The automotive application segment led the market and accounted for 34.3 per cent share of the total revenue in 2019. High demand for consumer electronics is likely to drive the portable application segment
The global battery market size was valued at USD 108.4 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 14 percent from till 2027. The market, as per a report by Grand View Research, is expected to observe substantial growth on account of technological advancements in terms of enhanced efficiency, cost-effectiveness, and product innovation.
“Strict emission norms by the government authorities of developed countries, such as the United States and the United Kingdom, coupled with growing attention towards fuel efficiency, are expected to drive battery demand,” read the report.
It continued, “The increasing popularity of consumer electronics on a global scale is projected to result in the usage of the lithium-ion battery as a product type over the forecast period. High demand for portable electronics, including LCD displays, smartphones, tablets, and wearable devices such as fitness bands, is boosting the market growth.”
Asia Pacific held the largest revenue share of 33 per cent in 2019. Asia Pacific is a major customer of batteries on account of growing automobile production, coupled with rapid development in the industrial sector, thus generating high demand across the region. India and China are the key producing countries in the consumer electronics segment owing to the low production and setup costs and availability of skilled workforce.
Asia Pacific expected to boost battery demand
Developing markets of Africa and the Asia Pacific are expected to boost battery demand in electric bicycle applications and storage applications such as the leveling of load in renewable sources of energy like the wind and solar. Growing aircraft and automobile manufacturing in developing nations of APAC, including China and India, is expected to provide enormous potential for market growth.
Growing technological advancements in battery technologies have amplified the usage of various battery-operated equipment across the world. Hybrid Electric Vehicles (HEV) are equipped with the countless features that consume a significant amount of battery power. These features include a GPS navigation system, power windows, display that give information about the battery charge level, and air-conditioning systems.
The U.S. battery market size was valued at USD 10.49 billion in 2019. The U.S. government has been cheering stakeholders for both renewable industry and Electric Vehicles (EVs), resulting in an improved demand for battery energy storage systems (BESS), mainly led by Li-ion batteries. The adoption of EVs is rising at a high rate across the country. The U.S. is one of the leading countries in global electric vehicle sales, along with other countries such as Canada, which has already begun transforming its transportation infrastructure for electric vehicles.
Lead-acid battery segment
On the basis of product, the market is further segregated as Lead Acid, Lithium-ion, Nickle Metal Hydride, and Nickel-Cadmium. The lead-acid battery segment accounted for the largest share of 29.5 per cent in 2019 on account of expanding applications in uninterrupted power supply (UPS), automotive, telecommunication, transport vehicles, and electric bikes. High use of uninterrupted power supply devices in the oil and gas, healthcare, and chemical sectors for constant power supply will drive demand for a lead-acid battery. These batteries are used in critical applications on account of high reliability and low cost.
The lithium-ion product segment was valued at USD 31.8 billion in 2019 owing to its growing demand for electric vehicles (EVs) and grid storage as it offers high-energy density solutions and is lightweight. Hence, demand for the battery across manufacturing, railway, and solar power sectors is likely to upsurge with the intensifying need for storage and power backup over the forecast period.
Li-ion batteries are expected to capture a substantial portion in the market over the projected period on account of their low energy density and high lead content. Lithium-ion batteries are expected to infiltrate lead-acid battery applications, such as storage and automobiles, plug-in electric vehicles, and electric vehicles, thus holding a majority market share by 2027.
The adoption of Li-ion batteries in electric vehicles, energy storage systems, and portable devices is expected to rise at a fast pace owing to their low maintenance properties and higher energy densities. Nickel-cadmium and nickel-metal hydride batteries are the next major segments of the global market.
Application insights
On the basis of application, the market is segregated as automotive, industrial, and portable. The automotive application segment led the market and accounted for 34.3 per cent share of the total revenue in 2019 on account of increasing demand from EVs, plug-in hybrid vehicles, and HEVs. Starting, lighting, and ignition (SLI) application in the automotive sector has contributed to high battery demand for SLI of the vehicles. Industrial applications include forklifts with extra material handling equipment, telecom, energy storage, UPS, emergency lighting, security, road signs, medical, and control and switchgear.
High demand for consumer electronics is likely to drive the portable application segment. This segment is expected to observe substantial growth in terms of consignments, though, with low revenues and small size, it does not subsidize a major share in the market.
