by The Battery Market is estimated to be valued at USD 119.99 billion in 2023 and is expected to exhibit a CAGR of 18% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Batteries are devices that store chemical energy and make it available in an electrical form. They are widely used in consumer electronics, vehicles, grid storage, and other industrial applications. Rechargeable batteries provide advantages such as reuse, recyclability, and environmental benefits over disposable batteries.
Market key trends:
Growing adoption of electric vehicles is expected to be a major factor driving the battery market growth over the forecast period. Stringent emission norms and increasing consumer awareness about environmental protection have boosted the demand for electric vehicles globally. Various governments are offering subsidies and incentives to promote electric mobility. Furthermore, leading automakers are investing heavily in electric vehicle development and production. For example, BYD Company, one of the largest battery and electric vehicle manufacturers, aims to generate half of its revenue from new energy vehicles by 2025. Rising electric vehicle sales will subsequently propel the demand for advanced batteries with high power and energy density.
Porter’s Analysis
Threat of new entrants: Low capital requirements but high chances of emerging new technologies and regulations make threat of new entrants moderate.
Bargaining power of buyers: Large buyers like automobile manufacturers have high bargaining power that can affect pricing due to their demand size.
Bargaining power of suppliers: Suppliers of critical raw materials like lithium, cobalt and graphite have moderate bargaining power due to supply constraints and fluctuations in raw material prices.
Threat of new substitutes: Threat of substitutes is high due to rapid innovations and emerging technologies in storage solutions space like capacitors.
Competitive rivalry: Intense competition exists among existing players to gain larger market share through innovations, expansion and strategic partnerships.
SWOT Analysis
Strength: Growing electric vehicle industry and energy storage solutions boosting demand. Existing global production facilities and technological leadership of companies.
Weakness: High research and development costs. Supply constraints and price fluctuations of critical raw materials.
Opportunity: Increasing investment in renewable energy integration through energy storage batteries. Developing regions expected to drive future demand.
Threats: Changing regulations challenging existing chemistries. Declining profit margins due to intense competition.
Key Takeaways
The Global Battery Market is expected to witness high growth, exhibiting CAGR of 18% over the forecast period, due to increasing adoption of electric vehicles and focus on clean energy integration.
Regional analysis: Asia Pacific dominates the global battery market and is expected to maintain its lead, growing at around 20% CAGR driven by China, South Korea and Japan. North America and Europe are also growing steadily supported by automotive and energy storage applications.
Key players operating in the battery market are BYD Company Limited, Panasonic Corporation, Contemporary Amperex Technology Co. Limited, Samsung SDI Co. Ltd, TianJin Lishen Battery Joint-Stock CO. LTD, GS Yuasa Corporation, Duracell Inc., Clarios (Formerly Johnson Controls International PLC), VARTA AG, LG Chem Ltd, Tesla Inc. and EnerSys.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
