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Battery Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
The Global Battery Market was estimated at about USD 120. 03 billion by the end of this year and is projected to register a CAGR of about 15. 8% during the forecast period. The market was negatively impacted by the COVID-19 in 2020.
New York, Nov. 03, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Battery Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)" - https://www.reportlinker.com/p06227776/?utm_source=GNW
Presently the market has now reached pre-pandemic levels.
Key Highlights
Over the long term, the major driving factors of the market are declining lithium-ion battery prices and increasing electric vehicles’ adoption.
On the flip side, mismatch in demand and supply of raw materials for battery manufacturing is likely to hinder the market growth.
The number of people without access to electricity in the African region is expected to grow from 588 million in 2016 to about 602 million in 2030, despite efforts to boost electrification through grid connectivity. The Sub-Saharan region, in particular, is expected to be one of the central hotspots for off-grid solar initiatives. As solar energy is an intermittent source and generates power only during the daytime, the use of off-grid solar power in conjunction with energy storage substantially enhances the utilization of solar PV units. As a result, the use of energy storage with solar PV has been gaining popularity in developed countries, which is likely to create a huge opportunity for the battery market in the near future.
Asia-Pacific is expected to dominate the battery market, with majority of the demand coming from China, India, Japan, and South Korea.
Key Market Trends
Automotive Batteries Expected to Witness Significant Growth
Vehicles with internal combustion engines (ICE) were the only types used earlier. However, technology has now been shifting toward electric vehicles (EV) due to growing environmental concerns. Lithium-ion batteries are mostly used in EVs as they provide high energy density, low self-discharge, less weight, and low maintenance.
For ICE vehicles, the lead-based battery is being widely used and is expected to continue to be the only viable mass-market battery system for the foreseeable future. For SLI applications, lithium-ion batteries still require higher cost reductions to be considered a viable mass-market alternative to lead-based batteries.
Lithium-ion battery systems propel plug-in hybrid and electric vehicles. Lithium-ion batteries are the only available technology capable of meeting OEM requirements for the vehicle driving range and charging time due to their high energy density, fast recharge capability, and high discharge power. Lead-based traction batteries are not competitive for use in full hybrid electric vehicles or electric vehicles because of their lower specific energy and higher weight.
In recent years, the Asia-Pacific region dominated the electric battery manufacturing market, which is expected to continue during the forecast period. Europe is expected to witness significant growth during the forecast period owing to factors like increasing investments in the sector due to favorable government policies and various incentives for electric vehicle battery manufacturers.
In January 2021, the European Commission approved a second Important Project of Common European Interest to support innovation and research in the battery value chain. Called “European Battery Innovation,” the project was jointly prepared and notified by Belgium, Croatia, Austria, Finland, Germany, France, Greece, Poland, Italy, Slovakia, Sweden, and Spain. In the coming years, the twelve countries will provide up to EUR 2.9 billion in funding, which is expected to unlock around EUR 9 billion in private investments.
Based on the above-mentioned factors, the automotive batteries segment is expected to witness significant demand in the global battery market during the forecast period.
Asia-Pacific Expected to Dominate the Market
Asia-Pacific has multiple growing economies with substantial natural and human resources. China and India are expected to be major investment hotspots for battery companies in the coming years, on account of policy-level support from the respective governments encouraging the manufacturing sector.
The deployment of electric vehicles and the installation of renewable power plants in China and India are increasing rapidly, which is expected to foster massive demand for batteries.
China is the largest market for electric vehicles (EV), with over 1.15 million EVs sold during 2021, and it is expected to remain the world’s largest electric car market. China accounted for almost 40% of global electric car sales in 2021.
Furthermore, over 50% of the telecom towers in India are located in sites that face outages for 8 hours a day or more. The telecom sector players must maintain an uptime of 99.5 and face penalties if they fail to maintain the required uptime. As a result, the Indian telecom sector heavily depends on diesel generators. As of 2020, it is estimated that India’s telecom sector accounts for 1% of the country’s greenhouse gas emissions, as opposed to the global average of 0.7%. The telecom sector is also the second-biggest consumer of diesel, after the railway sector, in the country.
To reduce greenhouse gas emissions, in the absence of availability of grid electricity 100% of the time, the telecom sector is moving towards renewable energy sources, particularly solar. To deal with intermittency problems related to renewable energy, the demand for batteries from the telecom sector is increasing. In February 2020, the Indian Department of Telecommunications issued directions to telecom service providers to use renewable energy solutions and energy-efficient technologies.
Therefore, owing to the above developments, Asia-Pacific is likely to remain the dominant region in the battery market, supported by increasing urbanization and consumer spending across several countries, such as India and China, which is expected to ramp up the demand for technically advanced devices and vehicles due to the benefits provided by the same.
Competitive Landscape
The global battery market is fragmented in nature. Some of the major players in the market (in no particular order) include Contemporary Amperex Technology Co. Limited, BYD Co. Ltd, Duracell Inc., Tesla Inc., and Panasonic Corporation.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Read the full report: https://www.reportlinker.com/p06227776/?utm_source=GNW
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