storage segment is expected to witness a stagnant growth as most of the countries are dependent on other alternatives for energy storage. This, in turn, is likely to hinder the growth of the battery market in the energy storage segment during the forecast period.

• The automotive segment accounts for the majority of the market, in 2019, owing to the increasing demand from new vehicles produced in the region.
• Plans to integrate renewable energy with the national grids in respective countries are expected to create a significant amount of opportunity for the lithium-ion battery manufacturers and suppliers in the near future.
• China dominates the market, in 2019, owing to the increasing demand from the automotive, and other end-user sectors.

• The automotive sector is expected to be one of the major end-user segments for lithium-ion batteries in the near future. The penetration of electric vehicles is anticipated to provide a massive impetus for the lithium-ion battery industry growth.
• A range of different vehicle types is now available globally, featuring increasing degrees of hybridization and electrification. There are various types of vehicles, including hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles, and electric vehicles (EVs).
• In developed and developing economies, both alike, the adoption of electric vehicles is increasing at a high growth rate. United States and China are already leading to global EV sales, along with other developing economies like Japan, which has already begun transforming its public transportation infrastructure for EVs.
• 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 vehicle on a large scale.
• Falling battery prices and improving technology are expected to bring price-competitive electric vehicles to the market, creating demand for battery technologies.

• East Asia has multiple growing economies with substantial natural as well as human resources, with China and Japan expected to be major investment hotspots for battery companies in coming years, on account of policy-level support, from the governments, encouraging the manufacturing sector.
• The deployment of electric vehicles and the installation of renewable power plants in China and Japan is increasing rapidly, which is expected to foster massive demand for batteries.
• China is currently one of the largest markets for the electric vehicle and has registered ~30 times faster growth than the electric vehicle market, in 2019, when compared to 2018.
• The increasing adoption of electric vehicles is in line with the clean energy policy. In order to reduce the demand-supply gap, the government of China is planning to ease restrictions on automakers importing cars into the country.
• China is likely to be the dominant player in the battery market, supported by increasing urbanization and consumer spending across the country, which is expected to ramp up the demand for technically advanced devices & vehicles, due to the benefits provided by the same. Consecutively, leading to a growth in demand for batteries.

The East Asia battery market is partially fragmented. Some of the key players in this market include BYD Co. Ltd, C&D Technologies Inc., Tianjin Lishen Battery Joint-Stock Co. Ltd, GS Yuasa Corporation, and LG Chem Ltd.

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