South America Battery Cell Market - Growth, Trends, COVID-19 Impact, Forecasts (2022 - 2027)

South America Battery Cell Market - Growth, Trends, COVID-19 Impact, Forecasts (2022 - 2027)

The South America battery cell market is expected to register a CAGR of 11.5% during the forecast period. Covid-19 has been a significant economic and social burden in South America and the rest of the world. Positive government policies have contributed to the growth, as well as an increase in investments in renewable energy; this led to an increase in the adoption of energy storage systems, which led to positively contributing to the demand for battery cells. Increasing EV adoption in the region is owing to the high usage of automobile battery cells, which helps in driving the market growth. However, safety concerns regarding lithium-ion batteries are likely to hamper the market's growth.

Key Highlights

• The Automobile batteries segment is expected to dominate the market, owing to the increasing demand for the adoption of electric vehicles is expected to boost the market.
• In South America, Brazil is expected to dominate the market during the forecast period due to the country's various economic growth policies and increasing rooftop solar PV installations.

Key Market TrendsAutomobile Batteries Segment to Dominate the Market

• As part of Brazil's five-year logistics and mobility program known as Inovar-Auto (2012-2017), the government launched Rota 2030 in December 2018. In order to improve energy efficiency in the transportation sector, the Rota 2030 program is a big boost for the Brazilian electric vehicle market. As electric vehicle deployment increases, the automobile battery segment of the market studied is likely to benefit significantly.
• As a result of increased interest in electric vehicles, higher fuel prices, and government initiatives to promote infrastructure related to electric vehicles in Argentina, the demand for electric vehicles is expected to grow in the near future. Additionally, the battery cell market is expected to be influenced by investment in electric vehicle manufacturing in the country. For instance, in February 2022, Chery, a Chinses automobile manufacturer, plans to invest in EV manufacturing, The company aims to produce battery electric vehicles in Argentina and plans to produce 50,000 units annually in the initial stage, The plant is located in Santa Fe province, Argentina.
• Furthermore, increasing government initiatives and growing investments, particularly in Brazil, Chile, and Argentina, is expected to drive the demand for electric vehicles, which, in turn, is expected to drive the aumobile battery cell market in the region during the forecast period.

Brazil to Dominate the Market

• As a result of EVs, energy storage systems, and consumer electronics, especially mobile phones and laptops, prismatic cells have a greater demand in Brazil. Furthermore, cylindrical cells are also used in EVs, and consumer electronics and punch-type cells are primarily used in consumer goods, military, and automobile applications. As a result, the demand for battery cells is expected to increase in the country as more battery-operated goods are sold.
• In Brazil, economic development is leading to a significant expansion of commercial infrastructure. Due to the boom in economic activity, the country is experiencing an increase in data centers, which will create opportunities for lithium-ion batteries. For data centers to operate continuously, electricity supplies are crucial, which leads to batteries being deployed as the most desired feature.
• The energy storage systems in the country are primarily deployed in solar-powered homes (residential ESS) for power backup applications. As the country's population grows, so does its demand for renewable energy, especially rooftop solar PV, which will in turn drive the demand for energy storage systems, which in turn is expected drive the market for prismatic battery cells in the coming years.
• As a result, the Brazilian battery cell market is expected to witness robust growth during the forecast period, in the wake of the increasing sales of electric vehicles and growing renewable energy in genration mix.

Competitive Landscape

South America battery cell market is moderately fragmented. Some of the key players in the market include BYD Co. Ltd, Contemporary Amperex Technology Co. Limited, Duracell Inc., EnerSys, Panasonic Corporation.

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• The market estimate (ME) sheet in Excel format
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