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

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

The Pakistan battery market is expected to grow at a CAGR of more than 3 % throughout 2020-2025. Factors such as the growing automotive sector in the country and the low cost of lead and lithium, are likely to drive the Pakistan battery market during the forecast period. Moreover, there has been a sharp increase in the sales of automobiles, particularly of the two- and four-wheeler varieties, which also include electric vehicles. This surged the demand for SLI batteries and a lithium-ion battery, which is expected to propel the Pakistan battery market. However, Economic slowdown, increasing debt on government are likely to restraint the Pakistan battery market during the forecast period.

Key Highlights

• The lithium-ion battery market is expected to grow during the forecast period, primarily due to the increase in sales of battery for application in electric vehicles (EVs) and declining lithium-ion battery prices.
• Increasing the FDI due to the OBOR project, which includes various infrastructure projects are likely to create a massive opportunity for the battery companies to full fill the requirement of energy storage demand. Moreover, Transportation and no. of heavy vehicles are expected to increase due to infrastructure development, which likely to boost the battery market during the forecast period.
• Lithium-ion batteries are likely to drive the Pakistan battery market during the forecast period due to the growth of the manufacturing sector, renewables power, and EV demand.

Key Market TrendsLithium-Ion Battery to Grow at the Fastest rate

• The lithium-ion battery market is still in the nascent phase in Pakistan. The country imports majority of its Li-ion batteries from China. Increasing demand for backup power solutions and a rise in solar PV installations are expected to be the major drivers for the Li-ion battery market in the country.
• These trends result in sharp and sustained cost reduction, which is expected to help cement lithium-ion as the battery chemistry of choice in all energy storage markets, including grid-scale, behind-the-meter storage, residential storage, and micro-grids in Pakistan.
• As of 2018, the consumer electronics segment accounted for the largest share of the Li-ion battery market in Pakistan. This segment is expected to continue its dominance in the coming years owing to a significant rise in production and demand for electronic appliances such as smartphones, cooling equipment, electric motors, TVs, watches, and electronic security systems over the past few years.
• Hence, with declining prices, the growing renewable energy market is likely to boost the use of lithium-ion batteries. The need for recycling these batteries is also expected to gain pace during the forecast period to make the adoption of such cells more sustainable and eco-friendlier.

The Growth in EV, Renewable Energy and Manufacturing Industry are Expected to Drive the Market.

• Power generation in Pakistan is majorly dependent on fossil fuels. Energy demand is increasing by more than 9% annually in Pakistan. It is expected that energy demand is expected to increase 8-fold by 2030 and 20-fold by 2050 in Pakistan from the 2018 levels.
• The country is planning to deploy new wind and solar power plants to expand its clean energy capacity. The share of renewable energy in the total power generation mix is around 4% as of 2018. The government is planning to increase this to 30% by 2030. Such a significant expansion of renewable energy capacity is expected to come from sources majorly, including wind and solar. During FY 2017-18, around 450 MW of solar power generation licenses were issued in the country.
• Besides, such positive outlook from the solar power and energy storage sector, locally manufactured and low-quality flooded lead-acid batteries are being widely used wherever battery backup is necessary, particularly in hybrid solar systems in the residential and commercial areas as well as in the off-grid systems in rural parts of the country.
• Moreover, the transportation sector has been growing with double-digit growth in Pakistan. Almost all of the transportation sector is dependent on oil-based products, and the country is spending nearly USD 13 billion on the import of oil every year. If the transport sector continues to grow at the same double-digit rate, the bill for oil import is expected to reach USD 30 billion by 2025. Shifting to Electric vehicles in Pakistan can solve the present and impending problems of several sectors, including transportation, environment, economy, & power, and it will reduce the oil import bill.
• As the running cost of electric vehicles is one-third of flexible-fuel vehicles (FFV), but the capital cost is quite high. Also, the present infrastructure for EV is not enough. Therefore, the Pakistan government proposes that the duty and taxes on EVs should be reduced to a total of 5 percent by the year 2018 and, the government may form public-private partnerships to encourage entrepreneurship in the charging infrastructure area.
• This, in turn, factors such as renewable energy, infrastructure development, EV market, and government initiative are likely to drive the Pakistan battery market during the forecast period.

Competitive Landscape

The Pakistan battery market is moderately fragmented due to few companies operating in the industry because of the complex technology. The key players in this market include Zhejiang Narada Power Source Co., Ltd., Phoenix Battery Ltd., Atlas Battery Limited, Exide Pakistan Limited, National Battery Industry Ltd, Volta & Osaka Batteries ltd., and others.

Additional Benefits:

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

Companies Mentioned
 
Zhejiang Narada Power Source Co., Ltd
Phoenix Battery Ltd
Atlas Battery Limited
Exide Pakistan Limited
National Battery Industry Ltd
Volta & Osaka Batteries ltd.

Please note: This publisher does offer titles that are created upon receipt of order. If you are purchasing a PDF Email Delivery option above, the report will take approximately 2 business days to prepare and deliver.