Battery Market Synopsis

Battery Market Size Was Valued at USD 120.79 Billion in 2023, and is Projected to Reach USD 428.32 Billion by 2032, Growing at a CAGR of 15.10% From 2024-2032.

Electric vehicles, renewable energy systems, portable gadgets, and other uses all depend on battery technologies for energy storage. Battery technologies continue to lead the way in providing long-lasting and effective energy storage solutions for a variety of industries. Choosing the best technology for a given set of energy storage needs requires a thorough grasp of the characteristics, benefits, drawbacks, and most current developments in different types of batteries. Lead-acid batteries are still superior in several applications, even if lithium-ion batteries continue to rule the market.

• With continuous research and development efforts aimed at improving their performance and tackling significant obstacles, flow batteries and sodium-ion batteries show considerable promise for large-scale energy storage. Keeping up with the most recent developments in battery technology allows stakeholders to play a part in the shift to sustainable energy and the development of practical energy storage solutions. To maximise renewable energy sources, lower greenhouse gas emissions, and maintain a reliable power infrastructure, energy storage is essential. Examining the newly battery technologies that support this shift is crucial as we continue to tackle the worldwide problem of switching to sustainable energy sources.
• The manufacture of Li-ion batteries is expected to rise significantly in the foreseeable future. the growth of the battery industry based on an analysis of market reports. The switch from internal combustion engine vehicles to battery-electric vehicles is the main driver of this growth. A global production capacity of 3200 GWh/a in 2030, 7100 GWh/a in 2040, and 8900 GWh/a in 2050 is reached under the most likely growth path. Regarding the global market's regional distribution, Asia, and China specifically, continues to hold the top spot. It is not anticipated that regional market shares will change significantly based on the declared production capacities. According to the studies that were reviewed, by 2030, Europe will be able to supply a significant portion of its own battery cell needs. Based on the assumptions applied. Due to the multitude of influencing factors, there is a great degree of uncertainty in this result.
• The market projection for Li-ion batteries based on an analysis of 25 market development scenarios. Depending on the underlying assumptions, the market estimates are divided into maximum, minimum, and realistic development routes. The expansion targets declared by battery manufacturers are the basis of most of the maximum scenarios. It is reasonable to expect that not all the projected capacity for battery production will be realised. A few of the current market participants won't be able to endure and will retract their announcements. Most of the minimal situations are predicated on legal obligations. Many nations have already approved resolutions to phase out internal combustion engines, particularly in the vehicle industry. For instance, the CO2 fleet restrictions for passenger automobiles and light-duty trucks that are legal in the EU. These regulatory requirements serve as the foundational premise for the minimal scenarios' estimation of the anticipated market diffusion. The historically observable market diffusion serves as the foundation for the possible scenarios.

Top Active Players Involved Are:

Albemarle (US) ,Livent (US) ,Tesla (US),Fluence (US) ,BYD America (US),Piedmont Lithium (US) ,Sonnen (Germany),Bosch (Germany),Enel X (Italy),CATL (China),COSMX (China),Tianqi Lithium (China) ,Svolt Energy (China),CALB (China),Ganfeng Lithium (China) ,AESC (Japan) ,GS Yuasa (Japan),Hitachi Astemo (Japan),Panasonic (Japan),Toshiba Corporation (Japan),Liontown Resources (Australia),LG Chem (South Korea),Samsung SDI (South Korea),SK Innovation (South Korea),Northvolt (Sweden) and Other Active Players.

