March 4, 2024
Battery Market

The Global Battery Market Is Driven By Increasing Demand For Electric Vehicles

The global battery market consists of various product types such as lithium-ion, nickel metal hydride, lead acid, and others that are extensively used in consumer electronics, automotive, industrial, grid storage, and other applications. Batteries play a vital role in delivering safe, reliable, and efficient power required for various devices and equipment across numerous end-use industries. Growing adoption of electric and hybrid electric vehicles owing to stringent emission norms has amplified the demand for high-powered batteries. Lithium-ion batteries are widely employed in electric vehicles due to their lightweight, high energy density, and low self-discharge rate. The increasing sales of electric vehicles around the world is augmenting the consumption of batteries.

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 key trends

One of the key trends in the battery market is the development of batteries with enhanced properties and capabilities. Several manufacturers are investing heavily in R&D activities to develop batteries with high energy density, long cycle life, fast charging capability, improved safety, and low cost. For instance, solid-state batteries that utilize solid electrolytes instead of liquid or polymer gel electrolytes could allow for higher energy density and faster charging times. Researchers are also working on developing lithium-sulfur and lithium-air batteries with ultra-high theoretical energy density compared to lithium-ion batteries. These emerging battery technologies are expected to revolutionize applications in automotive, consumer electronics and energy storage over the coming years.

Porter’s Analysis

Threat of new entrants: The battery market has high initial capital requirements and patents which make it difficult for new companies to enter the market.

Bargaining power of buyers: Buyers have moderate power due to the availability of multiple battery brands. However, switching costs deter frequent changes.

Bargaining power of suppliers: Suppliers of raw materials have moderate power due to the dependence of battery makers on materials like lithium, cobalt, and graphite whose prices fluctuate.

Threat of new substitutes: New energy alternatives pose a mild threat as battery technologies like solid-state improve in performance.

Competitive rivalry: Intense competition exists among existing battery makers to gain market share through product innovation.

Key Takeaways

The global Battery Market Size is expected to witness high growth over the forecast period supported by rising demand for electric vehicles and electronics. Rapid technological advancements in areas like solid-state batteries are pushing innovation.

Regional analysis: Asia Pacific currently dominates the global battery market led by China, South Korea, and Japan. Large electronics and automotive industries supplement local demand. Europe and North America are other major regional markets boosted by policies supporting EV adoption.

Key players: 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. DSM, CP Kelco and DuPont are market leaders offering a wide range of battery materials. Regional players also have a substantial presence.

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