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The battery pack market size is projected to increase by USD 124.4 billion, at a CAGR of 14.48% between 2023 and 2028. The market's growth rate is influenced by various factors. Firstly, the surge in mergers and acquisitions by market companies contributes significantly to market expansion. These strategic partnerships and consolidations drive innovation, market reach, and operational efficiency. Secondly, there is a growing demand for compact and high-performance cannonade packs, fueled by the increasing adoption of electric vehicles, portable electronics, and renewable energy storage solutions. This demand underscores the importance of energy-efficient and long-lasting technologies in various industries. Additionally, the increased deployment of Internet of Things (IoT) devices further propels market growth. As IoT continues to permeate diverse sectors, from healthcare to manufacturing, the need for reliable and scalable solutions becomes paramount, driving the market forward. Overall, these factors collectively shape the growth trajectory of the market, driving innovation and adoption across industries.
The market growth and forecasting report includes key player's detailed analyses of the competitive landscape of the market and information about 20 market companies, including Berkshire Hathaway Inc., CLARIOS LLC, Contemporary Amperex Technology Co. Ltd., EnerSys, Eveready Industries India Ltd., Freudenberg and Co. KG, GS Yuasa International Ltd., Hitachi Ltd., Johnson Controls, Kabra Extrusiontechnik Ltd., Leoch International Technology Ltd., LG Electronics Inc., Nikola Corp., NIO Ltd., Panasonic Holdings Corp., Samsung Electronics Co. Ltd., Tesla Inc., Toshiba Corp., TotalEnergies SE, VARTA AG, and Wanxiang Group . Additionally, BYD Co. Ltd. company offers battery packs such as Blade Battery, which is designed to address concerns about battery safety in electric vehicles.
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The market is witnessing significant growth driven by the rising demand for lithium-ion batteries in various sectors, including military and aerospace, requiring continuous energy supply. As sustainability becomes a priority, there's a focus on reducing carbon footprint and greenhouse gases through the adoption of battery packaging solutions that minimize environmental impact. While lead-acid batteries and nickel-metal hydride (NiMH) batteries still hold significance, the surge in electric car sales and hybrid vehicles underscores the need for advanced power capacity and voltage management in battery packaging. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
Rising demand for compact and high-performance battery packs is the key factor driving the market. High-performance battery packs boast high energy density, storing ample energy in a compact, lightweight form for extended runtimes. Lithium-ion (Li-ion) batteries, renowned for their energy density and portability, are popular choices. Compact packs are coveted for their portability, particularly in consumer electronics like smartphones and laptops.
Moreover, EVs also demand high-performance packs for longer ranges and fast charging. Manufacturers prioritize durability and longevity, ensuring packs withstand numerous cycles without decline. These packs marry advanced technology with robust design for exceptional power, reliability, and safety. As battery tech evolves and consumer preferences shift, demand for compact, high-performance packs is poised to rise, driving growth in the market during the forecast period.
Growth in renewable energy storage is the primary trend shaping the market. Battery packs offer a solution to the intermittency of renewable energy sources like solar and wind by storing excess energy for later use, thus balancing grid supply and demand. They are pivotal in integrating renewables into the grid, with lithium-ion and flow batteries leading the charge.
Further, battery packs facilitate the incorporation of distributed energy resources like rooftop solar and microgrids, bolstering grid resilience and reducing transmission losses. As renewable energy projects expand globally, the demand for battery packs grows, driving the transformation of the energy landscape towards sustainability. Their role in enabling widespread renewable adoption makes battery technology a cornerstone of market growth, ensuring a more sustainable energy future during the forecast period.
Availability of alternative energy sources is the major challenge that affects market growth. Alternative power sources like fuel cells and hydrogen present viable options to batteries in certain applications, driven by factors such as cost and performance. Hydrogen fuel cells, with their high energy density and rapid refueling, find favor in long-duration energy storage and heavy-duty vehicles. Hydrogen storage, be it compressed or liquid, offers advantages over batteries in terms of energy density and lifecycle costs, especially for renewable energy storage and fuel cell vehicles.
Additionally, hybrid approaches combining renewables with conventional power generation ensure continuous power without sole reliance on batteries. However, the proliferation of alternative energy storage options may fragment the market, posing challenges for manufacturers in maintaining market share. Competition from alternative technologies could dampen demand for battery packs in specific applications, potentially impeding market growth during the forecast period.