Battery Market Trend Analysis

Increasing Passenger Automobiles Runs on Batteries Enhancing Demand

• Passenger automobiles that run on batteries will be by far the largest market segment. Commercial vehicles, stationary power storage, consumer electronics, power tools, and related products are other, much smaller market segments. The most uncertain market segments are those related to stationary power storage, maritime power storage, and aviation. KPIs like energy or power density, which are neither gravimetric nor volumetric, have less restrictive constraints when it comes to stationary power storage. This greatly increases the amount of flexibility in selecting the cell chemistry. Sodium ion batteries are one type of novel battery chemistry with revolutionary promise. This battery technology is probably going to take a sizable chunk of the market share that is mentioned. Because of their characteristics, sodium ion batteries can be used in applications where great energy density is not strictly necessary. In the future, manufacturers may, however, also think about including sodium ion batteries in automobiles with a 400 km range. Significantly faster market dissemination may result from breakthroughs in the industrialisation of such less expensive batteries for stationary electricity storage. Passenger cars would still be anticipated to account for the largest market segment even under this scenario.
• The actual direction of the battery market's development may differ significantly from the most likely one. A positive deviation may result from the following events. Completion of all projects that were announced: Building, commissioning, and ramping up battery plants is a difficult undertaking that presents many difficulties, particularly for startups. It is also necessary to guarantee the availability of components, active ingredients, and raw materials. Thus, it is reasonable to assume that not all the projected production capacity will be constructed, put into service, and used to its full potential. Production capacities are negatively impacted by delays in time as well. If the production capacities are realised as declared and these assumptions prove to be incorrect, the market development will move into the region of maximum scenarios.
• Accelerated growth in demand, the feasible scenarios are predicated on the current regulatory structure. It has been noted in the past that new technologies are becoming more widely adopted in the market at an accelerating rate. Consequently, it's feasible that the battery market particularly in the automobile sector will expand far quicker than anticipated. Quicker decline in battery costs, as more batteries are manufactured, more people become aware of potential cost reductions. As a result, the realistic scenarios project battery costs to rise in the future in a manner consistent with the noted learning curve. The cost degression can be accelerated by new technical advancements, such as those in production technology or the advent of less expensive battery cell chemistries. It would therefore be expected that a new equilibrium in the market would arise, leading to a bigger market volume for batteries.

Restrains

Cost And Availability of Raw Materials

• Sustainability, Recycling, and Raw Materials Concerns regarding the availability and cost of raw materials for battery production have been highlighted by recent disruptions in the supply chain. A summary of current battery supply chain developments and issues may be found in a recent IEA paper. A steady supply of rare materials is necessary for the supply chain to remain stable. Many of them, most notably lithium, are exclusive to a small number of suppliers and production facilities. Given this, it would be ideal to take steps to strengthen the supply chain's resilience.
• Diversity of suppliers and sources of materials by region. Increasing the social sustainability requirements of material suppliers is crucial for supply chain resilience as well as morally required. enhanced recycling methods and extra supply chain efficiency measures, like labelling and tracking protocols. The Battery4Europe network, for instance, outlines the action item to create a tracing and tagging system for the entire life cycle by 2028. Furthermore, the idea of a "digital battery passport" is becoming more and more popular. Battery recycling is essential for lowering material shortages and battery environmental impact. One might anticipate a significant rise in recycling volume in tandem with rising battery manufacturing.
• According to recent predictions, Europe will produce 230 kilotons of lithium-ion battery components annually in 2030 and over 1500 kilotons annually in 2040.Existing recycling strategies suffer from the fact that end-of-life care is not considered in production processes, necessitating enormous effort in material separation. Currently used techniques include hydrometallurgical and pyrometallurgical processes in addition to direct mechanical separation. Pyrometallurgical processes need a lot of energy and materials for the chemical calcination and combustion processes. Although hydrometallurgical methods employ a lot of toxic materials and necessitate water treatment, they are more sophisticated and energy efficient. Both lead to significant expenses and a slow rate of material recovery.
• Currently, there is a -5 to +20% savings when utilising recycled material instead of never-used material. Therefore, the best course of action in this arena is to design cells and battery packs with a ready-for-recycling approach in mind. In general, people are becoming more conscious of how environmentally friendly batteries are. For instance, in lithium mining regions like Chile, water utilisation for mining is a major challenge. The battery industry is very interested in significant advancements in material recycling and efficient production methods because of the current uncertainties surrounding energy costs. These advancements are no longer just environmental in nature.
• It is obvious that the creation and implementation of sustainability standards and laws enhances the resilience of manufacturing and the security of the material supply. significant expenses and a slow rate of material recovery. Currently, there is a -5 to +20% savings when utilising recycled material instead of never-used material. Therefore, the best course of action in this arena is to design cells and battery packs with a ready-for-recycling approach in mind. In general, people are becoming more conscious of how environmentally friendly batteries are. For instance, in lithium mining regions like Chile, water utilisation for mining is a major challenge. The battery industry is very interested in significant advancements in material recycling and efficient production methods because of the current uncertainties surrounding energy costs. These advancements are no longer just environmental in nature. It is obvious that the creation and implementation of sustainability standards and laws enhances the resilience of manufacturing and the security of the material supply.

