Battery Market

Battery Market Expected Growth Due to Rising Demand for Electric Vehicles and Increased Focus on Clean Energy

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The Battery Market is estimated to be valued at USD 119.99 billion in 2023 and is expected to exhibit a CAGR of 18% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Batteries are used in a wide variety of applications ranging from portable consumer electronics to electric vehicles. Major types of batteries include lithium-ion batteries, lead-acid batteries, and nickel-metal hydride batteries. Lithium-ion batteries dominate the market due to their high energy density and long lifespan. They are commonly used in electric vehicles, energy storage systems, and consumer electronics.

Market Dynamics:
The battery market is primarily driven by the rising demand for electric vehicles worldwide coupled with stringent emission norms. Governments across regions are offering attractive subsidies and tax rebates to promote electric vehicle adoption. For instance, in the US, there is a tax credit of up to $7,500 for purchasing an electric vehicle. Furthermore, growing focus on integrating renewable energy into the grid is also fueling the demand for battery energy storage systems, thereby propelling the battery market growth over the forecast period.

SWOT Analysis
Strength: Global Battery Market has high growth prospects. Innovations in battery technologies will deliver high energy density and longer life. Advancements allow applications in electric vehicles and renewable energy storage. Established players have extensive R&D capabilities.
Weakness: High production costs and dependency on raw material imports. Fluctuating raw material prices impact profit margins. Safety issues during manufacturing and transportation require strict compliance.
Opportunity: Rising demand for EVs and energy storage drives the need for advanced batteries. Investments in charging infrastructure will boost sales. Developing economies offer untapped growth potential.
Threats: Intense competition from local and international players. Stringent environmental regulations increase compliance burden. Trade policies and geopolitical tensions affect global supply chains.

Key Takeaways
The global battery market is expected to witness high growth, exhibiting CAGR of 18% over the forecast period, due to increasing demand for electric vehicles. Asia Pacific dominates the global battery market, led by China, South Korea, and Japan. These countries are major manufacturing hubs and have a strong presence of OEMs as well as battery suppliers.

Regional analysis
Asia Pacific accounts for over 50% share of the global battery market due to strong government support for clean energy initiatives in China, Japan, and South Korea. China has emerged as the largest producer and consumer of batteries owing to heavy investments in EV and energy storage sectors. North America and Europe are other major markets driven by growing EV adoption and grid infrastructure developments.

Key players
Key players operating in the battery market are BYD Company Limited, Panasonic Corporation, Contemporary Amperex Technology Co. Limited, Samsung SDI Co. Ltd, TianJin Lishen Battery Joint-Stock CO. LTD, GS Yuasa Corporation, Duracell Inc., Clarios (Formerly Johnson Controls International PLC), VARTA AG, LG Chem Ltd, Tesla Inc. and EnerSys. The top players are investing in new manufacturing plants and acquisitions to strengthen their global supply chain and product portfolios.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it