Battery Market Size, Share, Trend, Forecast, Competitive Analysis, and Growth Opportunity: 2022-2027

Market Highlights

The world is moving fast from fossil fuel power to emission-free electrification. Batteries, as a vital storage tool, are taking the center stage in enabling this transition. Batteries are stand-alone power sources that convert chemical energy into electrical energy through a chemical reaction. Between non-rechargeable (primary) and rechargeable (secondary) batteries, the latter are essentially used as energy storage devices where they are electrically connected to the main energy source, charged by it, and also supply energy when required. The main battery technologies are lead-acid, lithium-ion, and nickel-cadmium. These technologies find applications across industries; however, the scope of this report is limited to batteries used in the marine, railway, defense, aviation, and telecom industries only.

The battery industry has been experiencing the most disruptive journey in the past few years due to the supply chain crisis. The current battery production in the USA is struggling to keep up with the rising demand. In addition to the lack of manufacturing of Li-ion batteries in North America, there is also a shortage of cathode and anode materials, for which, the USA is solely dependent on producers located overseas.

The sudden outburst of the pandemic in 2020 further dampened the market. As a result of that, there was an enormous decline in the demand for batteries across industries. Overall, the battery market witnessed a significant decline of -6%+ in 2020. However, the industry began rebounding in the year 2021 with the recovering demand from the defense and telecom industries and the restart of aircraft deliveries. Furthermore, an incessant shift from traditional lead-acid batteries to lithium-ion batteries and the declining cost of the latter is likely to drive market growth in the years to come. Overall, the battery market is likely to rebound at a promising CAGR of 3.2% in the long run to reach US$ 8.7 Billion in 2027.

Recent Product Developments: Long service life, low maintenance, and reduced cost are the indispensable focus areas of the leading players. Some of the recent product developments are:

• EnerSys’ NexSys PURE Thin Plate Pure Lead (TPPL) batteries, help reduce the unexpected operating costs associated with conventional lead-acid batteries
• Saft’ ULM® batteries deliver the industry’s lowest total cost of ownership and offer high reliability over a long service life
• EnerSys’ PowerSafe® SBS batteries deliver long life, high-energy density, and superior shelf life for a wide range of applications
• Hawker Maintenance-free batteries by EnerSys
• 20Ah-HP SCiB™ rechargeable Li-ion batteries by Toshiba Corporation deliver both high energy and high power
• JVs and Acquisitions: Major companies in the battery market are performing mergers & acquisitions to quickly gain the leading position and tap growing opportunities in this briskly expanding market For instance; With the acquisition of Alpha Technologies in 2018, EnerSys was able to extend its product portfolio in the telecom and industrial markets
• To further expand its energy storage system solutions, East Penn Manufacturing Co. acquired the majority stake in Navitas Systems in 2019
• In line with its strategy to increase sales of premium products, EnerSys acquired N Holding AB (Parent company of NorthStar) in 2019

Market Segments' Analysis

Segmentations

• Based on the battery type, the battery market is segmented into lead-acid, lithium-ion, and nickel-cadmium batteries. Despite taking a huge plunge in double digits during the pandemic, lithium-ion is expected to remain the fastest-growing battery type in the market during the forecast period, owing to a plethora of advantages offered by li-ion technology such as high energy density, low self-discharge, and low to minimal maintenance. In addition to that, increased bandwidth requirements and the growing wireless market are expected to give additional impetus to the market growth during the forecast period
• Based on the industry type, the market is segmented into marine, railway, defense, aviation, and telecom. Telecom is expected to remain the key demand generator in the market during the forecast period. Telecom batteries are primarily used in backup power applications. With the growing use of cloud computing and data streaming, high-performance reliable backup power is essential now more than ever. Aviation is expected to be the fastest-growing market segment, owing to an expected rebound in aircraft deliveries and a push towards electric aircraft development
• In terms of regions, Asia-Pacific is expected to remain the largest and the fastest market for batteries during the forecast period. This region has a presence of robust and booming telecom industry and also witnessed a rapid growth in digitalization in a short period, promoting fast adoption of next-generation networks like 5G and IoT. Also, the presence of a majority of lithium-ion battery manufacturing in China will further drive industry growth. North America is likely to create sizeable opportunities in the coming five years, driven by the thriving aviation industry and the presence of key players such as EnerSys, East Penn Manufacturing Co., and C&D Technologies Inc

Key Players

The market is highly populated with the presence of several local, regional, and global players. Most of the major players compete in some of the governing factors including price, product offerings, regional presence, etc. The following are the key players in the battery market. Most of the major players are providing both lead-acid and lithium-ion batteries in their portfolio.

• EnerSys
• Saft
• East Penn Manufacturing Co
• Exide Technologies, LLC
• Zhejiang Narada Power Source Co., Ltd
• Leoch International Technology Ltd
• Amara Raja Batteries Ltd
• Toshiba Corporation
• C&D Technologies, Inc
• GS Yuasa Corporation

Research Methodology

This strategic assessment report provides a comprehensive analysis that reflects today’s battery market realities and future market possibilities for the forecast period. The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for the market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate the growth strategies to expedite their growth process.

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with the publisher's internal database and statistical tools. More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. The publisher has conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis
• Market trend and forecast analysis
• Market segment trend and forecast
• Competitive landscape and dynamics: Market share, Product portfolio, New Product Launches, etc
• Attractive market segments and associated growth opportunities
• Emerging trends
• Strategic growth opportunities for the existing and new players
• Key success factors

The battery market is segmented into the following categories:

Battery Market, by Battery Type

• Lead-Acid Batteries
• Regional Analysis: North America, Europe, Asia-Pacific, and RoW
• Lead-acid Battery Type Analysis: Flooded, VRLA-Gel, and VRLA-AGM
• Lithium-Ion Batteries (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
• Nickel-Cadmium Batteries (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)

Battery Market, by Industry Type

• Marine (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
• Railway (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
• Defense (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
• Aviation (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
• Telecom (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)

Battery Market, by Region

• North America (Country Analysis: The USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, The UK, Russia, and Rest of Europe)
• Asia-Pacific (Country Analysis: Japan, China, India, and Rest of Asia-Pacific)
• Rest of the World (Country Analysis: Brazil, Saudi Arabia, and Others)