Global Battery Market Report - Market Analysis, Size, Share, Growth, Outlook, Industry Trends, and ?Forecast to 2028

The Global Battery Market witnessed exponential growth in the last decade as a battery has become an essential commodity in our everyday life. From powering mobile phones, laptop computers, wearable devices to even energizing electric vehicles and ESS (Energy Storage Systems), the world is increasingly dependent on a battery. The enhanced environment regulations in developed and developing countries and the increasing importance of efficient usage of electricity and generation of renewable energy are a few key factors driving the battery demand in the automotive and power sectors.

Furthermore, continued efforts to automate industrial processes by using electrified forklifts, and construction machinery; and developing smart devices with longer battery life are expected to drive the global market growth.

Electric Vehicle Battery Market

Globally, in the last half-decade, the consumption of batteries in an electric vehicle has been ranked No.1, and electric vehicles are touted as the future of the modern transportation system. Most automotive manufacturers have announced their targets for a phase-out of internal combustion engine (ICE) vehicles owing to environmental regulations from almost all developed nations and a few developing nations.

Also, these manufacturers have broadened their electric vehicle portfolios by increasing the average driving range by 50% in the last five years, which contributed to increased consumer demand. The resultant increase in the market share of electric vehicles is expected to drive the demand for electric vehicle batteries. It will force the battery manufacturers to make a quantum leap in building a new battery production capacity.

Also, the introduction of electric vehicles for public and commercial use is expected to drive the demand for electric vehicle batteries. Many countries have already introduced pure electric busses, plug-in hybrid electric buses, and hybrid electric buses for urban commute, tourism, and shuttle services. On the other hand, many companies have introduced electric heavy trucks, light trucks, and logistics vehicles to reduce CO2 emissions from their commercial operations. This trend is well-poised to grow during the forecast period to 2027.

Furthermore, with the onset of a new market for electric two-wheelers, three-wheelers, and bicycles, where the battery packs can be easily swapped, the Electric Vehicle battery market is expected to witness unprecedented growth.

Batteries for Decarbonizing the Power Sector

A battery has become quintessential in the power sector in the fields of power generation, power transmission and distribution, and power consumption, covering power generation integrated storage facilities for solar or wind power generation, energy storage for industrial enterprises, energy storage for commercial buildings, and data centers, energy storage and charging stations, backup for communication base stations, and household energy storage.

A robust battery storage network can effectively overcome the irregular output of wind or solar power generation, help the companies in the sector to make up for the loss of power lines, track and plan peak-load shifting, to improve the energy efficiency of wind and photovoltaic power generation systems, to increase their grids' resilience and achieve a much-required grid balance, thereby, decarbonizing the power sector.

This decarbonization will help in combating climate change, the top agenda for most governments across the world, and will provide electricity to about 8.5% of the global population who are living beyond the reach of existing power grids.

Market Definition

The global battery market consists of establishments primarily involved in the manufacturing and sales of primary and storage batteries.

All the single-use batteries that generate electric power from chemical reactions form a part of primary batteries, while a rechargeable battery that can be recharged by passing a current through it in the opposite direction of its discharge form a part of storage batteries.

Alkaline cells, button cells, dry cells (AAA, AA, C, D, 9V), batteries used in portable devices such as a flashlight, transistor radios, clocks, watches, electronic toys, and portable medical equipment such as hearing aids, blood glucose monitors, pacemakers and others are a few examples of primary batteries.

Automobile storage battery, lead-acid battery, lithium-ion battery, nickel-cadmium storage battery (including rechargeable NICAD) and marine storage battery are a few examples of storage batteries.

Battery Recycling

Battery recycling is one of the key strategies adopted by battery manufacturers to comply with environmental regulations and reduce the production cost of new batteries. The manufacturer can gain cost benefits by extracting valuable metals from a scrapped battery cell and battery pack. Globally, various governments have formulated strict regulations for battery recycling to prevent groundwater and environmental contamination. For instance, the Battery Act implemented by the US government and Batteries Directive Legislation passed by the European union facilitate the collection and recycling of mercury in batteries, encouraging battery recycling.

Market Segmentation

The global battery market is segmented based on type, technology, and application. The global battery market is segmented into primary and secondary batteries based on battery type. Based on battery technology, the global battery market is segmented into lead-acid, lithium-ion, nickel-metal hydride (NiMH), nickel-cadmium (NICAD), and others. The global battery market is segmented into Automotive, Industrial, Portable Electronics, and others based on application.

Lithium-ion Battery

In a lithium-ion (Li-ion) battery, the release of energy and its storage happens by moving lithium ions from the positive to the negative electrode back and forth via an electrolyte. The Lithium-ion batteries allow the highest level of energy density, superfast charging, very low self-discharge, and a very long lifetime making it most suitable for ESS and transportation including electric vehicles, marine, railways, aviation, and off-road mobility where high power, energy, and safety are mandatory requirements.

