Battery Market is segmented by Battery Type (Lead-acid [Flooded, VRLA-Gel, and VRLA-AGM], Lithium-ion, and Nickel-cadmium), Industry Type (Marine, Railway, Defense, Aviation, and Telecom), and Region (North America [The USA, Canada, and Mexico], Europe [Germany, France, The UK, Russia, and Rest of Europe], Asia-Pacific [Japan, China, India, and Rest of Asia-Pacific], and Rest of the World [Brazil, Saudi Arabia, and Others]).
Battery Market is segmented by Battery Type (Lead-acid [Flooded, VRLA-Gel, and VRLA-AGM], Lithium-ion, and Nickel-cadmium), Industry Type (Marine, Railway, Defense, Aviation, and Telecom), and Region...
“The Battery Market was estimated at US$ 7.4 billion in 2022 and is expected to grow at a CAGR of 2.7% during 2023-2028 to reach US$ 8.9 billion by 2028.”
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.
Battery Market Report Overview
Market Size in 2028
USD 8.9 Billion
Market Size in 2022
USD 7.4 Billion
Market Growth (2023-2028)
2.7%
Forecast Period
2023-2028
Base Year of Study
2022
Trend Period
2017-2021
Market Drivers
The global battery market is witnessing robust growth, fuelled by multiple factors:
Increasing adoption of electronic devices:
The widespread use of electronic gadgets such as laptops, smartphones, and cameras has fuelled the demand for lithium-ion batteries, which offer affordability, high power density, and minimal self-discharge rates.
According to Deloitte’s survey, over the last three years (2019-2021), sales of computers (+34%) and televisions (+12%) have outpaced smartphones (+1%), primarily due to the impact of COVID-19 and the rise in remote work and learning, leading to a surge in demand for various battery types.
Incentives aimed at promoting the development and manufacturing of batteries for electric vehicles by the governmentfor a carbon-neutral future.
Escalating demand for automotive batteries, particularly for electric vehicles, for a push towards environmentally friendly transportation solutions.
Market Restraints
Key challenges inhibiting battery industry growth:
Safety concerns:
The safety of batteries is heavily influenced by their chemistry, application environment, and handling practices.
Lithium-ion batteries, a dominant technology, exhibit inherent instability during operation. Understanding their electrochemical reactions and material properties is crucial to maintain safety.
Factors such as temperature and voltage regulation are crucial in battery functionality. Any deviations can result in gas and heat release, potentially causing battery failure and fire hazards.
Raw Material Price Volatility: The battery industry faces challenges due to fluctuations in the prices of critical raw materials.
Inefficiencies in battery recycling processes.
COVID-19 Impact
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 marketwitnessed 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.
Segments Analysis
Segmentations
List of Sub-Segments
Dominant and Fastest-Growing Segments
Battery Type
Lead-acid [Flooded, VRLA-Gel, and VRLA-AGM], Lithium-ion, and Nickel-cadmium
Lead acid is likely to remain dominant in the market, whereas lithium-ion is anticipated to maintain its growth momentum.
Industry Type
Marine, Railway, Defense, Aviation, and Telecom
Telecom remains the biggest demand generator for batteries. Aviation, in the post-pandemic market developments, is likely to rebound at the fastest pace.
Region Analysis
North America, Europe, Asia-Pacific, and the Rest of the World
Asia-Pacific remains the biggest market for batteries in the years to come.
By Battery Type
“Lead-acid is expected to remain the fastest-growing battery type in the market as it held a revenue share of more than 60% in 2022.”
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, lead acid is expected to remain the fastest-growing battery type in the market, 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.
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By Industry Type
“Telecom is expected to remain the key demand generator in the market, and it held a revenue share of more than 50% in 2022.”
The market is segmented into marine, railway, defense, aviation, and telecom. Telecom is expected to remain the key demand generator in the market. 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.
Regional Analysis
“Asia-Pacific is expected to remain the largest and fastest battery market as it held a revenue share of more than 40% in 2022.”