Opportunity

New Technology with Innovative Material Recycling

• Market Developments for Batteries in future, significant advancements in Li-ion batteries are anticipated. The analysis of KPI requirements in different applications shown above suggests that post-generation systems can help the market maturity of light-, medium-, and heavy-duty vehicles in road transportation in the future. Increased attempts to extend the cycle lives of Li-ion batteries, increased production of Na-ion batteries, and the release of better solid-state batteries onto the market would all be beneficial for stationary applications as well as air and sea mobility. Because of their relatively low energy density, Na-ion, metal air, and redox flow batteries are currently anticipated to find their primary use in stationary applications. Their long cycle life may also be advantageous in some mobility applications, as was previously mentioned. As the need for energy storage grows, so too will the market share of these novel ideas.
• The efficiency of the entire battery supply chain might be greatly increased by advances in innovative material recycling concepts, cell design, and manufacturing techniques. Significant cost savings are anticipated, while it is difficult to determine how much can be cut overall. A movement towards a more circular, diverse, and sustainable approach to the battery supply chain is being driven by growing awareness of risks to supply chain resilience and environmental impact. From the standpoint of the market, this tendency results in enhanced supply and cost stability. To ensure the batteries market's rapid growth and the anticipation of future cost reductions, technological research and development must be mandated. Public financing, industrial cooperation, and a rigors strategic research plan are necessary for achieve this goal.

Challenges

Supply Chain and New Technology Dependency

• New Battery Technologies Entering the Market The major obstacle facing the battery market in the future is the dependency of technology advancements and market demands. The market maturity of high-performance battery solutions is necessary for the advancement of battery application in numerous sectors, particularly in aviation and medical devices. In turn, the potential of the market influences technological development to some extent. To bridge the gap between market assessments and technological outlooks, this section outlines the most significant characteristics of a battery system with respect to anticipated developments in battery technologies, which include not only cell chemistry but also management systems and additional components, and how their introduction into the market may interact with demand scenarios in different segments.
• They function as a benchmark for "what a battery can provide" (in technology roadmaps) and a gauge for "how a battery can be used" (in market situations). Thus, we will concentrate our analysis on the definitions and patterns of KPIs as of right now. The format of this section is as follows: First, we'll provide a summary of the KPItarget values for batteries across the globe. Next, we'll talk about KPI trends in respect to battery technologies and market categories. Lastly, we draw recommendations for upcoming market developments based on the state of the art in research.
• On the other hand, several factors may also work against the growth of the battery industry, including supply bottlenecks upstream, Upstream supply chains must expand at a rate commensurate with the explosive development of battery production capacities. It is necessary to increase capacities concurrently throughout the whole supply chain. But increasing capacity takes far longer (5–10 years) than developing battery facilities (2–4 years), particularly in the commodity industry. Realistic scenarios also presuppose that not all announced capacity for battery production will be constructed. The growth of the battery market may be negatively impacted if considerably more difficulties than currently anticipated materialise in the upstream supply chains. The activities of governments are influencing elements that are challenging to evaluate.
• commerce disagreements between the United States and China led to a crisis in international commerce as early as the 2010s. Russia is a significant supplier of nickel, with a little less than 10% global market share; as such, the invasion of Ukraine by Russia and the sanctions that followed influence the battery business. As a result, these disputes may significantly affect how the battery business develops. They are difficult to forecast, though. The ramifications are even harder to evaluate. A further acceleration of the economic decoupling between China, Europe, and the USA may result in new conflicts and supply chain issues that could harm the growth of the battery market.

