Battery Industry Overview
The global battery market size is expected to reach USD 310.8 billion by 2027, according to a new report by Grand View Research, Inc., expanding at a CAGR of 14.1% from 2020 to 2027. Technological advancements in terms of enhanced efficiency and cost reduction are likely to open new paths for the global market over the estimated period. Increasing use in aircraft emergency systems in case of non-availability of auxiliary power units (APUs) for ground operations, restarting, and braking the auxiliary power units is expected to propel high capacity battery demand. High density and low cost of the lead-acid battery will support use in grid storage and emergency power supply applications, thus augmenting the market growth.
Battery Market Segmentation
Grand View Research has segmented the global battery market report on the basis of product, application, and region:
Based on the Product Insights, the market is segmented into lead acid, lithium ion, nickel metal hydride, nickel cadmium and others
The lead-acid battery segment accounted for the largest share of 29.5% 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 their 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.
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.
Based on the Application Insights, the market is segmented into automotive batteries, industrial batteries and portable batteries
The automotive application segment led the market and accounted for a 34.3% share of the total revenue in 2019 on account of increasing demand for 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 in 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.
Batteries are mainly used in various industrial applications such as off-grid and grid energy storage systems, UPS, power backup, machinery and marine equipment, industrial automation systems, agricultural machinery, defense and aviation, electronics, oil and gas, and civil infrastructure.
An increase in the usage of electric-powered forklifts and automation systems in industrial logistics and storage warehouses, workshops, large-scale facilities, and factories is expected to drive the consumption of industrial batteries during the estimated period.
Battery Regional Outlook
North America
Europe
Asia Pacific
Central and South America
Middle East & Africa (MEA)
Key Companies Profile & Market Share Insights
The global market is characterized by intense competition due to the presence of major companies across the region. The market is categorized with forwarding integration, where key battery producers are also indulged in the usage and distribution of such batteries. Key participants depend on strategies such as JVs and M&A to strengthen their presence in the market. They also focus on increasing their market productivity and share through R&D activities and product innovations.
Some of the prominent players in the battery market include:
GS Yuasa International Ltd.
BYD Company Ltd.
A123 Systems LLC
Hitachi Chemical Co., Ltd.
Johnson Controls
NEC Corporation,
Panasonic Corporation
Samsung SDI Co., Ltd.
Toshiba Corporation
LG Chem Ltd.
Saft
Sony Corporation
Eveready Industries
Contemporary Amperex Technology Co.
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