A battery is a device consisting of one or more electrochemical cells with external connections provided to power electrical devices. Batteries are used in various applications ranging from consumer electronics to electric vehicles. The growth of the consumer electronics industry has fueled the demand for batteries in smartphones, laptops, tablets, and other consumer electronic devices. Additionally, major automobile manufacturers are focusing on electric vehicles to tackle environmental concerns, enhancing the demand for batteries. The global battery market is estimated to be valued at US$ 192.47 Bn in 2024 and is expected to exhibit a CAGR of 12.% over the forecast period from 2024 to 2030.
Key Takeaways
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., and DuPont, Hebei Xinhe Biochemical Co. Ltd, and Nutricorn Co., Limited. These players are focusing on capacity expansion and new product launches to strengthen their market position. For instance, in 2023, DSM expanded its production capacity for high-performance battery materials.
The key opportunities in the battery market include increasing investments by governments worldwide in developing charging infrastructure for electric vehicles. This will boost the adoption of EVs and demand for batteries. The growing portable electronics industry across regions such as Asia Pacific and Latin America also presents growth avenues.
Globally, manufacturers are expanding their presence across countries to cater to the rising local demand. For example, in 2023, H&A Canada Inc. increased its production of anode materials in China and Korea. CP Kelco also plans to set up a new production facility in India by 2025 focusing on thickening solutions for batteries.
Market Drivers
One of the key drivers for the Battery Market Demand is the increasing sales of electric vehicles worldwide. Several countries are promoting electric mobility to reduce emissions. As batteries are the prime source of power for EVs, their demand is surging significantly.
Market Restraints
High production costs of lithium-ion batteries used in electric vehicles can hamper the adoption rates. Significant research and development investments are required to optimize the production processes and reduce costs, which remains a challenge. Additionally, the erratic supply of raw materials used in battery manufacturing poses risks to market growth prospects.
Segment Analysis
The lithium-ion segment in the battery market dominates currently with a share of over 60% in 2024. This is because lithium-ion batteries offer higher energy density and longer life cycles compared to other battery technologies such as lead acid and nickel metal hydride batteries. They are increasingly being used in consumer electronics, electric vehicles, and utility storage applications due to their advantages. The lithium cobalt oxide chemistry within lithium-ion batteries has also experienced strong growth as it offers higher energy density.
Global Analysis
The Asia Pacific region accounted for over 45% share of the total battery market in 2024 and is expected to be the fastest growing as well as the dominant regional market throughout the forecast period. Rapid industrialization and growth of the consumer electronics and electric vehicles industries in countries such as China and India are driving the market in the Asia Pacific region. North America is also expected to experience significant growth in the battery market due to the presence of many key players and increasing electric vehicles adoption in the region. The growth of utility-scale energy storage projects is boosting the battery market in regions such as North America and Europe.
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