The market is evolving rapidly, driven by the increasing demand for lithium-ion battery which offer superior power supply capabilities compared to traditional fossil fuels. This shift towards electrification is boosting the battery packaging market, with a particular focus on solutions that address continuous energy needs while minimizing carbon footprint and greenhouse gases. As sales of electric vehicles surge, the industry is innovating packaging solutions to meet the evolving demands of sustainable transportation.
The market share growth by the automotive segment will be significant during the forecast period. Stringent emission regulations worldwide drive automotive manufacturers towards EVs and HEVs to curb greenhouse gas emissions. This trend fuels the demand for battery packs as primary energy storage solutions. Continuous battery technology advancements, including enhanced energy density and charging speed, extend EV and HEV driving ranges.
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The automotive segment showed a gradual increase in the market share of USD 73.58 billion in 2018. Furthermore, Nissan's pioneering work with Li-ion batteries led to the mass-produced LEAF electric vehicle. Solid-state batteries promise higher energy density and faster charging. Advancements in NiMH batteries improve power delivery across various temperatures. Growing environmental consciousness and government incentives further boost EV and HEV demand. Expanded charging infrastructure enhances consumer adoption, driving the global battery pack market's growth in automotive applications.
Li-ion batteries, with carbon anodes and lithium-ion cathodes, offer superior thermal stability, high current density, and extended shelf life. Major market players like Panasonic, LG Chem, and Samsung SDI provide high-energy-density options for EVs, energy storage, and electronics. The automotive industry's electrification drives Li-ion demand, fueled by stringent emissions regulations and EV incentives. Li-ion batteries are crucial for renewable energy storage, ensuring grid stability. Their dominance in consumer electronics stems from their compactness and reliability. Increasing EV, electronics, and renewable energy demand will propel market growth during the forecast period.
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APAC is estimated to contribute 47% to the growth of the global market during the forecast period.
Technavio's analysts have provided extensive insight into the market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. APAC leads in EV production and adoption, driven by China and South Korea. Government incentives and environmental concerns propel EV demand. Chinese initiatives like green license plates and subsidies boost adoption. Major automakers like Volkswagen and Tesla are expanding manufacturing in the region. Growing EV sales drive demand for battery packs. APAC also dominates in consumer electronics manufacturing, with LG, Samsung, and Apple investing in high-performance batteries. Renewable energy expansion further boosts battery demand for grid stability. LG Chem and Samsung SDI invest in battery production, while BYD plans a sodium-ion battery facility in China. These expansions fuel the regional market growth.
The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.
Global Market Customer Landscape
Companies 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.
Market analysis and report of qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market is witnessing significant growth, driven by the demand for high-performance solutions across various sectors. With advancements in voltage capacity and battery size, manufacturers are catering to the needs of hybrid and fully electric systems in automotive, marine, and aerospace applications. Concerns over pollution and air pollutants are accelerating the transition to electric mobility, leading to stringent transportation regulations and the adoption of cleaner alternatives like battery storage. The proliferation of smartphones, tablets, and wearables further emphasizes the importance of small-sized batteries and efficient energy storage systems for renewable energy integration in solar and wind power installations.
Further, in the market, advancements in technology are addressing key challenges such as charging time and electricity consumption. This is particularly crucial for marine vessels seeking to reduce reliance on bunker fuel and comply with regulations on sulfur content and NOx emissions in control areas. Additionally, battery cells with improved self-discharge rates are enhancing the performance of portable electronic devices. The market is witnessing increased demand for diverse battery types, including nickel cadmium, especially in aerospace and defense and commercial sectors. Renewable energy installations, particularly those involving solar power, are driving the need for efficient battery installation solutions.
Market Scope |
|
Report Coverage |
Details |
Page number |
180 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 14.48% |
Market Growth 2024-2028 |
USD 124.4 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
13.08 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 47% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Berkshire Hathaway Inc., BYD Co. Ltd., CLARIOS LLC, Contemporary Amperex Technology Co. Ltd., East Penn Manufacturing Co. Inc., EnerSys, Eveready Industries India Ltd., Freudenberg and Co. KG, GS Yuasa International Ltd., Hitachi Ltd., Johnson Controls, Kabra Extrusiontechnik Ltd., Leoch International Technology Ltd., LG Electronics Inc., Nikola Corp., NIO Ltd., Panasonic Holdings Corp., Samsung Electronics Co. Ltd., Tesla Inc., Toshiba Corp., TotalEnergies SE, VARTA AG, and Wanxiang Group |
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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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