In terms of regions, Asia-Pacific is expected to remain the largest and fastest battery market. This region has a presence of robust and booming telecom industry and has also witnessed rapid growth in digitalization in a short period, promoting fast adoption of next-generation networks like 5G and IoT. Also, the presence of most of the 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.
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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. Most of the major players are providing both lead-acid and lithium-ion batteries in their portfolio.
The following are the key players in the battery market (arranged alphabetically).
Note: The above list does not necessarily include all the top players in the market.
Are you the leading player in this market? We would love to include your name. Write to us at sales@stratviewresearch.com
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Report Features
This report provides market intelligence most comprehensively. 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.
What Deliverables Will You Get in this Report?
Key questions this report answers
Relevant contents in the report
How big is the sales opportunity?
In-depth analysis of the Battery Market
How lucrative is the future?
The market forecast and trend data and emerging trends
Which regions offer the best sales opportunities?
Global, regional, and country-level historical data and forecasts
Which are the most attractive market segments?
Market Segment Analysis and Forecast
Who are the top players and their market positioning?
Porter’s five forces analysis, PEST analysis, Life cycle analysis
What are the factors affecting the market?
Drivers & challenges
Will I get the information on my specific requirements?
10% free customization
Research Methodology
This strategic assessment report, from Stratview Research, 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 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 Stratview Research’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.
We 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.
Customization Option
With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:
Company Profiling
Detailed profiling of additional market players (up to three players)
SWOT analysis of key players (up to three players)
Competitive Benchmarking
Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances
Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com
Recent Market News
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. Long service life, low maintenance, and reduced cost are the indispensable focus areas of the leading players. Some of the recent product developments are:
Japanese electronics supplier TDK Corp has successfully developed small-sized lithium-ion batteries with silicon electrodes, thus marking a significant breakthrough in battery technology. According to TDK Corp, these new batteries can provide a 10% higher capacity as compared to traditional graphite electrodes, and they can also be manufactured to be much slimmer than conventional batteries.
Betavolt, a Chinese startup, has developed a groundbreaking battery technology with an unprecedented capability - generating continuous power for 50 years without any recharging or maintenance requirements. The company's inaugural nuclear battery offers 100 microwatts of power output while maintaining a 3V voltage. This innovative battery features an extremely compact 15x15x5 cubic millimeters size. Betavolt aims to further enhance its technology by introducing a higher-capacity battery designed to deliver 1 watt of power by 2025.
Sodion Energy, a prominent energy company headquartered in Hyderabad, India, has achieved a significant milestone with the introduction of its inaugural series of sodium-ion batteries, marking the first commercial launch by an Indian firm in this space. These versatile batteries are suitable for a wide range of applications, including uninterruptible power supplies (UPS), starter batteries, and battery packs. Notably, Sodion Energy has developed its proprietary Battery Management System (BMS), specifically designed to optimize the performance characteristics of sodium ion battery (NIB) cells.
EnerSys’ NexSys PURE Thin Plate Pure Lead (TPPL) batteries, help reduce the unexpected operating costs associated with conventional lead-acid batteries.
Saft’s 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.
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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 supply energy when required. The main battery technologies are lead-acid, lithium-ion, and nickel-cadmium.
The battery market is estimated to grow at a CAGR of 2.7% during 2023-2028, driven by the recovering demand from the defense, telecom, and aviation industries and the rapidly declining cost of lithium-ion batteries.
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 (alphabetically arranged) are the leading players in the battery market.
Asia-Pacific is estimated to be the dominant and the fastest-growing battery market in the foreseen future, owing to the presence of a robust and booming telecom industry, rapid growth in digitalization, and the presence of most lithium-ion battery manufacturers in China. The key economies driving the region’s demand for batteries are China, India, and Japan.
Lithium-ion battery is estimated to be the fastest-growing in the market. This growth is attributable to the various advantages offered by lithium-ion technology over its counterparts paired with increased bandwidth requirements and the growing wireless market.
