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The battery market size is projected to reach a value of USD 229.86 billion, with a CAGR of 17.22% between 2022 and 2027. The growth of the market depends on several factors, including the shift in the automotive industry to EVs, the increase in demand for rechargeable batteries, and the augmented demand from consumer electronics.
This market research and growth report extensively covers market segmentation by application (portable batteries, automotive batteries, and industrial batteries), type (lithium-ion battery, lead acid battery, nickel metal hydride battery, nickel-cadmium battery, and others), and geography (APAC, Europe, North America, South America, and Middle East and Africa). Within the battery market, the increasing significance of lithium-ion batteries is highlighted as they play an expanding role across various sectors. With the demand for increased capacity and continuous innovation in battery technologies, the lithium-ion battery market has experienced a substantial growth rate, surpassing traditional lead-acid batteries in terms of usage, especially in energy storage systems.
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The shift in the automotive industry to EVs is notably driving the growth of the battery market share. Electric vehicles are growing in popularity due to growing concerns about environmental pollution and a shift to a more sustainable ecosystem. Several countries have developed policies to reduce air pollution and vehicle emissions. Gasoline or conventional vehicles emit on average twice as many greenhouse gases as electric cars. Therefore, the automotive industry is shifting its focus to electrified cars to reduce emissions and carbon footprint.
Batteries are the dominant power solution for electric cars. In an electric car, the battery pack consists of tens of thousands of batteries called cells. Depending on the vehicle design, EV manufacturers use these cells to improve efficiency. Tesla, one of the largest electric car manufacturers in the world, uses batteries made by Panasonic in its cars.The proliferation of electric cars due to the factors of sustainability development will increase the sales volumes of batteries, which will contribute to the growth of the market.
The demand-supply dynamics, along with ongoing innovations, underscore the importance of lithium-ion batteries in achieving superior performance, efficiency, and cost-effectiveness. As the battery market evolves, the sustainability factor of lithium-ion batteries continues to account for their prominent role in shaping the future of electric technology and overall industry growth.
Emerging Technologies
Technological developments are a major trend in the market. Technologies such as batteries have seen rapid improvements in efficiency and cost as suppliers' R&D capabilities have increased. Batteries have numerous applications in consumer electronics due to their high energy density, which will drive the growth of the global market during the forecast period. Additionally, several vendors are also bringing technologies that are new to the market and will boost the market growth.
Study has highlighted the role of lithium-ion batteries in powering the transition to a more sustainable and efficient energy landscape, contributing to the overall trend in the battery industry. The versatility of these rechargeable batteries makes them crucial in fulfilling the energy and power needs of diverse applications, from portable devices to the automotive sector and grid-level renewable energy storage.
Wireless charging technology is gaining acceptance rapidly among consumers. It is used in battery products like smartphones and smartwatches. It provides a reliable way to charge electrical devices. Wireless charging for wearables and other devices uses AA batteries. The devices mostly use AA batteries because it makes the internal charging of the device convenient. In addition, several suppliers are launching electronic devices equipped with wireless charging technology. These factors will drive the market growth and trends of the global battery market during the forecast period.
Major Battery Market Challenge
The use of counterfeit batteries is a major challenge impeding market growth. Fake products pose a serious threat to the safety and human health worldwide. By purchasing counterfeit products, consumers risk receiving toxic ingredients, contaminated products, or defective parts. One in ten consumer electronics products sold, including electrical fuse boxes, home appliances, and mobile phone batteries, were found to be counterfeit.
Additionally, manufacturing counterfeit goods without regulations can endanger the environment. Substances such as toxic dyes and chemicals are often disposed of illegally. Environment-friendly disposal of confiscated counterfeit electronic products can be difficult. Such environmental along safety threats will hinder the growth of the global consumer battery market during the forecast period.
Market Customer Landscape
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market research report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Battery Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Furukawa Electric Co. Ltd. - The company operates under multiple segments including electronics and automotive systems, and functional products among others, with a high focus on electronics and automotive systems.? The company under this segment?offers solutions for automotive products. The company's key offerings include?batteries.
The market report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative market analysis and report of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the portable batteries segment will be significant during the forecast period. A portable battery is a compact, hand-sized device that is designed to be flexible enough to accommodate the needs of the customer.
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The portable battery segment was valued at USD 46.04 billion in 2017 and continued to grow until 2021. The need for portable batteries is rising in parallel with the development of technological products. The requirement to often recharge mobile phones, wireless devices, and other charging electronic devices has emerged as a crucial factor driving the growth of the portable batteries industry in recent years. Around 85% of mobile phones sold worldwide are powered by rechargeable batteries. The energy storage sector is anticipated to grow at a staggering rate of 30% annually, driving demand for batteries. Numerous home appliances, such as calculators, torches, clocks, and timepieces, among others, frequently use portable batteries. Additionally, the rising popularity of smartphones and tablets is increasing the use of portable batteries, establishing them as a separate product category within the consumer electronics industry. Hence, owing to such factors, the portable battery segment is expected to grow during the forecast period.
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APAC is estimated to contribute 48% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
Batteries are mainly used in various consumer electronics, such as smartphones, laptops, and tablets. The demand for batteries is expected to increase in APAC owing to the decreasing cost of Li-ion batteries during the forecast period. Furthermore, India is expected to aggressively increase the domestic production of batteries. In addition, the increasing smartphone adoption rates have made APAC one of the largest mobile markets in the world. More than half of the world's mobile subscribers reside in this region, mostly in China and India.
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Battery market for Medical Devices Industry - The market share will grow steadily at a CAGR of greater than 7% by 2022.
The report forecasts market growth by revenue at global, regional, and country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Battery Market Scope |
|
Report Coverage |
Details |
Page number |
169 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 17.22% |
Market growth 2023-2027 |
USD 229.86 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
15.49 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 48% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
A123 Systems LLC, Clarios, Cummins Inc., East Penn Manufacturing Co. Inc., EnerSys, Exide Industries Ltd., Furukawa Electric Co. Ltd., GS Yuasa Corp., HBL Power Systems Ltd., Hitachi Ltd., Korea Battery Co. Ltd., Leoch International Technology Ltd., LG Chem, Murata Manufacturing Co. Ltd., Panasonic Holdings Corp., Robert Bosch GmbH, Samsung Electronics Co. Ltd., TDK Corp., and Toshiba Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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