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Brazil is expected to dominate the Latin America Battery Market- Actual Market Research
Feb, 13
2021

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Brazil is expected to dominate the Latin America Battery Market- Actual Market Research

 

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Over the past few years, electric vehicles have witnessed considerable growth in Latin America due to the need for addressing future energy requirements. This is seen as a reason for the incline in the battery market of Latin America. However positive the growth seems to be; Latin America held the least share in the global market, with a share of 5.28% in the year 2015. The report title 'Latin America Battery Market Outlook, 2026' published by Actual Market Research gives a complete insight on the battery market of the region. The Latin America battery market is moderately competitive with major players, like C&D Technologies offering its solutions and services for switchgear & control, telecommunications, and UPS applications. The company operates in the US, Argentina, Chile, Brazil, Russia, Singapore, Colombia, Thailand, Hong Kong, and China. The increasing growth in data centers and economic development in countries like Brazil and Argentina for commercial infrastructure is expected to create immense opportunities for the Latin America battery market.

By the end of the forecasted period, the market scenario is expected to remain the same, with the secondary battery segment, is to reach a value of USD 8.11 Billion, while the primary battery segment is expected to grow with an anticipated CAGR of over 9%. In Brazil, the major supplier countries for primary batteries include - China, the United States, and Germany. The import value of primary batteries in Brazil is much higher than the export, which signifies the high dependency on imports to meet the requirements of primary batteries. 

The battery demand in Brazil is bolstered by the fact of lack of electricity is anticipated to register a growth rate of about 9% during the period 2021-26, remaining comparatively lowest among the leading countries. However, Brazil is expected to dominate the market, owing to the demand for consumer goods and increasing investment in the country. Chile's government is making efforts to promote and invite countries across the globe to mine these vast resources, to serve the increasing demand for lithium-ion based batteries. In 2019, Chile imported 14 times the exported value of primary lithium-ion batteries. Hence, overall, the country faces a trade deficit, and the trade balance can be achieved by increasing the domestic production of lithium-ion batteries.

Automobiles are the largest end-users of lead-acid batteries, as these batteries perform the start-stop function in vehicles. The automotive application segment was valued at USD 1.55 Billion in the year 2015. On average, each automobile manufactured contains approximately 12 kilograms of lead. Around 96% lead is used in the common lead-acid battery, while the remaining 4% in other applications including wheel balance weights, protective coatings, and vibration dampers. Unlike the global trend, the region is expected to show a dominance of the portable battery segment in the last decade. 

The huge lithium reserves present in the region are likely to act as an opportunity to increase domestic production. As of 2019, Bolivia, Argentina, and Chile have around 21, 17, and 9 million tonnes of lithium reserve, respectively. This is expected to allow the segment to reach a market of USD 3.67 Billion by the end of the year 2026. The lead-acid battery segment is expected to dominate the market in both developed and emerging economies of the region, with a declining market share. The reason behind the expected growth is mainly due to the low cost of lead-acid batteries, renewable targets, and the adoption of automated guided vehicles in industrial spaces.