Battery Market Size Expected to Attain USD 680.85 Bn by 2034

The global battery market size is estimated at USD 146.20 billion in 2024 and is expected to cross around USD 680.85 billion by 2034, at a solid CAGR of 16.6% from 2024 to 2034.

Battery Market Overview

The battery market refers to the industry involving producing, distributing, and selling batteries or energy storage devices. Batteries are used in a range of applications, such as health instruments, industrial machinery, electric vehicles, and consumer electronics.

There are two types of batteries disposable and rechargeable. Disposable batteries are used in devices like remote controls and torches, while rechargeable batteries, like alkaline and lithium, are utilized in mobile phones, handheld video game consoles, and digital cameras. The medical sector heavily uses rechargeable lithium-ion and nickel-cadmium batteries in ECG heart monitors. On the other hand, disposable batteries are widely used in consumer electronics.

Battery Market Key Insights

• Asia Pacific dominated the battery market with the largest market share of 56.13% in 2023.
• North America is expected to grow at the fastest CAGR during the forecast period.
• By type, the lead-acid battery segment has contributed the highest market share of 40.8% in 2023.
• By end-use, the automotive sector segment accounted for the biggest market share of 32.4% in 2023.
• By application, the industrial batteries segment has generated the largest market share of 35.9% in 2023.

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Regional Analysis of Battery Market

Asia Pacific dominated the market in 2023. The market in the region is expected to expand rapidly during the forecast period due to a significant reduction in the price of lithium-ion batteries, growing adoption of electric vehicles in countries such as India and China, expansion of the renewable sector, and rising sales of consumer electronics. Government initiatives promoting renewable energy solutions and electric vehicles and rapid industrialization are major factors boosting the demand for batteries in the region. Furthermore, market players are making efforts to capture a large market share.

• In November 2023, BASF, a global producer of battery materials, collaborated with SK On, one of the leading electric vehicle battery cell manufacturers, to assess opportunities within the global lithium-ion battery industry, especially in Asia Pacific and North America.

The market in North America is anticipated to expand at a significant growth rate during the forecast period due to the rising advancements in battery technologies. Moreover, regional market participants are implementing strategic moves through investments, joint ventures, agreements, and partnerships to develop robust battery market in the region.

• In April 2024, Asahi Kasei revealed its plan to build an integrated plant in Ontario, Canada, to produce Hipore wet-process lithium-ion battery separators.

Market Scope

Battery Market Segmental Analysis

Analysis by Type

The lead-acid segment held a large share of the market in 2023 owing to the increasing demand for uninterrupted power supply in industries. Lead-acid batteries play a vital role in a clean and green future by providing approximately 45% of their rechargeable power. These batteries are environmentally sustainable. They also find applications in industries such as transport and communication networks.

Starter batteries, usually found in cars, deliver large bursts of high power. On the other hand, deep cycle lead-acid batteries, usually found on boats or campers, deliver a steady low current for longer periods. All lead batteries serve either starting or deep cycle functions. The only difference is the amount and duration of power delivered.

Analysis by End-Use

The automotive industry segment dominated the market in 2023. The segment is projected to grow significantly during the forecast period due to the increasing adoption of electric vehicles across the globe. The hybridization and electrification of vehicles has increased in recent years.

Furthermore, governments in various countries are providing incentives to promote electric vehicles. The rising adoption of hybrid electric vehicles (HEVs), plug-in hybrid electric vehicle, and EVs boost the demand for advanced batteries, thereby propelling the segment.

Analysis by Application

The industrial battery segment held a major share of the market in 2023 due to the rising demand for energy storage solutions in various industries. Industrial batteries are used as backup power for heavy machinery, electric vehicles, microgrids, and smart grids.

These batteries provide a constant, clean electricity supply in any weather condition. They are also used in hospitals, data centers, and telecommunication facilities. The growing need for reliable power backup solutions in industries is further likely to boost the segment in the coming years.

Battery Market Dynamics

Driver: Improved safety

The battery market is experiencing significant growth due to improved safety measures. Advanced battery technologies have greatly improved the safety of EVs. The most common are lithium-ion batteries, which have a higher energy density and are less dangerous. However, these batteries can be hazardous if treated improperly.

Battery technology has a significant impact on EVs, including increased range, cost reduction, and improvement in safety. These factors make EVs more efficient, viable, and cost-effective for customers.

Restraint: Shortage of raw material

Increasing demand and complex supply chains result in a shortage of raw materials. Essential elements required for battery, mainly cobalt, are sourced from the Republic of Congo. In addition to these challenges, efforts are underway to design and produce low-cobalt or completely cobalt-free batteries.

Better quality assurance is important to track the quality of batteries from manufacturing to production to enhance their safety. This will involve a lot of metrology development, as metal impurities are one of the key factors of battery degradation. There are no effective solutions available so far to detect impurities throughout the entire process, starting from raw materials to final cells.

Opportunity: Advancements in battery technology

Advancements in battery technology create immense opportunities in the market. Battery technology is of utmost importance in relation to modern appliances and vehicles, although its application is somewhat lacking. The problem of lack of range limit and longer charging time is present with its application. Meanwhile, further development of technology for batteries is promising. Solid-state batteries carry a solid electrolyte component. Thus, they have higher power density, charge quickly, and are safe.

Lithium-sulfur batteries have higher energy density, as sulfurs act as anodes instead of a cathode in the battery. Nanostructured batteries enhance performance using nanomaterials, increasing energy density and reducing charge times. With these technologies, great improvements in battery performance, cost, and safety are expected to improve the efficiency and affordability of devices and vehicles.

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