by Batteries are electrochemical cells that convert stored chemical energy into electrical energy. There are various types of batteries such as lithium-ion batteries, lead-acid batteries, nickel metal hydride batteries, and others. Lithium-ion batteries are widely used in consumer electronics such as laptops, tablets, smartphones, and power tools owing to their high energy density. Lead-acid batteries are majorly used in automotive starter batteries and some backup power applications owing to their low manufacturing cost. Nickel metal hydride batteries have a higher energy density than lead-acid batteries and are commonly used in hybrid electric vehicles and other devices.
The global Battery Market is estimated to be valued at US$ 167.07 Bn in 2023 and is expected to exhibit a CAGR of 12.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
The growing demand for electric vehicles is expected to be the key driver for the battery market over the forecast period. According to the International Energy Agency, the global electric car fleet surpassed 10 million in 2020 and is expected to grow over 26% annually till 2030. As electric vehicles require large lithium-ion batteries for power storage, the increasing adoption of EVs will significantly boost the demand for batteries during the forecast period. Furthermore, the rising requirement for battery energy storage systems owing to the increasing integration of renewable energy will also propel the battery market growth. Battery energy storage systems help power grids to counterbalance the intermittent nature of renewable energy sources like solar and wind. This will continue to drive the demand for various batteries including lithium-ion and lead-acid batteries.
Segment Analysis
The battery market is broadly segmented into Lithium ion battery and Lead-acid battery. Within Lithium ion battery, lithium cobalt oxide batteries dominate due to their high energy density and specific energy. They are extensively used in consumer electronics such as laptops and smartphones owing to their capabilities of powering high energy applications.
PEST Analysis
Political: Government initiatives to promote adoption of electric vehicles is positively impacting the battery market. Favorable policies around renewable energy storage is also fueling market growth.
Economic: Increasing investments in developing countries toward establishing EV infrastructure is propelling the demand. Declining battery costs will further aid the mass adoption of EVs.
Social: Rising environmental concerns and push for clean energy is encouraging consumers opt for electric modes of transportation. Growing awareness about benefits of sustainable energy sources is catalyzing the market expansion.
Technological: Advanced cell chemistries, improved battery management systems and fast charging technologies are expanding the application scope. R&D toward increasing battery life and reliability is shaping the competitive landscape.
Key Takeaways
The global Battery Market Size is expected to witness high growth propelled by rising sales of EVs.
Regionally, Asia Pacific dominates currently led by China due to presence of large automotive manufacturing base and battery suppliers. North America and Europe are also emerging as high potential markets supported by stringent emission norms.
Key players operating in the battery market are DSM, CP Kelco, H & A Canada Inc., Nanjing Joyfulchem Co., Ltd., Dancheng Caixin Sugar Industry Co. Ltd., Zhengzhou Cinogel Biotech Co., Ltd., Hangzhou Gellan Solutions Biotec Co., Ltd., DuPont, Hebei Xinhe Biochemical Co. Ltd, and Nutricorn Co., Limited.’
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
