Batteries are electrochemical cells that convert stored chemical energy into electrical energy. They are a vital component in various consumer products and industrial equipment that require portable electric power. Some common examples include primary cells used in flashlights, rechargeable systems in cell phones, electric vehicles, and backup power systems. Lithium-ion batteries are extensively used in portable electronic devices and electric vehicles due to their high energy density, low self-discharge, and high voltage.
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 Dynamics:
Increasing demand for electric vehicles is expected to drive the battery market growth over the forecast period. Driven by stringent emission norms and government incentives and mandates to curb pollution, the sales of electric vehicles such as electric cars and buses have increased significantly in recent years. According to the International Energy Agency, electric car deployment exceeded 5.1 million in 2020, up from 2 million in 2019. Batteries have a significant contribution to the total cost of electric vehicles. Hence, automakers are focused on developing low-cost and higher range batteries to make EVs affordable and convenient for customers. This is expected to fuel the demand for advanced lithium-ion battery technologies. In addition, the adoption of battery-based energy storage systems for storing power from renewable sources is also gaining traction, propelled by declining costs of lithium-ion batteries and policies supporting clean energy. These factors are expected to boost the growth of the battery market during the forecast period.
SWOT Analysis
Strength: The battery market has seen significant advancements in battery technology in recent years. Lithium-ion batteries offer higher energy density and longer lifespan compared to previous battery technologies. Manufacturers are developing improved varieties of lithium-ion batteries with greater charging capabilities and lifespan. Governments across the world are supporting battery innovation through funding for research and incentivizing electric vehicle adoption which is driving the battery market growth.
Weakness: Battery technology still faces challenges in increasing energy density levels to match gasoline equivalents. Raw material costs, particularly for lithium, pose supply constraints which impact battery costs. Dependency on imported raw materials increases risks. Safety remains a concern, especially for large format batteries in electric vehicles, requiring stringent manufacturing and quality controls.
Opportunity: Growing adoption of electric vehicles worldwide presents a major opportunity with vehicle batteries accounting for the largest share of the battery market. Rapid expansion of renewable energy through solar and wind power increases the need for battery energy storage both at utility-scale and behind-the-meter applications. Portable electronics and demand for longer battery life in devices and tools also open new growth avenues.
Threats: Geopolitical tensions can disrupt critical mineral supply chains impacting battery production. Pushback against electric vehicles in some markets due to concerns over job losses in the automotive sector poses challenges. Slow macroeconomic conditions may dampen investments in battery manufacturing and adoption in end-use sectors like electric mobility in the short-term.
Key Takeaways
The global Battery Market Size is expected to witness high growth over the forecast period supported by rising electric vehicle sales and deployments of grid-scale energy storage systems to integrate more renewable energy.
Regionally, Asia Pacific currently dominates the battery market led by China, which accounts for a major share of global lithium-ion battery production as well as the largest and fastest growing electric vehicle market. Europe and North America are other major regional markets driven by electric mobility and stationary storage policies.
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. Battery manufacturers are investing heavily in expanding manufacturing capacities, especially in lithium-ion cell production, to meet the growing demand from electric vehicles and energy storage applications. Participants are also focusing on partnerships and M&A activities to strengthen technology capabilities and global presence.
Explore more Technology related article on this topic: https://www.pressreleasebulletin.com/battery-market-propelled-by-increased-usage-of-evs/
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