Battery Market Segment Analysis:

Battery market is segmented on the basis of Type, Product, Application.

By Type, Secondary Battery Segment Is Expected to Dominate the Market During the Forecast Period

By Type, the market is categorized into Primary Battery, Secondary Battery. In which Secondary Battery Segment Is Expected to Dominate the Market During the Forecast Period

• Rechargeable or secondary batteries are frequently utilised in a variety of settings. The most well-known include emergency and backup power; industrial truck materials handling equipment; and starting, lighting, and ignition (SLI) car applications. Additionally, more and more small secondary batteries are being used to power portable electronics like radios, cameras, tools, toys, illumination, and, most importantly, consumer electronics like computers, camcorders, and mobile phones. Recently, there has been a resurgence of interest in secondary batteries as an electric and hybrid vehicle power source.
• Secondary battery uses can be divided into two main groups. applications where a secondary battery serves as an energy storage device, drawing energy from a primary energy source when needed and supplying it to the load when the primary energy source is unavailable or insufficient to meet the load requirements. Hybrid applications, uninterruptible power supplies, standby power sources, and automobile and aerospace systems are a few examples. Applications where the secondary battery is used in a manner like that of a primary battery and is then recharged after use, such as in the devices that either separately or it was discharged. Because secondary batteries can be recharged instead of being replaced, they are utilised in this way for convenience, financial savings, or power depletion that primary batteries are unable to handle. This group includes most consumer electronics, electric vehicles, traction, industrial trucks, and certain stationary battery uses.
• Secondary cell batteries are important because they can boost battery performance and offer consistent power. To extend the battery's cycle life, secondary batteries can be built with pressure assemblies that keep the electrolyte protective layer and the first electrode in close contact. Moreover, polyimide film porous separators can be used with secondary cells to provide rapid charge times, low impedance, and high discharge capacity maintenance rates. The employment of NTC material bodies in the porous current collectors of the positive and negative electrode sheets, which guarantee low-temperature heat characteristics and good battery performance, is another benefit of secondary batteries. Moreover, it is possible to create coiled flat secondary battery cells, which reduces the requirement for an inner empty coil diaphragm layer and Secondary cell batteries provide increased energy density, longer cycle life, and overall better performance.

By Product, Lithium-Ion Battery Segment Held the Largest Share In 2023

By Product, the market is categorized into Lead Acid Battery, Flow Battery, Nickel Metal Hybrid Battery, Small Sealed Lead Acid Battery, Sodium Sulfur Battery, And Lithium Ion Battery, in which Lithium-Ion battery Segment Held the Largest Share In 2023.

• Though other cell chemistries are gaining ground, the Li-ion battery will likely continue to be the most widely used battery type until 2030 because of its strong market acceptance and well-established industrial value chain. The concept of Li-ion batteries is still in the process of being refined and has room for improvement. The goal of current research is to increase energy density while meeting other application-relevant KPIs.
• The need for consumer electronics has led to a rise in the significance of the EV and stationary storage businesses. The high energy density requirements of electronic and portable gadgets, as well as electric automobiles and vehicles, assure that Li-ion batteries will remain the dominant battery chemistry even while a wide range of battery and energy storage choices are becoming available for the stationary energy storage market. Still, advancements are still desired. Longer runtimes and quicker charge periods are required for consumer and portable devices to provide more functionality and keep up with rising processing power.
• Extended range, rapid charging, and of course reduced costs and prices remain critical to mass acceptance of EVs in the potentially profitable market. Of course, the market for battery electric cars is a major focus for many advancements in battery technology, providing a chance to serve a market where it is anticipated that battery demand would surpass 2700 GWh by 2030. Undoubtedly, the advancement of Li-ion technology, particularly the next generation, will be essential for several industries and battery manufacturers hoping to stay in business.
• Access to a steady supply of raw, refined, and processed material inputs is necessary for the development of a strong, secure domestic industrial base for lithium-based batteries. Simultaneous efforts must be made to provide sustainable alternatives and diversify the supply from both secondary and unconventional sources. The objective is to lessen the reliance of the United States' lithium-battery manufacturing industry on rare materials, particularly cobalt and nickel, to forge a stronger, more reliable, and secure supply chain. It is just as important to work with friends and through ongoing U.S. Government activities to secure trustworthy international and local sources for essential minerals3 as it is to eventually replace these materials in the supply chain for lithium batteries. Modern standards for environmental preservation, best-practice labour conditions, and thorough community consultation including with indigenous nations must be applied to new or increased production.

