Global Battery Market to Generate $298.1 Billion in the 2022–2031 Timeframe Due to Growing Demand for Environmentally-Friendly Transportation

In the most basic sense, batteries are those devices which convert chemical energy into electric energy. Thus, batteries, when connected to an external circuit, provide continuous supply of electrical energy by generation of a flow of electrons. In the contemporary context, batteries are mostly referred to those which power electric vehicles. While conventional vehicles run using fossil fuels, electric vehicles use batteries to power their engines which effectively reduces the burning of fossil fuels. Hence, vehicles running on batteries, i.e., electric vehicles, are considered to be an ecofriendly mode of transport. Apart from this, batteries are also used in consumer electronic goods such as smartphones, laptops, and tablets to power the devices.

Forecast Analysis of the Battery Market

As per a report by Research Dive, the global battery market is expected to reach a revenue of $298.1 billion in the 2022–2031 timeframe, thereby growing at CAGR of 12.1% by 2031. Some prominent market players include Contemporary Amperex Technology Co., Limited, SAMSUNG SDI CO., LTD., ENVISION AESC GROUP LTD, LG Energy Solution, CALB, EXIDE INDUSTRIES LIMITED, Advanced Power Solutions n.v., Shenzhen Grepow Battery Co., Ltd., Amara Raja Group, BYD Company Ltd., and many others.

Increasing demand for environmentally friendly means of transportation is expected to be the primary growth driver of the global battery market in the forecast period. Along with this, growing demand for electric vehicles in the automotive sector is predicted to boost the market in the analysis timeframe. Moreover, the increase in demand for portable devices and wearables is expected to offer numerous growth opportunities to the market in the forecast years. However, according to the market analysts, limited availability of raw material for battery manufacturing is expected to hinder the full-fledged growth of the battery market in the 2022-2031 timeframe.

Regionally, the battery market in the Asia-Pacific region is expected to be the most dominant in the forecast period. Increased urbanization, rising demand for renewable energy, and government initiatives to encourage the use of electric vehicles are predicted to be the three main contributing factors to the growth of the market in the forecast period.

Covid-19 Impact on the Battery Market

The Covid-19 pandemic and the subsequent lockdowns have had a catastrophic impact on various businesses and markets worldwide. The battery market, too, faced a similar fate due to the pandemic. The lockdowns forced the battery manufacturing companies to shut down their operations due to irregular supply of raw materials. This affected the overall sale of finished goods in the market, which brought down the growth of the market. Also, the demand for batteries from automotive industry and consumer electronics industry reduced, which further reduced the growth rate of the market.

Significant Market Developments

The key players of the market are adopting various business strategies, such as partnerships, mergers & acquisitions, and launches to gain a leading position in the market, thus helping the battery market to flourish. For instance:

• In March 2022, Reliance Industries, an Indian conglomerate, announced the acquisition of Lithium Werks, a lithium battery technology developer. This acquisition is expected to help Reliance Industries to increase its foothold in the battery market substantially in the near future.
   
• In March 2023, Winnebago Industries, an outdoor lifestyle products manufacturer, announced the acquisition of Lithionics Battery, a lithium-ion battery developer. This acquisition is expected to help the acquiring company to expand its market share in the coming period.
   
• In March 2023, ABP, a Japan-based battery startup, announced that it was partnering with Saudi Aramco, the world’s largest oil company. This partnership is aimed at developing materials for advanced lithium-ion batteries and is, thus, expected to help both the companies to increase their footprint in the market in the next few years.