Market Research Future (MRFR) presumes the global battery market to grow at a CAGR of 10.5% from 2020 to 2027 (forecast period).
A battery is made up of one or more cells that enable chemical energy to be converted into electricity. Batteries are used in transportation, industrial, and commercial applications to provide primary power or as a backup power supply.
The role of electronics in improving vehicle performance has been critical in two areas: refining powertrain performance to reduce emissions and increase fuel consumption and refining chassis, exterior, and interior to boost vehicle safety and comfort. Electronics make up about 40% of the components in a conventional Internal Combustion Engine (ICE) vehicle, and this figure will grow to 75% in hybrid and electric vehicles. These components account for approximately 25% to 30% of the total production cost. These systems also account for 90% of automotive innovations. These advancements in safety, advanced connectivity, and increased telematics availability are expected to serve as a stepping stone for the future growth of electronics in automobiles. The increasing demand for efficiency in automobiles has prompted the creation of innovative systems that aid in fuel conservation. To save fuel, start-stop systems switch off the engine while it is idling. During this time, the battery powers the vehicle's electronics, which also aids in restarting the engine. These advancements also increased the demand for advanced batteries with higher energy density.
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COVID-19 Impact on the Global Battery Market
Since the majority of the battery industry supply chain is based in China, the COVID-19 outbreak had a negative effect on battery production and sales during Q1 and Q2 2020. For example, lithium-ion battery sales for electric vehicles (EV) decreased in the United States and China. At the same time, in European countries such as Germany, EV sales increased by approximately 8.5% in Q1 2020. The declining price of a lithium-ion battery and the growing acceptance of electric vehicles are the primary drivers for the industry. However, factors such as a mismatch in raw material demand and supply for battery manufacturing are likely to stymie market growth during the forecast period.
The global battery market has been segmented into battery type and application.
By battery type, the global battery market has been segmented into lead-acid, lithium Ion, nickel-metal hydride and nickel-cadmium.
By application, the global battery market has been segmented into portable, automotive, and industrial.
Region-wise, the global battery market has been segmented into North America, Europe, Asia Pacific, and the rest of the world.
Because of growing automobile demand and industrialization, Asia Pacific is dominating the battery industry. Because of increasing automotive development activities, emerging Asia Pacific countries such as China and India are projected to hold the largest market share of the battery market. Growing consumer electronics demand and a rising number of electric vehicles in China and Japan are propelling the market forward.
Because of rising eco-friendly initiatives and the development of technologically advanced vehicles, the North American region is also critical to the growth of the global battery industry. During the forecast period, this area will expand at a rapid rate.
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Because of the involvement of major corporations throughout the regions, the global market is characterized by intense competition. Forwarding integration is a business segment in which primary battery manufacturers are often involved in the use and distribution of such batteries. To boost their market position, key players depend on strategies such as joint ventures and mergers and acquisitions. They also strive to increase their market productivity and share through RD and product innovation. With volatile raw material costs, industry competition is expected to be strong in the coming years, resulting in irrelevant entry barriers for new entrants.
The leading players in the battery market are Exide Technologies (U.S.), Douglas Battery (U.S.), Penn Manufacturing Company, Inc. (U.S.), Johnson Controls Inc (U.S.), The Furukawa Battery Co. Ltd (Japan), Zhejiang Haijiu Battery Co. Ltd (China), Chaowei Power Holding Ltd (China), CamelGroup (Italy) and Fengfan Co. Ltd. (China).
The global battery industry is predicted to grow at a CAGR of 10.5% from 2020 to 2027 (forecast period). A battery is a device that supplies electric energy to vehicles for starting, lighting, and ignition. The global battery market has seen tremendous growth in recent years, and it is expected that the global market will continue to expand during the forecast period. The global battery market will be driven by increasing demand for hybrid, semi-hybrid, and fully electric vehicles. The use of these batteries in passenger vehicles is also growing, which will boost this market. Rising mobile and laptop usage, technological advances, developing economies with rising disposable income, and government measures to replace fuel vehicles with battery vehicles are some of the main factors driving the global market. However, both battery safety concerns and the associated costs could stymie the global battery market's growth.