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Global Battery Market is expected to grow at a CAGR of more than 8% by 2026- Actual Market Research
Feb, 13
2021

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Global Battery Market is expected to grow at a CAGR of more than 8% by 2026- Actual Market Research

 

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As per the report 'Global Battery Market Overview, 20-2026' published by Actual Market Research, the lithium-ion battery segment is expected to cross a market of USD 60 Billion by the end of the forecasted period. Classified into four segments of lithium-ion, lead-acid, nickel-cadmium & nickel-metal hydride based on the battery technology, the former is to record the highest CAGR. Even though the raw material demand-supply mismatch is a hindrance to the market growth, the market is driven by the fact of increasing electric vehicle adoption and consumer electronics. The understanding of the need for a renewable source of energy has added to the market potential. The overall battery market is expected to grow at a CAGR of over 8% during the forecasted period of 2021-26. Aqueous lithium-ion batteries are less heavy, durable, and they can be manufactured in different shapes hence these batteries have been of great interest for military use. LIB batteries are less flammable in nature that makes them engaging for industries that prioritize safety over energy density such as airplanes and submarines. 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.

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. Superior performance and durability of lead-acid and other batteries are gaining demand in the automotive sector. Considering the application of the battery, the market is divided into three categories of automotive, industrial and portable usage. 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. Falling battery prices and improving technology are expected to bring price-competitive electric vehicles to the market, creating a demand for battery technologies. High demand for portable electronics, including LCDs, smartphones, tablets, and wearable devices such as fitness bands, is boosting the market growth. The share of portable battery applications is expected to decline further to a share of 32.54% by the end of the year 2026.

Secondary battery types have positioned itself as an unbeatable market dominator globally. The Sub-Saharan and rural south Asian regions, in particular, are expected to be one of the central hotspots for off-grid solar initiatives. As a result, the use of energy storage with solar photovoltaic technology has been gaining popularity in these countries, which is likely to create an enormous opportunity for the battery market. 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. Significant increases in battery energy density will probably require a disruptive technology involving a lithium anode. The market is expected to observe substantial growth on account of technological advancements in terms of enhanced efficiency, cost-effectiveness, and product innovation.

New markets that further boost battery growth are 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. 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. 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. Over the development in the battery industry, lithium batteries have become a crucial part of the electric vehicles. The growing demand of electric vehicle are influencing the battery market but the solution to the challenges faced by the industrial designer and manufactures there are the need of the hour. These batteries are of high power and more complex in manufacturing. The battery life of vehicles degrades with time due to several factors such as high temperature and affects the performance of the running vehicles. In order the cool the batteries, adding of coolants while manufacturing is one of the solutions to overcome the challenge and maintain the shelf life of the battery.