by The Battery Market comprises lithium-ion batteries, lead-acid batteries, and nickel metal hydride batteries that are majorly used in consumer electronics, automotive, industrial, and grid storage applications. Batteries play a vital role in powering various devices ranging from smartphones to electric vehicles. The growing demand for reliable and efficient power storage devices from the burgeoning consumer electronics and electric mobility industries is fueling the growth of the global battery market. Some of the most common consumer electronic devices that use different types of batteries include smartphones, laptops, tablets, smartwatches, Bluetooth headphones, portable speakers, digital cameras, and power tools. The increasing sales of consumer electronics coupled with the rising penetration of EVs are expected to drive the consumption of batteries over the coming years.
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 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing demand for consumer electronics and electric mobility are the major drivers propelling the battery market forward. As mentioned in the opening paragraph, batteries play a crucial role in powering various consumer electronic devices as well as electric vehicles. The thriving consumer electronics industry alongside the rising adoption of EVs is stimulating continuous innovations and advancements in battery technology, which is further fueling the sales of batteries. Moreover, stringent government policies towards minimizing carbon emissions are encouraging the use of cleaner transportation solutions like electric vehicles, thereby augmenting the utility of batteries in the automotive sector over the coming years.
Segment Analysis
The battery market can be segmented into lithium-ion batteries, lead-acid batteries, nickel metal hydride batteries, and others. Lithium-ion batteries dominate the market and account for over 30% share due to growing demand for EVs and consumer electronics. Lithium-ion batteries offer higher energy density, longer charge-discharge cycles, and low self-discharge rates compared to other battery technologies.
PEST Analysis
Political: Increase in fuel economy standards and emission regulations across the world has boosted demand for EVs and batteries. Several governments offer subsidies for EVs to reduce reliance on fossil fuels.
Economic: Growing economy and rising disposable income in developing nations is driving sales of consumer electronics like smartphones, laptops, power tools which use batteries. Expansion of renewable energy industry also supports battery market growth.
Social: Increasing environmental concerns and awareness about carbon emissions has led more consumers to shift to eco-friendly EVs and solar power solutions using batteries for energy storage.
Technological: Advancements in battery technologies have enhanced battery life, power output and safety. Technologies like solid-state batteries and lithium-sulfur batteries can further drive the market in coming years.
Key Takeaways
The Global Battery Market Share is expected to witness high growth over the forecast period due to expanding EV industry and strong demand for portable consumer devices.
The Asia Pacific region dominates the market currently due to presence of major battery manufacturers and consumer electronics hubs in China, South Korea and Japan. China is the fastest growing and largest market for batteries in Asia Pacific due to large EV and smartphones production.
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. These players are focused on developing advanced battery technologies through R&D and have significant presence across major battery markets globally.