Battery Market Regional Insights:

Asia Pacific is Expected to Dominate the Market Over the Forecast Period

• Asia Pacific leads the world in batteries due to a combination of variables. First, it is home to major battery producers from countries including South Korea, Japan, and China. In terms of technological know-how and production capability, these behemoths have an advantage. Second, the region especially China is a significant market for electric vehicles (EVs), which means that these cars have high battery consumption. The need for batteries is also increased by government programmes in some nations, such as China and India, to encourage EVs and lower pollution. With its robust internal market and superior production capabilities, Asia Pacific maintains its leading position in the battery industry. Asia Pacific has a strong hold on the battery market due to several important elements that work together to form a potent ecosystem.
• Leading battery producers include LG Chem (South Korea), Samsung SDI (South Korea), Panasonic (Japan), and CATL (China) are in the region. These businesses have been in the industry for many years, gaining a great deal of experience and knowledge. The majority of the world's battery manufacturing capacity is in Asia Pacific. Because of economies of scale, they can create batteries at prices that are competitive. By consistently funding research and development, these producers have advanced battery technology. When it comes to improvements in energy density, charging times, and battery life, they are in the forefront.
• The greatest market for electric vehicles worldwide is found in China, a significant nation in Asia Pacific. This results in a huge domestic demand for batteries made especially for electric vehicles. Many governments in the area provide incentives and subsidies to encourage the adoption of EVs and the production of batteries. This further accelerates the adoption of EVs and the need for batteries by fostering a positive climate for manufacturers and customers alike. In many Asian nations, air pollution is a serious concern. Governments that encourage EVs help to reduce air pollution while simultaneously supporting the need for batteries.

Battery Market Active Players

• Albemarle (US)
• Livent (US)
• Tesla (US)
• Fluence (US)
• BYD America (US)
• Piedmont Lithium (US)
• Sonnen (Germany)
• Bosch (Germany)
• Enel X (Italy)
• CATL (China)
• COSMX (China)
• Tianqi Lithium (China)
• Svolt Energy (China)
• CALB (China)
• Ganfeng Lithium (China)
• AESC (Japan)
• GS Yuasa (Japan)
• Hitachi Astemo (Japan)
• Panasonic (Japan)
• Toshiba Corporation (Japan)
• Liontown Resources (Australia)
• LG Chem (South Korea)
• Samsung SDI (South Korea)
• SK Innovation (South Korea)
• Northvolt (Sweden) and Other Active Players.

Key Industry Developments in the Battery Market:

• In March 2024, Subaru Corporation and Panasonic Energy Co., Ltd., a Panasonic Group Company, announced they have signed a basic cooperative agreement covering the supply of cylindrical automotive lithium-ion batteries. Through this agreement, both companies reaffirm their commitment to contributing jointly to the resolution of various societal challenges, such as achieving a carbon-neutral society, promoting sustainable growth within the automotive and battery sectors, supporting local employment, and developing human resources.
• In February 2024, LG Energy Solution (KRX: 373220) announced it signed an offtake agreement with Wesfarmers Chemicals, Energy and Fertilisers (WesCEF) for lithium concentrate, further advancing the companies’ pre-existing partnership driven by the objective to deliver efficient and sustainable power solutions to the North American market.