The development of Lithium-ion batteries has seen significant breakthroughs in the last two decades. These developments have encouraged battery manufacturers to ramp up battery production on a large scale, which, in turn, led to a decrease in the price of the batteries, thus, opening its application in many sectors.

Battery Supply Chain

The critical raw materials used for battery production are cobalt, lithium, natural graphite, nickel, manganese, silicon, copper, titanium, iron, aluminum, phosphorus, and fluorspar. The raw material is then processed to form cathode and anode chemistries. These refined and processed materials are subsequently converted into battery-grade semi-manufactured materials, which are then assembled to manufacture a battery (module, cell, or pack).

Latest Market Trends

• Telecommunications infrastructure shifting to next generation.
• Growing interest to shift from diesel to solar-hybrid systems.
• Rising Lithium prices Due to supply concerns.
• Companies’ and nations are rushing to secure critical minerals.

Regional Insights

Asia-Pacific

The global battery market is dominated by the Asia-Pacific region, with China, Japan, and South Korea being the leading countries. These countries are not only leaders in supplying the batteries but also are leaders in supplying the required raw materials.

These three countries supply about 86% of the processed battery materials and components for Li-ion batteries globally, where China alone provides 48%, followed by Japan and South Korea.

In Lithium-ion battery production, China leads the world with about 66% capacity.

Europe

Currently, Europe is the least significant region in the global battery manufacturing scenario, with a production capacity of hardly 1%, and is almost entirely dependent on the Asia-Pacific for battery imports and raw and processed materials. This dependency of European battery manufacturers on Asia-Pacific exposes the region to uncertainties in supply, sometimes resulting in a potentially high cost.

However, this trend is expected to change in the coming three years due to increasing investments into the sector and growing demand from the local European market. By mid-2023, the battery manufacturing capacity in the region is expected to reach a high of 40 GWh from a mere 3 GWh available today. Northvolt, a Swedish battery developer and manufacturer specializing in lithium-ion technology for electric vehicles, is establishing a plant with a production capacity of 32 GWh for battery packs. LG Chem is taking up similar efforts in Poland.

Major Companies

A battery manufacturer usually specializes in manufacturing particular battery chemistry, implying that the major players in the industry are different for Li-ion batteries, lead-acid batteries, and so on.

Some of the major companies in the Lithium ion battery market are BYD Company, LG Chem, Contemporary Amperex Technology Co. Ltd. (CATL), Samsung SDI, Panasonic Corporation, SK Innovation, BAK Group, GS Yuasa Corporation, Hitachi, and Toshiba Corporation.

Some of the major manufacturers in the lead acid battery market are Accumulatorenwerke HOPPECKE Carl Zoellner & Sohn GmbH, Clarios, C&D Technologies Inc., East Penn Manufacturing Company, Enersys, Exide Industries Limited, GS Yuasa Corporation, Hankook AtlasBX Co. Ltd., HBL Power Systems Ltd., and Teledyne Technologies Inc.

The Market Leaders and Strategies

To strengthen their battery product portfolio, the battery manufacturers have implemented various organic and inorganic growth strategies, such as new product launches, product developments, and acquisitions. For example, LG Chem Ltd. acquired 34% shares of Jiangxi VL Battery., Ltd. For KRW 21,815 million and LG Energy Solution Michigan Inc, a subsidiary of LG Chem, Ltd. agreed to acquire automotive battery pack manufacturing facilities from LG Electronics Inc. for approximately USD 37 million.

Several battery manufacturers are getting into a strategic partnership with automotive companies for developing customized batteries with improved specifications such as higher charging rates, low battery leakage risks, and overall improvement to battery quality. For instance, the Northvolt - Volkswagen Group Joint Venture is establishing a battery factory in Salzgitter, Lower Saxony, Germany.

Battery manufacturers also adopt Industry 4.0 technologies to enhance their battery production processes. It is estimated that the battery manufacturers could reduce the cost of manufacturing by up to 20% per kWh capacity.

Competitive Landscape – Battery Market Share Analysis

The market share analysis in the global battery market will be given separately for each battery segment. For instance, Contemporary Amperex Technology Co., Limited (CATL) has the highest EV battery market share of 30%, while Duracell leads the primary battery market with a 37% market share.

Further details available in the Report

The new report from Blackridge Research on Global Battery Market provides comprehensive qualitative and quantitative analyses along with a deep insight into the current and future of the market.

The report analyses the annual trends of battery manufacturing and sales; provides forecast market values and volumes of battery sales; provides trade details such as imports and exports; details the markets' drivers and restraints; discusses growth challenges at various levels; provides supply chain and Porter's Five Forces analyses; lists profiles of major players; provides competitive market analysis including battery market share; discusses various market-specific scenarios and much more.

Analysis of the impact of Covid-19 on the battery market is an integral part of the report, which helps companies navigate a rapidly changing market landscape.