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

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

The South Asia Battery market is expected to grow at a CAGR of more than 10.2% over the period of 2020-2025. Factors, such as the rapid adoption of electric vehicle, due to the declining prices, mainly fostered by the declining price of lithium-ion batteries and the increasing demand of data centers in the region are expected to drive the market studied. However, on the flip side, the region has less than 2% battery energy storage system in comparison to the global scale battery energy storage system, thus the less demand for energy storage systems is expected to restrain the market during the forecast period.

• Data Centers segment to significantly dominate the market studies during the forecast period.
• The material handling industry is shifting toward li-ion batteries, as li-ion batteries provide high efficiency compared to lead-acid batteries. Thus, this is expected to provide a great opportunity for Li-ion batteries.
• Thailand to have significant market share, in 2019, owing to the increasing demand from the automotive, data center, and other end-user sectors.

• The demand for the data center is growing at a rapid pace on account of the exponential growth of data from the heavy use of technology. Singapore is preferred by data center operators for the speed at which data is transmitted in the country. The country offers support from the infrastructure around the sub-sea fiber network which was provided very early on at the cusp of the data center evolution in the Asia-Pacific region.
• Singapore is one of the major financial cities in Asia-Pacific that serves emerging markets in India and South Asia, which makes the city a natural colocation hub. The country is witnessing robust growth in data center infrastructure, which is likely to drive the battery market in the near future.
• Additionally, with the integration of artificial intelligence in various segments such as automobile, industries, etc. the need to establish data centers is expected to grow in the region which can foster the increase in demand of batteries for backup purposes in data centers.
• Furthermore, with the increase in penetration of 4G/5G the speed with which data is transferred over the network has made the mankind to increasingly opt for the internet services. The demand for data centers to store the crucial data is increasing and the trend is expected to continue during the forecast period, providing an opportunity for the companies to invest heavily in the data centers, which can push the demand of lead-acid and majorly lithium-ion batteries in the regions.

• Thailand accounts for a significant share in the market, following India, and this trend is expected to continue in the coming years as well owing to the increasing demand from automotive, data center, and telecom sectors.
• Thailand provides great investment potential for the automotive sector. The country has a leading automotive production base in the Association of South Asian Nations. Over a period of 50 years, the country has developed from an assembler of auto components into a top automotive manufacturing and export hub.
• By 2020, Thailand aims to manufacture over 3,500,000 units of vehicles to become one of the top performers in the global automotive market. Hence, this is expected to increase the demand for automotive battery in the country, during the forecast period.
• Moreover, the Thailand government is focusing on incentivizing eco car makers to launch more eco EVs, especially the hybrid type. These eco EVs will also get excise tax reduction, like other EV models, making retail prices more affordable. This, in turn, is expected to create a significant amount of opportunities for both EV and battery manufacturers in the coming years.
• Adding to this, the government has planned its business module under Thailand 4.0 Programme. This Programme will be increasing the new technologies, such as cloud computing, interactive media, big data, and internet of things, among others.
• In May 2019, ST Telemedia Global Data Centers (STT GDC) collaborated with real estate firm Frasers Property Thailand for building its first hyperscale data center facility in Bangkok. The investment for the hyperscale data center project is more than USD 219 million, and the construction of phase I of the project is expected to be completed in 2021.
• Therefore, factors such as upcoming data centers and expected increase in automobile production in the coming years are expected to drive the battery market in Thailand during the forecast period.

The South Asia battery market is partially fragmented. Some of the key players in this market include BYD Co. Ltd, C&D Technologies Inc., Exide Industries Limited, GS Yuasa Corporation, and LG Chem Ltd.

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