North America Battery Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

North America Battery Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The North America Battery market is expected to reach USD 32 billion by the end of the year and is projected to register a CAGR of over 10.5% during the forecast period.

The market was negatively impacted by COVID-19 in 2020. Presently the market has now reached pre-pandemic levels.

Key Highlights

• Over the medium term, declining lithium-ion battery prices, increasing adoption of electric vehicles, growing renewable energy sector, and increased sale of consumer electronics are also expected to drive the growth of the market studied.
• On the other hand, the demand-supply mismatch of raw materials may negatively impact the market’s growth and is one of the major restraints for the market.
• Nevertheless, the integration of renewables with energy storage systems is expected to provide growth opportunities in the forecast period.
• The United States dominates the market and is also likely to witness the highest CAGR during the forecast period. The overnment has been encouraging investors for electric vehicles (EVs) and the renewable industries, resulting in an increased demand for battery-based energy storage systems, primarily led by lithium-ion batteries.

Key Market TrendsAutomotive Application to Witness Significant Growth

• The automotive sector is expected to be one of the major end-user segments for batteries, primarily lithium-ion batteries, in the coming years. The penetration of electric vehicles is anticipated to provide a massive impetus for the lithium-ion battery industry growth in North America.
• Different vehicle types are now available, 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).
• The adoption of electric vehicles is increasing at a high growth rate. The United States is already among the countries leading in global EV sales and other economies like Canada, which has already begun transforming its public transportation infrastructure for EVs.
• The total electric car sales in Canada increased by over 300% in 2020 compared to 2017. The country sold 36.9 thousand units of battery electric vehicles (BEV) in 2020.
• In June 2021, the United States Department of Energy (DOE) announced funding of USD 200 million over the next five years for electric vehicles, batteries, and connected vehicle projects at DOE national labs and new DOE partnerships to support electric vehicles innovation.
• Additionally, in October 2021, Toyota announced that it planned to invest approximately USD 3.4 billion in automotive batteries in the United States by 2030. Specifically, the investment focuses on developing and localizing automotive battery production for battery electric vehicles (BEV).
• 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.
• Moreover, declining lithium-ion battery prices and improving technologies are expected to bring price-competitive electric vehicles to the market, creating demand for lithium-ion batteries in the coming years.

The United States to Dominate the Market

• The United States is one of the major hotspots for industrial batteries worldwide, on account of robust industrial infrastructure, surging deployment of battery-based energy storage projects, and expansion in renewable power infrastructure.
• To increase the adoption of clean energy systems and reduce GHG emissions, the country is increasing the deployment of solar and wind power installations, which need to be supported by energy storage systems.
• As of 2020, the United States had 118 GW of wind power installed capacity. The country has several battery-based energy storage projects under operation, including several battery technologies. Around 14.5 gigawatts (GW) of battery storage power capacity is expected to come online in the United States from 2021 to 2024. Around 9.2 GW of this storage capacity will be co-located with solar, 1.3 GW with wind energy, and the remaining 4 GW in a stand-alone capacity.
• Moreover, the requirement for data centers in the country is growing rapidly due to increasing connectivity and other factors, which means that roughly 600 zettabytes of new data are created each year (600 trillion gigabytes). ​
• In March 2021, Alphabet Inc. Class A’s subsidiary Google Inc. announced that the company is planning to invest around USD 7 billion in the United States to build new offices and data centers. The development of data centers is expected to increase demand for UPS systems, thereby leading to a rise in demand for industrial batteries.​
• Therefore, owing to the above points, the United States is likely to dominate the North American battery market, supported by increasing urbanization, consumer spending, and technically advanced devices and vehicles.

Competitive Landscape

The North American battery market is fragmented. Some of the key players in this market (in no particular order) include Contemporary Amperex Technology Co. Limited, BYD Co. Ltd, Samsung SDI Co. Ltd, LG Chem Ltd, and Panasonic Corporation.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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