New York, Nov. 03, 2022 (GLOBE NEWSWIRE) — Reportlinker.com announces the release of the report, “Battery Market – Growth, Trends, COVID-19 Impact, and Forecasts (2022 – 2027)” – https://www .reportlinker.com/p06227776/?utm_source=GNW
Currently, the market has now reached pre-pandemic levels.
In the long-term, the key drivers of the market are falling lithium-ion battery prices and increasing adoption of electric vehicles.
On the other hand, a mismatch between demand and supply of raw materials for battery manufacturing is likely to hamper the market growth.
The number of people without access to electricity in the African region is expected to rise from 588 million in 2016 to about 602 million in 2030, despite efforts to push electrification through grid connectivity. The sub-Saharan region in particular is expected to be one of the key hotspots for off-grid solar initiatives. Because solar energy is an intermittent source and only generates electricity during the day, the use of off-grid solar power coupled with energy storage greatly improves the utilization of solar PV units. As a result, the use of energy storage with solar PV is gaining popularity in developed countries, which is likely to create a great opportunity for the battery market in the near future.
The Asia-Pacific region is expected to dominate the battery market, with most of the demand coming from China, India, Japan and South Korea.
Key Market Trends
Significant growth expected for car batteries
Internal combustion engine vehicles (ICE) were the only types used earlier. However, the technology is now shifting towards electric vehicles (EV) due to growing environmental concerns. Lithium-ion batteries are mainly used in electric vehicles because they offer high energy density, low self-discharge, lighter weight and low maintenance.
For ICE vehicles, the lead-based battery is widely used and is expected to be the only viable mass-market battery system for the foreseeable future. For SLI applications, lithium-ion batteries still require higher cost reductions to be considered a viable mass-market alternative to lead-based batteries.
Lithium-ion battery systems power plug-in hybrid and electric vehicles. Lithium-ion batteries are the only technology available that can meet OEM vehicle range and charge time requirements due to their high energy density, rapid recharge capability, and high discharge rate. Lead-based traction batteries are not competitive for use in full hybrid electric vehicles or electric vehicles due to their lower specific energy and higher weight.
In recent years, the Asia-Pacific region has dominated the market for manufacturing electric batteries, which is expected to continue during the forecast period. Europe is expected to witness significant growth over the forecast period driven by factors such as rising investment in the sector due to favorable government policies and various incentives for electric vehicle battery manufacturers.
In January 2021, the European Commission approved a second Important Project of Common European Interest to support innovation and research in the battery value chain. The project called “European Battery Innovation” was jointly prepared and registered by Belgium, Croatia, Austria, Finland, Germany, France, Greece, Poland, Italy, Slovakia, Sweden and Spain. In the coming years, the twelve countries will provide up to 2.9 billion euros in funding, which is expected to release around 9 billion euros in private investment.
Based on the above factors, the automotive battery segment is expected to register significant demand in the global battery market during the forecast period.
Asia Pacific is expected to dominate the market
The Asia Pacific region has several growing economies with significant natural and human resources. China and India are expected to be key investment hotspots for battery companies in the coming years as respective governments support the manufacturing sector at the policy level.
The deployment of electric vehicles and the installation of renewable power plants in China and India are increasing rapidly, which is expected to lead to massive demand for batteries.
China is the largest electric vehicle (EV) market with over 1.15 million electric vehicles sold in 2021 and is expected to remain the world’s largest electric car market. China accounted for nearly 40% of global electric car sales in 2021.
Additionally, over 50% of the telecom towers in India are located in locations that face outages of 8 hours or more per day. Telecom players must maintain an uptime of 99.5 and face penalties if they fail to meet the required uptime. As a result, the Indian telecom sector is heavily dependent on diesel generators. As of 2020, India’s telecoms sector is estimated to be responsible for 1% of the country’s greenhouse gas emissions, in contrast to the world average of 0.7%. The telecom sector is also the country’s second largest consumer of diesel, after the railway sector.
To reduce greenhouse gas emissions, in the absence of 100 percent availability of grid electricity, the telecom sector is moving towards renewable energy sources, particularly solar energy. To address disruption issues associated with renewable energy, the demand for batteries from the telecom sector is increasing. In February 2020, the Indian Ministry of Telecommunications issued directives to telecom providers to adopt renewable energy and energy efficient technology solutions.
Therefore, due to the above developments, Asia-Pacific is likely to remain the dominant region in the battery market, aided by increasing urbanization and consumer spending in several countries, such as India and China, which are expected to increase demand for engineered batteries and advanced devices Vehicles because of the benefits they offer.
The global battery market is inherently fragmented. Some of the major players in the market (in no particular order) are Contemporary Amperex Technology Co. Limited, BYD Co. Ltd, Duracell Inc., Tesla Inc., and Panasonic Corporation.
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