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Battery Market To Reach USD 428.32 Billion By Year 2032

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.

08-07-2024
Vishal Panchmukh
Electronics and Semiconductor
Pristine Intelligence LLP

According to a new report published by Pristine Market Research, titled, “Battery Market by Type, Product, Application: Global Opportunity Analysis and Industry Forecast, 2024–2032,” the global Battery market size was valued at $ 120.79 Billion in 2023, and is projected to reach $ 428.32 Billion by 2032, registering a CAGR of 15.10% from 2024 to 2032.

Batteries are essential for energy storage in a variety of applications, including renewable energy systems, electric cars, and portable electronics. Battery technologies are still at the forefront of offering reliable and efficient energy storage solutions for a range of sectors. Understanding the features, advantages, disadvantages, and most recent advancements in various battery types is essential to selecting the optimal technology for a particular set of energy storage requirements. Even though lithium-ion batteries are still the industry leader, lead-acid batteries are still better in several applications. Flow batteries and sodium-ion batteries exhibit great promise for large-scale energy storage with ongoing research and development activities targeted at enhancing their performance and overcoming major challenges.

Following the latest advancements in battery technology enables stakeholders to contribute to the development of workable energy storage solutions and the transition to sustainable energy. Energy storage is crucial for maximising renewable energy sources, reducing greenhouse gas emissions, and preserving a dependable power grid. As we continue to address the global issue of transitioning to sustainable energy sources, it is imperative that we look at the recently developed battery technologies that facilitate this change.

The realistic scenarios, which assume faster demand growth, are based on the existing regulatory framework. It has already been observed that new technologies are entering the market and gaining traction more quickly. As a result, it's possible that the battery market, especially in the automotive industry, may grow significantly faster than expected. A faster rate of battery cost fall as more batteries are produced, and more individuals are made aware of the possible savings. Thus, in line with the observed learning curve, the realistic scenarios predict future increases in battery costs. New developments in production technology or the introduction of less costly battery cell chemistries can hasten the cost degression.

Technological advancements in cell design, manufacturing processes, and unique material recycling might significantly improve the efficiency of the entire battery supply chain. While significant cost reductions are anticipated, it is challenging to estimate the whole amount that can be eliminated. There is a rising tendency in the battery supply chain towards a more sustainable, varied, and circular approach due to concerns about environmental impact and supply chain resilience. From a market perspective, this trend leads to increased supply and cost stability. Technological R&D must be legislated to guarantee the batteries market's quick expansion and the expectation of future cost reductions. To do this, public funding, industry collaboration, and a rigors strategic research strategy are required.

International trade was in crisis as early as the due to differences in policy between the US and China. Due to its substantial supply of nickel—roughly 10% of the world market—the battery industry is impacted by Russia's invasion of Ukraine and the ensuing sanctions. Consequently, these disagreements could have a big impact on how the battery industry grows. Still, it's hard to predict them. It is considerably more difficult to assess the implications. The economic separation of China, Europe, and the USA could accelerate further and lead to supply chain problems and new conflicts that could impede the expansion of the battery market.

Global Battery Market, Segmentation

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

Type:

The type segment is further classified into Primary Battery, Secondary Battery. Among these, the Secondary Battery sub-segment accounted for the highest market share in 2023. Secondary or rechargeable batteries are widely used in many contexts. The most well-known ones are industrial truck materials handling equipment; emergency and backup power; and starting, lighting, and ignition (SLI) automotive applications. Furthermore, an increasing number of small secondary batteries are being used to power consumer electronics such as laptops, camcorders, and mobile phones, as well as portable devices including radios, cameras, tools, toys, and lights. Secondary batteries are becoming more and more popular as a power source for electric and hybrid vehicles.

Product:

The product segment is further classified into Lead Acid Battery, Flow Battery, Nickel Metal Hydride Battery, Small Sealed Lead Acid Battery, Sodium Sulfur Battery, And Lithium Ion Battery. Among these, the Lithium-Ion Battery sub-segment is anticipated to show the fastest growth by 2032. owing to its solid market acceptance and established industrial value chain, remain the most used battery type until 2030. Li-ion battery technology is still being developed and has potential for advancement. Increasing energy density while fulfilling other application-relevant KPIs is the aim of current research.

Region:

The Battery market in Asia-Pacific is projected to show the fastest growth by 2032. Several factors combine to make Asia Pacific the world leader in batteries. First, it is home to significant battery manufacturers from China, Japan, and South Korea. These titans are superior in terms of production capacity and technological know-how. Secondly, the area, and China in particular, is a big market for electric vehicles (EVs), which implies that the battery usage of these vehicles is considerable. Government initiatives in some countries, including China and India, to promote EVs and reduce pollution, also raise the need for batteries. Asia Pacific continues to lead the battery business thanks to its strong internal market and excellent production capabilities. Due to several significant factors that cooperate, Asia Pacific has a firm hold on the battery market.

Some of the leading Battery market players 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)

Key Industry Developments

  • 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.

Key Findings of the Study / Key Industry Developments. 

  • Secondary Battery Segment Is Expected to Dominate the Market During the Forecast Period.
  • Asia Pacific is Expected to Dominate the Market Over the Forecast Period.
  • Increasing Passenger Automobiles Runs on Batteries Enhancing Demand.  
Pristine Intelligence LLP

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