Market Highlights
The specialty battery market primarily includes batteries used in the space, marine, aerospace, and defense industries. These industries demand fully reliable, lightweight, compact, maintenance-free, and high-energy-density batteries that deliver exceptional performance in extreme conditions. Most batteries currently use lead-acid and nickel-cadmium technologies, but lithium-ion is rapidly gaining ground. Silver-zinc batteries are also used in some space applications.
The emergence of the pandemic in 2020 frazzled the market. As a result, there was an enormous decline of 10.3% in the demand for batteries in these four industries. However, the industry has been gradually rebounding from the year 2021. The urgent need to electrify all types of boats and marine transport is creating ample opportunities for both lead and lithium-ion batteries. Furthermore, the increasing demand for unmanned ground vehicles for military applications accelerates the market growth of defense batteries, as they primarily bank on batteries with long lives. Space and aerospace are likely to witness excellent growth rates in the coming five years, driven by huge CubeSat installations and an expected increase in the production rates of key aircraft programs. Overall, the specialty battery market is likely to rebound at a healthy CAGR of 4.1% in the long run to reach US$ 3.7 Billion in 2027.
The specialty battery market 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 increasing demand. In addition to the lack of li-ion battery manufacturing in North America, there is also a shortage of cathode and anode materials, for which the USA is solely dependent on producers overseas.
Recent Product Developments: Long service life, low maintenance cost, 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 in reducing the unexpected operating costs associated with conventional lead-acid batteries.
- Hawker Maintenance-free batteries by EnerSys.
- EnerSys’ PowerSafe® SBS batteries deliver long life, high-energy density, and superior shelf life for a wide range of applications.
- SCiB™ rechargeable Li-ion batteries by Toshiba Corporation, deliver both high energy and high power.
Recent Market JVs and Acquisitions: Some 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.
- In 2019, EnerSys acquired N Holding AB (Parent company of NorthStar) for US$ 182.5 million. This acquisition helped the company to expand its renewable energy business.
- In 2016, the market leader, Saft, was bought out by Total Energies for US$ 1.1 billion. This acquisition positioned the former as Total Energies' leader in electricity storage.
Market Segments' Analysis
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Segmentations
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List of Sub-Segments
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Dominant and Fastest-Growing Segments
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Battery Type
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Lead-acid Batteries [Flooded, VRLA-Gel, and VRLA-AGM], Lithium-ion Batteries, Nickel-cadmium Batteries, and Other Batteries.
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The lead-acid battery is likely to remain dominant in the market, whereas lithium-ion is expected to be the fastest-growing battery type.
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Industry Type
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Aerospace, Marine, Defense, and Space.
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Defense to remain the biggest demand generator for specialty batteries.
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Region
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North America, Europe, Asia-Pacific, and Rest of the World
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North America remains the biggest demand generator for the specialty battery market. Asia-Pacific to remain the fastest-growing market.
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Based on the battery type, the specialty battery market is segmented into lead-acid batteries, lithium-ion batteries, nickel-cadmium batteries, and other batteries. Despite a humongous decline of over 10% during 2019-2020, lithium-ion is expected to be the fastest-growing battery type during the forecast period. This growth is attributable to the numerous advantages offered by li-ion technology such as high-energy density, low self-discharge, and low to minimal maintenance. Lead-acid battery, on the other hand, was the segment with the highest sales in 2021. VRLA-Gel batteries are best suited for super-deep discharge applications, whereas AGM batteries excel in high current, high-power applications, as well as in extremely cold environments.
Based on the industry type, the market is bifurcated into marine, defense, aircraft, and space. The defense segment is expected to remain the biggest demand generator of the market during the forecast period. Rising military expenditure in key economies across the globe is one of the primary factors driving the demand for batteries in this segment. Lightweight and compact batteries are in high demand in the defense industry for applications such as infantry communications, base camps & weapon systems, torpedoes, missiles, and hybrid armored vehicles.
In terms of regions, North America is expected to remain the largest market for specialty batteries during the forecast period. This region is the growth engine of the global defense battery market, owing to the presence of major defense and military products & service-providing companies, tier players, and raw material suppliers. Furthermore, the region marks the presence of leading global battery manufacturers such as EnerSys and EaglePicher Technologies. Asia-Pacific is expected to grow at the highest CAGR in the coming five years, driven by the increasing demand for defense ground support equipment by the military and a rise in overall military expenditure (especially in China and India).
Key Players
The market is highly populated with the presence of several local, regional, and global players. However, a handful of major players hold a reasonable share of the market. The following are the key players in the specialty battery market.
- Enersys
- EaglePicher Technologies
- Exide Technologies, LLC
- Toshiba Corporation
- Saft
- Leoch International Technology Limited
- GS Yuasa Corporation
- Camel Group Co. Ltd.
- Banner Batteries
- Shandong Sacred Sun Power Sources Co., ltd.
- Ultralife Corporation
Research Methodology
This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s specialty 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 2,000 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.
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 specialty battery market is segmented into the following categories.
Specialty 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)
- Other Batteries (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
Specialty Battery Market, by Industry Type
- Marine (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Defense (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Space (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
Specialty 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)
Report Customization Options
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
