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| Battery Market |
A battery is a device consisting of one or more electrochemical cells with external connections provided to power electrical devices. Batteries are used in various applications ranging from consumer electronics to electric vehicles. The growth of the consumer electronics industry has fueled the demand for batteries in smartphones, laptops, tablets, and other consumer electronic devices. Additionally, major automobile manufacturers are focusing on electric vehicles to tackle environmental concerns, enhancing the demand for batteries. The global battery market is estimated to be valued at US$ 192.47 Bn in 2024 and is expected to exhibit a CAGR of 12.% over the forecast period from 2024 to 2030.
Key Takeaways
Key players operating in the battery market are DSM, CP Kelco, H & A Canada
Inc., Nanjing Joyfulchem Co., Ltd., Dancheng Caixin Sugar Industry Co. Ltd.,
Zhengzhou Cinogel Biotech Co., Ltd., Hangzhou Gellan Solutions Biotec Co.,
Ltd., and DuPont, Hebei Xinhe Biochemical Co. Ltd, and Nutricorn Co., Limited.
These players are focusing on capacity expansion and new product launches to
strengthen their market position. For instance, in 2023, DSM expanded its production
capacity for high-performance battery materials.
The key opportunities in the battery market include increasing investments by
governments worldwide in developing charging infrastructure for electric
vehicles. This will boost the adoption of EVs and demand for batteries. The
growing portable electronics industry across regions such as Asia Pacific and
Latin America also presents growth avenues.
Globally, manufacturers are expanding their presence across countries to cater
to the rising local demand. For example, in 2023, H&A Canada Inc. increased
its production of anode materials in China and Korea. CP Kelco also plans to
set up a new production facility in India by 2025 focusing on thickening
solutions for batteries.
Market Drivers
One of the key drivers for the Battery
Market Demand is the increasing
sales of electric vehicles worldwide. Several countries are promoting electric
mobility to reduce emissions. As batteries are the prime source of power for
EVs, their demand is surging significantly.
Market Restraints
High production costs of lithium-ion batteries used in electric vehicles can
hamper the adoption rates. Significant research and development investments are
required to optimize the production processes and reduce costs, which remains a
challenge. Additionally, the erratic supply of raw materials used in battery
manufacturing poses risks to market growth prospects.
Segment
Analysis
The lithium-ion segment in the battery market dominates currently with a share
of over 60% in 2024. This is because lithium-ion batteries offer higher energy
density and longer life cycles compared to other battery technologies such as
lead acid and nickel metal hydride batteries. They are increasingly being used
in consumer electronics, electric vehicles, and utility storage applications
due to their advantages. The lithium cobalt oxide chemistry within lithium-ion
batteries has also experienced strong growth as it offers higher energy
density.
Global Analysis
The Asia Pacific region accounted for over 45% share of the total battery
market in 2024 and is expected to be the fastest growing as well as the
dominant regional market throughout the forecast period. Rapid
industrialization and growth of the consumer electronics and electric vehicles
industries in countries such as China and India are driving the market in the
Asia Pacific region. North America is also expected to experience significant
growth in the battery market due to the presence of many key players and
increasing electric vehicles adoption in the region. The growth of
utility-scale energy storage projects is boosting the battery market in regions
such as North America and Europe.
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