Battery Market Size, Share & Trends Analysis Report By Product (Lead Acid, Li-ion, Nickle Metal Hydride, Ni-cd), By Application (Automotive, Industrial, Portable), By Region, And Segment Forecasts, 2020 - 2027

Report Overview

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 14.1% from 2020 to 2027. The market growth is attributed to the high demand for automotive applications. The automotive application includes rechargeable batteries used in non-rechargeable batteries and electric vehicles. 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 LCDs, smartphones, tablets, and wearable devices such as fitness bands, is boosting the market growth. The market 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 toward fuel efficiency, are expected to drive battery demand.

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.

Decreasing fossil fuel reserves, along with promising government initiatives and high CO2 emissions, are expected to propel market growth in the next few years. Key non-rechargeable batteries are extensively used in children’s toys, light beacons, remote controls, watches, and electronic keys. These are expected to observe a loss of stake to rechargeable batteries on account of efficiency and enhanced lifespan.

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 countless features that consume a significant amount of battery power. These features include a GPS navigation system, power windows, a display that give information about the battery charge level, and air-conditioning systems.

Product Insights

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% 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. Hence, demand for the battery across the 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 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.

Regional Insights

Asia Pacific held the largest revenue share of 33.0% 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 a skilled workforce.

North America is expected to witness significant growth during the projected period. Major factors driving the regional market include a decrease in the cost of Li-ion battery, increased sale of consumer electronics, rapid adoption of electric vehicles, and a growing renewable sector. Furthermore, North America remains an innovator in the research and invention of the global battery market and one of the largest consumers of batteries. For instance, California is one of the major plug-in car markets in the country, with nearly 670,000 plug-in EVs sold by 2019.

In the recent market situation, policy support plays a vital role in propelling the adoption of EVs. Policy support also permits market growth by making vehicles attractive to customers by decreasing risks for stakeholders and encouraging producers to develop EVs on a large scale.

Europe is likely to observe noteworthy growth on account of increasing electric vehicle production. Europe has been one of the foremost producers of automobiles in the historical years and will continue its supremacy in the future. The presence of key automotive producers, such as Audi, BMW, Volvo, Jaguar, Fiat, Volkswagen, Aston Martin, Ferrari, Mercedes Benz, Porsche, and Lamborghini, in the region will enhance the automobile industry growth, which, in turn, will propel the demand for industrial batteries over the projected period.

Key Companies & 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. For instance, Samsung is integrated across the value chain. Key industry participants including BYD Company Ltd., LG Chem, Hitachi Chemical Co., Ltd., and Panasonic are integrated from the production of these batteries to end-use purposes.

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. Industry rivalry is anticipated to be high over the upcoming years with unstable raw material prices, resulting in irrelevant entry barriers for new participants. Some of the prominent players in the battery market include:

• GS Yuasa International Ltd.

• BYD Company Ltd.

• A123 Systems LLC

• Hitachi Chemical Co., Ltd.

• Duracell.

• Johnson Controls

• NEC Corporation,

• Panasonic Corporation

• Samsung SDI Co., Ltd.

• Toshiba Corporation

• LG Chem Ltd.

• Saft

• Sony Corporation

• Eveready Industries

• Contemporary Amperex Technology Co.

Battery Market Report Scope 

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global battery market report on the basis of product, application, and region:

• Product Outlook (Revenue, USD Billion, 2016 - 2027)

  • Lead Acid

  • Lithium Ion

  • Nickel Metal Hydride

  • Nickel Cadmium

  • Others

• Application Outlook (Revenue, USD Billion, 2016 - 2027)

  • Automotive Batteries

  • Industrial Batteries

  • Portable Batteries

• Regional Outlook (Revenue, USD Billion, 2016 - 2027)

  • North America

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • The U.K.

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Central and South America

    • Brazil

    • Argentina

  • Middle East and Africa

    • Saudi Arabia

    • UAE