Battery Market Growth, Trends, and Analysis by 2031

The Battery Market size is projected to reach US$ 182.06 billion by 2031 from US$ 115.97 billion in 2023. The market is expected to register a CAGR of 5.8% during 2023–2031. The growing demand for sustainable solutions is likely to remain a key trend in the market.

Battery Market Analysis

• The battery market is driven by the growing overall global demand for electric vehicles, renewable energy storage and portable electronic devices. An increase in the use of electric vehicles will be a major driver as automakers need to improve fuel efficiencies to comply with emission standards, and consumers are also showing interest in more environmentally friendly ways of traveling.
• Another major reason for the growth of the battery market will be the increased adoption of renewable energy sources that require energy storage solutions. Lithium-ion battery technologies are being enhanced through continuous world-record increases in energy density with enhanced battery safety as a focus to open new possibilities for electric vehicles and grid-level energy storage. Moreover, high-performance, long-lasting batteries will also be required for smart devices and similar IoT (Internet of Things) applications.

Battery Market Overview

• Currently, the market comprises various types of batteries depending on the application they are used for. The most often used kind of single-use battery is an alkaline battery. These non-rechargeable batteries, which are the least expensive type of battery, keep a constant discharge rate throughout their lifetime, resulting in dependable operation.
• Alkaline batteries are convenient, but because they are disposable, they are not a green alternative. The first rechargeable batteries to be created were NiMH batteries. The efficiency and cost impact of this skill are advantages.
• NiMH batteries have a lengthy charging period and produce less power the more times they have been recharged. Rechargeable lithium-ion batteries are a more recent innovation and are increasingly employed in laptops and cell phones.
• The number of recharging options makes them more expensive than NiMH at the time of purchase, but they will end up being less expensive in the long run. The ease of charging and more reliable power delivery throughout its lifetime are further factors in lithium batteries' appeal.

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Battery Market Drivers and Opportunities

Electrification of Transportation

• The current market is swamped by the developments in the technology to deliver highly efficient and sustainable power solutions for driving electric vehicles. The share of electric vehicles with the rising usage of electric vehicle batteries on the roads is increasing at a high growth rate. This scenario will increase the demand for secondary batteries in the market.
• For instance, according to a report by the International Energy Agency 2021, with approximately 10% of all new cars sold globally in 2021 being electric, EV sales set new milestones. This is a four-fold increase from their market share in 2021. Typically, batteries make up about 30% to 40% of an electric vehicle's (EV) price. It is anticipated that the pressure on the supply of batteries and their components is bound to increase in the coming year with the increase in the demand for EVs.
• For instance, according to the IEA 2021 report, the demand for EV batteries will rise from roughly 340 GWh now to over 3500 GWh by 2031. The supply of cell components must likewise increase by the same amount.
• Moreover, demand for automotive lithium-ion (Li-ion) batteries increased by more than twice as much in 2021 to 340 gigawatt-hours (GWh). The rise in electric passenger vehicles (registrations rose by 120%) is what is responsible for this surge. This factor is driving the demand in the global battery market.

Growing Demand for Advanced Battery Technology

• With the transition to a greener and more sustainable energy future, the need for advanced and efficient energy storage solutions that are long-lasting, reliable and affordable is becoming magnified. This applies from grid-level energy storage to portable electronic devices.
• Higher energy density, safety and longevity are achievable with advanced battery technology like solid-state batteries and next-gen Li-ion batteries, breaking through the current confines from a material, charging and structural standpoint. In this low-carbon energy future, the battery industry is well-positioned to take the lead in accelerating the energy storage evolution, representing a unique investment, research and development opportunity to satisfy the global demand.

Battery Market Report Segmentation Analysis

Key segments that contributed to the derivation of the Battery Market analysis are type, technology, and application.

• Based on type, the Battery Market is divided into primary batteries and secondary batteries.
• On the basis of technology, the market is divided into lead-acid battery, lithium-ion battery, nickel-metal hydride (NiMH) batteries, nickel-cadmium (NiCD) batteries, nickelzinc (NiZn) batteries, flow batteries, and others.
• Based on the application, the market is divided into electric mobility, consumer electronics, energy storage and others.

Battery Market Share Analysis by Geography

• The Battery Market report comprises a detailed analysis of five major geographic regions, which includes current and historical market size and forecasts for 2021 to 2031, covering North America, Europe, Asia-Pacific (APAC), Middle East and Africa (MEA), and South & Central America.
• Each region is further sub-segmented into respective countries. This report provides analysis and forecasts of 18+ countries, covering the Battery Market dynamics, such as drivers, trends, and opportunities that are impacting the markets at the regional level.
• Also, the report covers PEST analysis, which involves the study of major factors that influence the Battery Market in these regions.

Battery Market Regional Insights

The regional trends and factors influencing the Battery Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Battery Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Battery Market Report Scope

Battery Market Players Density: Understanding Its Impact on Business Dynamics

The Battery Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Battery Market are:

1. Duracell
2. CATL
3. Gotion High-tech Co. Ltd
4. CALB Technology
5. Energizer
6. Panasonic

Disclaimer: The companies listed above are not ranked in any particular order.

Battery Market News and Recent Developments

The Battery Market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the Battery Market are listed below:

• At Auto China 2024, CATL unveiled Shenxing PLUS—the world's first LFP battery that achieves a range above 1,000 kilometers with 4C superfast charging. This allows new energy vehicles to not only meet commuting needs in urban areas but also accommodate long-distance inter-provincial travel. (Source: CATL, Company Website, April 2024)
• CATL unveiled CATL TIANXING, its first EV battery brand for commercial applications, along with two products for light commercial vehicles, namely CATL TIANXING-L superfast charging edition and CATL TIANXING-L long range edition, which can achieve 4C superfast charging and a maximum range of 500 kilometers respectively. (Source: CATL, Company Website, July 2024).

Battery Market Report Coverage and Deliverables

The “Battery Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:

• Battery Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope.
• Battery Market trends as well as market dynamics such as drivers, restraints, and key opportunities.
• Detailed PEST/Porter’s Five Forces and SWOT analysis.
• Battery Market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments.
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the Battery Market.
• Detailed company profiles.