Battery Industry Grows Fast, Electric Cars Can Be Cheap

Battery market growth in the world is getting faster and cheaper (photo: Michael Fousert/unsplash)

JAKARTA - According to new research published by Polaris Market Research, the global battery market is expected to grow at a Compound Annual Growth Rate (CAGR) of 11.3% from 2020 to 2026.

In 2019, the consumer electronics segment accounted for the highest market share in terms of revenue. Asia-Pacific is expected to be the main revenue contributor to the global Battery market in 2019.

The demand for smartphones and other mobile devices is increasing worldwide, which is driving the growth of the Battery market. The increasing use of batteries in various industries such as aerospace and defense, healthcare, and electronics has accelerated the growth of the battery market.

Increasing spendable income in developing countries, raising living standards, and growing environmental concerns are driving the growth of the Battery market.

The demand for electric car batteries has increased significantly over the years due to rising gasoline prices worldwide, resulting in the increased adoption of batteries.

The exponential growth of gasoline and diesel prices due to depleting fossil fuel reserves has prompted consumers to switch to battery electric vehicles, thus supporting the growth of the battery market.

Leading global players are expanding their presence in developing countries such as China, Japan, India, Indonesia, and Malaysia to take advantage of the battery market growth opportunities offered by these countries.

While there has been a significant decline in the price of Li-ion batteries over the years, which is driving the growth of the battery market. Most electric vehicles are equipped with Li-ion batteries.

The price of lithium-ion batteries has almost halved since 2014. The decline in battery prices has in turn resulted in lower battery electric vehicle prices.

According to the Institute for Energy Research, the cost of a Tesla battery pack in the current scenario is $190 per kWh. It is estimated that the cost will reach 100 US dollars per kWh by 2020, which significantly increases the market share of battery electric vehicles as well.

The increasing volume of battery production, and the increasing adoption of batteries in electric vehicles and hybrid electric vehicles have resulted in reduced battery costs.

Asia-Pacific generated the highest Battery market revenue in 2019, and is expected to lead the global Battery market during the forecast period. Population growth, increased spendable income and increased penetration of mobile devices have boosted the growth of the Battery market in the region.

The increasing demand for batteries from industries such as healthcare, automotive, electronics, and defense among others, coupled with the increasing acceptance of green technology and electric vehicles are driving the growth of the Battery market in the region.

Notable companies profiled in the Battery market report include BYD Company Limited, Duracell, Eveready Industries, Johnson Controls, Exide Technologies, LG Chem Limited, Sony Corporation, NEC Corporation, Panasonic Corporation, Toshiba Corporation, Samsung SDI Company Limited, and EnerSys.

These companies launch new products and collaborate with other market leaders to innovate and launch new products to meet the ever-increasing needs and requirements of consumers.