Global Battery Market Size was valued at US$ 13.6 billion in 2017 and is projected to reach US$ 20.6 billion by the end of 2025. Batteries have become a significant part of our life. We can find batteries in every household, smartphones, electric systems, electronics, etc. The demand for batteries is rapidly growing, in proportion with their increasing applications.
Rechargeable batteries segment is expected to dominate the global battery market size over the forecast period.
Increasing demand for energy supply, coupled with growing technological developments are significantly driving the demand for various electronic products such as mobile phones, automobiles, etc. Moreover, rising disposable income among the population of developing and developed economies of the Asia Pacific and Europe regions will further drive the sales of these electronic devices, which in turn improves the sales of global rechargeable battery market over the projected period.
Rechargeable batteries are majorly used in electronic devices such as mobile phones, UPS, residential storage systems, aircrafts, marine energy systems, automobiles, etc. Increasing demand for these products will further trigger the growth of the global battery market till the end of 2025. Moreover, increasing focus by various key players in order to meet the energy demand, they are implementing a wide range of batteries for various utilities, which will further enhance the demand for batteries.
Shifting consumer focus to improve the consumption of renewable energy sources such as solar, wind, etc. will act as one of the additional factors driving the growth of the global battery market.
Lead Acid batteries are expected to dominate the Global Battery Market Size over the forecast period 2018-2025.
At present, the lead-acid batteries are dominating the global battery market in terms of market volume. Lead acid batteries are highly preferred for automobiles, due to lower costs than lithium-ion batteries. Lead acid batteries are expected to witness less preference after 2022, due to the upcoming developments on Li-Ion batteries for a price reduction. Also, they might not be preferred due to their shorter life cycles, and low-performance efficiencies when compared to Li-Ion batteries.
Global Battery Market Size for the automotive end-use industry will have a dominant share over the projected period
Global battery market for the automotive end-use industry will have the prime share over the forecast period till 2025. This is majorly due to increasing demand from automobiles. Moreover, the product demand is also attributed to demand for electric and hybrid automobiles. According to OICA stats, global passenger cars production reached 73.4 million vehicles in 2017, growing from 72.0 million by the end of 2016. Increasing demand from the transportation sector will enhance the demand for automobiles, which will, in turn, raise the demand for batteries.
Asia Pacific region will lead the Global Battery Market Size over the projected period
Factors such as economic, industrial, and infrastructural, along with huge technological developments in this region will significantly help the Asia Pacific battery market to lead the global market. The huge population in countries such as China and India, coupled with increasing batteries’ demand for use in automobiles, will open significant growth avenues for Asia Pacific battery market till 2025. Japan, China, and India will majorly contribute to holding the lion’s share over the forecast period. Favorable government regulations regarding the improvement of battery production and consumption will further drive the Asia Pacific battery market over the forecast period. For instance;
Japan set its target to produce half of the global battery production by 2020. They also implemented a subsidy program for Li-Ion batteries, in which they sell these batteries at 66% of the actual cost for home and business uses.
1. In September 2018, Solid Power raised US$ 20.0 million from A123 Systems, Samsung, and Hyundai Cradle for the development of all-solid-state, rechargeable, lithium-metal batteries for use in various consumer electronics and electric vehicles.
2. In September 2018, the Government of India announced its plan to provide incentives of over US$ 756.1 million for electric vehicles, and also for manufacturing Li-Ion batteries.
3. In September 2018, BMW plans to collaborate with Lion Smart to incorporate Supercell, developed by Lion Smart in BMW’s i3 electronic hatchback models, to improve i3 sales.
Key driving factors of the Global Battery Market Share:
1. Increasing product demand from energy management
2. Growing energy storage requirements
3. Rising demand for hybrid and electric vehicles
Key restraining factors of the Global Battery Market Share:
1. Availability of alternatives such as diesel generators and fuel cells
2. Limited infrastructure to support Electric & Hybrid Vehicles
3. Battery-related safety issues
Key opportunities favoring the growth of the Global Battery Market Share:
1. Rising R&D activities for the development of high-capacity batteries for Electric & Hybrid Vehicles
2. Shifting focus towards the use of renewable energy sources
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