April 23, 2024

Battery Is Estimated To Witness High Growth Owing To Increasing Demand For Electric Vehicles

Market Overview:

Batteries are devices that convert stored chemical energy into electrical energy. Batteries are used to power a wide range of consumer electronics as well as electric vehicles. Primary batteries that are discharged after single use and secondary batteries that can be recharged multiple times. Common battery types include lead-acid, lithium-ion and nickel-metal hydride batteries.

Market Dynamics:

Growth in the electric vehicles segment is one of the major factors driving the demand for batteries. Stringent emission norms and government incentives and subsidies for electric vehicles adoption are fueling their sales globally. This is increasing the demand for lithium-ion batteries that are used in electric vehicles. Furthermore, increasing demand for portable consumer electronics such as smartphones, laptops and power tools is also propelling the battery market growth. However, availability of substitutes such as fuel cells and volatility in raw material prices can hamper the market growth.

SWOT Analysis

Strength: Battery market has strong growth potential owing to increasing demand for electric vehicles. robust research and development activities are enabling continuous technology advancements. Major players are investing heavily in developing advanced batteries with high energy density.

Weakness: High costs associated with battery production poses challenges impacting mass adoption. Cell degradation over usage cycles remains a constraint.

Opportunity: Rising sales of consumer electronics and prominence of portable devices offer scope for battery market expansion. Advancing grid energy storage technologies will boost opportunities in utility-scale applications.

Threats: Geopolitical risks associated with raw material supply could disrupt manufacturing. Intense competition among manufacturers may compress profit margins.

Key Takeaways

The Global Battery Market Demand  is expected to witness high growth, exhibiting CAGR of 18% over the forecast period, due to increasing demand for electric vehicles. Solid-state electrolyte technology is garnering significant attention to power future EVs.

Regionally, Asia Pacific dominates the global battery market and the trend is likely to continue in the coming years. Countries such as China, Japan, and South Korea are major manufacturing hubs for batteries. Presence of leading battery cell producers in the region will augment the APAC market.

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. These companies are focusing on developing innovative batteries for electric vehicles and consumer electronics.

Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it