Based on the battery technology, the lithium-ion battery segment is expected to cross a market of USD 60 Billion by the end of the forecasted period, recording the highest CAGR. The market-leading segment of lead-acid batteries is expected to report the lowest CAGR of 5.98% through the forecasted period. With the demand in the global transportation market increasing, the market for batteries is also projected to grow. Superior performance and durability of lead-acid and other batteries are gaining demand in the automotive sector. Also, the rising use of mobile phones along with other consumer electronic devices demands an external portable battery that is gaining traction from various consumers which will stroke the growth of the battery market. The market is expected to observe substantial growth on account of technological advancements in terms of enhanced efficiency, cost-effectiveness, and product innovation. High demand for portable electronics and wearable devices is boosting the growth of the lead-acid battery segment. The demand-supply mismatch of raw materials is the hindrance to the market growth. On the other hand, major factors driving the market include declining prices, rapid adoption of electric vehicles, growing renewable sector, and increased sale of consumer electronics.
The overall battery market is expected to grow at a CAGR of over 8% during the forecasted period of 2021-26, according to the report 'Global Battery Market Outlook, 2026' published by Actual Market Research New markets that further boost battery growth is the electric bicycle and storage systems for renewable energy, from which homeowners, businesses, and developing nations are benefiting. Large grid storage batteries collect surplus energy during high activity and bridge the gap when the input is low or when user demand is heavy. 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 to drive battery demand. The Middle East & Africa and Asia Pacific region together are expected to account for a market share of over 50% by the end of the forecasted period. The Sub-Saharan and rural south Asian regions, in particular, are expected to be one of the central hotspots for off-grid solar initiatives. The market comprises a network of players, including major global players as well as localized regional players. Most of these companies are headquartered in China, making it the highest contributing country, with 12.69% in 2020.
The rise in disposable income and increasing use for smartphones among the population across the globe is excelling the demand for the battery used in smart phones. The increased focus of the governments towards reducing greenhouse gas emissions, the rise in the number of power outages, and the availability of manufacturers who provide lithium iron phosphate batteries at comparatively lower prices, are major factors that will drive battery market growth. The major applications in the battery market are automotive and consumer electronics, with lead-acid batteries extensively used in vehicles. Moreover, increasing concerns towards sustaining fossil fuel reserves and increasing prices of petrol and diesel is leading to a change in the automotive industry, moving towards electric vehicles, which is stroking the battery market. Falling battery prices and improving technology are expected to bring price-competitive electric vehicles to the market, creating a demand for battery technologies. The automotive sector recorded at a market of USD 37.65 Billion in 2015 is expected to be the major application segment for the battery market in the near future. The share of portable battery applications is expected to decline further to a share of 32.54% by the end of the year 2026. 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.
Key players in the global battery market Johnson Controls, Exide Technologies, GS Yuasa, Robert Bosch GmbH, Saft Groupe SA, Delphi Automotive LLP, LG Chem, and Panasonic Corporation among others. Manufacturers are constantly improving lithium-ion with new enhanced chemical combinations to increase the battery aging life. Increasing demand for wearable devices can boost the battery market performance. They are now considering replacing lithium-ion batteries with ions and electrolytes such as zinc, aluminum, magnesium, and sodium. These batteries will be cheaper and potentially safer, which will help companies to propel in the battery market. Energizer recently launched a smartphone with a whopping 16,000mAh battery, influencing other manufacturers in the market. In 2017, A company named Pisen developed a laser pointer power bank. This laser power bank battery is so efficient that with one charge it can work for an entire year. The battery capacity is very powerful that it has been chosen by millions of customers all over the world. Firefly, a power bank is combined with the power to charge other devices, water-resistant along with LED and great-sounding wireless music, is an innovative development in the battery market. This innovation is gaining a lot of traction from the population more engaged in outdoor activities such as camping.